Interview Notes with Sebastian

Tan, Group HR of FCL:

How do u see HR as a key strategy to achieving business?
What is the FCL business goal? To stay competitive in the market (not to lead in the
market)
To
How would this compensation support business strategy?
A successful strategic compensation plan allows your business to compete in ... Perks and
benefits can make or break your company's ability to attract the best ...

Talent Mgmt: how u get ppl, bring them in, engage, develop, retain and deploy.
Rewards: Must be robust to incite behavior u want.
Development: Not everyone will be fully ready to do what u want. Bridging the gap.

Real Estate: CapitaLand, Keppel Land

Hospitality: Hotels
Reeds: Real Estate Trust competitors
New Revamp: Compensating our people appropriately, how we reward them for the results they
deliver. No consistency in real estate company. Take cyclical economy for real estate into
consideration and average it to establish a baseline.
Programme Design: Review practices. Treat retirees: >62, all long term incentives disappear.
Reviewed: Even after 62, as long as in service, you will receive some LTI.
Executives: With minimum degree
Person based/job based: Job based: Each job has a job grade, salary range for each job grade
apart from key appointment holders. C-suite. Job-grade was developed some time ago
referenced to HAY points to benchmark the jobs pegged to HAY reference level. Every year
there is a benchmarking exercise against relevant market, vs. real estate industry, hospitality
competitor.
Competitive:
Is there any key
Pay Mix: Fixed + Variable. Depends on job level. At higher level, lower fixed component and
larger variable component (40-60). More conservative.
Long term Incentive Programme: 4 years. At the beginning, they will be informed of how much
they can get. At the end of performance cycle of 4 years: provide shares and balance
-For managerial level and above.

Purpose: To have the alignment between the staff employees and shareholders. They will want
to work hard for the company.
Also serve as a retention tool: Lock in employees.
Snowball the cost of leaving because of the long term incentive share plan dividends.
must only be listed.
All tied to performance for variable bonus.
1. Keep fixed cost manageable
2. When staff & company do well, can receive the appropriate amount
Looking at Big picture
Environment/culture: work life balance. Hardly any politics, good working environment.
Better retention than other industries
Do look and compare across industries.
There is overall affordability limit for these.
Annual perf appraisal: towards end of financial year.
Scorecards for key businesses/key appointments.
Benefits:
Flexi-benefits: not cost saving for company. Novelty for employees only.
Refer based on market practice.
Benchmark leave
Reflection of what the company values:
Skills future: supporting gov plans for skills upgrading.
CSR beliefs
New benefit: 2 days of leave for skills-future course.
Grant employees 2 days of leave to do volunteering work.
Average age of employees: 42-44 (mature employees)
Each benefit has to appeal to at least one group of people.