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Hiring Leaders A global manager’s failsafe guide to dominating any industry by employing its dominant people Southeast Asia edition Richard Mills Hiring Leaders A global manager’s failsafe guide to dominating any industry by employing its dominant people Southeast Asia edition Richard Mills Chairman, Chalre Associates Published independently by Chalre Associates Copyright © 2013 by Richard Mills All rights reserved. No part of this electronic book may be used or reproduced in any manner whatsoever without the written permission, except in the case of brief quotations embodied in critical articles and reviews that are acknowledged as to source. For information, address Richard Mills at [email protected] . To my family and friends… you know who you are. Attention: Corporations and Organizations In-depth training and development programs are available to improve management level hiring performance in your organization. For information, please email: [email protected] See other contact information at the website of Chalre Associates at chalre.com/hiring_managers . Chalre Associates has many years of experience helping international companies hire leadership talent throughout the Asia Pacific region. There are marked differences in hiring practices in Asia from other regions. We have set down some key information for hiring managers to use when recruiting management staff in Southeast Asia. Hiring Leaders A global manager’s failsafe guide to dominating any industry by employing its dominant people Southeast Asia edition Richard Mills Contents Introduction Why Learn Excellent Recruiting? 8 About the Author 9 Advancing Your Management Career 10 How is Success Determined? 15 Key Trends in Executive Careers 17 Planning Bad Hires Cost Plenty 22 Planning the Position: Creating the Job Description 23 Sourcing Sources of Experienced Managers 28 "Candidate Universe" Explained 32 Active & Passive Candidates 35 Talent Mapping for Executive Positions 37 Getting Candidate Attention 39 "Blacklist" Candidates 42 Interviewing The 10 Rules of Executive Interviewing in Asia 48 Dealing with Resume Deceptions 51 Balanced Interviewing: Getting the Complete Picture 54 What are Illegal Interview Questions? 56 Unlawful Questions Made Legal 59 Assessing The Management Assessment Process 66 Evaluating Asian Candidates 70 The Candidate Short-List Method 74 Leading Indicators of Future Success 76 Attributes of SuperAttainers 80 Why Managers Fail and What Can Be Done About it 83 Compensation Long Live the Expat Package (for now) 88 Income Structures in Emerging Countries 90 Pay For Performance 92 Uncovering Compensation Information 96 Salary Negotiations in Asia 98 Confirming Candidate Intelligence & Reference Checking 104 Reference Check Mistakes 107 Lawful Background Checks 109 Last Minute Changes of Mind 111 Onboarding Integrating New Managers 118 Problems Onboarding New Managers 120 Retention Employee Retention in Asia 126 Major Motivations People Resign 130 Rejection Fire Fast, Or Maybe Not 136 Rejection Notice for Executive Candidates 137 Outplacement Services for Terminated Executives 139 Recruiters Different Ways of Working with Recruiters 144 Motivating Recruiters to Focus on Your Positions 147 Retained Search Vs. Contingency Recruiting: What is the Difference? 150 Executive Search Contracts: Term and Conditions 154 Answers to Questions about Executive Search 158 Expatriates Choosing Expatriate Managers 166 Main Reasons For Expatriate Failure 169 Expatriate Culture Shock 172 "Gone Local" Expatriates 174 Culture Cultural Differences: Asian Business Customs 178 Cultural Differences: Asian Social Customs 181 Managing Asians 1: Actions that Help 184 Managing Asians 2: Actions that Harm 187 Corruption Corruption Perceptions in Asia 192 How to Handle Corruption 194 Countries Singapore 200 Malaysia 203 Thailand 206 Philippines 208 Indonesia 211 Vietnam 213 Cambodia 215 Laos 217 Myanmar 219 Special extras Quotes About Hiring People 224 Master List: Executive Interview Questions 228 Glossary of Executive Search: Terms & Concepts 233 Hiring Leaders 6 Introduction 7 Hiring Leaders Introduction: Hiring Leaders Why Learn Excellent Recruiting? This series of At perhaps no other time in history is success determined as much by a leader's articles under ability to perform this critical task. In the past, economic factors such as access the title "Hiring to capital, controlling scarce resources or great ideas were considered foremost. Leaders" will But in today's highly connected and efficient global economy, these are more upgrade your often considered mere commodities as long as the right people can be brought ability to bring together to oversee them. Below average managers tend to spend a lot of time the finest people worrying about the many usual challenges in business: costs, sales revenues, available into competitors, efficiencies, lawsuits, disruptive technologies, strategic decisions, your organization and so on. and your life. That's all well and good but top managers seem to spend disproportionately more of their time worrying about having the best people on their side. They know that any problem can be solved (or at least side-stepped) if the right people are managing the situation. Humans are the source of our biggest opportunities — as well as our greatest problems. Organizations that are the best at sourcing, hiring and retaining the best people will vanquish those that are not. Given how fundamentally important the task to the success of organizations and individual managers, it is remarkable that specialized training for the skills required for recruitment are so hard to come by. Most corporations don't have in-house development programs on management hiring and, more scandalously, business schools seem to ignore the subject completely. The key ability so essential to you and your organization's success is developed mainly in the haphazard manner of trial-and-error with intermittent and off- the-cuff advice from mentors. The result is that personnel selection decisions are more often created through instinct and emotions. It is clear that the hiring process can be vastly improved if it is based on scientifically-founded fundamentals. This electronic book is meant to address this deficit and help to make you preeminent at the critically important skill. Recruiting is Learnable! 8 Introduction Richard Mills - Executive Search in Asia About the Author Richard has spent more than 20 years in recruiting and estimates he has interviewed and assessed upwards of 20,000 people working across North America, Europe, the Middle-East and Asia. From his current base in Manila, he supports many of the most senior leaders across Southeast Asia. He has followed the careers of many who have made monumental contributions to their industries and to society, and more than a few others who ended up broke or in jail. He is Chairman and Founder of Asia CEO Forum, one of the largest regular business events in Southeast Asia and Asia CEO Awards, one of the largest Richard Mills business awards in the region. Chairman, Chalre Richard is a featured presenter for Asia regional conferences and provided Associates Keynote Addresses for the following international expositions: HR Shared contact Services & BPO (Singapore), Successful Shared Services (Singapore), Executive Richard at Compensation & Benefits EXPO (Singapore), among others. [email protected] He is a past columnist and thought leader for a host of international publications including: CIO Magazine, Economist, ComputerWorld, FinanceAsia, AsiaMiner, among many others. He is founder of the International ICT Awards, the largest event of its kind in Southeast Asia for the booming Business Process Outsourcing (BPO) sector. Richard's clients are multinational corporations for senior management positions. Of the many international recruitment projects he worked on in the Asia Pacific region, one was particularly noteworthy as it was reported on national Korean television as the largest technical recruiting venture in Korean history. The project was also a cover story for ComputerWorld magazine throughout North America. Richard has an Honours Bachelor of Science degree from the University of Waterloo, Canada's most prominent technical post-secondary institution. He possesses the designation of Chartered Financial Analyst from the CFA Institute with its world head-quarters in Charlottesville, VA, USA. Richard is a founder and past Prize Committee Chairperson of a large charitable Dream Home Lottery corporation. During his involvement, it was the largest fund raising event of its kind in Canada. Mr. Mills is also a former president of the largest district of Crohn's Foundation of Canada. 9 Hiring Leaders Career Advancement in Asia Advancing Your Management Career Many people Most management people are hard-working and smart but often don’t have ask us for ad- well defined strategies for their own career progress. They seem to put all their vice on what faith in their organizations to provide the right experience, guide them on they can do to training and promote them regularly. In Asia over the past couple decades this improve their strategy has worked for many people. Fast economic growth has lifted millions careers and of people farther and faster than at any time in history. However, counting on become more being in the right place at the right time is not a sustainable strategy for long- valuable to term career success. employers. It is a noble objective The key for ambitious managers is to think how to differentiate themselves from and important the crowd of other qualified people – most of whom are also smart and hard- for all societies working. Since virtually all people are promoted or hired into positions after that people de- being compared with other options, this only makes sense. Decision-makers sire to improve always keep their eye out for who stands out. their situation. If you happen to have remarkable skills in something important like sales, leading people or innovation, then your strategy is clear – continue developing these skills to be the best in your industry and you will stand out. But most of us have to be content with being only a bit above average in some things and perhaps a bit below average in others. It is for this vast majority of people that the strategies below are written. Here are some of the main tactics that will differentiate you from the crowd of other candidates whether you are trying to be promoted in your own organization or move to another. Strategy 1: Build Relationships Most people would agree that top people tend to be well known in their industries and business communities. This is not an accident. They need to know people so they can get things done. Successful people have close contacts with suppliers, customers, government and even competitors so they can get 10