HR Corner Investing in people power by Isabella Lee Talent management key to ongoing success for growing manufacturer Companies nowadays are more aware that staff are the greatest asset and that it is essential to manage them in such a way that high-performing staff stay and new talent join in. "Staff relations and job satisfaction are challenging human resources issues and at the same time difficult to measure," says Hubert Tien, managing director, Runway Global Limited. "Therefore, it is important for employers to understand that different people have different expectations." Runway Global is an apparel manufacturing company with offices in Hong Kong and mainland China, as well as Los Angeles and New York in the US. The company's operations depend heavily on its sales, merchandising and factory production teams. The sales sector is generally more incentive-oriented and the company has therefore set up a bonus system for its sales staff, says F G Gozashti, marketing director, Runway Global. He explains that the company attracts skilled sales people by offering packages that include a competitive basic salary and commissions based on sales volumes. "It is not always easy to find top merchandisers," says Mr Tien, pointing out that in the case of hardworking and loyal merchandising staff financial rewards alone are often not enough. "High-performing employees don't only consider monetary incentives, but also the level of job satisfaction," he says. Production managers are key in ensuring that factories operate smoothly. In order to keep good production management staff, it is important for companies to inculcate mutual trust across teams and cultivate good relationships with them, Mr Tien stresses. Importantly, employers must build a platform for managers to demonstrate their skills, leadership and integrity, particularly in running factory operations. Responsive and responsible Where a longer working week is still the norm in the fashion industry, Runway Global's policy is to allow Hong Kong staff a day off on the second Saturday of each month. "The shorter working week follows requests from our employees," Mr Tien explans. "This special schedule is a growing trend in other industries. Although the employees still have to compromise, they have welcomed the fact that the company is trying to accommodate their needs," he explains. Mr Tien believes that two-way communication is crucial for maintaining staff relations. By being open to staff views, employers not only have access to ideas that can improve productivity, but are also able to put in place mechanisms that help staff manage stress. "Good people management practice can help us overcome any potential setbacks" "When the company was first established and we had a smaller staff complement, it was easy to communicate with employees on a personal level. However, now that we have hundreds of staff working in offices around the world, we base our people management system on employee feedback, creating a more effective communication channel," he notes. Moving forward In a bid to keep up with the changing labour market and adapt to trends, Mr Tien notes the company's talent management is in fact a constant learning process. The company offers an education sponsorship programme to promote life-long learning. Employees wanting to advance their careers through extramural studies can apply for course fees to be reimbursed. "We support our staff in their endeavours to improve their knowledge and skills, which in turn benefit the company. By improving their qualifications, our people also gain more career opportunities within the company," Mr Tien remarks. Runway Global has an internal promotion policy, providing for senior positions to be filled from within, if possible. This has encouraged a culture where staff take the initiative to be creative, well equipped and keen to perform. A small enterprise when founded in 2001, Runway Global has grown into a service-driven operation offering clients one-stop convenience —f rom fashion design, production and delivery to warehousing. The company has achieved a stable growth of 10 to 15 per cent annually, largely thanks to its professional team. As the company grows, overheads and running costs increase. The overall economic environment, including the Renminbi exchange rate, new mainland China labour laws, uncertainty in the US economy and the mounting prices of fuel and raw materials, also present challenges. "However, we are confident that good people management practice can help us overcome any potential setbacks. Therefore, investing in employees is the key to our sustainable success," Mr Tien concludes. Salient points * Staff relations and job satisfaction major HR issues * Talent management a constant learning curve * Two-way communication crucial * Motivated staff empowered to overcome challenges Taken from Career Times 6 June 2008, p. A20 Your comments are welcome at [email protected]