We are in a race for talent and the winners will be the organisations who recognise that it is a war, and who can design, implement and execute a talent attraction and retention strategy that is fit for purpose – it has to be a competitive advantage!
The Office of National Statistics (ONS) showed that the number of UK job vacancies in this period last year was the highest on record since 2001; at 777 000!
(low point of 432 000 in May 2009 and an average of 603 000 from 2001-2017)
In August 2017 the ONS showed the UK employment rate as 75.1% (the proportion of people in work aged 16-65) – the highest since comparable records began in 1971.
Every sector and Geographic location is experiencing growth – whilst skills are in decline.
For example- there is a shortfall of c30 000 engineers in the UK alone.
The government short skills register has grown from 30 skills to 73 in the last year.
Total fertility rates, which can be defined as the average number of children born to a woman who survives her reproductive years (aged 15-49), have decreased by approximately half since the 1960s.
Europe is ageing. On average, each woman has 1.58 children. This is substantially below the 2.1 children needed to sustain the current population (and therefore workforce) level.
The number of foreign tech job applications are down 50% since the EU referendum vote.
The number of foreign recruits in the UK candidate pool has halved since Brexit – a worrying trend in a country where 10% of workers, including a third of those in the all-important tech industry, are international
The latest net migration figure of 246 000 was 81 000 lower than the 327 000 recorded in March 2016 (ONS).
By 2025, Millennials will make up 75% of the global workforce.
Nearly 33% of new hires look for a new job within their first 6 months on the job. Among Millennials this percentage is even higher – and it happens earlier!
Only 32% of talent leaders considered retention as a top priority (LinkedIn recruitment trends)
Analysis of salaries of 42 500 entry level jobs from more than 770 organisations across the Uk show that entry level STEM roles within the software development or engineering could see an increase of wage by 19% to £30 973 and 17% to £30 37 respectively, making these the highest paid entry level roles in the country (Korn Ferry 2016)
Approximately only 1% of candidates / applicants are hired – Lever 2017 (Inside the recruiting Funnel: Essential Metrics for StartUps and SMBs 2017)
We are heading into the “Perfect Storm” – where supply and demand are heavily biased towards the candidate – why should they choose to work for you?
You can no longer buy talent; you can only sell to them – the candidates are your customer. Are they always right? Are you catering for their needs?
If we accept that talent is the principle differentiator for a company’s success in a global, complex, extremely competitive and dynamic environment, then you have to ask the following question.
What are you doing to ensure that you have access to that talent?
It’s a very good place to start ..
So – Yes – the festive season has led to an overdose of family friendly sing-a-long movies. And the family VonTrapp has really struck a chord.
The culture of a company, a family, a club – all comes from the top down. The members take their cues from the leadership and this is how a culture disseminates.
Captain Von Trapp ran his family like he ran his ship.. watertight. No room for discussion – and know your place to the whistle. Dictatorial.
The interesting thing about the Von Trapp family is how it did work. The Captain wasn’t a cruel dictator – and things ticked along relatively well. But then along came Maria… with a new way of thinking and doing.. and all kinds of dissension broke out in the ranks.
This family wasn’t a toxic culture though – but what the delights of a Christmas musical can show us – is that there are often other ways – and it takes a strong leader to allow others ideas to be fully heard – especially when the new way is the total opposite of the old.
So why am I rambling on about Julie Andrews… well – this got me to thinking about toxicity in the workplace.
A new year frequently engenders much reflection – and a promise to do things differently. And our work is such a major part of our life that often a new year spells great change , and much to do in the world of recruitment.
So with a view to starting at the beginning – it stands to reason that the place to evaluate a company’s culture is with the leadership.
Toxic cultures destroy the bottom line – they increase employee turnover and decrease engagement. The leadership is the public face of the organisation –having a bad boss is the number one reason why employees leave……cultural disconnect is not far behind.
Leaders must set the tone and be as concerned about the culture as they are about strategy. This culture first approach has a cascade effect – rippling down through the organisation.
Leaders set the tone and mobilise the workforce. They communicate the reality of the business and its impact.
In financial terms – getting rid of a toxic culture (or employees!) can have a profound effect on the bottom line. A “superstar” hire can only bring in so much if the culture is a drain on productivity. Take a look at the Harvard Business Review for thoughts on Toxic Culture and “Business Drain”!
And in our line of work – we are constantly being asked to provide that next high flier.. But I would say wake up C-Suite.
Cultural Change is not a buzz word or just a new year’s resolution. Its perhaps the most important thing you can re-evaluate in 2018. Get the engagement right and the rest will follow.
In the end, if you do not care why should the employees?
And if your culture doesn’t work – it doesn’t matter how good the new hire is… eventually “shit sticks”.
There are 2 predominant schools of thought around the advent of AI – the positive value added approach: Humans X Process X Data = Increased Business Value
Vs The Chicken Licken thought process of “AI is stealing my job, AI is stealing my job”
Not forgetting those Ostriches amongst us who somehow believe that the advances in AI will have little to no impact on current jobs.
One way or another the landscape is changing. How well your company responds to that is very much down to how much agility is valued as a core skill set.
3 years ago Alexa was just a choice of baby name. In the coming years – naming your baby Alexa may not be so popular a choice – as Alexa is now in over 3 million homes, organising babysitters, booking holidays – and in many cases – being a “person” to chat to. Echo AI technology has improved user experiences – and is earning Amazon big bucks in the process. The Key in this is the fact that Alexa responds almost like a person. Alexa applies machine learning and algorithms to run queries through huge data sets almost instantaneously. Spotify applies the same logic – curating your very own DJ set based on previous choices.
Extrapolating that speed for business will surely guide towards better and more objective business outcomes.
Recent surveys by Accenture have highlighted the need for change in our own approaches with 85% of executives surveyed claiming to be investing in AI over the coming 5 years
So there is no doubt that the rise of AI will change the shape of the job market – especially for the lower skilled workforce. In order to safeguard against rising labor costs – automation becomes critical. Yet higher up the salary scale there are predictions of significant human skills shortages in the very area of robotics that is driving the change agenda. So it would seem that the key to AI success is not how to remove humans from the chain altogether, but how to embed them more effectively to participate in human-critical automation of the business, and in the search for novel business methods and models.
Perhaps the most urgent question we must answer is not one of the role of AI in our 21st century workforce but rather one of integration – and whether economics is purely driven by productivity and speed alone?
Used effectively AI has the potential to alter careers to fit a far more personal model. A more agile workforce – a more diverse workforce. But this requires a collaberation with machine learning to improve the human capability
Change is difficult at the best of times – but when the future is moving faster than we can predict it becomes an increasing challenge.
Maybe we should ask Alexa what to do next?
Total Talent Management is the current avant-garde of recruitment. The next method of competitive advantage. Everyone jostling for the “best” and most “talented” candidates and implementing benefit and reward schemes to ensure they retain their loyalty and dedication (Hardly a light bulb moment in the evolution of employee / employer relations).
But here is the thing. Not everyone is or can be the BEST.
In fact – the vast majority of us cannot, by default be the most talented.
So – given that this is an absolute – how can companies and recruitment alike – possibly begin to align the search for the best candidate with the population of potential employees that exist.
Talent scarcity is a big concern for the C-suite. Put simply – there are currently not enough people with the right skills / experience ready to step into roles. The supposed / perceived talent gap is driving the need for a shift in traditional recruitment and retention strategies to a more innovative and employee focused approach
So given that there is not enough Talent (or even that Talent in itself is not enough) – the future of talent management, at least in some part, must lie in truly understanding our employees in order to unlock potential; what motivates them, what is important to them?
What is needed is agility, connectivity, speed and cognitive diversity. The ability to respond in an ever shifting environment. Business must change – not just to take in the demands of the so called 4th industrial revolution, but also to reflect the changing workforce demographics and expectations of today and tomorrow.
It’s time to rethink what Talent management actually entails:
The Mercer Talent Trends review for 2017 raises some critical new perspectives for the age of disruption
The future of business is transformation. Evolution has already occurred – in order to stay ahead the pace of change needs to be rapid, efficiency increased and customer experience improved. And somehow – in this whirlwind of advancement – the focus on People within the organisation needs to stay high to ensure that the growth is sustainable.
93 % of businesses are planning to effect organisational change within the next 2 years – replacing the traditional vertical top down approach with a more streamlined and customer focused horizontal structure. This removes some of the more formal management roles and requires greater autonomy and critical thinking among employees.
Redesign is critical to success and having a solid “decision science” behind this will ensure that the new job roles accurately reflect the needs of agility, innovation and simplicity. As many of the new roles have no precedent – they need to be outlined via business contribution rather than specific “job spec” language. Changing job evaluation methodology has to be a key focus for TTM to assist with the change process.
Digital is what is pushing this change agenda – yet the vast majority of businesses do not feel they are a “digital company”. Most corporations have focussed on the external process first leaving the employee experience for later. Yet in the ever shifting world where talent is in short supply this is a short sighted and risky approach to take.
A corporate “culture” is not a new premise. Far from it. What has shifted is that it is now no longer good enough to have a one size fits all approach to corporate culture. Gone is the narrow focus of company engagement – instead enter the world of employee experience. By this we mean a tailored approach, a person centric holistic view of the individual employee. A list of standard global perks and benefits is outdated and does not cater for the changing demands of the employee. Yet this is where the digital age can truly come into its own. Greater flexibility in working practices is becoming far easier to balance with corporate strategies due to technological advances. Think real-time workforce apps and career matching!
However there is still work to be done – many employees still report concerns that so called flexible working is perceived as a perk rather than as a means of optimising individual circumstances to bring about maximum return for everyone. It is estimated that 75% of the worlds workforce will be Millennials by 2025 – if you do not change with the times and cater for the needs of the many then you will become part of the problem.
True personalisation of the employee experience needs to include more than just a benefits package. Businesses need to consider the health, wealth and career path of their talent. Nurture and reward a culture of “work working for you” and utilise technology to act as a differentiator for your business.
Given the shift in a one size fits all approach to corporate culture, it is no surprise that a change in how employees are rewarded is also on the cards. Whilst the old guard of fair and competitive pay and career opportunities still rank highly with employees, these are no longer the only way to reward and recognise contribution.
A climate of uncertainty is leading many employees to re-evaluate where and how they want to work. Corporate values are often measured via its performance management and rewards scheme and as such 83 % of companies have made / planning to make changes to their goal setting processes.
Exactly how rewards are calculated seems to be up for debate – but transparency about the metrics seems to be critical. Whether your performance ratings are numerical or verbal seems to matter less than a forward progressive approach to career development. The basics still count. A fair and transparent contractual reward system coupled with clear individual and team performance metrics. Add to this a greater clarity of information dissemination about career progression and further opportunity / reward for greater performance and it would seem that the ability to reward fairly and positively is on chart for effective change in 2017
The sheer amount of real-time data available is greater today than ever before. Yet despite this wealth of information the progress towards “predictive” analysis is still slow. Mercer reports that almost 1 in 4 companies are still only generating basic talent management descriptive reports and historical trend analysis.
Deloitte Human Capital Trends report echoes this feeling. Highlighting a mere 8% of respondents using tools such as Organisational Network Analysis (ONA) to help inform better growth and redesign.
Properly done, Talent Analysis has the capacity to drive employee performance by providing the evidence that underpins talent management and business decisions. Given the rapid speed of corporate change, the ability to utilise talent data will not only help minimise the risk of talent loss, low productivity and engagement but also ensure corporations are better placed to plan for the workplace of the future.
As part of providing a fully integrated TTM service we must help corporations view talent through a different lens, to help them discover the potential and untapped skills in their existing employees.
The talent is there – the process of evaluating and developing it needs to evolve!
With the departure of Oliver Robbins from Dexeu- the stage is set for some interesting times ahead.
The upheavals that seem to follow the government in relation to how we actually exit the EU shows no sign of abating – and with the alleged disagreements between David Davis and Oliver Robbins still rumbling – this most recent change in the strategists of Brexit shows that disagreement at the highest level has the capacity to throw yet more chaos into our exit discussions
And why should this link to a theme of common values??
Well – Britain voted against a shared vision. Rightly or wrongly remains to be seen – but tide of community spirit seems to be on the way out – in politics and in business.
Our nation, and others, are becoming increasingly disillusioned with togetherness, with community, with common values – and I believe this is bad for everyone.
The more we are only out for ourselves – the more disillusioned we feel. And its easier to blame others – to raise immigration and benefits as the culprits.
To blame a lack of “talent” for not being the best company..
But I believe its more basic than that.
A shared vision, a team – for whatever purpose is immensely satisfying. It provides a sense of fulfilment and motivation over and above monetary gains.
And perhaps this is where our zero working hours Britain is going wrong.
When a business (and a nation) are only thinking about whats in it for them – they breed suspicion and divisiveness.
When everyone is working together – great things are achieved.
Utopian ideals? Maybe so – but the sharing of a common mission / value can lead to places we have only dreamed of.
Take a look at the Best Places to work 2017 report… it makes for interesting reading. I am not seeing too many of those companies reporting the secret to success was winning the “war on talent”..
Instead there are, time and again, reports of togetherness, shared culture, vision – being more than just a place to work!!
“Work has a moral and social significance. It gives us all a reason for being. It gives us dignity, pride and self-esteem” Mike Brown Chief Exec bdht
Common values are good for business – but they are more important for us as humans.
Lets use a shared value approach in more aspects of our lives – and see how “being in this together” is actually a better model for business.
So – it’s the latest in a long list of Recruitment Phraseology. Another TLA to add to our BS Bingo sheet…Or is it?
We have seen enough fads come and go. We have witnessed the Year of The Client.. and more recently the resurgence of the candidate.. and what this has led us to conclude – is that we STILL haven’t got the process right…..yet!
You see – in the world of employment – no one side should hold all the cards. The relationship between staff and corporation needs to be a mutually beneficial arrangement.
If one side is King – then the process is broken.
And this is where Total Talent Management comes in.
So What exactly is TTM?
The people you employ are your biggest asset. Your Talent.
What they do is critical to achieving organisational goals. It’s your biggest route to competitive advantage.
So – manage this… Invest in this…Make this your top priority.
Attract the most talented people…Keep them….Develop them
But of course it isn’t. We can all quote Enron as a glaring example
When we look at TTM – it needs to be truly holistic. At Enron – the staff were in possession of all the cards. Rewarding the Talent had become the overriding premise of the corporation. It had forgotten itself. It placed the needs of its staff ahead of the needs of customers and shareholders. It had stopped being a business. Talent will out… but not necessarily to the bottom line.
Enron took the brightest and best MBA’s that Harvard had to offer. On paper – these truly were the holy grail of the Talent war… but when the needs of the one outstrip the needs of the business there is a significant disconnect.
Total Talent Management is more than just hiring and retention. Its more than just staff.
We believe in stars – but we also believe in systems. A truly well managed company will have both. In order for a corporation to be successful it must coordinate the efforts and needs of many different people towards a business goal.
And this is TTM – a strategy designed to maximise the interdependence of company and employee to achieve a common objective. A shared agenda. Where individual brilliance and teams are aligned to the business strategy.
And when all this works – retaining and developing those talented individuals you hired in the first place becomes a whole lot easier!
Christmas seems to be starting earlier every year – with festive treats sneaking into the shops before the sugared nasties of Halloween have been cleared from the shelves.
Whatever your thoughts on Christmas and the Big Man himself – you have to admire his cunning marketing skills – and leadership qualities!
Santa is a genius in my opinion. He has managed to carve out an entire career based on roughly 31 hours work per annum. Not only that, but his powers of delegation know no bounds. The elves and reindeer do most of the hard work – whilst St Nick himself gets to sit around jiggling his ever expanding belly and gobbling up mince pies.
In theory – he shouldn’t be so successful – he leads by delegation – not by example. He rules by fear, no one wants to be on the naughty list… And the working conditions aren’t up to much… The freezing North Pole in the full darkness of winter.. and only elves permitted? Surely that’s against diversity policy? HR would have a field day!!
Yet somehow – we all love him.
Bottom line – is that the true genius of Santa – lies in his presence (presents!!).
He is probably the most recognisable brand in the world. And whatever his management strategies are – he ALWAYS delivers.. and with a smile on his face!
So take a read of these gems I found whilst trawling the web this week! Santa’s team of marketeers have definitely got some lessons to teach us!
I especially like this risk assessment !!
Merry Christmas from all here at Saxus – Elves (and others!) welcome here!
Keep us on your nice list for next Year!!
It stops here..
When I originally sat down to write this article it was all set to be a somewhat contentious post. A “who do you want to work for” and a “what kind of person are you TO work for” type missive. An article designed (hopefully!) to have asked a few awkward questions about personal accountability and the need in work, as in life, to have that ability, that wherewithal to be able to take a stand for what you believe in. To take one for the team. To be a leader that knows how to lead from the front.
The Buck Stops Here.
But I threw that article away.
Sadly it has only been only 10 months since we published another article on Goal Setting in the wake of a terrorist attack in Paris.
So today I am going to ask for a different kind of accountability. One that goes beyond the scope of what I first set out to write. But – the principle is the same.
The Buck Stops Here.
Being accountable is hard. Let’s not make any bones about that. It takes balls to stand up and take full responsibility for all aspects of performance and behaviour. To own the mistakes as well as the plaudits.
So let’s think about this for a second: Honesty. Integrity. Responsibility. Apology. Feedback. These are the skills required for true leadership. These are the skills needed for true accountability.
These are the type of people I want working with me, the type of company I want to work for.
This is the type of leader I endeavour to be.
But – after this weekend – I think it needs to be more than that.
These are the type of skills we all need in our lives. We need to take a personal and collective responsibility for what is happening across the globe. Paris is not the only victim of terrorism in the last few days. It is over simplistic to blame a religion, a country, a refugee. The crisis is global. Our accountability needs to be the same. So for a business focus on accountability take a read here
But for a personal take on leadership and accountability then the words of John Donne may strike a chord.
No man is an island,Entire of itself,Every man is a piece of the continent,A part of the main.If a clod be washed away by the sea, Europe is the less. As well as if a promontory were. As well as if a manor of thy friend’s Or of thine own were: Any man’s death diminishes me, Because I am involved in mankind,
And therefore never send to know for whom the bell tolls; It tolls for thee.
I recently highlighted an excellent blog post http://www.insuranceage.co.uk/insurance-age/blog-post/2427441/moving-away-from-stale-pale-and-male which I hope you will have taken the time to read..
And I wanted to follow this up with a few ramblings of my own.
The “traditional” working picture – doesn’t exist anymore. Or at least – it shouldn’t! in a 21st century digital age – I sincerely hope that we no longer expect women to chain themselves to railings in order to have a voice. And it’s actually much more than that. Technology should be breeding diversity – in the workplace, workforce, work structure – work everything.
The diversity debate should no longer focus purely whether women can enter a “man’s” world. But more it should actively be looking to be totally inclusive – and how to present that a career is open to talent!
This is a subject that is especially close to my heart – as one of my children is deaf… so we have inclusivity issues in abundance right on our doorstep. Human beings are pre-programmed to want to fit in and feel accepted. In the workplace (and especially the city) – that picture has been one of a MAN in a suit. It becomes pretty hard to walk into an environment where you feel that already you are the exception rather than the rule. Think men in Nursing if you want an alternate career example.
Recently Saxus tweeted about Exceptional Minds http://www.onrec.com/news/news-archive/exceptional-minds-gets-the-job-done – an example of how harnessing “non traditional” employees has huge benefits for everyone concerned. Our world is a smaller place as a result of technology – supposedly with opportunities presenting themselves. Yet we still choose from the same small pool we always chose from. Stereotypes abound – and we are missing so much talent through their fear (and ours) of challenging the status quo
Well – I would like to confront this “Stale Pale and Male” paradigm. I would like to suggest that we investigate our inner bias – and ask if we are choosing our next hire because its’ like looking in a mirror? Or because they are the best person for the job?
Genetically speaking – our species becomes stronger through a more diverse gene pool. The same holds true for work.
If you always do what you always did.
You will always get what you always got
Interested in Diversity in Insurance – take a look here http://diveinfestival.com/
Images courtesy of FreeImages.com/Krzyzstof Baranski
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