Thursday, December 24, 2009
Wednesday, December 23, 2009
The Many choices of Human Resources
Last week, a final year MBA student wanted me to coach him, as he was keen to move into HR, in itself a little unusual as a career choice. In talking to his university career manager, he was an excellent student with a passion for HR. Now HR is not always seen as the preferred choice for ambitious, talented and commercially orientated graduates, which is his profile.
At times, I am still amazed and also a little disappointed, when I read the criticism by HR people of HR and it’s value to the business. The ability of HR professionals to denigrate their own profession is simply a mystery, and a classical case of being your own worst enemy.
Choice of Industries
HR is one of the few career disciplines, where you can move from one industry to another, with little difficulty, using your HR toolbox to make a company a great place to work.
During my HR career of 30 years, I have been privileged to work in a multiplicity of industries:
- institutional sector (Air Force, a scientific research company, an university) – using the intricacies of precedents to develop policies;
- services sector (two IT companies) – trying to understand the complexities of frame relay systems;
- the tough world of manufacturing (a secondary steelmaking operation – explaining the shaking of the office building during interviews after the pouring of each heat; and a carpet manufacturer – getting used to the smells of making rubber underlay);
- the dangerous mining sector (drilling, shaft sinking and tunneling group – going 2 miles underground in a new gold mine shaft); with
- a major stint in FMCG (two dairy companies and an international brewer – hearing 30,000 bottles filling per hour on the packaging line and developing an incredible thirst).
Choice of Roles
Though the career path of HR has changed with various specialization fields, such as Employee Relations, Learning and OD, a generalist role really shapes the bread and butter operational skills, such as recruiting.
Working my way up from an entry position as a Personnel Officer with a Psychology degree, it didn’t take too long before manager was added to my title. As Industrial Relations was the fast track in the early eighties, I decided to do a post graduate degree, and soon after, got my first CHRO role at the age of 26, and the youngest executive in the company (who says you can’t be ambitious in HR!). Functional specialist roles in Talent Management and OD contributed to further studies, before moving again into CHRO roles in NZ and Australia.
Choice of Countries
Despite different employment legislation, it has been great to live and work in different countries, including South Africa, New Zealand and currently Australia. One major benefit with a change in government is a major review of employment legislation, which is presently the case with the Fair Work legislation in Australia. A similar situation occurred in NZ when Labour came into power in 1999.
Choice of Careers
Being in HR and wearing many hats, made the transition into a line management role with P&L responsibility possible. It is only when you have 500 real (external) customers, that you understand the various priorities our internal HR customers are facing on a daily basis. Due to specialization in OD, there has also been the bridge to external consulting, working with some great companies and clients.
A Final Observation
There are great opportunities to develop a long and rewarding career in HR, where you can play a significant role in developing capability within organizations, by attracting and developing people.
HR offers great choices, and if I could have my career over, I wouldn’t hesitate to again work and achieve success in HR. My oldest daughter is also working in HR. Would you recommend HR to your son or daughter or to a keen student?
At times, I am still amazed and also a little disappointed, when I read the criticism by HR people of HR and it’s value to the business. The ability of HR professionals to denigrate their own profession is simply a mystery, and a classical case of being your own worst enemy.
Choice of Industries
HR is one of the few career disciplines, where you can move from one industry to another, with little difficulty, using your HR toolbox to make a company a great place to work.
During my HR career of 30 years, I have been privileged to work in a multiplicity of industries:
- institutional sector (Air Force, a scientific research company, an university) – using the intricacies of precedents to develop policies;
- services sector (two IT companies) – trying to understand the complexities of frame relay systems;
- the tough world of manufacturing (a secondary steelmaking operation – explaining the shaking of the office building during interviews after the pouring of each heat; and a carpet manufacturer – getting used to the smells of making rubber underlay);
- the dangerous mining sector (drilling, shaft sinking and tunneling group – going 2 miles underground in a new gold mine shaft); with
- a major stint in FMCG (two dairy companies and an international brewer – hearing 30,000 bottles filling per hour on the packaging line and developing an incredible thirst).
Choice of Roles
Though the career path of HR has changed with various specialization fields, such as Employee Relations, Learning and OD, a generalist role really shapes the bread and butter operational skills, such as recruiting.
Working my way up from an entry position as a Personnel Officer with a Psychology degree, it didn’t take too long before manager was added to my title. As Industrial Relations was the fast track in the early eighties, I decided to do a post graduate degree, and soon after, got my first CHRO role at the age of 26, and the youngest executive in the company (who says you can’t be ambitious in HR!). Functional specialist roles in Talent Management and OD contributed to further studies, before moving again into CHRO roles in NZ and Australia.
Choice of Countries
Despite different employment legislation, it has been great to live and work in different countries, including South Africa, New Zealand and currently Australia. One major benefit with a change in government is a major review of employment legislation, which is presently the case with the Fair Work legislation in Australia. A similar situation occurred in NZ when Labour came into power in 1999.
Choice of Careers
Being in HR and wearing many hats, made the transition into a line management role with P&L responsibility possible. It is only when you have 500 real (external) customers, that you understand the various priorities our internal HR customers are facing on a daily basis. Due to specialization in OD, there has also been the bridge to external consulting, working with some great companies and clients.
A Final Observation
There are great opportunities to develop a long and rewarding career in HR, where you can play a significant role in developing capability within organizations, by attracting and developing people.
HR offers great choices, and if I could have my career over, I wouldn’t hesitate to again work and achieve success in HR. My oldest daughter is also working in HR. Would you recommend HR to your son or daughter or to a keen student?
Jumping the hurdle to win the job
Finding the right person for a vacant position is not always a rational process, despite the procedures that companies may use for recruitment. This is a lesson I have learnt many years ago when I was responsible for developing recruitment systems for client companies.
There are many stages to the recruitment process, before a company decides to fill a vacancy.
Why is there a vacancy?
Logically, it starts with the exit interview to find out why the previous incumbent decided to move on to greener pastures. Some companies are now doing these interviews only after an employee has left the company.
Why was the new job created?
Sometimes, a new job is created as result of increased business and there is usually some reallocation of tasks to define the new job description.
The Multiple Hurdle Process
The bigger the company, the more likely that they will follow a more formal process, usually through job advertising, interviews, psychometric tests and reference checking. This process is often referred to as the multiple hurdle process. The idea is that with each hurdle a few more people will drop out, until you are finally able to identify the most suitable candidate.
Recruitment is critical for smaller companies
Smaller companies may not follow the same rigorous process, but in fact recruitment is even more important. When you employ only fifteen staff, every person is vital to the whole team – just see what happens to a sports team if one player is having a bad day, or has been sin binned.
Why you should not target big companies?
It is natural for candidates to try and target the big companies. The majority of job seekers tend to approach the bigger companies, the Top 100. Having worked for some of these companies, I have seen how people limit their search to the familiar names and brands.
Did you know that your best chance of success is with a smaller company?
There is nowadays an international trend for MBA’s to join smaller companies, as these companies offer them more opportunities for understanding the whole business, rather than just a division or business unit.
Why am I suggesting smaller companies?
Right in the beginning I have suggested that often a non-rational process is adopted in recruiting people. We tend to appoint people we know. As 80% of jobs are filled through the hidden job market, then your job search strategy should determine that only 20% of your time should go into scanning and responding to advertisements.
Have a good job search strategy!
The key part of your strategy is to get an interview. This is done by effective networking, a good CV and a proper job search strategy.
The first phase is doing all you can, not to be screened out – to get an interview.
The final phase is not about screening people out but deciding who best fits the profile. The key skills here are all about selling yourself and asking the right questions, to get a great job.
There are many stages to the recruitment process, before a company decides to fill a vacancy.
Why is there a vacancy?
Logically, it starts with the exit interview to find out why the previous incumbent decided to move on to greener pastures. Some companies are now doing these interviews only after an employee has left the company.
Why was the new job created?
Sometimes, a new job is created as result of increased business and there is usually some reallocation of tasks to define the new job description.
The Multiple Hurdle Process
The bigger the company, the more likely that they will follow a more formal process, usually through job advertising, interviews, psychometric tests and reference checking. This process is often referred to as the multiple hurdle process. The idea is that with each hurdle a few more people will drop out, until you are finally able to identify the most suitable candidate.
Recruitment is critical for smaller companies
Smaller companies may not follow the same rigorous process, but in fact recruitment is even more important. When you employ only fifteen staff, every person is vital to the whole team – just see what happens to a sports team if one player is having a bad day, or has been sin binned.
Why you should not target big companies?
It is natural for candidates to try and target the big companies. The majority of job seekers tend to approach the bigger companies, the Top 100. Having worked for some of these companies, I have seen how people limit their search to the familiar names and brands.
Did you know that your best chance of success is with a smaller company?
There is nowadays an international trend for MBA’s to join smaller companies, as these companies offer them more opportunities for understanding the whole business, rather than just a division or business unit.
Why am I suggesting smaller companies?
Right in the beginning I have suggested that often a non-rational process is adopted in recruiting people. We tend to appoint people we know. As 80% of jobs are filled through the hidden job market, then your job search strategy should determine that only 20% of your time should go into scanning and responding to advertisements.
Have a good job search strategy!
The key part of your strategy is to get an interview. This is done by effective networking, a good CV and a proper job search strategy.
The first phase is doing all you can, not to be screened out – to get an interview.
The final phase is not about screening people out but deciding who best fits the profile. The key skills here are all about selling yourself and asking the right questions, to get a great job.
Friday, December 18, 2009
The Recruiting Matrix
Recruiting is all about relationships. It is all about building enduring relationships with companies and with applicants. But often there is an unhealthy focus on filling the vacancy.
A major part of the reason is the recruitment sales model, which is sadly broken. Most recruiters are focused to get vacancies, then to get candidates, and then to close the deal. During this transactional approach, there is insufficient focus on developing meaningful relationships. And because of the model, if there is a change in either recruiter of company manager, the whole process is duplicated.
When I speak with other HR managers or hiring managers, there is an unanimous view that many recruiters are not interested or able to develop a consultative approach. There is little in terms of adding value and adopting a more considered approach.
For example, it would be an exception to the rule to meet a recruiter that asked me as part of the briefing what the outcome was of the exit interview. There is a general discussion, but no deep analysis or understanding of the trigger for the vacancy. In most of the cases, the recruiter is ready to present their shortlist. There have been a few times when I would even receive a number of CV’s before the briefing, though the recruiter has never done any recruiting for the business. Very proactive but also perhaps just a little bit premature to demonstrate real consulting skills. The first step in consulting is to fully understand the problem.
Recruiters need to be able to reflect, develop and build contacts, have a real knowledge of their clients and most importantly, be a consultant by adding value to the recruitment process.
In The Matrix (1999) the following scene takes place:
Spoon boy: Do not try and bend the spoon. That's impossible. Instead... only try to realize the truth.
Neo: What truth?
Spoon boy: There is no spoon.
Neo: There is no spoon?
Spoon boy: Then you'll see, that it is not the spoon that bends, it is only yourself
As this blog post is about the Recruiting Matrix, I include the following matrix to highlight the considerable shift in relationship moving from just another supplier to being a recruitment partner.
The relationship can best be depicted as an arrow as we aim for a strong partnership. The deeper the relationship, the more likely is the mutual benefit for both parties. We need to change our thinking, by bending ourselves.
In a previous blog, Are you a gold recruiter?, I highlighted that there is a huge business cost in dealing with a large number of recruiters. In a previous company we were dealing with more than twenty recruiting companies! Every week I would meet with a different recruiter, either updating them on the business, or worse, having to explain the business to a new recruiter.
So here is a real challenge for each recruiter in 2010 – take a bit of time to see how much of your business is in the first or second columns, versus more value added relationships in the last two columns.
And for HR departments, if your recruitment budget is tight and you are dealing with a variety of recruiters, you may just be missing out on the great opportunity to have a real recruitment partner in your corner, helping you to attract and retain great talent.
A major part of the reason is the recruitment sales model, which is sadly broken. Most recruiters are focused to get vacancies, then to get candidates, and then to close the deal. During this transactional approach, there is insufficient focus on developing meaningful relationships. And because of the model, if there is a change in either recruiter of company manager, the whole process is duplicated.
When I speak with other HR managers or hiring managers, there is an unanimous view that many recruiters are not interested or able to develop a consultative approach. There is little in terms of adding value and adopting a more considered approach.
For example, it would be an exception to the rule to meet a recruiter that asked me as part of the briefing what the outcome was of the exit interview. There is a general discussion, but no deep analysis or understanding of the trigger for the vacancy. In most of the cases, the recruiter is ready to present their shortlist. There have been a few times when I would even receive a number of CV’s before the briefing, though the recruiter has never done any recruiting for the business. Very proactive but also perhaps just a little bit premature to demonstrate real consulting skills. The first step in consulting is to fully understand the problem.
Recruiters need to be able to reflect, develop and build contacts, have a real knowledge of their clients and most importantly, be a consultant by adding value to the recruitment process.
In The Matrix (1999) the following scene takes place:
Spoon boy: Do not try and bend the spoon. That's impossible. Instead... only try to realize the truth.
Neo: What truth?
Spoon boy: There is no spoon.
Neo: There is no spoon?
Spoon boy: Then you'll see, that it is not the spoon that bends, it is only yourself
As this blog post is about the Recruiting Matrix, I include the following matrix to highlight the considerable shift in relationship moving from just another supplier to being a recruitment partner.
The relationship can best be depicted as an arrow as we aim for a strong partnership. The deeper the relationship, the more likely is the mutual benefit for both parties. We need to change our thinking, by bending ourselves.
In a previous blog, Are you a gold recruiter?, I highlighted that there is a huge business cost in dealing with a large number of recruiters. In a previous company we were dealing with more than twenty recruiting companies! Every week I would meet with a different recruiter, either updating them on the business, or worse, having to explain the business to a new recruiter.
So here is a real challenge for each recruiter in 2010 – take a bit of time to see how much of your business is in the first or second columns, versus more value added relationships in the last two columns.
And for HR departments, if your recruitment budget is tight and you are dealing with a variety of recruiters, you may just be missing out on the great opportunity to have a real recruitment partner in your corner, helping you to attract and retain great talent.
Surfing the jobs wave in Australia
The last few days in Australia has highlighted a strong surge in jobs as the economic recovery is on track. The stimulus package was intended to keep people working.The results were a surprise to the markets as there was an expected lag effect.
The headlines on Friday 11 December:
- Jobs surge as recovery gathers pace (Australian Financial Review)
- CEOs warn on jobs squeeze (The Australian)
- Sting in jobs cheer (Business Daily Herald Sun)
The pertinent facts and figures are:
- Almost 100,000 jobs have been added to Australia’s economy in the past three months
- A hefty 31,200 jobs were added in November
- A solid 30,800 full-time positions made up the bulk of new positions
- Victoria state added the most new jobs
Unemployment
The unemployment rate dipped to 5.7% – the same as earlier in March this year, and down from 5.8% in October. This rate is a major contrast to the formal projection of 8.5%, which seemed high at the time. These figures are revised every six months and mid-year financial outlook will be released towards the end of the year.
Most economists expect a peak of a little over 6%. The Deputy Prime Minister stood by official forecasts that unemployment would reach 6.75% in the middle of next year. However, as it is now clear and undeniable that job losses have bottomed around July, these figures can only be political justification for the on-going spending by Government.
Implications
The fastest job growth in three years has significant implications for employers and employees – higher interest rates, skills shortages, pay demands, higher turnover, and more recruiting.
Higher interest rates – rates will continue rising and we have seen the Reserve Bank moving away from other major central banks lifting rates in October, with a rate rise only a week ago.
Skills shortages – some CEO’s are already concerned that we will experience skills shortages in certain industries, particularly with increased demand from resource projects.
Pay demands – as many companies implemented pay freezes over the last year, new staff insisting on higher pay packages will put pressure on pay equity for existing staff. Companies will also need to consider some catch-up increases to avoid lagging the market. Unions have been reasonably conservative with their pay demands and will leverage any shortages of trades people to target higher pay increases.
Higher turnover – as the general confidence improves there will be an increase in staff turnover, as many employees are waiting for the new calendar year to start looking for new job opportunities
More recruiting – there has been strong anecdotal evidence from my recruiter network that there was a significant pick-up in the number of current assignments. The top end is still patchy but also starting to get some signs of life. We all look forward to a busy 2010.
Outlook
In summary, the economic recovery is gaining momentum and we appear to be sailing into 2010 with a better outlook as a year ago, which must be good news.
The headlines on Friday 11 December:
- Jobs surge as recovery gathers pace (Australian Financial Review)
- CEOs warn on jobs squeeze (The Australian)
- Sting in jobs cheer (Business Daily Herald Sun)
The pertinent facts and figures are:
- Almost 100,000 jobs have been added to Australia’s economy in the past three months
- A hefty 31,200 jobs were added in November
- A solid 30,800 full-time positions made up the bulk of new positions
- Victoria state added the most new jobs
Unemployment
The unemployment rate dipped to 5.7% – the same as earlier in March this year, and down from 5.8% in October. This rate is a major contrast to the formal projection of 8.5%, which seemed high at the time. These figures are revised every six months and mid-year financial outlook will be released towards the end of the year.
Most economists expect a peak of a little over 6%. The Deputy Prime Minister stood by official forecasts that unemployment would reach 6.75% in the middle of next year. However, as it is now clear and undeniable that job losses have bottomed around July, these figures can only be political justification for the on-going spending by Government.
Implications
The fastest job growth in three years has significant implications for employers and employees – higher interest rates, skills shortages, pay demands, higher turnover, and more recruiting.
Higher interest rates – rates will continue rising and we have seen the Reserve Bank moving away from other major central banks lifting rates in October, with a rate rise only a week ago.
Skills shortages – some CEO’s are already concerned that we will experience skills shortages in certain industries, particularly with increased demand from resource projects.
Pay demands – as many companies implemented pay freezes over the last year, new staff insisting on higher pay packages will put pressure on pay equity for existing staff. Companies will also need to consider some catch-up increases to avoid lagging the market. Unions have been reasonably conservative with their pay demands and will leverage any shortages of trades people to target higher pay increases.
Higher turnover – as the general confidence improves there will be an increase in staff turnover, as many employees are waiting for the new calendar year to start looking for new job opportunities
More recruiting – there has been strong anecdotal evidence from my recruiter network that there was a significant pick-up in the number of current assignments. The top end is still patchy but also starting to get some signs of life. We all look forward to a busy 2010.
Outlook
In summary, the economic recovery is gaining momentum and we appear to be sailing into 2010 with a better outlook as a year ago, which must be good news.
Friday, December 11, 2009
The Trusted Recruiter
In his well-known book, The Trusted Advisor, David Maister explored the paradigm of that very important business relationship, using the professional services paradigm as a basis. His book covered some key components of trust (the trust equation), the process of creating trust (including the most common trust-breaking mistakes and this post includes a good example).
Trust is not a soft or an ambiguous concept – and it should not be. Some years ago I attended a one-week leadership course by an American trainer – Ken Blanchard (not the writer). During the course we did a trust exercise and the one take-away learning was that trust is an absolute concept. You can think clearly about it and be seen as a trusted advisor by your clients.
Trust is not a soft or an ambiguous concept – and it should not be. Some years ago I attended a one-week leadership course by an American trainer – Ken Blanchard (not the writer). During the course we did a trust exercise and the one take-away learning was that trust is an absolute concept. You can think clearly about it and be seen as a trusted advisor by your clients.
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