Gene aS CoS UCL CE eee DE WUMAN RESOURCES —— ee hop eis gee = aur. Ss y Aol ieee Rett ues aT pie) MMO caetes 2: = TeGrateful to be the aye ET Uysal GOLD award Elo Sco es-[a.4 Best Contract Staffing Solution Agency — Gold HR Vendors of the Year 2017, HK, Human Resources HR Vendors of the Year 2016, HK, Human Resources For the second year in a row, Kelly Services Hong Kong has been blessed with the “Best Contract Staffing Solution Agency” Gold Award 2017, making us the first agency to have claimed this award back to back. We are grateful to all our clients, partners and contract staff who have supported our award submissions with their testimonies. Your trust and confidence in Kelly have given us the impetus to drive ourselves to become an undisputed leader in the industry. We will continue to strive for breakthroughs in our solutions and dedicate our efforts to staff motivation in 2018 and beyond. Connect with us on (3) (852) 2281-0000 | kellyservices.com.hk A PERSOLKELLY COMUMAN SOURCES SX 388 er cue a Cn eee ee ca A a eo roe! Sr ed re ey) eet Gi Kien san Chris Davis hris@ninehillsmedia.com Contents aor Paul Davis P2 President's Me: Designer P4 What's Hot Portia Le Automation Anxiety on Up-skiling as Machines Make Inroads into Advertising Inquiries Pt Jennifer Luk sure HR Function E: jennifer@ninehillsmedia.com P12 HR Horizon Frank Paul Competing for he Best: Hir Tova) E: frank@ninehillsmedia.com Pas . Published by: P18 HR Toolbox HR Increasingly Undo 9 i media CD eee Ninehilts Media Limited P25 PME SEI e RRM REM ATE P27 Legal Highlight Reema interne: wa ninentsmedia.com oso ot aernchiereme ose Foy bs opesechd resend ay reo P34 P35 P36 HKIHRM News: Do you want to talk about a fresh HR issue? If so, pleace contact chris@ninebillsmedia.com to discuss contributing an article for publication in the journal. MRC (HRMS) Limited MRCM nfo@mrchrcomLabour Shortages and HKIHRM Pulse Survey on Hiring of Retirees Dear Members, ong Kong is facing a tight jabour market which has raised concerns for employers, especially at a time when the city’s latest Lnemployment rate registers at 2.8%, a two-decade low, against the backdrop of our dwindling manpower pool resulting from 2 low birth rate and ageing population According to the Census and Statistics Department, Hong Kong's crude birth rate in 2017 stood at 7.7 drop from 13.5% in 2011, At the same time, Hong Kong's population aged 65 or above has reached 1.16 million, and by year 2036, the population in this age bracket is estimated to soar to 2.37 million, Statistics also show that the projected number of workers in Hong Kong will decline from 3.65 million in 2017 to 3.43 million in 2037, with a staggering drop of 6% in Hong Kong's manpower pool in the next two decades. a continuous In early August, | represented the Institute to attend the 2018-19 Policy Address Consultation Session to share members’ views on employment: related issues, among which the shrinking workforce and labour shortages were high on the agenda. While the government has put in efor shortages by introducing various talent importation schemes to attract talent from overseas and the Mainland, there is untapped local human capital that can be further explored such as women with family responsibilities, the disabled and ‘thnic minorities. Equally important, to relieve Hong Kong's tale the increasing population of “young- olds” and retirees who are still physically able and willing to work can possibly provide an immediate solution to alleviate our current labou shortfall. The government has taken the lead to extend the retirement age of general vil servants and staff members of disciplined services to 65 and 60 ‘espectively, hoping that the private sector will follow suit to extend the ntractual retirement age. To give ‘employers more impetus to consider fe-employment of "young-olds”. itis suggested that the government should extend the employment programme for the middle-aged workforce to ‘employers whe engage mature aged workers aged 60 or higher. In tandem with the current measu itis essential that the government ‘seeks to provide means and incentives to encourage our workers to pursue life-long learning to develop new skills and knowledge in order to meet Hong Kong's future needs Engaging mature-aged workers and retirees in extended employment will bbe a major area for the government to focus on when it comes to planning for Hong Kong's future human capital development. The HR profession » certainly have an influential role to play in advising the government on such issues. In this connection, the Institute conducted an HR Pulse survey with members in late August and early September to understand the attitudes of businesses towards the employment of retirees, including current practices and policies, as well as perceived advantages and barriers. | ook forward to sharing the findings of this survey which forms part of the Institute’s research efforts in generating conversations and insightful views on ways to sustain an agile and resilient workforce. Margaret Cheng President of the HKIHRMToday HR personnel put more than 70% of their time on document processing. With limited resources, it's difficult to focus on more valuable areas MRC Human Resource Management System POE vA) Peeeucued Appraisal Staff Portal We are confident that the company can save up your time on Pech utes hee omnia Reus Cae focus on core business, and other highly impactful areas. MRC (HRMS) | Lim ted MRC +852 2861 2282 Einfoamrchcom www.mrchr.comAutomation Anxiety on Up-skilling as Machines Make Inroads into Jobs By David Hope, President, Workday Asia Pacific + While experts differ on the timeframe and by how much artificial intelligence- set to side-tine human labour, itis clear that the threat to job security has r: owered robotic technology is d concerns among workers. employees looking at the impact and acceleration of digital transformation with a mix of fear and anticipation, according to an Asia-Pacific Workday/IDC survey, the HR function has an opportunity to calm fears and “future proof” employee skills with a combination of communication, training and education. ‘rom disruptions in technology Hardly a day goes by without hearing work across all types of industry sectors. to dramatic shifts in about a new study describing the far- Currently, however, most Al automation organisational norms, artificial reaching implications of advances in involves routine, structured and repetitive intelligence (All isn't coming; Al replacing human endeavours, so activities such as the collection and it's already here. Ready or not, from the naturally employee concerns about job processing of data, but this hasn't stopped employee and employer perspective, Al security are understandable. There is no widespread speculation and predictions is being introduced and experimented doubt that Al, chatbots and robotics are about the mass erosion of jobs, some of with across most business sectors, reshaping employment and the future of which is hype and some of which is reality 5 unas resources» sereHowever, amid the gloomy predictions of jobs losses, new jobs will be created; existing roles will be redefined; and workers will have the opportunity to switch careers. Importantly, those leading the change must not lose sight of the human element. Besides equipping itself with the tools, knowledge and resilience to adapt to a transformed digitised environment, the HR function must rise to the challenge of equipping employees “with the right skills” ranging from compute literacy to technology maintenance and programming skills, so that employees have confidence in their careers while meeting future business needs. However, in Hong Kong, employers and HR practitioners still have some ground to cover before they can gain the confidence of employees. Survey reveals employees’ concerns Results of a new Asia Pacific Survey - The Drive for the Digitally ‘enabled Workforce commissioned by Workday, conducted by research firm IDC during the first half of 2018 assessing employees’ attitudes and readiness for the digital economy, revealed that 57% of Hong Kong employees surveyed feel that their job is at risk while 43% also feel that they don’t have the right skills to compete in the digital economy. According to the survey, the digital economy is driving a dichotomy in the talent market: retention challenges and reskilling needs. 55% of Hong Kong respondents feel that the! employers and managers are not actively engaging them to “future: proof” their career. By 2021, according to IDC, at least 60% of Asia Pacific's GOP, excluding Japan, will be derived from digitalised-related sources. The prediction includes Hong Kong, which by 2021 IDC estimates around 60% of its GDP will be derived from digital products or services—up from just 59 in 2017, These include products and services created through the use of technologies such as mobility, cloud, Internet of Things {loT] and Al. But the worrying challenge for employers, is that the survey found that the more confident employees are that they have the required digital skill-sets to thrive in the future economy, the more likely they are to be planning to leave their current company. This prompts the need for employers to make the effort to share their digitalisation plans with staff they hope to develop, provide employees with relevant skills and compensate them accordingly for their new roles or risk losing them to competitors, The survey involved more than 1,400 employees from Australia, Hong Kong, Japan, Korea, Malaysia, New Zealand, Singapore and Thailand, to determine their attitudes and readiness for the digital economy, including how they perceive jobs impacted by digital transformation [threats versus opportunities); what employees intend to do, or are doing, driven by these perceptions; and the challenges employees face to be future-ready”. The sample included representation from start-ups and established enterprises, different sized companies, gender balance, and a mix of 50% millennials, 40% Generation X and 10% Baby Boomers. Respondents were primarily professionals (36%) clerical workers (31%I, service and sales workers 10%] and legislators and senior officials (7%, With concerns about job security riding inthe background of an increasingly digitised work environment, the Workday/IDC survey found that Hong Kong workers are among the region's most discontented with nearly a quarter (23%) of respondents saying they are unhappy. Ifthe “right” opportunity presents itself, 81% of employees surveyed in Hong Kong indicated they are open to switching jobs with 25% of respondents planning to leave their employer within a year. With digital transformation emerging over the horizon, major push factors for employees are concentrated around compensation (22%I, looking for better work/life balance (14%) and lack of career prospects {13%I in their current job. With no discernible trend by generation, gender or size of company, the three countries surveyed with the most engaged and satisfied employees. are Thailand (96%], Malaysia [84% Australia and New Zealand (both 82%! The three countries with the least engaged or satisfied employees ar Korea (35%, Japan (29%] and Hong Kong (2:ners can lead employees down the digital path [As the concept of work, worker and workplace rapidly transform, the HR function needs to be on the front line of this revolution, helping employees acquire the skills that will be needed to thrive in the workplace of the future. While digital transformation means diferent things to different ‘organisations, depending largely on the sector they operate in, its clear from the Workday/IDC survey findings that a lack of engagement opens the way for improved employee communication and education. With 52% of employees surveyed indicating they believe itis the responsibility of their employers to ‘equip them with the “digital ready” skills they need, and 48% of respondents indicating the obligation to digitally Lup-skill isthe responsibilty of the individual, there are two avenues where the HR function can explore strategies for engagement. For this to take place successfully, however. requires a clearly defined goal that makes sense from a business perspective supported by committed management that is determined and agile enough to drive change. The HR function needs to ensure there are processes and 6 wusan mesoUuRcES «Se systems in place to support strategies, for example, to identify talent needs ‘matched to business needs and operate along clear lines to engage, train and retain key employees. Losing top talent through fear of job security or a lack of ‘opportunities can be costly both in terms of replacement and time lost in pursuing the organisation's digital journey. HR as a key influencer in strategic digital transformation in an era when technology is becoming ‘omnipresent, an organisation's employees that feel they have the skills to keep their jobs safe could be an all- important competitive differentiator. And yet, while the HR function is. playing an active role driving digital preparedness decision-making within ‘some organisations, within many organisations covering a broad sweep of industry sectors, the HR function is conspicuously side-tined from the main decision making process. Often, this is because the HR function still maintains its traditional role as a supporter of business, rather than a leader and is likely to be a passive recipient of digital strategies run by the likes of the IT or marketing departments. For the HR function to focus on digital transformation communication and education, it needs to operate at a strategic level, which means taking a seat at the senior management table. To move ahead, HR practitioners also need to be able to utilise cloud based HR management systems and automated processes instead of relying on time-consuming, disparate manual systems. The switch from disparate manual systems to an automated cloud platform is necessary for the HR function to re-channel time and resources to take up the challenge of transforming the workforce and the way that work is done in the digital era, With data analytics the new oil, the HR function needs to be able to reimagine the organisational structure—and how this impacts its talent management programmes from recruitment to training to ensure that employees have the skills and confidence to adapt to change and embrace the digital workplace. The journey will almost certainly be long and complex across the entire organisation, butii’s a journey where the HR function needs. to play a tactical role. seeee) eae ey DTU cu US un en} Vit bilae PTE Gee Cima csiiCurcaam t FUTURE FL Mantes Peg COD CUCU Cu MEU es Un uk CS Tg CRS LC CT As 2 ®e®Oe® UBS LLC Dr Andy Chun Willie Cheng q Cindy Chow @)2 iE Brett Cooper Peter Ho €)" Danny att Bl" Marco Jorge ic Enoch Li g Sam Lau Ol Dr Andes Leung 9 Michael Leung, MH Prot Ed Snape yD sits a Prot Andy Wong a Mis Wong Shovacen pr oe oe e|= Xu, Phd @): Stanley Yau = compute Peter Zhang Delegate or Visitor ectnoeses COL naexe QO were Gut OAK, cLP@Dew — paiyvicion Ermicepad — Dciassined @cpjobs 1Looking Ahead, Future-proofing the HR Function + The HKIHRM Annual Conference & Exhibition 2018 will take place on 27 and 28 November, with the theme Human AR: Agility x Resilience - Connecting with the Future Workforce’ + Featuring panel discussions, interactive workshops and high-level speakers who will provide practical takeaways, the two-day conference and exhibition is designed to help multigenerational HR practitioners remain at the forefront of industry change in the digital age.With around 40 e drawn trom the region and across the world who wil offer fresh perspectives best practices, the HKIHRM, Annual Conference & Exhibition is recognised as one af the most important people management events in Asia, Pane! members representing a combination of traditional organisations and new enterprises, including technology and fintech firms, which in some cases are rewriting the talent management script approaches to employee manage strategies which enable quicker decision making, accurate pre: and equip professionals with the necessary tools to meet specitic needs and goals. outline their innovative ions Building on the success and posit feedback from last year's Conference & hibition, which was characterised by technological developments redefining traditional HR and workplace practices, fuelling innevation and new forms of jork, the Co-chairpersons explain that this year’s event will delve deeper into the similar topics with increased emphasis on the most challenging aspects that HR professionals frequently encounte technological disruption ang engage younger generation work will Bring together a diverse mix of speakers and professional from start-up firms to establish enterprises to share their different talent management experiences Represé he HR leaders of tomorrow, young HR practitioners will algo share their experiences, ways to rktorce values and car generational perspe ensure the conference and exhi meets the needs a multigenerational HR practitioners, ins that the stresses Aileen, who expl Organising Committee members have contributed valuable suggestions to eneure the conference and exhibition tailored to meet multigenerational interests and different levels With the stresses and strains associated with the workplace and madern living becoming a concern for employers. conference speakers including Guru Plenary session speaker, Or Leonard Lane, board member, Fung Academy and advisor to the Group Chairman, Li & Fung Ltd, will provide useful insights on various ways to build and apply esilience skills amongst employees as well as HR professionals. As the Co- chairpersons see it, when it comes to growing the capacity for resilience in the workplace, fostering good resilience skills provides employees with thet land techniques to manage work and daily life pressures more effecti Invaluable opportunities for networking Although nei processes corner of organisations the Co hairpersons point out t needs to provide the same services it has always provided, des hiring, professional development and technologies and agile e permeat function HKIHRM Annual Conference & Exhib Organising Committee List performance management - but in transformative ways that are responsive to the ongoing changes in the culture and work style of the organisation, The Co-chairpersons also explain that because HR touches every aspect of an organisation, its own transformation ‘may be even more extensive, more impactful and more challenging than the changes in other functions. eas seeped ee i SSE lc mg a aa Ln.10 High profile speakers focus on ssively re fe for shifting emerging technology trends New incentives to motivate young he City University of Hong HR practitionershighlight the increasing importance of corporate social responsibility for the HR community, as part of the HKIHRM’s Talent Development Scheme, for the first time, corporate entities have been invited to sponsor HR and business students at local educationat institutions to attend the Conference, to broaden students’ horizon and enhance their professional development. This eed Board Member, Fung Acad ‘Advisor tothe Group Charman, Li8& Fung Limited Dr Aman Chan Chiet Operation Oficer. Christian Zheng Sheng Association Principal, Christian Zheng Sheng College Roger Lee (CEO, TAL Group Flon Leong Contounder,Timeaucion = Jenny Pong ‘Group Director, Human Resources, JTH Group ‘Akiko Takahashi Executive Vice President and Chief Officer, Human i Resources / Corporate socal espana, Metco Resorts ‘Angee Chan Head of People & Culture, Hong Kong & Macau, Philip Morris Asia Limited Wille Cheng Head of People, Asia Mies ‘ Cindy Chow Executive Director. Alibaba Hong Kong Entrepreneurs Fund Dr Andy Chun Associate Professor and Former Chiet Information Officer. = City University of Hong Kong Brett Cooper Genera Manager, HongKong & Maca, Philp Moris Asia Peter Ho General Secretary / CEO, YMCA of Hong Kong Danny Wvatt Founding Partner, AccelerateHO Marco Jorge: Country Director, Wanted jobs ‘Sam Lau Managing Director, Total Loyalty Company. Dr Andes Leung Co-founder and CEO, RunOurcity = Chit information and Operations Officer. China CITIC Bank Michael Leung, MH International Limited Enoch Li Founder. Bearapy Prof Ed Snape Dean and Chair Professor, Schoo of Business. Hong Kong Bapist University Frankie Tsang Founder and Director. Rock Training Coneultante Limited Prot Andy We Associate Dean (Undergraduate Studies Business Schoot =e The Chinese University of Hong Keng Mills Wong Founder and Director, Rock Training Consultants Limited Sbircles OR Solutions Limited Prot Yan Xu, Pha Associate Dean, Business School. Hong Kong University of Seience and Technology Stanley You | Director of Human Resources and Administration, Peter Zhang (CEO, Aon Hewitt Greater China is also a new initiative to expand the scope of audience. Furthermore, the Director of the Massachusetts. Institute of Technology {MIT] and renowned academics from local Universities will participate in the Conference & Exhibition as a way of further strengthening collaboration between the academic world and Hong Kong's HR community. While HR practitioners are generally predisposed to continually think about others within their organisations, Aileen notes that they also need to manage and nurture their own career and protessional development capabilities. ‘As organisations seek new ways to attract, retain and engage with their employees, participants from Hong Kong, the Greater China region, Macau and from overseas attending this two- day event will hear first-hand how the latest HR trends are able to strengthen ‘and revolutionise people management practices for better business and to keep organisations resilient to future challenges. dex Annual Conference & Exhibition 2018 Cea Ue eee es Ceara ctr) a) enced Pe OT) MA es ay a Pee cares Pac isa ite Early Bird for Registration ends eee a) uan sesouRces Sentences 2018 17Competing for the Best: Hiring Tomorrow's Talent Today {By Amie Wiseman, Head of Emerging Talent, Asia Pacific, Alexander Mann Solutions + With the Asia Pacific region currently accounting for over half of the world’s total graduate population. from technical aptitude to adaptability, recent graduates have the characteristics that could prove valuable for future-proofing an organisation's talent pipeline. * Across the Asia-Pacific region in the coming years, with talent acquisition and retention set to remain high ‘on the list of corporate priorities, the key to talent pipeline development is to start engaging with graduate talent as early as possible. ith employers exploring and opportunities. What, for example, different ways to attract is the optimum way to build talent and retain graduates both _ pipelines in what often appears to be now and in the coming an easily distracted and even fickle years, engaging and capturing top talent pool? To what extent should talent from the graduate recruitment _an organisation's Employer Value ‘pool brings its own set of challenges. Proposition (EVP) be tailored to the 12 woman nasounees = Sere apparent needs and interests of cultures, nationalities, special interest groups or even individuals? And how can an employer create relevant and compelling messages that balance the perceived motivations of millennials, with the realities of corporate life?APAC is a graduate-focused market Despite interest shown by international recruiters in apprenticeships or apprenticeship degrees, the emerging talent landscape in APAC remains dominated by graduate training programmes. Research by WCN and Universum suggests that this is unlikely to change, at least for the foreseeable future, Experiments with alternative models such as the apprentice ‘scheme created by the Private Wealth Management Association [PWMAl in Hong Kong and a similar programme in Singapore have been limited to specific sectors and locations and there seems little appetite to develop them on a broader basis. APAC is not one market, but many Although almost all international recruiters feel the need to align their graduate recruitment messaging and approaches to their global or regional employer brands, there is. a strong feeling that the individual requirements of the myriad cultures that make up the APAC region need to be respected and addressed. This suggests the need to tailor EVP and processes to meet local needs. There ‘seems to be a general consensus that the emerging talent generation isin part motivated by issues such as work-life balance, corporate social responsibility (CSR] and the development of a “personal brand’. There is also, however, a similar ‘consensus that this can be taken too far in an organisation's messaging and that future talent is also focused ‘on tangible rewards, individual recognition and clear opportunities to advance their careers as quickly as possible. In some parts of the APAC regions, the influence of family and friends is a key element in engaging with emerging graduate talent However, there is a perceptible shift ‘away from the influence of family, ‘especially in China, where emerging talent is making professional decisions independent of family influence. Talent acquisition and retention is set to remain high on the list of corporate priorities in APAC in the coming years ‘and the challenges generated by the region's diversity and complexity are likely to increase rather than diminish. Although the use of artificial intelligence (All and machine learning ‘is, with a few exceptions, at a relatively, ‘early stage in the talent acquisition process in APAC, following the lead of the US and Europe, its employment is certain to continue to increase WeChat is an example of how the use of technology is evolving in China What started out as a messaging ‘app has since evolved to become the most important digital marketing tool available, and in turn, essential for talent acquisition in China Targeting the audience Traditionally, organisations focused their graduate recruitment activities on a target list of universities, but increasingly organisations are reaching ut to a wider base of universities to find talent wherever it exists. The move is driven by the concept of getting the best people from all universities instead of getting people from the Dest universities. Building stronger relationships with universities is also {primary key to finding the right talent, and many organisations indicate that they are starting to take a more targeted approach to marketing and recruiting, This includes targeting specific faculties, programme directors, and other key staff, in addition to the more traditional careers services Guest lectures and university education partnerships are becoming more common place, where companies can showcase practical examples alongside the theory, helping to raise brand awareness, engagement and also get, closer to potential future recruits, ‘To successful promote their EVP. ‘employers need to enthusiastically market their opportunities, which means doing far more than just telling the candidate what the employer's requirements and preferences are. 13The importance of the human touchThe Benefits of Culture and Diversity Demographics in the Workplace ‘* With a greater focus on the strategic value of diversity and inclusiveness, organisations across industries are paying more attention to improving their diversity programmes. Despite these efforts, however, many organisations struggle to achieve their diversity and inclusiveness goals, * With diversity and inclusion on the agendas of senior management around the world, to better understand this fast-changing terrain, i's essential for organisations to have conversations about valuing, recognising, respecting and embracing individual differences that can add value to the workplace,Regarding degrees of gender diversity in the workplace, Hong Kong ranks a creditable third in Asia according to not-for-profit organisation, Community Business. However, when compared to progress being made on the global stage, Hong Kong still has some ground to make up. For example, according to Deloitte's 2017 Global Human Capital Trends Survey, temale boardroom representation in Hang Seng Index companies is slightly over 12%. In contrast, the figure for Britain's FTSE- listed businesses stands at almost 27 and, on comparable boards in Australia ‘and Canada, at over 20%. Seizing opportunities Besides being the spice of life, variety, in the form of demographic diversity provides organisations with upside potential. This is especially evident when the case is made for managing the differences and unleashing human capita diversity. Companies with a wide range of employees enjoy broader skill sets, experiences, and points of view, all of which can combine to provide organisations with a powerful advantage over homogenous enterprises. In the 16 wun nesounce course ofits research, according to various Hong Kong University of Science and Technology {HKUST} Department of Management studies, companies and organisations locally and globally are promoting greater diversity and inclusion through policies and practices related to anti- discrimination and anti-harassment Over time, understanding of the issues around diversity has become more refined. For example, these days, gender. age, race, ethnicity, ‘educational background, functional background and, more recently, disability and sexual orientation are fon the agenda. Although bringing a diverse group of employees together can take time and commitment to integrate, coordinate and communicate with them, organisations generally find that having diverse team members also provides upside potential. Achieving this, however, requires managers, who with the support of the HR function, can integrate a diverse workforce or team, fully tap into their skills, and recognise ang reward different abilities. While the benefits of a diverse workforce across all industry sectors are recognised as being positive, ‘surprisingly, HKUST Department of Management research unveiled diversity challenges in an unexpected area. One of the research findings revealed that greater diversity leads to better market performance, and the effect is stronger in more technologically intensive industries where gender diversity is generally lower. However, the study data shows that if they could become more diverse, technology companies could reap the benefits. Managing cultural differences The more recently developed ideology of polyculturalism also acknowledges the importance of cultural differences, but it places more weight on the view that cultures continually influence one another. Taking this perspective, cultures evolve due to the interactions which take place between different groups. Imagine an American businessman visiting an office in China, During a meeting, he adapts his behaviour to match Chinese. cultural norms, aiming to behave exactly {38a typical Chinese businessman would Do you like him? Do you appreciate his efforts to accommodate a different culture? A few years ago, Facebook CEO Mark Zuckerberg gave a speech in Mandarin to Chinese students at Tsinghua University Using the local cultural style, Some of the students admired his flexibility and attempt to fit in, while others questioned his authenticity given that access to Facebook had been blocked This is confusing. Based on the common sense view that “when in Rome, do as the Romans do,” these efforts might seem advisable and could be expected to charm locals. However, ina series of HKUST experiments conducted over the past few years, it has been discovered that cultural fusing is a touchstone, eliciting different reactions as a function of people's fundamental beliefs about cultural factors, For instance, How do the Romans feel when visitors do as the Romans do? (Cho, J., Morris, M., & Dow, B. research conducted in 2017, suggeststhat foreign visitors who alter their behaviour to accommodate local norms completely, sometimes elicit negative feedback. The findings also ‘suggest that when people enter new cultural zones in teams, organisations fr countries, they should be mindful about what @ dominant ideology is ‘and how much they should try to accommodate local cultural norms. Cratting positive tr programmes ‘With the increase in global connectivity, the ability to work and communicate effectively with people from diverse cultural Backgrounds is seen as an important asset, which also creates the need to identity factors that can help to build multicultural competence assets. Multicultural competence refers tothe ability to adapt and function efficiently in a culturally diverse setting, It involves having the intrinsic interest to acquire different cultural knowiedge and possessing knowledge about other cultures. In short, it encompasses motivation, knowledge, awareness, and skils, which can influence important outcomes across different work domains. For example, it can impact the effectiveness of expatriates and how well they adjust in international assignments But multicultural competence is a learnable attribute. Managers and HR professionals could consider ways to provide support and outcome-specific cross-cultural competence training. Traditional cross-cultural training programmes, for instance, tend to focus on enhancing multicultural competence by providing culture- specific knowledge. They often highlight differences in cultural practices and values, but an emphasis con differences may inadvertently reinforce a fixed cultural mindset Accordingly, there could be advantages for implementing cross- cultural training programmes that {0 beyond emphasising cultural differences and instead, highlight positive intercultural exchanges. Gender stereotypes in the ‘workplace Despite a strong push for gender equality. women are stil agging behind men in many important aspects. In Hong Kong. despite similar levels of educational attainment and labour participation rates for men and women, there are still noticeable differences between the genders in terms of salaries and holding of leadership positions. According to the 2016 Hong Kong Census, the median monthly earnings of women (HKS1 1,600] was lower than men (HK$16,700] across all occupational ‘groups except for clerical support Furthermore, according to the same Census report, 66.8% of individuals in managerial positions were men whereas only 33.2% were women This pattern of gender disparity is not unique in Hong Kong: many countries around the world share similar patterns in the workplace. ‘As a result, leaders, educators and policymakers are sounding the same message: when it comes to gender ‘equality, we still have a long way to go, What, though, causes such a persistent gender gap? Decades of research in the social sciences have pointed to gender stereotypes as ‘an important factor contributing to ‘such inequality. In many cultures, men and women are perceived as ‘occupying distinct roles. Men are associated with “masculine” traits, such as being independent, ambitious ‘and self-confident, whereas women are associated with “feminine” traits such as being kind, helpful and sympathetic towards the needs of others. Because of gender stereotypes, 2 belief exists among some people that men are better than women at divergent thinking, which is seen as an important form of creative thinking, In the 2017 HKUST Department of Management survey, supervisors of 134 middle managers based in the US were asked if their ‘employees thought about things in innovative ways. Female managers were judged as less innovative in their thinking than their male colleagues. As creativity becomes ‘one of the skills that employers most value, this research points to ‘unique reason why women may bbe passed over for top leadership positions. In particular, it may explain the dearth of women reaching the upper echelons in the fields of science, technology, engineering, ‘and mathematics, which are strong forces driving the modern economy. What can businesses do to reduce gender bias in the workplace? Combating gender stereotypes is no easy task. Simply telling people not to be sexist does very litte to help reduce gender bias. Recognising the limits of human cognition, many ‘more companies are now using Implicit Bias Training to combat this issue. Organisations could also consider designing their workplace in such a way that the evaluation of employees is based on objective performance metrics as opposed to subjective evaluations. Diversity goes beyond recognising ditferences in gender identity or gender equality Its also about appreciating the unique opinions and experiences of aitferent types of people. Diversity and inclusion needs to be more than a task as part of a business strategy, or a short- term goal that's measured by 8 headcount Itisa strategic intative that must encompass the entire employee lifecycle. Aer san mesourcts Sepencer 2018 17+ HR is almost as attractive to hackers as finance. But a successful attack on an unprepared target can be potentially more lucrative and commercially devastating. * With employees representing the most likely gap in any enterprise's cybersecurity armour, HR departments must take on a prominent role in raising cybersecurity awareness by developing skills and encouraging employees to avoid risky behaviour, such as clicking on embedded links from unknown parties. 18Sut, how much a company spends on the latest and greatest security tech does not directly correlate with better security. One of the biggest risks any firm faces will always come from the inside - its employees. HR on the frontline In phishing simulations, staff open ‘emails that are often cunningly disguised as social media invites oF legitimate-looking internal organisational messages. This, happens despite those employees having received training on how to ‘spot phishing emails. What is worse, it appears that HR and finance staff - two departments that manage critically sensitive information - are more likely to be misled by phishing emails than the average employee. This unrelenting onslaught places a tremendous burden on businesses. Not just on the IT staff, Bt also on HR departments, which have the double-duty of protecting a wealth of sensitive data, as well as providing employees with on-going education and training to thwart the latest crop of security threats. Why pick on HR? In many ways, HR is an obvious target. For a start, itis one of the most publicly visible departments in any business. So, it is comparatively easy to identity people and track down valid email addresses. HR is also bombarded with communications of all kinds from all manners of individuals and organisations, Opening and reviewing documents - such as CVs from candidates applying for vacancies ~ isa part of the function. So, unlike other departments, HR cannot simply delete emails with an attachment Because HR sits al the heart of most enterprises, it's also a targ rich environment. While most ordinary employees will use a few applications in their day-to-day activities, HR professionals may use 2 dozen different systems. If these are accessed via an infected machine, malware can quickly proliferate throughout the business. creating a myriad of opportunities for ransomware attacks and other scams. Hacks are not always a dash for cash However, hackers aren't always, looking for fast money. What they value most of all is information. Especially personal details that can be used to develop other attacks that could pay-off handsomely. And HR is the holy-grail when it comes to confidential corporate information This kind of high-level information harvesting looks like the main motivator behind the recent SingHealth hack. Billed as Singapore's worst cyberattack, hackers stole the personal particulars of 1.5 million healthcare patients, including the country’s Prime Minister. When it comes to penetrating a business, a fraudster armed with details about senior executives can do quite a ot of damage. A convincingly concocted “urgent” request from ‘2 CEO to wire funds to a plausible- ‘sounding supplier often yields results if the right person in finance receives it, With the right information from persistent employee reconnaissance, {a Scam-artist is able to jump through ‘enough security hoops to authorise 2 fake payment that costs a company millions. Security begins at home {As a core engine of corporate culture and promoter of continuous learning land best practices, HR cannot atford to.be behind the curve in the security stakes. That makes learning and ‘executing the basics of cyber selt- detence imperative for any business that wants to prevail in the never ending battle to outwit the digital bandits, There is a lot that can be done. There are several security controls that can help, such as simply disabling the ‘macro functions in Microsoft Office documents such as Word and Excel for the entire HR department. This can help reduce one of the most prolific threats to in-house systems = malicious embedded macros designed to install virulent viruses on a target victim's PC. ‘These days the cybercrime ecosystem will “rent” any hacker @ malicious macro building toolkit for as little as USS40 a month. But, if the macros ina Microsoft Office file won't run because they've been disabled, then the malware can't infect the device or spread. Looking longer-term, an in- depth review of the IT security infrastructure, carried out in concert, with the in-house IT department, is, 28 good idea. A good place to start is tightening up on email filtering rules ‘and sophisticated email security constructs such as Sender Policy Framework (SPF) Spreading the word Security awareness and phishing training for HR staff should also be @ priority. Once the HR tear has been tested and trained, the next step is to make sure that security awareness is extended throughout the organisation, Unfortunately, there is no silver bullet or an effective one-time fix. Achieving genuine security requires an on-going effort to educate staff, encourage best practices, and discourage risky behaviour. Fortunately, that's exactly the kind of long-term project at which good HR departments excel, Security awareness training should be extended to the entire company. Not just sharing simple training slides or ‘2 quarterly mention in the company newsletter, but interactive phishing simulation exercises that test 2 user's ability to identify potentially dangerous approaches. If they avoidHR Toolbox g momentum is ical to on: going sec:Kent 2018 Pay Trend and Benefits Seminar Harness the Power of Strategic Compensation and Benefits Findings of this year’s HKTHRM Pay Trend and Pay Level Survey, together with those of a topical study by the HKIHRM, will be unveiled at the 2018 HKIHRM Pay Trend and Benefits Seminar. In the employee-driven job market, pay levels as well as rewards and benefits are considered as key factors to attract talent and retain high flyers. To provide insights, Hong Kong’s market trends and policies will be examined by economists, HR experts, legal professionals and pay and benefits specialists. 1 November 2018 (Thursday) 9:00 am-5:00 pm B/1 Regal Ballroom & Monaco Room, Regal Hong Kong Hotel How can the findings and insights help you? Pay Trend Survey Result * Get well prepared for resource planning Highlights * Develop an effective compensation & benefits system Topical Swdy- * Gain first-hand insights into the most current trends Future Workforce Competencies | and Practices about pay adjustment Compensation Benefits < * Er id Motivate ir talents Best Practices 7 vs ~~ Gi eo Y Regional Trends on “Bahchmark reward packages ‘of your company’s » Compensation & Benefits ‘workforce in the same industry = Legal and Taxation Updates» | Ensure compliance of local More .... ® Learning and networking» oe Enquiry: 2857 3827 Enmaiblearing@ ihr. org Gold Sponsors Website:http://www.hkihrm.org index.php oe iy a COL ke i OES—— Sweeping Changes Made to China’s Social Insurance Payment Processes * Earlier this year, the Chinese government announced the most comprehensive and sweeping restructuring of its government institutions in decades. With the changes, the tax bureau will now be solely responsible for social insurance instead of the Ministry of Human Resources and Social Security Bureau, which was previously responsible for it in many regions. * The consolidation of responsibilities under the better-equipped tax bureau will increase China's capacity and willingness to enforce its social insurance regulations more uniformly. 2Institutional reform Broadly speaking, China’s institutional reform plan aims to streamline government agencies by eliminating bureaucratic overlap and making different agencies responsibilities more logical, as well as to increase central government and Communist Party's, control over regional governments. ‘The changes can be seen within the context of Chinese President Xi Jinping's idea of “socialist rule of law with Chinese characteristics” which he presented at the 19” Party Congress in October 2017. This idea espouses more strict and consistent enforcement of existing laws across the country, and less regional variation. The reform of the tax bureau's structure and responsibilities isa clear example of these policy priorities. Since China passed the institutional reform plan at the NPC, the government has released several notices outlining the new roles and responsibilities of various government agencies in greater detail, Among these announcements was the Plan for Deepening Reform of Party and State Institutions, released by the Chinese Communist Party's Central Committee on 21 March 2018. Article 46 of the plan provides that “The basic endowment insurance premiums, the basic ‘medical insurance premiums, the unemployment insurance premiums and other social insurance premiums shall be uniformly collected by the tax department.” Article 46 makes it clear that the tax bureau is the sole bureau in charge of collecting social insurance premiums across. the country. Improved transparency Previously, the 1999 Provisional Regulations for the Collection ‘and Payment of Social Insurance Premiums provided that either the social insurance agency under the HR bureau or the tax bureau could collect, social insurance premiums. This ambiguity resulted in considerable regional variation. Besides removing this ambiguity, other changes to the tax bureau's structure stand to increase its enforcement capabilities. ‘Most notably, national- and local- level tax bureaus in all regions were merged, as of 15 June 2018. The consolidation of different levels of tax bureaus is another move to centralise and standardise their administration and should lead to less regional policy variation. Furthermore, Leading Party Groups within the tax bureau were altered to Party Committees, which increases the authority of Communist Party representatives compared to state bureaucrats. Again, this change allows stricter implementation of national-level policy. Additionally, compared to the HR bureau, the tax bureau is a larger and better- ‘equipped agency for carrying out social insurance collection Lowering social insurance Premiums While changes to the tax bureau suggest that enforcement of companies’ social insurance ‘obligations will become stricter. China is simultaneously lowering social insurance premiums across the country. As with the reforms tothe tax bureau, the lowering of social insurance premiums can be understood within a wider policy context ‘As a result of years of rapid economic growth, land and labour costs in China have greatly increased, outstripping gains in productivity. At the same time, China faces a slowing economy and increased competition from lower-cost jurisdictions such as Vietnam and Indonesia, To deal with these issues, China has been undertaking a multi-year ‘campaign to improve its business ‘environment and lower costs for employers. For example, earlier this year, China pledged to cut taxes for businesses and individuals by 800 billion yuan in 2018 which included a reduction in its value-added tax [VAT] rates. In China, employer social insurance contributions are a significant expense for businesses - and therefore, another area that the government has targeted for cost alleviation. (On 20 April, 2018, the Ministry of Human Resources and Social Security and the Ministry of Finance jointly released the Notice on Continuing to Reduce Social Insurance Premium Rates Periodically, which came into effect on 1 May 2018. According to the notice, local governments shall make specific plans to reduce social insurance rates, Since then, several regions have implemented changes. For example, (on 17 May 2018, Shanghai issued @ circular to reduce social insurance rates in the city - including reducing the employment insurance basic rate in Several industries by 50%, effective from 1 May 2018 to 30 April 2019, Besides reducing costs on businesses ‘as a means to stimulate the economy, the lowering of social insurance premiums works in concert with the changes to the tax bureau. At a time when China is signalling its intent to take social insurance violations more seriously, itis lowering the bar for businesses to comply. Doing so will widen the tax base and encourage compliance among companies that previously may have skirted their obligations because of high costs. Steps HR and payroll managers should take The changes to China's social insurance policies mark a logical ‘opportunity for businesses to conduct an internal HR and payroll compliance review. UMN RESOURCES Septomber2018 23Bitte eat Chet S RSE SAME Dezan Shira & Associates MMBEID Alexander Chipman Koty ERS AE Tis SET MME SERRHENTE - MSRM REAR ATRIA (ALR) «LAT AE AES TS AUT ALRSGTSETRAIRETA MAAS TRACT NNROSRTA te RAS 208 25SQSEARSRT ANSE RAS ERRSMAR TREAD ROTER ARM MSNER BOTETS REMORSE MMT 2018F AZ BO (Ree ERAMSER EO RBCERE (ETRSSAR: EIWASAR KRRBROR CES same Risa WE REM S MS ome, suse Mi | SRE RED REE Lom » RMB 99e a BREMEN) RE ATMEL SEATON ET BR PRETO T ee AOU OT LE ET 2h RCH RMA M ESOT TRREED AGHMITAEA TASES RTT RICRMMEEZOIERORISESH AE BUTRBAMSE RAT RTA RESOR-Cie LAER RUN ISAT INET E RERCROGDIANGEER Dee AHR KPEREMEERERR BA DRSHUARMDEL REDS-S RUEX RABSBSRT IRR ESR EMRBDNGECESRANOMBST PAM EDRBNS SORE BETSEOTSR HR BANAE ® BEUSMEHR CAEN ZORD SEx MENRESREORN TONS BOMSAAGD SAT HRENTER SMe CHEM LR ROMRUMESENT RMS: a ATREREMM. CEORNT—RRS TOURORSTNR SEMTTT 5 5). 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BEQSHSSReRSAR RSeeESTESEREEENES Ae SHRM REEACR— AER NEGRERS (REREMOR, -O TUENGRNRE ARSE AS RMSE EM. etm ERLESERNSMES ATES SE LHSSRERCSESE Cm ABRIRONER re smMAT Tt BAR IGRSER UREA BR FAN MAES AURA WEIS TMISRMENSESm Me ABAROMENIERE ssl om MESES UBM R TAR RS ERHOMMESEORE cmnan FESERER SORT AMTEOT REED —ETRECEROEM RBRIOTIARRE EMRE FORRATREREOTS Some PRRCENeNIATEMMAE LH ne LAT eMMeseR Mh WEBHSDTESMEBTNS HPEVABGMIMOMSXE AE SLR DAGRBADSMBATE BERTESAME LETT RE) ANE SMSERET OR poe Lr eee ABGTINARR TTT —HORSR AOR deeCs Labour Tribunal’s Authority to Make Compulsory Reinstatement or Reengagement Orders + The Employment (Amendment) (No.2) Ordinance 2018 (Amendment Ordinance), which provides for the Labour Tribunal to order compulsory reinstatement or reengagement of an employee in the event of unlawful termination was passed by the Legislative Council on 17 May 2018 and gazetted on 25 May 2018. * Under the Employment Ordinance (EO), unreasonable and unlawful dismissal refers toa situation where an ‘employee is dismissed other than for valid reason and is in contravention of the EO. The Amendment Ordinance allows the Labour Tribunal to order compulsory reinstatement or reengagement of an employee who has been unreasonably and unlawfully dismissed without the need to first secure the employer's agreement. Reinstatement or w reengagement 27company. Upon an application by the employer, an order for reengagement ‘may be varied such that engagement of the employee by a successor or associated company of the original employer is to be treated as reengagement by the original employer in compliance with the order. An order of variation will only be made ifthe court or the Labour Tribunal is satisfied that the terms on which the alternative employer is to ‘engage the employee are comparable to the terms of the original employer. Before making an order, both the employer and the employee must be given an opportunity to present their cases in relation to the order. The Labour Tribunal / court must take into account the circumstances of the claim before making such order, including 1. the circumstances of the employer and the employee; 2. the circumstances surrounding the dismissal; 3. any difficulty that the employer ‘might face in the reinstatement or reengagement of the employee; and 4, the relationship between the employer and the employee, and between the employee and ‘other individuals connected to the employee in relation to the ‘employment le.g. other employees) If the employee is reinstated or reengaged, the continuity of the period of employment between the date of the employee's dismissal land the date of reinstatement / reengagement is not broken and the employee's existing and future entitlements under the EO and the ‘employment contract will continue to bbe recognised. The Labour Tribunal or court may also, itt considers just and appropriate, order the employer to pay the employee any arrears of pay 28 {UMAN RESOURCES «Seotomtar 2018 and statutory entitlements under the EO which the employee would have accrued it he/she had not been dismissed or the employment contract had not been varied. Conversely, the employee may be ordered to pay the employer any ‘amount that the employer had paid hhim / her because of the dismissal or the variation of the employment contract. No reinstatement or reengagement If the court or Labour Tribunal grants a reinstatement or reengagement order under the Amendment Ordinance and the employee is not reinstated or reengaged on the terms specified in the order, the employer will be required to make the following payments: 1. terminal payments that would have been awarded if neither a reinstatement nor @ reengagement order had been made le.g. statutory or contractual payments such as wages, any accrued but unused annual leave etc: 2. compensation not exceeding HK$150,000 Ito compensate for the unlawful dismissal] that would have been awarded it neither a reinstatement nor 3 reengagement order had been made; and 3a further sum set at three times the employee's average monthly wages subject to a maximum of H1K$72,500. An employer who wilfully and without reasonable excuse fails to pay the further sum also commits a criminal offence and is liable on conviction to a fine not exceeding HK$350,000 and / or to imprisonment for up to three years. Where a company commits this offence, and itis proved to have been committed with the consent, connivance or attributable to the neglect of the director, manager, secretary or other similar officer, they could be sentenced to imprisonment The same would apply to partners ina firm. This presumption can be rebutted if there is sufficient evidence to show that the offence ‘was committed without the Person's consent or connivance and/or was not attributable to the person's neglect and the contrary is not proved by the prosecution beyond reasonable doubt The employer may apply to the court or Labour Tribunal for reliet from paying the further sur if itis ‘no longer reasonably practicable for the employer to reinstate or reengage the employee because of reasons attributable to the employee, or because there isa change of circumstances beyond the employer's control An application must be made by the employer no later than seven days after the date by which the employee must be reinstated or reengaged pursuant tothe order lunless a further extension has been allowed Possible reasons for unreasonable and unlawful dismissal Under the £0, unreasonable and unlawful dismissal refers to the situation where an employee has not been dismissed for a valid reason and is also dismissal unlawfully, for example, the ‘employee is a protected employee. Employees who have been ‘employed on a continuous contract for two years or more are entitled to be dismissed for a valid reason under the EO. Valid reasons for dismissal include the conduct of the employee, the capability or qualifications of the employee for performing his or her work, redundancy or other genuine operational requirements of the business, compliance with statutory requirements, or other substantiatItis automatically untawtul to dismiss the following employees: pregnant employees and ‘employees on maternity leave: ‘employees on sickness leave: employees who are giving evidence or information in any proceedings or inquiry in connection with the enforcement of the EO, work accidents or breach of work safety legislation: ‘+ employees who have trade union membership and activites lf the reason for dismissal is due t their membership and activities) employees entitied to compensation under the Employees’ Compensation Ordinance before having entered into an agreement with the employee for employee's compensation or before the issue of a certificate of assessment. Practical takeaways There are several hurdles to clear before reinstatement or reengagement can even be considered by a court or Labour Tribunal. The changes under the Amendment Ordinance are only relevant if the court or Labour Tribunal has held that the employee has been unreasonably and unlawfully dismissed, that the order is appropriate and the reinstatement or reengagement by the employer 's reasonably practicable taking into account the circumstances of the employee's claim. The reinstatement or reengagement provisions under the existing legislation are rarely used in employment disputes as usually the employment relationship has broken down to a point where it is unworkable to reinstate or reengage the employee. It remains to be seen whether the option would be used more frequently when the Amendment Ordinance comes into effect. There is a risk that it would be used by employees as leverage in exit negotiations to demand higher termination packages, and employers should be aware of the potential practical, financial and reputational consequences of the upcoming changes. Aw For advertising in Human Resources, the official publication of HKTHRM, please contact: Jennifer Luk Frank Paul ninghills mediaoo Bh ee Eh el ON BS BS FA 89 a1 43 ae Natasha Hal A. Rowan MeKenzie © (20187 MM (18) (2M) HEI) (Fa SST, ) TA SRR ERERRRTSARIR + OF) SEDERBANAS - BIEMPIEIS 2018S 5A 1 7A MES SIS + WES 2018F5A 20S me « 2 (MME) | (ASBRASER 8) BRELEEKESRSRRER - RRAMAH - RIAA SRER RBERERARTSERTSEMAER (FLAT SRBANHS RAB ARSREAS > 3031Common Pitfalls to Heed When Drafting Restrictive Covenants By Helen Cola ate, DLA Piper, Hons Summary 10un, Partner, Head of Employment, OLA Hong Kong The District Court held that a non-solicitation clause in respect of an ice delivery worker was not enforceable. The Court was of the opinion that the delivery worker was simply not in ‘a position to build up the level of customer connection necessary to gain any meaningful influence over customers or cultivate loyalty ‘among them in his capacity as a delivery worker. Pt eee oat rere) Facts This case concerns the enforcement of a non-solicitation clause in an ‘employment contract. The plaintiff, ‘Shiu Pong Ice Company” was the ‘employer and its main business isthe sale of edible ice cubes to restaurants, cafes and other users. The defendant worked as a delivery worker. The detendant’s employment contract contains a non-solictation clause, which stated that within 10 monthe after the employee's employment was terminated, the employee could not “interfere ‘and solicit the company’s existing customers from acquiring goods ‘etc.” and “if in breach of agreement, will compensate the company all losses, and be responsible for legal compensation. The defendant resigned and left the plaintif to join Noble Gainer Ltd (an affiliate of The Hong Kong Ice & Cold Storage Company Ltd], which operates in the same business as the plaintit The plainttf brought legal proceedings against the defendant, alleging that the defendant had breached the non solicitation clause by soliciting the plaintiff's customers to purchase ice cubes at a reduced price from his new ‘employer and asking the customers not to buy from the plaintiff The plaintiff ‘argued this had caused substantial loss of sales to the plaintiff and claimed damages of over HK$450,000. The plaintiff argued that their particular industry was highly competitive and that the defendant held commercially sensitive information, including customer names, addresses and contact details, ‘The main factual issues before the court were as follows 1. Was the defendant made aware of the non-solicitation clause when signing the employment contract?