Chief of Human Capital Development & Retention TELKOM Group
Bandung, 27thMarch 2017
REWARD
ING BEST TALENT
AGENDA
02
03
REWARD PHILOSOPHY & STRATEGY
04
REWARD PRACTICES
01
TELKOM & ITS CHALLENGE
Ownership
Public 47.4% Government 52.6%
Treasury Shares 2.6%
is listed at Indonesia Stock Exchange (TLKM), NYSE (TLK US) and sustaining growth with 10 International
Footprint
Employee
Telkom Group 24.785
Telkom 16.097
Telkom Indonesia
CONNECTING THE WORLD
Market Capitalisation at IDX
IDR 458.6 Tn*
*) 1 Agustus 2016•TSEL Coverage :± 97% Population
• 40 cities and more already 4G LTE
•13,2 Mio Fiber Optic Homes passed
•357 K Wi-Fi
•>82.000 km
Nationwide Fiber Optic backbone network
74.000 M2
Data Center
Customer Base:
• 48 Million
Broadband,
• 156 Million Selular
• 10,5 K Fixed Line
EMPLOYER OF CHOICE
April 2014
Most Admired Companies 2014 (TOP Brand)
January 2016
Asian Make Winners (MAKE)
September 2016 September 2016
6 Awards in Indonesia Human Capital Study (Dunamis)
Januari 2016
Indonesian Employers of Choice Awards (HAY Group & SWA) Best Overall Corporate University
Best Innovative Corporate University
May 2015
DIVERSE
PORTFOLIO
IN TIME MARKET
32
Subsidiaries &KEY PRINCIPLES
02
03
LEVERAGE TOTAL REWARD PERSPECTIVE
04
ATTRACT & RETAIN BEST TALENTS
01
REFLECT & TRANSLATE CORPORATE STRATEGY
Telkom Group Corporate Strategy
Vision
To Become a Leading TIMES Player in the Region
Vision
Be the King of Digital in the Region
Corporate Strategy:
• Directional Strategy: Sustainable Competitive Growth
• Business Strategy: Converged TIMES portfolio
• Parenting Strategy: Strategic Guidance
Corporate Strategy:
• Directional Strategy: Disruptive Competitive Growth
• Business Strategy: Customer Value through digital TIMES portfolio
• Parenting Strategy: Strategic Control
Shifting The Business
Mission
1. To Provide TIMES Service with Excellent Quality & Competitive Price.
2. To be the Role Model as the Best Managed Indonesian Corporation
Mission
Lead Indonesian Digital Innovation & Globalization
2015 2016 - 2020
Objectives
Superior value & IDR 300T Market Cap in 2015
Objectives
6 Product Portfolios with 5 Customer Facing Units (CFU)
New parenting strategy will see a shift to a CFU based model
Customer Facing Units (CFU)
Implications:
• Tighter operation integration to
maximize business value by customer segment
• Need to be more controllability on
THERE IS NO BEST REWARD PRACTICES, THE BEST
PRACTICES ARE WHAT
BEST FIT TO YOUR STRATEGY
Aligning Reward Strategy and Business Strategy
Managing HCM as a Group Initiatives
Challenges in Managing HCM as A Group
Objectives
1.CSS Parenting Strategy: “Strategic
Control”
2.Masterplan HCM: “Managed HCM
as agroup”
3.CHCO Direction: “BoD-1 and BoD-2 Belongs to Group”
4.HCM Council Charter
1. Keselarasan antar entitas Telkom Group dalam: 1. Grading System
2. Remuneration system and structure
Sebagai prasyarat dalam pengelolaan HCM secara Group
2. Desain carrer roadmap Telkom Group dengan memperhatikan Job Family, kesetaraan grading dan remunerasi
1. Grading Alignment yaitu melakukan
proses Evaluasi Jabatan untuk Telkom dan Anak Perusahaan di seluruh level
2. Penyusunan sistem Remunerasi &
alignment di Level Telkom Group, melalui proses Salary Survey, mencakup komponen Cash & Benefit
3. Pergerakan karir untuk Talent Telkom
Group
Fact Findings:
1. Non standard Remuneration practices in group level
2. Non Standard Banding system in group level
Benefits
1. Smooth talent supply for business 2. Challenging career
3. Competitive and attractive remuneration 4. More Manageable and controllable
Execution Challenge
1. Grading alignment among Telkom group
2. Remuneration alignment among Telkom group
Evaluate 500 Benchmark Positions of TELKOM Group
Using Mercer’s IPE Method
12
Impact
Communicati on
Innovation Knowledge
Risk
1.Communication 2.Frame
1.Organization size 2.Impact
3.Contribution
1.Knowledge 2.Team 3.Breadth
1.Innovation 2.Complexity 1.Risk
2.Environment
Internationa l Position Evaluation By Mercer
The objective of the project was to align Telkom group’s
grading through systematic method
From... To...
Telkom Group’s Grading Alignment
Telkom Group Job Evaluation
Using International Position Evaluation (IPE)
Non Standard Banding system in group level
LEVE
TELIN/ METRA/ INFRA/MITRAT
EL
INFOMEDIA/ PINS/ GSD/
Business Expert
EVP/EGM/ KADIV
BOD-2
GM/AVP/ SM/ Func. Expert/ OSM/Dy
GM
GM
EGM/ SGM/ VP/GM/ Dy KADIV/ HEAD
OF/ GM
EGM/OVP/VP/GM/ HEAD OF
BOD-3
MANAG ER/ SENIOR OFFICE
R
MANAGE
R MANAGER
AVP/GM/ PM/ JUNIOR PM/
MANAGER/ ACCOUNT MGT
BOD-4
…
BOD-7
… … … …
LEVEL TELKOM TELKOMSEL TELIN/ METRA/ INFRA/MITRATEL
INFOMEDIA/ PINS/ GSD/ AKSES/ VP/Dy EGM
BP I
EVP/SVP/ VP/ Senior
Business Expert
Expert/ OSM/Dy
GM
BP II GM BP IV
EGM/ SGM/ VP/GM/ Dy KADIV/ HEAD
OF/ GM
BP II
EGM/OVP/ VP/GM/ HEAD OF
BP II
BOD-3
MANAGER/ SENIOR OFFICER
BP III MANAGER BP III MANAGER BP III
AVP/GM/ PM/ JUNIOR
PM/ MANAGER/
ACCOUNT MGT
Mercer Position Class 6x –6x
Mercer Position Class 5x –6x Mercer Position Class 5x –5x
Mercer Position Class ≤ 5x
Job
Development tools
Uncover Talent
Mobility Opportunities Among Group
Building career pipeline
Talent Diversity
Career paths
Telkom Group Remuneration Alignment
Telkom Group Grading Alignment
Uncover
Talent Mobility Opportunities
Among Group
Implementation of Telkom Group Remuneration and Grading Alignment as Talent Mobility Enabler
Reward Management
Aligning Reward Strategy and Business Strategy
Managing HCM as a Group Initiatives
S A L A R Y B E N E F I T F A C I L I T I E S
•COLD
•Local Transport
Local
Regulation
Living
Facilities and Expatriates Needs
Host TANI
•Monthly frequent•Currency Conversion •Base Salary 75% •Base Allowance 25%
1. Incidental Allowance (THR) 2. Incentive
3. Annual Bonus 4. BPJS (JHT & JP)
5. Country Social Security 6. Annual Leave
1. Life Insurance 2. Health Insurance 3. Accomodation
4. Communication Allowance 5. Home Trip
6. Children Education 7. Relocation Allowance
Int’l
Remuneration method from TOWER WATSON which aims to find the compensation value in the host country based on the remuneration of the employee in home country.
How much
Salary when
repatriated?
Using the same method, we just substracted the Cost of Living Differences (COLD) and host local transportation from Host TANI then adjust it with salary increment happened in home country during overseas assignment.
Remuneration for host country will be
documented, reviewed and
decided in AGM Subsidiary which held every year
By Using Several
References
•CEO Roles
•Salary Benchmark
•Cost of Living Index
•Business Segment
•Revenue Size
AGM
Running with Multigenerational Workforce
Architecting Reward Strategy
Employee Reward Strategy
Attract New Talent
Motivate Employee
External trends in HR
Attract and retain talent are priorities
The development of career paths is crucial
Using a total reward system to control employee rewards cost as well as enhancing employee
satisfaction
Career & Environment Reward
Foundational Rewards Performance Based Rewards
Improve Pay Mix and Pay Level to minimize gap based on nature of Industry
1
2 3
Total Reward Approach & Deploy
TOTAL REWARD
Compensation Benefit Work-life effectiveness Recognition Performance
Management
Talent Development
*) Total reward framework by Willis Towers Watson
Rewards yang diberikan dalam bentuk dengan peningkatan karir, pengetahuan, keahlian serta kenyamanan karyawan atas suasana kerja.
Rewards yang memenuhi kebutuhan dasar karyawan atas rasa aman dan stabilitas.
Rewards yang pemberiannya dikaitkan dengan performansi dan kontribusi dari employee yang dapat terukur dengan jelas.
Business Performance and Result
Employee:
• Satisfaction
• Task Behaviour
• Engagement
Running with Multigenerational Workforce
Architecting Reward Strategy
Employee Reward Strategy
Attract New Talent
Motivate Employee
Current Telkom’s Component
of Compensation
1. Base Salary (12x) 2. THR (1.5 x THP*)
*) THP consist of:
•Base Salary
•Ins. Premium
•Ins. Jabatan
1. Ins. Premium 2. Ins. Jabatan 3. B. Kemahalan 4. BBP
5. Telekomunikasi* 6. BBM*
7. Driver*
*) untuk level dan posisi tertentu
1. Jasa Produksi 2. Mid Term Insentif 3. Ins. Sales & Marketing
(ISM)*
4. Diskresi Mgt** *) untuk posisi tertentu **) diberikan ssi
kebijakan Mgt
No Long Term Incentive
1. Fasilitas kesehatan 2. COP/ BPFKJ* 3. Pasca Kerja
Running with Multigenerational Workforce
Architecting Reward Strategy
Employee Reward Strategy
Attract New Talent
Motivate Employee
Drive Employee Performance by Variable Pay
Job Level Career Track
BOD-1
Entry Level
Managerial Professional Expertise
Fixed Pay Ins. Jabatan based on job level and roles & responsibilities (RC)
Ins. Jabatan based on job level
Should pass C&Q Test
Variable Pay Jasprod/ MTI (tahunan) • Jasprod/ MTI (Tahunan)
• Ins. Sales & Marketing (per TW)
Jasprod/ MTI (tahunan)
Managerial Professional Expertise
Fixed Pay
Ins. Jabatan based on job level Variable Pay Jasprod/ MTI (tahunan) • Jasprod/ MTI (tahunan)
• Ins. Sales & Marketing (per TW)
Jasprod/ MTI (tahunan)
Jasprod/ MTI dipengaruhi oleh:
1. Performansi perusahaan 2. THP
3. Perfomansi Unit 4. Performansi Individu 5. Kontribusi karyawan
ISM dipengaruhi oleh:
1. THP
Recognize Employee Achievement: Telkom Award
Telkom give reward & recognition to employee for their achievement based on certain criteria
Reward and Recognitions
Informal Formal
Unit Telkom Group
Individu Telkom Group
Performance
1. Best Leader 2. Best Manager 3. Best Officer
Innovative
1. Best Innovator
2. Most Inspiring Role Model 3. Most Inspiring Culture Agent 4. Best Knowledge Worker
Dedication
1. Karyawan Daerah terpencil 2. EVP
Intermediate Basic
Advance
Penghargaan lain (dari BOD atau Kepala UBIS)
Penghargaan Eksternal
Contoh:
Satya Lancana
Penerima Penghargaan Kriteria Penghargaan Level Penghargaan
Unit
1. Best Unit 2. Best WITEL
Running with Multigenerational Workforce
Architecting Reward Strategy
Employee Reward Strategy
Attract New Talent
Motivate Employee
Top Talent Retention Plan: Incentive Top Talent
BoD-1 and BoD-2 Remuneration for Top Talent
Philosophy
Ensure Top Talent’s remuneration competitiveness with
market.
Influenced by performance
Competitive as Talent Retention
All high potentials are high performers, but not all high performers are high potentials.
-Andre Lavoie on
https://www.entrepreneur.com/article/248018-“When performance is the only criteria employees are evaluated on,high performers will be the only ones moving up–and your high potentials will be moving out.”
- Brian Knight, Director of Performance at Focus
3-VERY HIPO 5%
Inc. IWT
Incentive for Top Talent
Market Reference
Conclusion
1. Reward strategy must align with corporate strategy so reward system can work effectively and deliver
value to company
2. Telkom Indonesia use Total Reward Framework that integrate foundational reward, Performance
based reward, and Career & Environmental reward to attract, motivate, and retain employee
3. Based on Telkom Indonesia internal survey and analysis, career and environmental rewards have the
highest effect to drive employee task behaviour, followed by Performance-based reward, and Foundational Rewards.
4. Telkom reward strategy:
a. Attract new talents:
• remuneration system that align, comparable, and competitive with market
b. Motivate Employee:
• using different type of variable pay for each career track, based on roles and responsibilities
• Recognize employees achievement by awarding them
c. Retain employee:
• Opportunity for employee development
