Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Addressing Issues and Challenges of Talent Mismatch

Ramesh Veloo & Hj Borhan Abd Aziz, The 3rd International Plantation Industry Conference & Exhibition 2012

Addressing Issues and Challenges of Talent Mismatch in the Planting

Industry – Planters Perspective.

The 3rd International Plantation Industry Conference & Exhibition5th – 7th November 2012

Le Meridien Hotel, Kota Kinabalu, Sabah

Ramesh Veloo & Hj Borhan Abd Aziz

Group Plantation Advisor Department

Tradewinds Plantation Berhad


A Professional Planter

Doctor

Accountant

EngineerSurveyor

And is usually so busy that he has to do his serious studying at meal

times

Well rounded multi talented/ skills.

Physically Fit

Can take pressure and serve under remote working conditions

Obey instructions and observe a strong chain of command

Absolute integrity

Architect


Presentation Scope1.Some background/challenges faced by the industry-

requiring young blood/talents to relook at these issues.

2.The need for talents and talent management in the planting industry.

3.Issue of talent mismatch and mitigation(Entry point, Managerial and Higher level management).

4.Conclusion.


Oil Palm Land Area.

1980 1990 2000 2010 1980 1990 2000 2010

P.Malaysia

906590 1698498 2045500 2524672

Sabah

93967 276171 1000777 1409676

Sarawak

22749 54795 330387 919418

Total

1023306 2029464 3376664 4853766

250,000

1,250,000

2,250,000

3,250,000

4,250,000

Oil Palm Planted Area, Malaysia (1980 - 2010)

Source: MPOB (2010)

Point of saturation -5.5mill ha.

Industry is posed by various issues and challenges –new blood/new talents required to relook at these issues.


Comparison of Rates of Yield Growth of Soya bean, Rapeseed and Oil Palm Since 1970’s

(2012)

FFB Yield(t/ha) against Average(Years).

The Yield Challenge.


Price Volatility: Monthly CPO Price Trend 2008 – 2012

Source: MPOB (2012)


US Soyabean Argentine Soyabean Argentine Sunflower UK rapeseed Malaysia Oil palm0

100

200

300

400

500

600

700

Annu

al o

il ou

tput

per

full

time

wor

ker,t

Labour Productivity.


Soyabean oil Palm oil Rapeseed oil (canada) Sunflower oil (ukraine) Coconut oil0

100

200

300

400

500

600

700

Early 2000s2020 Forecast

Real

USD

/ of

oil

Cost of Production.


The Challenge to Innovate & Change Traditional Practices.

The only big breakthrough as far as labour saving technology is concerned in the industry is the introduction of the pollinating weevils and the industry is hungry for the “quantum leap” innovation.


Global Agriculture & Food Supply

Japan & Rep of Korea pledge additional $60 mill to boost food security

More than 17 million people starving in West Africa’s Sahel region

Droughts drives food prices higher threatening the poor

Food price volatility a growing concern

The need to enhance talent management cannot be viewed lightly in the light of issues faced by global agriculture and food production .

http://www.youtube.com/watch?v=nxJEwC38Wsc


Where Money Grows on Palms!

Palm oil will remain to be a major contributing factor to the national economy.


Source: Statistical Yearbook for Asia and the Pacific (2011)

Worrying Phenomenon: Declining Share in Agricultural Employment

– Lack of interest


Professionals Planters and Supervisory Staffs

2012 2020 2012 20200

10

20

30

40

50

60

70

80

2012 2020 2012 2020 -

5,000

10,000

15,000

20,000

25,000

30,000

Global demand (million tonnes) & land area required (million hectares)

Executives & staff ratios industrial plantation

Global demand for oil palmGlobal demand for rubber (NR share 50% @ 1.4 mt/ha)Land area required for oil palmLand area required for rubber

Executives ratio of 5:2000 ha @50% industrial plantation (oil palm)Staff ratio of 1:500 ha @ 50% industrial plantation (oil palm)Executive ratio of 5:2000 ha @50% industrial plantation (rubber)Staff ratio of 1:500 ha @ 50% industrial plantation (rubber)

Oil Palm Rubber Oil Palm Rubber

Don’t forget rubber.


The Emergence of Talent Management in the Current Business Landscape•The World Economic Forum and the Boston

Consulting Group provides compelling evidence

that the talent crisis will affect every region of the

world in the coming years.

•The economic pressures of the last few years have

forced organizations to do more with reduced

resources by putting the the right people in place.

•The right talent is emerging as key competitive

differentiation component.

•Talent is accepted as The No.1 business risk in the

world.(Manpower Group, 2011). PLANTATION INDUSTRY IS NO EXCEPTION

PLANTATION INDUSTRY IS NO EXCEPTION


Talent Mismatch:The Global HR Talent Tsunami

Edward Gordon the author of Winning the Global Talent Showdown: How Businesses and Communities Can Partner to Rebuild the Jobs Pipeline (Berrett-Koehler Publishers, 2009). describes talent mismatch as the imbalance between talent supply and job requirements resulting with global "HR talent tsunami," which will strike globally and create intense competition for people with science, technology, engineering and math skills and for other educated professionals in most industries.


Don't possess the right personality and intelligence

Lack of "soft" skills or interpersonal skills

Don't possess right values or mindset

Looking for more pay than is offered

Lack of knowledge of business/ academic disciplines/ industry or formal qualifications

Lack of "hard" job skills/ technical skills

Lack of available applicants/ no applicants

Lack of experience

0% 5% 10% 15% 20% 25% 30%

6%

8%

10%

11%

15%

22%

24%

28%

Talent Survey 2011: Reasons For Difficulty Filling Jobs Globally*

ORGANIZATIONAL FACTORS

CANDIDATE-SPECIFIC FACTORS

ENVIRONMENTAL/ MARKET FACTORS

Source: Manpower Group (2011)*Based on survey results of 40,000 employers across 39 countries; 10 throughout Americas, 8 Asia Pacific and 21 across Europe, Middle East and Africa.

Talent Mismatch: A Global Phenomenon.


18

The Value of Talent: A Good Planter

Not many outstanding talents.

Research shows that outstanding performers typically deliver four to six times more performance than average.

Selecting or developing just one outstanding performer has huge impact on overall performance

Poor

Average

Outstanding/“Talent”

Performance

The best way to persuade senior management of the value of talent management is to put a value on that talent (ROI)

© HRPD Associates 2009


Career Path as a Planter and Mismatch Issues.

Cadet

Senior Manager

CEO

GM/PA

Asst.Manager

Senior Asst.

Manager

How Long Does It Take To Move This Ladder?.

Entry Point

Managerial Level

Senior Management 1

Senior Management 2


Social sciences, business and law; 39.4%

Science, mathematics and computing; 17.9%

Engineering, manufacturing and construction; 21.7%

Agriculture, forestry, fishing and veterinary;

1.4%

Health and welfare; 6.4%

Services; 3.0%General programs; 0.4%

Education; 3.7%Art and humanities; 6.3%

Source: Department of Statistics Malaysia (2010)

TOTAL UNEMPLOYED GRADUATES: 65,500

(917 of total)

Supply for Entry Points: Numbers/Quantity is No Big Issue.


What Market Can Offer: What Is Required:• A basic degree/ diploma.

• No hands on training.

• Poor command of English.

• “Bright light exposure”.

• IT savvy candidates.

• Clean/ cool working conditions.

• Not inclined to strong chain of command

• Passion & love for the job.

• Agricultural degree/ diploma.

• Hands on working culture.

• Good command of English.

• Remote working environment.

• Field loving candidates.

• Dirty, dangerous and difficult (3D).

• Inclined to strong chain of command.

Talent Mismatch: Entry Point Level


Basic Degree/Diploma Commitment & Hands On Have passion for the job

Chain of commandLove outdoor /challengesof remote working environment

Good command of English


Mitigate Talent Mismatch at Entry Point Level.• Revive interest in agriculture/plantation management.

Agriculture took a back seat with industrialisation and it is impossible to industrialise the whole plantation area. Prominence of agriculture especially in the Sabah/ Sarawak should not be forgotten.

• Introducing agriculture education as part of school curriculum/living skills.

• Agricultural education should not be merely a curriculum of vocational/technical schools.

• Attract top students/best brains to take up agricultural scholarships/ study grant at school level.

• Time to revive agricultural/oil palm university and produce more pure agricultural graduates.

• Emphasis on classroom, practical and hands on training and leadership values.


Indonesian Universities With Agricultural Faculties & Programs.SUMATERA

ANDALAS

BENGKULU

DEHASEN

EKASAKTI

ISLAMIC UNIVERSITY OF INDRAGIRI

ISLAMIC UNIVERSITY OF SUMATERA UTARA

JAMBI

SUMATERA UTARA

RIAU

SRIWIJAYA

SERAMBI MEKAH

JAVA

AL-GHIFARI SATYA WACANA

BOGOR AGRICULTURAL UNIVERSITY

SEBELAS MARET

BANDUNG RAYA SLAMET RIYADI

BRAWIJAYA TRUNOJOYO MADURA

GADJAH MADA WIDYAGAMA MALANG

JANADABRA WIDYAKARYA

JEMBER WIJAYA KUSUMA SURABAYA

MUHAMMADIYAH MALANG

YUDHARTA PASURUAN

PADJADJARAN

KALIMANTAN

LAMBUNG MANGKURAT

MULAMARWAN

TANJUNGPURA

SULAWESI

COKROAMINOTO PALOPO

DE LA SALLE

HASANUDDIN

SAM RATULANGI

GORONTALO

TADULAKO

BALI-NUSA TENGGARA

ARTHA WACANA CHRISTIAN

MATARAM

UDAYANA

MOLLUCAS

KHAIRUNPAPUA

MUSAMUS MARAUKE

STATE UNIVERSITY OF PAPUA


Malaysian Universities With Agricultural Faculties &Programs.

Universiti Malaysia Kelantan UMK

Universiti Malaysia Sabah UMS

Universiti Malaysia Sarawak UNIMAS

Universiti Putra Malaysia UPM

Universiti Malaysia Terengganu UMT

Universiti Sultan Zainal Abidin UNISZA

Universiti Teknologi MARA UiTM

KL Infrastructure University College KLiUC

Universiti Tunku Abdul Rahman UTAR

TWINTECH International Technology College TWINTECH

Kolej RISDA


Undergraduate Degree ProgramsINDONESIA

University Program University Program

Andalas •Agronomy•Horticulture•Crop Protection•Soil Science

Bogor •Agronomy & Horticulture•Landscape Architecture•Biosystem Engineering•Crop Protection•Soil Science & Land Resources

Sumatera Utara •Agribusiness•Agronomy•Agrotechnology•Animal Husbandry

Brawijaya •Agriculture Socio-economy•Agribusiness•Agronomy•Agrotechnology•Crop Protection•Soil Science

Sriwijaya •Agribusiness•Agricultural Extension•Agronomy•Crop Protection•Post Harvest Technology•Soil Science•Animal Husbandry

Gadjah Mada •Agricultural Extension•Agricultural Microbiology•Agriculture Socio-economy•Agronomy•Crop Protection•Plant Breeding•Soil Science

Muhammadiah Malang

•Agribusiness•Agrotechnology•Food Science•Animal Husbandry•Forestry

Sebelas Maret •Agribusiness•Agrotechnology•Animal Husbandry•Food Technology

Padjadjaran •Agribusiness•Agrotechnology

Hasanuddin •Agribusiness•Agronomy•Agrotechnology•Food Technology


MALAYSIAUniversity Program University Program

UMK •Agrotechnology Entrepreneurship•Bioindustrial Technology•Husbandry Science•Product Development Technology

UMT •Food Science•Food Technology•Post Harvest Technology

UMS •Crop Production•Horticulture & Landscaping•Livestock Production

UNISZA •Agricultural Biotechnology•Animal Production

UNIMAS •Science & Management of Plant Resources

UiTM •Plantation Technology & Management

UPM •Agribusiness•Agricultural Science•Animal Science•Bioindustry Science•Horticultural Science

UTAR •Agricultural Science

TWINTECH •Agricultural Biotechnology

Undergraduate Degree.



The Role of Technology.

•Plantations as a centre of technology.

•Avoid 3D or “slave drivers” image of the industry.

•A good tool to entice younger generation.

•Potential to minimise the mismatch.


• Ability to manage an estate independently.

• Poor organizational ability.

• Lack of technical competency.

• Ability to initiate and motivate team members.

• Leadership.

• Decision making.

• Integrity/ transparency.

• Communication skills.

Talent Mismatch: Managerial LevelWe are experiencing issues in promoting second liners to managerial positions.

The Need to Empty The Barrel.


The “Baby Foot Syndrome”- Whose Fault???

HOW SHOULD A PLANTER ALLOCATE HIS TIME?

THE PLANTER’S FOOT IS THE BEST FERTILIZER

Difficult to get planters to set foot in the field and organizations should review their management approach.

5% Passion


Managerial Level: Bridging The Gap.

• External Training Providers:

•Identify good talents.•Take stock of strength and weaknesses.•Prioritise area/scope of training.•Groom and Develop.•Narrow knowledge and experience gap.

•In house Training:


Don’t Forget!

Leadership Training This is a” VSOP” rich industry.


Problems related to upgrading to higher level management.

• Provide leadership at a higher level.

• Analytical skills.

• Able to see the big picture.

• Strategic thinking.

• Strong business acumen.

• High level decision making (million/billion dollar decisions)

• Highest level of Integrity and transparency.

• Networking/ communication.

Talent Mismatch: Higher Level Management


Executive Development Program & Higher Level Training.

Professional development servicesSaïd Business SchoolContinuing Professional Development

Advanced Management Program Transforming Proven Leaders into Global Executives

http://www.ox.ac.uk/

http://harrisonassessments.com/worldwide.html


1

3

5

7

9

11

13

15

17

19

21

23

25

0 2000 4000 6000 8000 10000 12000 14000 16000 18000

Manager Sr. Manager GM/PA

Years

Salary

Rewards Package : Brain Drain & Talent Mismatch.

In a 30 years career life as a planter, ¾ of a planters lifeis spent earning 43% of his lifetime earnings.


Succession Planning & Talent Duplication.


Conclusion.

•The issue of talent management and mismatch in the industry should be viewed seriously with the growing challenges in the industry.

•Talent mismatch occurs at various levels i.e. at entry point level, managerial level and high level management .

•The issue related to talent mismatch should be addressed by the stakeholders of the industry which includes the planter himself, employers or plantation companies as well as the government.


Many [email protected]

Documents

Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Addressing Issues and Challenges of Talent Mismatch