In 2018, turnover cost businesses USD$600 billion, and by next year that number is expected to skyrocket to USD$680 billion. Partly to blame is a strengthening job market, but the issue is multi-faceted.

How can employers prevent costly turnover from eating into their company’s bottom line?

Why the turnover problem is on the rise

Global unemployment is dropping while jobs are on the rise.

In many countries, there are more jobs open than there are unemployed people to fill them, and people are taking advantage of this strong jobs market to change jobs. Sometimes they are going after higher pay, and sometimes they are trying to get out of a dead-end job.

Regardless of the reason, many companies are struggling to keep employees on the payroll.

Even global companies like McDonald’s, which is designed to handle high turnover rates, are having difficulties finding people to fill open positions. When jobs with higher pay and better benefits are out there to be found, can you blame workers for walking away?

The jobs market is so strong right now that even interviewees who have been offered and who have accepted new positions are ghosting employers in favor of better offers. Sometimes employers may not even know an employee has rejected their job offer until they don’t show up for their first day of work.

The cost of turnover

Why is turnover so expensive anyway? Posting jobs, interviewing, preparing offers, and onboarding new job candidates are all very costly procedures. Replacing an employee costs an average of ⅙ of their yearly pay, which adds up quickly the higher up the food chain you go.

Recruiting, job posting, onboarding, training, monitoring productivity, and customer service issues due to new employees are all sources of cost for employee turnover.

Also Read: Unfair treatment is the biggest driver of employee turnover, and it is a US$16B problem for tech companies

What’s more, losing employees can often increase the burden on other employees. This can have a domino effect of losing multiple employees at the same time, which adds compound interest to the already high cost of replacing employees who have moved on to greener pastures.

Keeping existing employees happy is the key

Job perks are a great way to keep employees happy at work. Many workplaces offer perks like free premium coffee, free drinks and snacks in the break room, and more. Little things can go a long way. But even these great incentives are not enough to keep your best employees around, especially at a time when the jobs market is so strong globally.

Higher pay and better benefits are the keys to attracting and retaining the best talent. After all, you can’t pay your bills with free snacks in the employee break room.

An astounding 72 per cent of employees said they would be happier in their current position if their employer were to offer more and better benefits. In fact, employers with a 6-benefit plan had a drop in turnover of 138%, while the average turnover rate at a business without benefits is 157 per cent.

More than half of employees believe that their employer has a responsibility to look after employees’ financial well-being, which is why retirement plans with matching funds and financial counselling are so important. Health insurance, dental insurance, vision insurance, and life insurance are a must for any employer to remain competitive, but there are also several other areas where employers can offer great benefits.

Also Read: How to profit from Singapore grants for small businesses

Employee development is something that many working professionals want but that few employers offer. Assistance with college tuition for continuing education can help to achieve this. Some employers use an 80/20 rule stating that 20 per cent of an employee’s time should be used for continuing education, which benefits both company and employee alike.

Finally, workplace culture is another area where employers can make simple changes to attract and retain the best talent. Things like common areas where people can gather to get to know each other better, team-building experiences like hiking trips or escape rooms, and even periodic lunches out can help people feel more of a sense they are part of a team rather than just a cog in a machine.

Fight back against turnover

If your company is starting to experience higher turnover rates than normal, it may be time to examine culture and benefits. Learn more about the high cost of turnover

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Image Credit: Markus Spiske

This article was first published on October 17, 2019

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Last week, Telkomsel Ventures, the corporate venture capital arm of Indonesian mobile operator Telkomsel, unveiled the commencement of TINC Batch #9, a startup accelerator programme in collaboration with AppWorks, the foremost startup community in Greater Southeast Asia.

TINC Batch #9 will spotlight five to six tech startups primarily focusing on the Indonesian market, spanning Seed to Series A stages. Startups participating in the programme are encouraged to operate across diverse sectors, particularly focusing on companies developing solutions for Consumers, Data (AI, data analytics, cyber security), SaaS/Enterprise, B2B Services, and Fintech.

TINC is renowned for its close collaboration with dynamic startups in Indonesia, leveraging Telkomsel’s ecosystem, assets, and expertise to nurture innovation. The programme, which is both cost-and-equity-free, aims to facilitate intimate collaboration between Telkomsel and synergistic startups.

As one of the longtime players in the Indonesian startup ecosystem, Telkomsel Ventures has seen significant changes and progress in the community. In this interview with e27, Mia Melinda, CEO of Telkomsel Ventures, shares her insights about Indonesian startups.

What significant changes have you noticed in the local startup community recently? How does it affect your investment strategy in Indonesia?

There is more activity in the early stages than before. Startup founders are more experienced and savvier than before, with many founders having management experience at other startups or being second-time founders. They understand how to work with corporations such as Telkomsel and are building new and interesting solutions for the digital economy.

Also Read: NBA star Jeremy Lin joins Indonesian proptech firm Rukita’s US$15M round

Building off the maturation of the Indonesia startup ecosystem, we are more excited than ever before to work with startups and create lasting value and synergy.

As a critical conduit connecting startups with consumers and businesses, Telkomsel Ventures offers a powerful value proposition for startups through Telkomsel’s large user base and business clients. We aspire to establish collaborative relationships with startups, guiding them to create innovative and sustainable solutions for the digital economy.

Partnering with AppWorks for TINC Batch #9 is part of our increased commitment to supporting Indonesian startups, allowing us to provide outsized support and extend our reach.

What are your most notable milestones in recent years?

We have partnered with many exciting Indonesian startups in recent years, working with startups from early to later stages in fostering innovation. As Telkomsel acts as a portal to digital life in Indonesia, TINC is a conduit for emerging startups to tap into the Telkomsel ecosystem and thrive. TINC will be one of the main focus for Telkomsel Ventures in gaining access to the digital economy and creating positive outcomes for startups, and positioning us as a partner of choice for startups in seeking growth opportunities and value creation

What is your investment philosophy? What do you look for in a potential investment?

TINC’s investment philosophy is based on our mission to support the growth of Indonesian startups and cultivate the creation of inclusive and sustainable solutions for Indonesia’s digital economy. As a corporate accelerator, TINC is dedicated to fostering collaboration helping startups take their business to the next level, utilising Telkomsel’s ecosystem, assets, and expertise to foster innovation.

We look for startups who can demonstrate a clear value proposition in partnering with Telkomsel for our users and customers and ones that we can help bring to their next level of development.

Also Read: BRI Ventures CEO to share insights on chasing Indonesia’s next Unicorn

What kind of support do you give to your portfolio? What sets you apart from the rest?

Startups that partner with TINC gain exposure to Telkomsel’s ecosystem, assets, and expertise. Telkomsel knows what the users need and can help startups develop solutions to meet those needs, having startups partner directly with Telkomsel business units and helping them create new streams of business revenue. Telkomsel wants to innovate and co-create new things with startups, combining its assets and startups’ ideas and creativity beyond telco.

When other businesses see that a startup can partner with Telkomsel, it changes how they look at the startup, providing greater legitimacy to startups and helping them attract even more businesses to work with them–and that’s a huge badge of honour for us.

How do you plan to make a difference with this accelerator programme?

We are a collaborative player in Indonesia’s startup ecosystem. The accelerator programme is cost-and-equity-free.

We aspire to work closely with participating startups to leverage our proprietary resources to help startups grow while offering new innovative products and services to our users. We provide opportunities for startups to test out their ideas with a captive audience with the goal of helping startups generate revenue and achieve sustainable business growth.

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Image Credit: Telkomsel Ventures

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Last week witnessed a flurry of investments from Southeast Asia’s prominent venture capital firms, spotlighting the region’s vibrant startup ecosystem.

Leading the charge is Capria Ventures, based in the US, which strategically invests in tech startups across the Global South, fostering robust relationships between founders and local VC firms in tech hubs worldwide.

Meanwhile, Singapore’s ABC Impact, driven by Temasek Trust Asset Management, focuses on generating positive societal and environmental impact, aligning its investments with the UN Sustainable Development Goals.

Tin Men Capital, also based in Singapore, bolsters enterprise technology startups, while Krungsri Finnovate, the corporate venture arm of Thailand’s Bank of Ayudhya, propels startup growth through strategic partnerships. 1982 Ventures targets seed-stage fintech startups in Indonesia, Vietnam, the Philippines, and Singapore, while Golden Gate Ventures and Openspace Ventures continue to inject capital into early-stage internet startups across the region.

Capria Ventures

Based in the US, Capria invests in tech startups of the Global South. The early-stage investor helps activate strong relationships between hundreds of founders and leading local VC firms in the tech hubs of the Global South – from Sao Paulo to Lagos to Bangalore to Jakarta.  Its network of investing partners collectively manages assets of over US$1 billion.

Also Read: wagely raises US$23M in equity and debt to further expand in Indonesia, Bangladesh

The average cheque size is US$1-5 million.

Capria has offices in Seattle, Bangalore, Nairobi and Washington DC.

It invested in Indonesian earned wage access startup wagely.

ABC Impact

Headquartered in Singapore, ABC Impact is a private equity firm investing for the purpose of generating positive, measurable social or environmental impact. ABC Impact is a division of Temasek Trust Asset Management. Its founding investors are Temasek Trust, Temasek, Pavilion Capital, Mapletree Investments, Seatown Holdings, SP Group, and Sembcorp Industries.

Its investment strategy aligns with Temasek’s ABC Framework for an Active Economy, a Beautiful Society and a Clean Earth, building on the ideals of the 17 UN Sustainable Development Goals.

Key focus areas for us include financial and digital inclusion, better health and education, climate and water solutions, and sustainable food and agriculture.

The average cheque size is US$5-50 million.

It invested in UK-based Winnow last week.

Tin Men Capital

Based in Singapore, Tin Men is an enterprise technology investor in Southeast Asian startups. It invests in smart cities & security, smart production & agriculture, smart transportation/logistics, enterprise productivity, and omnichannel retail enablers

The average ticket size is

It invested in Singapore-based startup Ai Palette.

Krungsri Finnovate

It is the corporate venture arm of the Bank of Ayudhya, Thailand. Its mission is to provide strategic investment with a focus on helping startup achieve their goals through strategic partnership. With a corpus of US$100 million, it aims to enhance the ecosystem of startups located both domestically and internationally.

Also Read: Tokocrypto founder’s new AI startup Untukmu bags funding to disrupt Indonesia’s personalised gifting market

The average ticket size is US$1-20 million.

Startup invested: Sleek EV (Thailand)

1982 Ventures

1982 Ventures is an early-stage VC firm, with a core focus on seed-stage fintech startups in Indonesia, Vietnam, the Philippines, and Singapore.

The average ticket size is US$100K-500K

The startup it invested in is Untukmu (Indonesia).

Golden Gate Ventures

Golden Gate Ventures is a seed fund investing in early-stage internet startups in Southeast Asia. Since 2011, the firm has invested in over 30 companies across more than seven countries in Asia. The firm invests in internet and mobile startups across many sectors, including e-commerce, payments, marketplaces, mobile applications, and SaaS platforms.

The average cheque size is US$50K to US$3 million.

The startup it invested in is Untukmu (Indonesia).

Openspace Ventures

Openspace Ventures has more than US$150 million in assets under management from a range of global and regional institutional investors. It is currently deploying capital from its second fund.
Openspace Ventures makes investments in early-stage technology companies based in Southeast Asia.

Its typical investments are at Series A or B stages, where revenue traction is building and capital is required to drive rapid growth. Its existing portfolio covers B2C and B2B technologies that are accessing local, regional and global markets.

The startup it invested in is Rukita (Indonesia)

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Good entrepreneurs are masters in the trade of trying. They see what everyone else overlooks, and attempt what has never been done before.

With a team of just a few people – and often without footing in their industry – they outpace larger, well-resourced and well-staffed organisations.

They discover and seize opportunities at every turn, without losing focus. How do they do it? How do resource-constrained startups successfully enter an established market and reinvent it from the ground up?

The answer is, they excel at building trust. In order to innovate, you need users and investors to trust in the utility of something entirely new.

I define trust as the value we place on our relationship with a person or entity. Graduates from elite universities receive better opportunities because companies trust in the quality of their education.

Branded home appliances sell at a premium because people trust in their performance. Jobs requiring high levels of interpersonal trust – doctors, lawyers, consultants – rank among the highest-paying professions.

This principle holds for trends (we pay much more for cold-pressed juice because we trust in its health value), recent events (the Volkswagen emissions scandal, a classic trust breach, literally made us value the company less hence the major drop in stock price) and interpersonal communication (your loved ones are people you trust unconditionally).

Put simply, we value people and companies as well as products and services by the trust they manage to build with us. Your commercial self-interest makes you pay for things that you trust will have value to you.

It is a basic principle in economics that in order for a trade to happen, the involved parties need to trust in their mutual gain from it. Trust enables value creation, and this makes it everyone’s most valuable asset.

Also Read: Starting up? These are 5 challenges you will face

Build trust, capture value

Businesses that build trust well capture exponentially more value than industry peers. The stock market valuation of companies like Tesla and Alibaba are perfect examples of this.

We buy a stock because we trust the company will use its assets – such as employees, technology, customer relationships, and so forth – to harvest profit and appreciate in value in the future.

Balance sheet, brand and reputation are all just proof points for its value-creating (i.e. trust-building) potential. A company’s valuation is determined by how much trust it builds with people, and this trust becomes a quantifiable financial reality on the stock markets.

The same logic applies to startup funding. Investors will entrust entrepreneurs if they are hoping for them to succeed – the more trust they build, the more investment they are likely to receive.

In a similar vein, startups that successfully enter and transform an industry manage to quickly surpass the trust incumbents have earned with users and stakeholders over the years. Many tech companies today do this without ever owning much of the assets that make up their business.

Instead, they create trusted intermediaries such as Silicon Valley unicorns like Airbnb, Uber or Stripe. This genius feat allows them to capture value without owning the property, vehicles, payment terminals, etc. involved in their services.

Therein lies the power of platforms that establish trust among strangers, so that these can safely share their (underutilised) resources with the world.

Perhaps this explains why the fintech startup space is so hot at the moment – its main proposition is to create trusted intermediaries for the transfer of value that are much better than what exists today.

The magic of working consistently in order to be trusted

Let’s take a look at the broad picture – trust is more than a value maximisation strategy; it exemplifies the core spirit of entrepreneurship. Good entrepreneurs trust in what they are doing. They have only themselves and their team to rely on, and the rest of the world to convince.

They trust in the need they are addressing with their business, and in the voice of the market to help them discover sources of value. Every day, they make countless decisions based on trust in the direction they are taking. This culture of working remarkably and consistently drives innovation.

Indeed one remarkable trait of Silicon Valley is its ingrained culture of mutual trust. As INC writes: “This fusion of innovation, culture, and customer-focused productivity – combined with transparency and trust – that creates the secret sauce with which Silicon Valley brews its special mix of magic.”

Also Read: Working in a startup is neither romantic nor routine

In my upcoming book, ‘The Trust Economy‘ – how to quickly build the hard-earned trust that makes innovation easy, I distil my research on trust into the world’s first systematic trust-building methodology.

Drawing on personal experience of building a prominent startup community in Singapore and my work in the startup scene and contributions to the innovation domain, I present a simple six-stage model for entrepreneurs and intrapreneurs to swiftly build the essential trust of users, investors and key decision-makers.

I hope it will be of use to everyone who wants to start up.

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Editor’s note: e27 publishes relevant guest contributions from the community. Share your honest opinions and expert knowledge by submitting your content here.

Join our e27 Telegram group here, or our e27 contributor Facebook page here.

Image Credit: Cytonn Photography

This article was first published on October 13, 2019

The post Why trust is the biggest barrier to entrepreneurship and innovation appeared first on e27.

The freelancing landscape is experiencing a boom. According to a recent Statista report, the US alone is projected to have a staggering 86.5 million freelancers by 2027, a significant 51 per cent increase from just ten years ago in 2017. This surge in solopreneurs reflects a growing desire for flexibility, autonomy, and the freedom to choose projects.

However, managing a one-person business comes with its own set of challenges. Freelancers, content creators, and solopreneurs often juggle multiple roles, from client acquisition and proposal creation to project management, invoicing, and customer service.

This is where Finna steps in. Based in Singapore, Finna is an all-in-one solution for the solopreneur hustle. It streamlines workflows by facilitating customer management, proposal creation, and payment processing, offering a comprehensive solution to the complexities of solo business management.

The all-in-one solution for solopreneurs

Finna offers a cloud-based integrated workspace designed to simplify business management for independent workers like freelancers, content creators, agents, and e-commerce sellers.

Its suite of offerings automates the three key steps in a typical solopreneur workflow:

• Client acquisition: Its interactive Link-in bio and AI-powered client outreach enable solopreneurs to develop high-quality elevator pitches and tailored proposals aligned with the job description.
• Business management: The CRM tailored to solopreneurs’ workflows allows them to manage all projects end-to-end in one centralised location.
• Payments: The embedded payments into the workspace allow solopreneurs to track invoices, manage income streams, and receive payments seamlessly within the same platform used for project management.

“The productivity space for solopreneurs is fragmented and full of friction — there are individual tools for content creation, marketing and project management, but not a centralised workspace. I and my co-founder, Akshay Patil, used to take part-time freelancing side projects. The frustration of juggling multiple tools and platforms to manage our own part-time freelancing work sparked Finna’s idea. We saw a need for a centralised hub that empowers solopreneurs like myself to work smarter, not harder. Finna is our way of helping others avoid the same struggles and achieve their entrepreneurial dreams,” said Finna CEO and co-founder Coco Li. 

Finna leverages AI for automated proposal generation, tailoring proposals for diverse solopreneur segments. For instance, content creators easily create YouTube mention scripts by inputting brand intros and product features.

The platform also consolidates tasks like proposal creation, client communications, and payment tracking, reducing reliance on multiple tools. Alongside fostering a solopreneur community, Finna provides data insights on finances, marketing, and client engagement, empowering informed decision-making.

Also Read: Innovation in HR: Hacking Talents’s journey in personalised professional development

In Southeast Asia’s evolving digital landscape, opportunities abound for platforms like Finna. The rise of solopreneurship fuels the demand for efficient business management tools, aligning with the region’s growing appetite for digital solutions and advanced financial services. Positioned to cater to solopreneurs, Finna’s platform is designed to address their needs, prioritising usability and adaptability across Southeast Asian markets.

Finna operates on a freemium revenue model, offering both free and paid monthly subscriptions with access to premium features. This approach ensures flexibility for users while generating revenue through paid subscriptions.

Funding and future plans

At the pre-seed stage and backed by Antler, Finna is currently pursuing another round of pre-seed funding. The funds will be utilised to facilitate expansion to South Asia and develop embedded finance features aimed at providing financial inclusion for solopreneurs.

“Our mission is to equip and empower solopreneurs globally with the tools, resources, and network they need to grow their independent businesses and build sustainable, thriving, autonomous careers. We scope the product vision from an angle of how we can empower solopreneurs to grow step by step. We are starting with the productivity category to solve their immediate pain points so they have time to scale the business.

In many markets, they are usually excluded from traditional banking services, so we will build embedded fintech solutions to support them financially and help them run long-lasting businesses. By expanding beyond operational management and embracing embedded fintech, Finna will create a secure and financially empowered future for solopreneurs,” said Li. 

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