Extreme Recruiting means getting people who fit the culture and the job

1. Workƒorce MANAGEMENT
December 2006
Extreme Recruiting in South Africa
Employers are building new recruiting processes and training programs to manage through uneven labor markets.
By Fay Hansen
C
rime is booming in allowed the company to meet its hiring “South African labor laws are among
South Africa, and so is goals under difficult conditions. The com- the toughest in the world, from recruiting to
the security services pany competes for talent against other local dismissal,” Zullberg notes.
industry, where dou- companies and the broad range of multina- In the World Bank’s difficulty of hiring
ble-digit growth rates tionals that are rapidly expanding their index, which ranks countries on the rigidity
in demand persistently operations in South Africa. of regulations pertaining to the hiring
outstrip the supply of “There is a feeding frenzy among process, South Africa scores a 44, com-
trained guards and companies looking for black managers, pared with 0 for the U.S., one of the least
managerial talent. with extensive poaching, and the same regulated countries.
Despite the shortage of skilled labor, employees poached again and again by “In addition, Black Economic
Stallion Security, a South African-owned other employers,” Zullberg reports. Empowerment regulations pertain to every-
security services firm based in Johannesburg, Foreign investment and domestic thing from black ownership to employees
is recruiting 15 to 20 managers and 150 growth are rising in South Africa, and for and suppliers,” Zullberg reports. “We must
non-managerial employees every month the first time in a generation, the country is submit detailed current statistics on the
to meet client needs. creating jobs faster than new entrants are racial makeup of our workforce to maintain
Five hundred of Stallion’s 4,000 joining the workforce. Unemployment our status under BEE.”
employees fall into skilled or managerial stands at a whopping 25.8 percent, but the Also, under the BEE program, many
classifications, and the company places a shortage of skilled workers and managers is companies must significantly increase the
particular emphasis on recruiting top talent acute. In a working-age population of 23 number of black managers.
for these positions. million, only 30 percent of those over age 25 “If you are a black manager in South
“We concentrate on getting the right have some secondary school education and Africa, you can write your own salary
management in place for everything from only 6.5 percent have any tertiary education. check,” Zullberg says. “Part of the problem
recruiting to quality control,” says Clive The recruiting difficulties generated stems from the brain drain that South Africa
Zullberg, Stallion Security’s managing by South Africa’s uneven labor markets has suffered over the past five to eight years
director. “If we have effective managers, may be extreme, but they are only an exag- because of high levels of crime. Many
they can shape the rest of the workforce.” gerated version of the same challenges skilled workers, who find it easy to locate
Two years ago, Stallion overhauled its that recruiters face in other countries positions abroad, have emigrated.”
recruiting process to deal more effectively where there is a large surplus of unskilled Recruiting at Stallion is also compli-
with the extremely uneven labor markets labor and a shortage of skilled and man- cated by the fact that while the rise in crime
that characterize the South African econo- agerial talent. Employers like Stallion are in South Africa, including white-collar
my. Stallion’s new approach includes tools responding with new recruiting and reten- crime, has created more business for the
designed to ensure that candidates fit the tion techniques to support growth until security industry, it has also generated high-
jobs, plus extensive training and promoting labor markets adjust. er risks in hiring. Because of the nature of
from within. To keep new hires on the job, Stallion’s work with clients, targeted
the company has built a culture of loyalty RECRUITING PRIORITIES recruitment and careful screening and train-
underpinned by competitive compensation Although the labor markets in South ing are essential.
and a retention policy that bans re-employ- Africa reflect a broader pattern, recruit- In 2004, Stallion executives attended a
ment for workers who leave the firm. ing there is complicated by several conference and realized that the company’s
Stallion’s new recruitment process has unique factors. HR function was archaic in many of its
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2. practices and inadequate given the organi- “We use the Predictive Index as a point training.
zation’s rapid growth. of reference,” Zullberg says. “Once you “Not just in South Africa but else-
“We decided that we would create the understand the Predictive Index, you under- where, in the security industry all you have
best recruiting process in the South African stand the nature of the candidate. Then you to sell to both clients and employees is your
security industry,” Zullberg recalls. know what to push in the interview to culture,” Zullberg says. “We sell our disci-
Stallion brought in consultants to become more familiar with the candidate’s pline and training to clients, and for
develop a new recruitment plan that cov- strengths and weaknesses.” employees, we sell our pay and benefits
ered everything from basic policies to tech- Zullberg believes that the Predictive package and our promise of training and
nological support. Index is a reliable indicator of workplace advancement.”
It also adopted the Predictive Index, a behavior. Because of the difficulties in recruit-
behavioral assessment process produced by “We looked at the Predictive Index ing and replacing managers, Stallion focus-
PI Worldwide of Wellesley, Massachusetts, survey and found it was an exact fit for our es heavily on promotions and retention.
that is used at more than 6,000 companies needs,” Zullberg says. “It provides not “We try to address this by promoting a
in 138 countries. Stallion uses the only specific reports, but also an under- culture of loyalty,” Zullberg reports. “We
Predictive Index in conjunction with PI’s standing of what those reports mean, have a very strong policy of promoting
PRO (Performance Requirements Options), which is crucial. Through the use of the from within. We have employees who were
a worksheet that defines the specific behav- Predictive Index, we have been able to hired on as security officers and are now
iors that lead to effective performance in a align personnel with available positions, senior managers, and we hold them out as
specific job. which ensures that our recruitment process examples for other employees to let them
Under the new recruiting process, the is streamlined and contributes to a reduced know that if they stay on and perform well,
company’s HR department develops the job rate of employee turnover.” they can move higher and higher in the
specifications and PRO and posts the posi- The company also uses Predictive organization.”
tion internally and externally through Index results to make better-informed In stark contrast to many U.S. firms
recruiting agencies, which are briefed on coaching, performance management and that maintain extensive alumni networks
the specifications and PRO. The agencies leadership decisions. and actively recruit former employees,
provide weekly feedback to HR. “The Predictive Index has helped our Stallion has a policy of no re-employ-
The vast majority of Stallion’s skilled managers understand how to communicate ment, which it views as part of its reten-
candidates come in through the recruiting with employees,” Zullberg says. tion policy.
agencies. “If a problem arises with an employ- “If you leave the organization, you
“It took us a long time to find the right ee, we check the worker’s Predictive Index cannot come back,” Zullberg says. “This
agencies,” Zullberg says. “Most of them report before we approach the employee to policy is not common in South Africa, but
just want to pump out CVs to you and don’t ensure that management understands the we found that re-employment has failed
want to work with companies that use employee in question before the actual for us. We enforce no re-employment as a
behavioral assessments or other complex intervention occurs. The Predictive Index hard policy with few exceptions—perhaps
tools for evaluating candidates.” also helps identify which employees have 15 in 15 years. Our managers know that if
Stallion now does most of its recruiting specific abilities, such as the ability to they leave to test the market outside, they
through three carefully chosen agencies. close deals, and which managers belong at cannot return.”
headquarters.” For Stallion and other South African
CLOSER MATCH For unskilled positions, Stallion uses a employers, labor market shifts will relieve
The agencies forward suitable CVs to mix of in-house recruiting staff and recruit- some of the pressure on recruiting, but the
Stallion’s HR department and skilled candi- ing agencies. To address the shortage of process will be slow. The South African
dates are called in for the Predictive Index candidates with suitable education and government is pouring money into educa-
survey and a PRO evaluation. On the basis experience, Stallion puts new hires through tion and training programs, but rapid eco-
of those results and other factors, the com- an extensive training at the company’s nomic growth and rising foreign investment
pany evaluates the candidate’s qualifica- learning academy. Induction training goes continue to ratchet up demand for skilled
tions and determines if there is a match to well beyond the industry’s regulatory labor. Employers in South Africa and other
the position. Stallion does not use the requirements and works as a competitive uneven markets might have to look to
Predictive Index for unskilled positions, but advantage. The company continues train- Stallion’s approach of careful selection,
plans to eventually push it down further in ing employees with on-site training for training and promotion to weather the skills
the organization to include all employees. new clients and ongoing quality assurance shortage.
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