Michael Khoo, the HR director of OYO Malaysia, has led HR departments around the world and across seven different industries in the course of his 20-year career. He joined OYO in late 2019, taking up the mantle of hiring, training, managing, and supporting a fast-growing business in a field that blends new technology and new approaches with a long-established trade. People Matters asked him for his thoughts on HR’s role in such new, disruptive businesses: here are the highlights of the conversation.

OYO positions itself as a tech company, and it’s also a fast-growing startup. What do such companies need the most from HR, and what are the main HR challenges you have observed?

Tech companies and startups generally move very fast and change quickly. OYO as a “disruptor” not only moves but evolves very fast as well as it continues to disrupt the existing business model. Thus, the team needs to be extremely agile. Some key challenges involve preparing, motivating and convincing the team to embrace the change; as changes can be uncomfortable and disruption can be frustrating. HR plays a key role in preparing employees for that through re-skilling, up-skilling and cross-skilling. Change management strategy is important and we champion various employee engagement initiatives to keep employees engaged; while building the culture of agility.

But, the bigger challenge is the lack of talent pool in certain areas. This is where universities need to work closely with industry players to prepare our talent pool for the ever-changing needs of the market; not just technical know-how but soft skills as well.

There is definitely a talent shortage and stiff competition in APAC, but at the same time reports and studies suggest that there’s still a lot of undeveloped and hence untapped talent that companies are reluctant to take the risk on. What approach do you prefer in such a situation?

For companies not willing to take the risk, they often lose out as competition becomes stiffer. As HR professionals, you need to influence the decision making in the organization by demonstrating the values that HR can bring. Even with “traditional” or “established” companies, HR must prove to the top management that through collaboration with HR, the organization can (for example) hire much better talent, at a faster pace and lower cost; while ensuring great candidate experience from the beginning.

Of course, you will get the CEO’s attention when your plan can make a positive impact on the company’s profit and loss statement.

You’ve spent over two decades in HR, in a variety of industries: what are the major changes you have seen in the way HR works?

I started in roles and organizations where HR was very administrative. I have seen HR being recognized in many more organizations nowadays and HR leaders are able to influence key business decisions. But we must continue to grow, and to do that HR needs to take serious consideration as to how technology can further enable the function; not just the HR systems such as employee data and payroll, but big data and AI. Even in recruitment, technology has enabled recruiters to capture a much wider audience at a faster pace and much lower cost, all the way to the automation in the preliminary screening process.

Increased influence does come with greater expectations. How have you seen business leaders’ expectations of HR changing over the years? And how can HR leaders like yourself adapt to meet the changing expectations?

CEOs expect HR leaders to provide solutions not just from a HR perspective but one that relates directly to business. That means HR must know the business, the opportunities and challenges—inside out. 

HR leaders and professionals need to acknowledge the fact that without thorough understanding of the business, it is unlikely for HR to function effectively. Thus, I have always taken multiple steps to explain the same to my team and set the example. For example, I make sure myself and my team visit the clients with my business colleagues. HR needs to work with all relevant stakeholders; which includes visiting the clients and understanding their demands. We learn so much from such collaboration. That way, we can ensure that we do not work in “silos” and the solutions we propose can address the actual business challenges faced by our colleagues and their clients.

In OYO, I visit the hotel partners with my colleagues and see how pitches are done to potential clients. The best way to get feedback is to hear it directly from the clients.

As you mentioned, technology is predicted to change HR dramatically. How are you preparing yourself and your team?

We cannot run away from technology. The only way is to upskill ourselves and be the driver to utilize technology as efficiently as possible. For instance, in the past, we relied on human to human interaction and paper based Q&A to obtain feedback. Today through AI, we are able to obtain very good live feedback from employees, from their satisfaction and grievances to advice for the company. It is user-friendly, fun and effective.  

What do you look for in HR staff? Is it any different from expanding a HR team for a more established company?

I always look for HR professionals who are capable and willing to do things differently, creative, hungry to learn and continue to look at how each HR function can be enhanced over time; and most importantly able to drive the business effectively. I believe more established companies should appreciate the same as I am confident all organizations will benefit tremendously from this approach.