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How Flip is evolving its talent acquisition strategy to address Indonesia’s digital talent shortage

How Flip is evolving its talent acquisition strategy to address Indonesia’s digital talent shortage

As Selfi Andriani, HR Development Manager, shares, this includes strengthening employer branding and conducting an annual review of the salary structure.

- With inputs by Arina Sofiah

Across industries, a higher demand compared to the available supply has led to Indonesia’s widespread talent shortage.

As Selfi Andriani, HR Development Manager, Flip (pictured above), further explains, this is mainly because of the people-skill gap. With Flip being a fintech-based payment platform, the leader notes that this talent shortage is particularly relevant for the digital talent (software engineer, data, and product).

"Over the past five years, Indonesia’s technology sector has grown rapidly, and this trend is anticipated to continue."

According to a recent study she cites, Indonesia has one of the largest and fastest-growing Internet economies in Southeast Asia. Additionally, in 2022, Indonesia's startup ecosystem was ranked second in the Southeast Asian region. Jakarta, the capital city of Indonesia, also ranked 32nd among 1,000 cities worldwide in terms of its startup ecosystem.

These achievements have contributed to a significant increase in demand for digital talent. However, a looming skills gap is exacerbating this talent shortage, Selfi highlights.

Based on data by the Ministry of Communication and Informatics, she notes, Indonesia has a 600,000 gap per year between tech talent and demand from the tech sector. At the same time, she points out, the 2022 World Talent Competitiveness Index by IMD saw Indonesia ranking 51st out of 63 countries, adding that in the coming year, approximately 17.2mn Indonesians will need digital competency training to keep pace with technological advancements.

In this second part of a five-part series exploring Indonesia's great talent shortage, Selfi Andriani tells Olive Goh all about how she and her team are tackling this by strengthening Flip's employer branding, conducting an annual review of the salary structure, and more. 

Naturally, Flip is ensuring that its talent acquisition strategy has evolved to address this shortage. Three years ago, the organisation relied solely on traditional recruitment methods, posting job openings on several recruitment channels. However, with the emergence of its company and the growing demand for high-quality digital talent, its needs have evolved.

Flip’s strategies for attracting talent have also evolved to include the following:

Strengthening employer branding: Flip has put significant efforts into enhancing its employer branding.

“By effectively showcasing our company's values, mission, and positive work environment, we aim to attract top talent who resonate with our culture and value", Selfi says.

Reinforcing our values and work culture: The organisation recognises the importance of a strong organisational culture in attracting and retaining talented individuals. It has focused on cultivating a positive work environment that aligns with its values, offering opportunities for growth, collaboration, and work-life balance.

Reviewing salary structure annually: To remain competitive and relevant in the market, the team conducts regular evaluations of its salary packages. By reviewing them annually, Flip ensures that they align with industry standards and provide attractive compensation for our employees.

Diversifying recruitment channels: It has also expanded its recruitment process to various channels to source high-quality leads. One of the effective methods it has implemented is leveraging internal referrals, encouraging its existing employees to recommend potential candidates from their networks.

Amidst all this, the organisation continues to retain its existing talent, keeping them "relevant" to narrow the gap on this shortage.

In safeguarding its talent, it adheres to a fundamental principle at the company, which governs its comprehensive approach to the employee lifecycle with the goal of retaining and developing its workforce based on principles of fairness.

Flip‘s focus is centred around three key areas:

Monetary & facilities: In this area, the team’s primary objective is to provide competitive benefits and useful facilities that support employees' work. This includes initiatives such as offering a competitive salary structure, a laptop ownership programme, and a maternity leave policy of four months.

Experience: Flip places strong emphasis on enhancing the overall employee experience, which is aimed to create a positive and engaging work environment. Initiatives include flexible working arrangements policy, employee club, and regular internal events.

Personal development: Lastly, it is committed to fostering the growth of its employees. To achieve this, the team provides resources such as personal upgrading budgets, development programmes, internal mobility, and employee assistance programmes.

“By strengthening our programmes, initiatives, and policies across these three areas, our aim is not only to retain top talent but also to foster their growth in both personal and professional aspects", the leader affirms.

Maintaining the momentum for the future

To evaluate the effectiveness of these strategies, the team at Flip makes it a point to conduct regular evaluations each semester. Based on the outcomes of these evaluations, and considering the current company condition and needs, it typically makes decisions regarding which strategies will be continued, revamped, or discontinued.

In that vein, she notes that the organisation will continue implementing the flexible working arrangement policy, and the current focus lies in the development of employees' skills, encompassing both soft skills and technical skills.

Looking ahead, in Selfi’s view, she sees the increasingly intense talent war, particularly in the digital field, as a significant aspect of the talent landscape in the next three to five years.

"This competition has become more intense, since the demand for digital skills is high."

To attract talent, she believes in the importance of the company having an ongoing commitment to creating an attractive work environment, offering growth opportunities, and adapting to the needs and expectations of digital professionals.

She also notes that the active participation of generation Z in the workforce has created different needs and expectations compared to previous generations — prioritising work-life balance, personal development opportunities, and purpose-driven work. As a result, there is an increased need for companies to adapt their practices to suit these needs.

In line with that, to attract and retain top talent, she deems it is important to consider offering them flexible work arrangements, emphasising a positive workplace culture, and providing clear growth paths.

Photo: Provided

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