HR Corner Rewards fit for a president by Isabella Lee Unique incentive scheme goes beyond remuneration In many businesses, remuneration is the major tool to attract and retain talent. Financial rewards also play a large part in encouraging existing staff to perform at their best. From the perspective of an employer of 12,000 people, a fair, systematic and effective incentive system is a must. "With a sizeable employee population, we must think of smart ways to motivate every member of staff to achieve the same goal. That is, making it clear that we aim at being the number one worldwide provider of products, services and solutions that connects technology with customers, powers the supply chain, and delivers premium investment results," Ray Leung, marketing communications director of Arrow Asia Pac Ltd emphasises. Arrow Asia Pac is a subsidiary of Arrow Electronics, one the world's biggest distributors of electronic components and computer products and a leading provider of services to the electronics industry. It serves more than 10,000 original equipment and contract manufacturers plus commercial customers in the Asia Pacific region, providing a full range of semiconductors, and passive, electromechanical and connector products from over 170 leading international and local suppliers. Employer of choice A Fortune 200 company in the US, the company's brand already serves as a guarantee for talent attraction. "Joining our workforce means working in a financially secure environment. This is also a perfect place for those who desire international exposure and development opportunities," Mr Leung points out. Besides its regional headquarters in Hong Kong, Arrow Asia Pac operates more than 50 sales offices, four primary distribution centres, and 12 local warehouses in 11 countries across Asia. To capture thriving business opportunities and enhance services and support, the company continues to expand its sales and support network in the region. "Our staff are part of a truly multinational culture here as they have the opportunities to meet people from all over the world. The management team is internationalised and senior members are always there to communicate with colleagues from all levels," Mr Leung says. As communication among employees is a key success factor, in particular for such an expansive organisation, various channels are used. For instance, with its efficient global intranet system "Planet Arrow", thousands of employees are able to share information and best practices across all regions in real time, regardless of time zones and geographical distance. In addition, the company's social club organises leisure activities such as red wine tasting and feng shui classes, plus learning programmes like Putonghua lessons. Innovative incentive "Our investment in people is significant as we understand they are our most valuable asset. The management team is always seeking creative methods to motivate staff. For example, in order to recognise quality people in all ranks so as to boost our competitive edge and maintain business growth, we have introduced a unique rewarding scheme the President's Club," Mr Leung explains. The President's Club is an annual event that brings together the cream of the crop — equivalent to two per cent of the company's workforce — from all of Arrow Asia Pac's regional offices. "Based on the personal performance of the individual in the past year, candidates are nominated to enter the contest. Although the President's Club is held only once a year, it reflects staff's ongoing efforts in giving top performance," Mr Leung states. To honour the winners for outstanding efforts in their work, each of them receive gifts such as an iPod and a crystal trophy set. They can treat themselves on the company's account to dine out at their choice of restaurant and enjoy an extra three days off work. Looking at their long-term careers, each of the winners is granted US$1,000 as reimbursement for self-improvement studies. Plus, a personal development plan is custom-made by the immediate superior of each individual for the following year. The highlight of the President's Club is the trip all the winners go on together. Since the introduction of the programme in 2004, winners have enjoyed journeys in Thailand, Australia, Malaysia and Japan. During this trip, people get to know each other in a relaxed atmosphere. They have a meeting with the president of Arrow Asia and get a clearer picture of the company's business focus for the future. More than that, every club member can bring along a family member. The company also organises interesting activities to keep everyone's mind off work and let them practise team building elements at the same time. "During the 2007's President's Club trip to Kota Kinabalu, we even had a competition where members were divided into teams to fight for a US$1,000 cash prize. It really was a lot of fun and a great reward for their hard work," Mr Leung says. "People are always talking about the President's Club, whether they have won a place in it or not. It has become an aspiration and a goal for all of us." Salient points Employer brand a guarantee for talent attraction Fair, systematic and effective incentive system necessary Communication a key Leisure activities build team spirit Taken from Career Times 31 August 2007, p. B19 Your comments are welcome at [email protected]