Country Report for the Joint Study Workshop on “Attraction, Development & Retention of Young Talent - Comparative Perspective among Asian Countries: The Need for Strategic HRM/HRD Approach in the Era of Globalization”

1. Presented by:
Sakda Hwankaew (Mr.)
HR and Admin Department Manager
TIPS (Terminal B4), Laem Chabang Port
HANOI, VIETNAM
Website: http://www.ecot.or.th
Website: http://www.hrchonburi.or.th

2. Labor Market
Situation
• Employment & Unemployment
• Labor shortages and
Redundancy in Thailand
• Turnover Rate
• Impact from Minimum Wage
Local companies
Best Practice
• Top Trend Manufacturing Co.,Ltd.
Multinational companies
• Thai Summit Harness(Pucblic) Co.,Ltd.
• TBKK (Thailand) Co.,Ltd.
Future Challenge
1/14/2014
• HRD Strategies by HAY survey
• Motivating and Retaining
Talented young People
The need for study HRM/HRD Approach in the Era of Globalization
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3. Thailand Unemployment Rate %
Subprime Crisis
Tsunami Crisis
Thai Flood
GDP = 1%
1.4
1.6
1.0
0.9
0.6
Y2008
Y2009
Y2010
Y2011
Y2012
2.5%
2
3
4
2
6
7
1
1
8
0
Source: Bank of Thailand
1/14/2014
5
0
Gross Domestic Product
3
4
5.7%
5
6
7
8
GDP growth projection
2013 = 4.6%
The need for study HRM/HRD Approach in the Era of Globalization
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4. PERCENTAGE OF EMPLOYED PERSONS
AGED 15 YEARS AND OVER BY
INDUSTRY: 2008 - 2010
Population by Labor force
Number in thousand
1.8%
6.0
60,000
1.4%
38.6
70,000
1.6%
1.6%
13.3
25.9
14.7
1.4%
50,000
1.2%
1.0%
Agriculture
40,000
1.0%
0.8%
1.1
Fishing
Manufacturing
Services
Construction
Other
30,000
0.6%
20,000
0.4%
10,000
0.2%
0.0%
Y2008
Y2009
Y2010
Population
66,321
66,876
67,275
Labour Force
37,670
38,454
38,616
Employed
37,007
37,718
38,011
1.4%
1.6%
-
1.0%
% Unemployed
Need
Source: Key Statistics of Thailand 2012, The Labor Force Survey Whole Kingdom, National Statistical Office
1/14/2014
The need for study HRM/HRD Approach in the Era of Globalization
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5. Student
Employee
Thailand Labor Situation in Y2009
9 60 119 persons
persons
persons
PERCENTAGE OF STUDENT
IN PRIVATE INSTITUTION
BY GRADE : ACADEMIC YEAR 2009
100
UG: employed=83.9%
90
80
US: employed=64.3%
PERCENTAGE OF STUDENT
IN PUBLIC INSTITUTION
BY GRADE : ACADEMIC YEAR 2009
0.48
1.55
Over
Supply
8.99
16.32
16.23
90
80
13.89
70
70
14.33
60
Shortage
50
21.14
LS: employed=52.1%
38.19
40
36.39
20
21.69
0
PE
PE: employed=59.8%
EE
60
50
40
30
10
100
LS
US
PE: Pre-Elementary Education
EE: Elementary Education
LS: Lower Secondary Education
GD
PE
EE: employed=74.8%
20
Labor force participation rates
10.81
UG
30
EE
LS
US
UG
10
0
GD
US: Upper Secondary Education
UG: Undergraduate degree and below
GD: Graduate degree
Source: Key Statistics of Thailand 2012, The Labor Force Survey Whole Kingdom, National Statistical Office
1/14/2014
The need for study HRM/HRD Approach in the Era of Globalization
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6. Skill mismatch &
Skill shortage (Y2008)
Labour market segmentation
Labour Demand by Region
Labour Demand by Sector
Figure 5: Labour Demand and Shortage
Demand
Total
SL
Vo
Shortage
Hi-Vo
BA
SL: Secondary/Lower, Vo: Vocational, Hi-Vo: high Vocational, BA: Bachelor
Labour Shortage by Region
Figure 6: New graduate entry to labour market
Vo
Hi-Vo
Labour Shortage by Sector
BA / Master
Source: Bank of Thailand
1/14/2014
The need for study HRM/HRD Approach in the Era of Globalization
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7. Number of Enterprise and Employee
Number of Population
415,000
410,000
405,000
400,000
395,000
390,000
385,000
380,000
375,000
370,000
365,000
Enterprises
Y2009
Y2010
Y2011
7,783
Increase
Y2008
5,971
8,271
4,257
382,170
389,953
395,924
404,195
Y2008
Y2009
Y2010
Y2011
66,519
342,714
797,160
1,015,759
9,293,600
9,360,119
9,702,833
10,499,993
Y2012(Sep)
408,452
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
Increase
Employees
Source: Social Security Office
1/14/2014
Y2012(Sep)
11,515,752
Source: Institute for Population and Social Research, Mahidol University
The need for study HRM/HRD Approach in the Era of Globalization
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8. Turnover Rate by Sectors Year 2011
25
25
23.61
19.43
20
20
16.85
15.12
14.57
13.97
15
14.03
15
12.96
10
10
8.76
7.97
9.26
5
5
11
8
8
21
11
13
19
6
10
13
Construction
Transport
Retail
Plastic
Rubber
Commercial
Electronics
Auto Parts
Iron and
Metal
Food and
Beverage
Other
0
Company
Average
0
% T/O
Source: PMAT(Personnel Management Association of Thailand)
1/14/2014
The need for study HRM/HRD Approach in the Era of Globalization
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9. Industrial Turnover Rate Year 2011 vs. 2012 (%)
25
Y2012
EPMA 23.64
25
23.6
20
20
19.43
15
10
5
16.85
Y2011
PMAT 9.9
15.12
14.03
10
3.97
5
2.28
0
Source: PMAT-Compensation & Benefits Survey 2011-2012
1/14/2014
15
n=120 , EPMA n=21
Supervisor
The need for study HRM/HRD Approach in the Era of Globalization
0
Avg. PMAT
Avg. EPMA
Manager
9

10. Impact from new minimum wage and starting rate
1st April
1/14/2014
1st January
The need for study HRM/HRD Approach in the Era of Globalization
Slide 10

11. Show & Share
1/14/2014
The need for study HRM/HRD Approach in the Era of Globalization
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12. Established
Registered Capital
Annual Sales
President
: Oct 18,1979 (23 years)
: 290 MB
: 4,000 MB
: Mr.Thanathorn Juangroongruangkit
Employee
Total Area
Products
: 3,125 Persons
: 24,368 square meters
: Automotive Wire Harness
Forklift Wire Harness
Motorcycle Wire Harness
Sub Harness
Tractor Wire Harness
Before we build parts,
We build people.
Target/year
Target of
Employees
100 %
participation
Indicator
1/14/2014
20 activities
Attitude survey
score ( 80%)
The need for study HRM/HRD Approach in the Era of Globalization
12

13. Established
Annual Sales
(Year 2006)
President
Employees
Operation
Background (Headquarter &
Subsidiary)
Oversea
Operations :
Regional network
(13 companies &
1 Rep. office )
Sub Harness
Motorcycle
70%
Joint Venture Business in Thailand
( 13 Companies )
Automobile
Subsidiary
Thai Summit Tape
Battery
PVC
Tape
Thai Summit Connector
5%
Terminal
Connector
82%
44%
Cable
Thai Summit Component Global Harness Technology
Mould
Others
Component
51%
76%
: March 16, 1977
: BHT 30,000,000,000
USD 846,000,000
: Dr.Somporn Juangroongruangkit
: 21,000 Persons
: Motorcycle Parts
: Automobiles Parts
: Agricultural Engine Parts
: Electrical Appliances Parts
: and Other Businesses.
Trading
Injection
42%
100%
Support MMC as
SE on Engineering
and Running
Change, working
on Circuit Diagram
and Lay Out.
Thai Summit Owned Business Group in Thailand ( 22 Companies )
1/14/2014
The need for study HRM/HRD Approach in the Era of Globalization
13

14. HRM&HRD
Program
Safety
4G
Organization
Engagement
Program
Web HR Service
Center
Development
2013
Maintain Happy workplace
& Employee Relation
Activity
KM Knowledge on
Internet / Smart
Phone / Tablet
Knowledge & Skill
Development
2015
1/14/2014
English
learning for
AEC
Management Participation
Happy
8
CSR
23 Years
3,125 People
http://www.thaisummit-harness.co.th/
The need for study HRM/HRD Approach in the Era of Globalization
14

15. Before we build parts,
We build people
1/14/2014
The need for study HRM/HRD Approach in the Era of Globalization
15

16. Established : June 1, 1989
Employees : 1,348 Persons
Products : BOTTLE l COMPACT CASE l COSMETIC ACCESSERIES l
R l LIP l TUBE
1/14/2014
The need for study HRM/HRD Approach in the Era of Globalization
16

17. http://www.toptrendmfg.co.th
Thai Company
23 Years
1,348 People
Plastic
Cosmetic
Accessories
Mission:
To serve customer needs agilely at its
best possible way
1/14/2014
“No union, good welfare”
The need for study HRM/HRD Approach in the Era of Globalization
17

18. Key success factors: Established Employer Branding
Employee satisfaction = 2012(90%)
Turnover rate = 2005(10%), 2006-2012(5%)
1/14/2014
The need for study HRM/HRD Approach in the Era of Globalization
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19. http://www.tbkk.co.th
Established : 28 March 1990 (22 years)
Employees : 352 Persons
Annual Sales : 2,500 MB
Products
: Manufacturer of brakes and engine components for all vehicles
“Homogeneity & Fairly” (
Company aims to acts to all
members in organization as a family with faire management through unity and
incentives.
1/14/2014
The need for study HRM/HRD Approach in the Era of Globalization
19

20. Turnover rate
2008 = 3.0%
2010 = 0.96%
2012 = 0.77%)
The Power of Continual
Development
Fairly(Fair-Ability-Integration -Reliability-legally)
1/14/2014
The need for study HRM/HRD Approach in the Era of Globalization
Welfare Committee
CCCF Committee
5s Committee
White Factory Committee
Environment Committee
Kaizen Suggestion
Safety Committee
Team (Trust Energetic and Mutually )
20

21. 1/14/2014
The need for study HRM/HRD Approach in the Era of Globalization
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22. Mr.Sakda Hwankaew
Mobile: (66) 81 576-5046
Email1: sakda@tips.co.th
Email2: hrchonburi@gmail.com
Email3: sakdah@gmail.com
26/09/2012
Thai Shipowners' Association
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