VALUE VERSUS MONEY. WHAT’S YOUR CHOICE?

PKT’s second-tier management immersed themselves in the beauty and history of the enchanting Himeji Castle, a world heritage site.

IN THE Malaysian logistics industry, PKT Logistics Group Sdn Bhd is a renowned name.

As a major corporation with over two thousand employees and an annual revenue of RM1bil, it is no surprise that its employees are frequently targeted by headhunters.

However, PKT has implemented effective strategies to retain its talent and continually achieve remarkable success.

The group’s chief executive and managing director Datuk Seri Dr Michael Tio has openly stated that rewarding employees with trips around the world is one of the key strategies for retaining staff.

According to Tio, employees are the company’s most valuable resource, as their performance and commitment directly determine the company’s success.

Sustainable growth and development can only be achieved by prioritising employees development and well-being, he said.

The group began with annual company trips, which evolved into management-level retreats due to the increasing number of employees.

Each year, it consistently allocates substantial funds for management retreats.

This practice not only garners envy from industry peers but also makes headhunting attempts significantly more challenging.

In addition to monetary rewards, Tio believes in value, something money cannot buy.

In an interview, Tio explained that if a company only rewards its employees with salaries and bonuses, it will focus solely on “money”.

When offered a higher salary elsewhere, employees will leave without hesitation.

“Don’t forget, there will always be companies willing to offer higher salaries to poach your employees.

“And there is no meaning in having a management retreat if the boss is not there.

“You can’t outsource this responsibility to others because the whole idea here is bonding with your employees.”

At 56, Tio frequently acts as a tour guide, leading 200 of his management team from three tiers, namely the top management, second-tier management and mid-management, on trips to the US/Bahamas/Cuba, Japan and HK/Macau/Zhuhai respectively.

Tio (standing, far left) led 31 of his top management team members on an inspirational visit to Nasa’s Kennedy Space Centre in Florida, USA, where they explored the frontiers of space and innovation together.

Forging camaraderie

Tio understands that through shared travel experiences, employees can understand and align with the company’s values and culture better, enhancing their sense of belonging and team spirit.

This not only increases employee loyalty and retention but also stabilises the team and positively impacts the company’s sustainable development.

He believes that excellent employee service is key to boosting customer satisfaction and loyalty, thereby promoting the long-term company development.

He further emphasised that for many employees, money is not everything; the value provided by the company is paramount.

Therefore, the group actively promotes the 5H Work Philosophy, which centres on employees’ health, happiness, honesty, hard work and humility.

Tio stressed that PKT places great importance on employees’ health.

Several programmes, such as its Gymax Idol weight loss initiative — a blend of American Idol and the Biggest Loser, the GADO (Gym a Day Off) programme and management weight loss challenge help employees improve their health while offering attractive rewards.

“We strive to ensure our employees are healthy. The company can only sustain itself by strengthening its culture.”

During an interview, Tio explained that due to the large number of management teams in the group, he plans to split them into three tiers.

For each trip, he and his wife take turns sharing a room with the employees selected through a lucky draw.

PKT’s top management visit a tobacco farm in scenic Vinales Valley, Cuba to learn tobacco leaf growing, drying and bundling in a large storehouse, before enjoying a live cigar rolling demonstration.

Tio also revealed that he divides his annual travel schedule into four main categories: a Chinese New Year trip with his extended family; summer and winter vacations with his immediate family; trips for the group’s management staff; and study tours open to the public.

Many people have asked him how he manages all of that, to which he explained that he has built trust and empowered his employees. However, unlike other company leaders, he prefers to save the best experiences for his employees.

“Most entrepreneurs showcase their travels with family, flying business class, drinking champagne, or eating steak, while their employees can only watch.

“But I save the best for my employees. My employees are the ones who help me earn money, so they should be the first to benefit, then my family.”

He recalled an incident many years ago when his young son asked why his parents never took him on company trips.

Tio explained to him that: “Because you haven’t made money for the company yet.

“These trips are rewards for the employees who make money for the company. One day, you will complete your studies and come back to take over the family business. Then you’ll not only enjoy these benefits, but also lead the team on such trips.”

Today, the group’s management retreats have become a highly discussed and envied topic among industry peers.

“Imagine being an employee at PKT. When we attend industry gatherings, people will look at you with envy, curious about where you travelled this year and your destinations for the next year.

“PKT management retreats allow you to fully unwind and have fun, almost reminiscent of a bachelor’s life.

“You can chat with friends until 5am, catch a few hours of sleep, then wake up at 7am for breakfast, to continue joking and laughing with your colleagues.”

He emphasised that once employees have their own families, they would often sacrifice their personal enjoyment to prioritise on their new responsibilities as the breadwinner.

They rarely experience travelling carefree, where they are fully catered to.

“During PKT’s management retreats, no one will pinch your hand at dinner, questioning why you’re not feeding them. You have no such concerns; you are completely free!”

The 132 mid-management team members marked the first day of their retreat in this group photo at Golden Bauhinia Square, Hong Kong.

Tio notes that employees will weigh salary against the value of working for a company that promises a good work-life balance.

Unless an irresistible package is offered, a few thousand ringgit’s pay increase will not tempt his employees to leave PKT, he added.

He also observed that the new generation of young employees no longer find satisfaction solely in salaries. Instead, they seek jobs that offer happiness, satisfaction and a high quality of life.

“Many employees have never travelled abroad or taken long trips. They never imagined they would receive such treatment, so they are especially grateful and cherish that.

“When they learn to be grateful, they value and respect their jobs even more.”

Additionally, Tio mentioned that under the company’s Environmental, Social and Governance (ESG) operational guidelines, the group actively promotes a positive work culture.

As long as employees focus on their work, he promises to take them to see the world.

This commitment is also a key performance indicator of the group’s internal “self-governance.”

He emphasised that many companies treat employee trips as another form of business travel, where employees merely receive training and attend classes at a different location.

Such trips are dull and unappealing, failing to attract employee participation.

An opportunity to experience the traditional costume in new yuan ming yuan palace.

Tio stated that PKT has set a new benchmark for employee management. For the group, “internal” corporate social responsibility (CSR) takes precedence over “external” CSR.

Therefore, they set performance indicators for all governance programmes, conducting regular reviews, audits and improvements to transparently achieve all goals. He emphasised that no one in PKT is indispensable.

Even if the entire top management team is away on a trip, the second tier management will take over and the company continues to operate smoothly because the group understands how to delegate authority and values each employee’s autonomy.

He mentioned that after each management retreat, they nominate travel destinations for the following year and open voting to employees.

Next year, the company’s three management levels will travel to Perth, New Zealand, and Central Asia (Kyrgyzstan, Uzbekistan and Kazakhstan) to enjoy the benefits of a year of hard work provided by the company.

The world in PKT’s eyes

Over the years, Tio has honoured his promise, leading employees to numerous destinations across the globe.

For those who think these management retreats are merely typical vacations, they could not be more wrong.

For PKT employees, the annual management retreats are always filled with surprises and anticipation.

Tio meticulously plans each journey, from the hotels and transportation to the gourmet food and tourist attractions, ensuring that employees experience an extraordinary level of enjoyment.

Invaluable experiences

Loyal employee for 47 years, M. Balakrishnan has travelled the world with Tio, from the first trip to Nepal to nearly every corner of the globe.

In an interview, he said that each management retreat offers him a unique experience, something money cannot buy.

Having joined PKT at the age of 17 after graduating Form 5, 64-year-old Bala is now the company’s trade compliance senior director.

To this day, he still fondly remembers the leisurely road trips in New Zealand, the dusty fun in Africa and the unique experience of returning to his tent by starlight in Mongolia.

“Of course, I cannot forget Cuba. I never imagined it to be such a pure and simple place.

“I can hardly believe that Cuba is one of the closest neighbours to the US, yet completely different in terms of culture!”

He mentioned that after joining PKT, he learnt how to balance work and life.

Chance meeting with the Malaysian ambassador to Cuba His Excellency Muhammad Radzi Jamaludin in [year]

As PKT does not practise micromanagement, there is no issue of the management closely monitoring and controlling employees.

On the contrary, PKT believes in delegating authority, allowing everyone to fully utilise their talents and resources, he added.

Northern operations director Jasmon Lim Keat Hin believes that the true essence of management retreats lies not in the destination but in the meaningful connections formed among colleagues.

These bonds transcend race, age, position and personal agendas.

In an interview, he acknowledged that both monetary rewards and employee trips serve important purposes.

To dismiss the importance of monetary rewards would be dishonest.

However, he appreciated the company’s commitment to prioritising the physical and mental well-being of employees and valuing their family happiness, thereby fostering a better learning environment for everyone.

He reminisced about the 2015 trip to Alaska fondly, especially the unforgettable stay at the Fairmont Chateau Lake Louise in Alberta, Canada.

“One clear, cloudless night, a few of us lay in the hotel courtyard, gazing at the night sky.

“We saw the Milky Way and shooting stars while engaging in open, honest conversation without any criticism.

“Even today, this memory still tugs at my heartstrings. It was a moment of clarity for me, on how true friendships are forged through adversity, even at work.”

Additionally, corporate services director Rafizal Abdul Rahman described the company’s management retreats as priceless experiences and memories.

He felt lucky to have joined Tio on many scenic adventures.

Having joined the company 12 years ago, he shared that each year’s management retreat has been a delightful experience.

Besides enjoying paid leave, all transportation, accommodation and meals are meticulously arranged by Tio himself.

Every employee even receives some “pocket money” to spend locally.

He mentioned that Tio is a kind, humble and considerate boss who always strives to make the best arrangements for employees and genuinely appreciates their contributions.

Rafizal never felt out of place due to religious and cultural differences.

On the contrary, he thoroughly enjoyed every trip.

During this year’s trip to the United States, Rafizal fulfilled a childhood dream by visiting Disneyland.

For someone who could only watch Disney cartoons on TV as a child, mentioning this experience still brings a smile to his face.

“I still remember that day when we woke up very early.

“Everyone was excited, especially when we saw the castle we always dreamt of.

“I was over the moon—I never thought I would ever come to Disneyland!”

He and his colleagues roamed the park, playing and having fun.

To him, the Disney characters were more appealing than the boutiques.

Being at Disneyland made him happy as when he was a child.

When he returned home after the trip, his wife asked why everyone in the family had souvenirs except for him.

Rafizal smiled and said that the PKT management retreats were the most precious of the souvenirs he could ever receive.

On another note, during a trip to Hong Kong/Macau/Zhuhai, warehousing deputy general manager Logendran Vasudevan, who had the chance to share a room with Tio, was famously caught by the boss for not returning all night.

Addressing this legendary incident, Logendran denied that he fled to avoid disturbing Tio with his snoring.

He explained that as it was their last night in Hong Kong, everyone wanted to savour the final moments, leading to a night-long chat that lasted until dawn.

“Around 5am, I got a call. I thought it was my dad, but nope—it was Datuk Seri (Tio).

“He asked where I was and why I wasn’t in bed. I told him we were all hungry and were eating fried chicken.

“He burst into laughter and everyone joined in!”

Logendran admitted that compared to monetary rewards, he valued the opportunities for self-improvement provided by PKT, which allowed him to become a top logistics professional while learning new cultures and technologies from overseas experiences.

He believes that management retreats create rare shared memories and experiences among colleagues from different states, enhancing team cohesion and a sense of belonging, fostering deeper interactions and mutual understanding and trust beyond the workplace.

Additionally, contract logistics division general manager Dhevendhiran Supramanian highlighted that while monetary rewards are important, he cherishes fulfilling his dream of exploring the world even more.

These unique experiences become lasting memories, offering a broader perspective on life and personal growth, he said.

He mentioned that management retreats provide a sense of achievement and happiness that monetary rewards cannot match.

These experiences are invaluable for both personal and professional development.

Tio and his second-tier management team embarked on a cultural journey, visiting the iconic Fushimi Inari-taisha in Kyoto, immersing themselves in the rich heritage and spiritual essence of Japan.

During this year’s management retreats, Dhevendhiran explored Japan, describing the journey as filled with challenges and adventures. He immersed himself in Japan’s rich traditions, historical sites and unique, delicious cuisine.

Notably, he experienced Dogo Onsen, known as the oldest hot spring in Japan, symbolised by the kami no yu (divine bath).

“This retreat allowed us to connect with colleagues we rarely see, facilitating better understanding and sharing of operational challenges and ideas.

“Sharing is a crucial part of our PKT culture. It enables us to exchange valuable information.

“Moreover, Datuk Seri was willing to answer all our questions, even sacrificing his sleep to talk with us all night.”

Inculcating team spirit

He revealed that management retreats underscore the importance of trust, collaboration and understanding among colleagues, which is vital for building effective teamwork and a positive working environment.

Universiti Pendidikan Sultan Idris legal officer Etty Widayu Samsungei, who participated in the PKT CEO @ Faculty Programme for six months, shared that throughout the entire trip, she deeply appreciated the core values embodied by a top-tier logistics group.

She noted that the values of leading by example, unity among employees, mutual respect and understanding—principles often advocated by the Japanese—were clearly reflected in PKT employees.

In an interview, she disclosed that the unusual ice-breaking activities, such as coordinating during shared car drives and understanding one another through room swaps, not only broadened her horizons but also provided deeper insights into PKT’s management philosophy and culture.

The nine-day trip to Japan was an unforgettable experience for her, as she achieved what seemed to be impossible personal goals and created many precious memories.

If she had to describe the journey in one word, she would say: “Amazing!”

Etty stated that for her, realising dreams and exploring the world are far more important than monetary rewards as memories may fade, but emotions will always remain.

She revealed that reaching the summit of Mount Misen on Miyajima Island, Japan successfully was her most memorable experience during the trip.

She was particularly moved when Tio carried her backpack to ensure she could reach the peak.

Lastly, Yayasan PKT deputy general manager Noor Azila Ahmad stated that as PKT celebrates its 50th anniversary this year, the leadership must embrace new challenges in business development to achieve the company’s sustainability goals.

She believes that management retreats effectively foster deeper understanding among all levels of management.

Each sharing session is conducted in an open, relaxed manner, which helps convey the message of making PKT a world-class company.

Having previously worked in government and government-related agencies, she expressed that working at PKT gives her an extraordinary sense of fulfilment.

She pointed out that unlike typical employee trips, Tio does not conduct “brainwashing” sessions or confine the employees to hotel meeting rooms.

She mentioned that as the group’s leader, Tio humbles himself by exploring various cities with the employees and indulging in different cuisines from different countries.

Each trip is carefully planned and arranged to ensure every employee’s satisfaction.

Azila candidly expressed that Tio’s willingness to serve the employees is a valuable reward for her and her colleagues.

She is already excitedly anticipating the next management retreat.