Macau braces for talent crunch
Increased demand for skilled workers in Macau's fast-expanding gaming industry will drive the adoption of advanced human resource management practices and technology in the former Portuguese enclave, according to industry experts.
'Macau's human resources challenge is clear given the developments around new casinos,' said Sean Loiselle, senior director for human capital management (HCM) in the Asia-Pacific region at enterprise software firm Oracle.
'With the number of gaming tables expected to grow fivefold - from about 2,000 at the beginning of this year to 10,000 by the end of 2010 - there's going to be a severe shortage of experienced personnel at every level.'
That battle for talent is expected to sharpen the focus of Macau casino operators on HCM systems to boost customer satisfaction and sustain business growth.
'The attraction and retention of talent has a real impact on a company's performance,' said Stella Hou, general manager for Hong Kong at human resources services firm Hewitt Associates.
'Companies that manage their employees as an asset have lower staff turnover, which translates into lower recruitment and training costs and, even more importantly, less disruption to customer relationships.'
According to Oracle estimates, every new hire can cost 100 per cent to 250 per cent of the departing employee's annual salary.
The strong demand for skilled staff from casino operators in Macau has apparently also put other sectors on the island - such as financial services, professional services and the public sector - under pressure to adopt comprehensive human capital strategies to retain key personnel.
'Human capital management is a long-term strategic play but the good news is that the technology available to support talent management - enterprise HCM application suites and related analytical tools - is now quite sophisticated,' Mr Loiselle said.
'Casino operators in Las Vegas have already demonstrated the business value that can be obtained from HCM technology and the model they have established is an excellent foundation for the gaming industry in Macau to build on.'
Leading hospitality and gaming operators such as Crown Casino and Burswood Entertainment Complex in Australia are among Asian customers that have gone live with Oracle-based HCM solutions.
Many multinational hi-tech firms - including Oracle, Microsoft, IBM, Hewlett-Packard and SAP - have been aggressively marketing tried and tested technologies used largely in the Las Vegas gaming industry to tap into the estimated US$20 billion to US$30 billion worth of casino-related projects in Macau.
Hong Kong also has difficult human resources issues similar to the situation in Macau. According to the Hong Kong Institute of Human Resource Management, the overall job vacancy rate in Hong Kong hit an average of 3.1 per cent this first quarter, with the financial services sector posting the highest vacancy rate at 5.62 per cent.
'The Hong Kong economy has grown strongly in the last four years and the war for talent here has re-emerged,' Mr Loiselle said.
