If you look at the bottom of your credit card or on its back, there is a good chance you will see our name on it,” says Tan Teck-Lee, Gemalto’s Chief Innovation and Technology Officer and Asia President. He is not wrong – the reverse of our credit card reads ‘Gemalto’ in small print.

“We also manufacture chips used in passports and ID cards. We have come a long way from being a company a few years ago that just made just smart cards, to being a world leader in digital security,” he adds.

The company’s profile is impressive: Gemalto boasts 74 offices globally, employs over 10,000 employees from 100 nationalities, and is present in 43 countries. Yet, both Tan and Alexandre Gentot, Asia Vice President, Human Resources, believe that the company’s sheer size, global presence and technological capabilities are not the main reasons behind Gemalto’s growth story of late. Instead, they attribute this to their employees and the manner with which the company retains and develops its staff.  

A career, not a job

The foundation of Gemalto’s human capital strategy is its commitment to only hiring employees who seek long-term opportunities. Not hiring workers on a short or mid-term basis – irrespective of how capable candidates are – allows the company to amass years of industry expertise. This has also proved to be a key factor in ensuring high retention: in 2011 and 2012 Gemalto kept 97% and 98% of its top talent respectively.

“From the beginning, the message you will get is that your job is about long-term sustainability. When we hire someone, we hire him or her for a career, not just a job. This is because our business today is strongly linked to what we did five years ago and what we plan to do in 10 years time,” says Gentot.

The management at Gemalto openly admits this approach to be highly challenging, given that many of today’s younger workers do not seek long-term opportunities. This is particularly noticeable in Asia. A 2012 study by the Hay Group on employee engagement found employees in Asia were amongst the least loyal to their organisations; given the chance, one in two employees in Asia will leave their jobs.

“In Europe, staying in the same company for a long time is quite common. But, in Asia, most countries are full of opportunities and so workers do not stay long. In China, for example, only one-third of Gen Y say they are prepared to stay in a company for more than two years. It is almost impossible to run a company under these conditions,” claims Gentot.

Recognising the trend towards increased turnover of employees, Gemalto introduced a number of initiatives aimed at overcoming today’s talent crunch in Asia.

Cultural influences

One such initiative is the company’s mentoring programme. High-potential employees are mentored not by their immediate supervisor, but by a manager of another business unit or function.

“In Asia certain workers think it is very impolite to question their supervisor. And, likewise, supervisors can be biased or judgemental towards their staff,” explains Tan. “We deliberately appoint another senior manager from elsewhere in the company who will guide the mentee, broaden their perspectives on industry matters, and encourage them to openly communicate with Gemalto’s management.”

This mentor is often from a different department or domain, giving the high-potential mentee another view or perspective on business matters. People who work in research and development (R&D), for example, may not be familiar with the best ways to engage customers. By working with a manager experienced in facing clients, an R&D mentee is given the ability to look at situations differently, with the customer in mind. “This approach really enlightens our high-potential employees and motivates them to achieve much more,” claims Tan.

In total, Gemalto runs 17 such programmes in Asia, the successes of which have contributed to the company winning the 2012 Asian Human Capital Award. Adjudicated by Singapore’s Human Capital Leadership Institute, the award honours innovative and impactful people practices adopted by Asia-based organisations.  

Promotion from within

Another core aspect of Gemalto’s human capital strategy is internal promotion. Of the top 350 executives the company employs worldwide, 93% are promoted from within. In Asia, 95% of top executives are internal promotions. However, unlike most companies, Gemalto elevates its employees to lead unfamiliar departments or business verticals.

“It is not unusual in our company for a sales person to move to a management position in HR, or for a marketing person to transfer into R&D. This is because when we hire, we look at their attributes and their ability to react to market and job changes. We want to develop people and push them to new frontiers,” says Tan.

“I once worked in sales and marketing and I was the President of Asia, responsible for [profit and loss]. One day, the company’s CEO informed me he was promoting me to the global CITO [Chief Innovation and Technology Officer] role. While such a move would scarcely happen in other companies, this is not unusual in Gemalto. The company allows us to maximise our potential, which would otherwise be untapped and unexplored. All moves are done according to the appetite of the employees to try new tasks,” he claims.

While Tan acknowledges that some candidates may not enjoy or have an aptitude for their new role, Gemalto supports its high-potentials through on-the-job training, in-house modules and one-on-one coaching, and executive education programmes. In the event that a candidate continues to struggle in their new position, other opportunities will be presented to them.

“If people struggle in a new environment, we don’t say, ‘You are a failure’. We simply tell them not to worry and encourage them to try a new role that is closer to their skill set,” explains Tan.

“In Asia, our education system tells us we cannot fail,” says Tan. He argues that it is widely acknowledged elsewhere in the world that failure makes people better equipped to overcome future challenges.  

Global opportunities

Gemalto has multiple offices around the world, so there are many opportunities for employees to live and work abroad. Until recently, however, uptake of such openings was not high, due to employees’ domestic commitments and because many opportunities were in countries that did not appeal to employees. In addition, project moves often take several months – if not years – to come to fruition as employees familiarise themselves with the idea of a move.

“Many of our employees remain unwilling to move. There either are too many unknowns in a particular country, or the location is not appealing to them,” notes Gentot. “To overcome these barriers, it is best for employees to take up overseas openings when they are young. That way they familiarise themselves with idea of working abroad. We also ask our employees on a regular basis what their plans are, and whether they have aspirations to move elsewhere,” he explains.

Gemalto caters for short-term exchanges, where employees have the opportunity to move to a different country for a six-month period. Aside from its exchange programmes, the company also runs programmes aimed at specific age groups, such as the company’s Young Transfer Programme and its SHINE programme, which prepares more mature Asian executives to become global leaders. Both schemes meet company needs in both the short-and long-term term, while keeping staff motivated about their role.

“As a multinational business, it is important to have a pool of people who understand the company’s long-term plans, and who are willing to take their knowledge to a new office when the opportunity emerges. That is why Gemalto invests in its various exchange programmes – you need to give the keys of the house to someone you know and trust,” explains Gentot.  

Long-term sustainability

Gemalto’s Human Capital Strategy is supported by three practices: developing Asian leaders, developing people managers, and employee self-development. In a bid to meet these goals, Gemalto embarked on a four-pronged strategy of only hiring career-minded candidates, rolling out Asia-specific development programmes, promoting from within, and encouraging employees to undertake unfamiliar and challenging roles. This process has proved highly successful for the company, enabling high retention rates with talent – especially top talent.

Investing in long-term strategies that are specific to the needs and preferences of the Asian market will encourage local talent to buy-in to the company’s business needs and goals. This engagement will result in high retention rates and ensure an organisation retains its most prized asset: human capital.

This article was first published in HQ Asia (Print) Issue 06 (2013)