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Hudson 20:20
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Hudson 20:20

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Hudson whitepaper 20:20 2010. New release in 6 weeks...

Hudson whitepaper 20:20 2010. New release in 6 weeks...

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  • 1. POSITIONING FOR GROWTH BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 2. POSITIONINGFOR GROWTH BUILDING A DYNAMIC WORKFORCEIN A NEW ECONOMIC ERA
  • 3. The Hudson 20:20 Series Sweeney ResearchReleased annually, the Hudson 20:20 Series is Hudson Australia/ Hudson commissioned Sweeney Research to conduct a robustNew Zealand’s flagship research publication. The series investigates qualitative and quantitative research study into the lingering impacttalent management issues that have a critical impact on business of the recent economic downturn on Australia and New Zealand’sperformance. Recent topics include: Talent Tightrope – Managing the workforces and the ramifications for the hiring process going forward.Workplace through the Downturn; Candidate Buying Behaviour; andSeven Key Drivers of Mature-aged Workers.About HudsonHudson is a leading provider of permanent recruitment, contractprofessionals and talent management services worldwide. Fromsingle placements to total project solutions, Hudson helps clientsachieve greater organisational performance by assessing, recruiting,developing and engaging the best and brightest people for theirbusinesses. The company employs more than 2,000 professionalsserving clients and candidates in approximately 20 countries.© Hudson 2010 (ISBN 978-0-9757621-2-7)
  • 4. CONTENTSFoRewoRd 4InTRoducTIon 5SummARy oF key FIndIngS 6new economIc eRAGROWTH RETURNS 10PRUDENT OPTIMISTS 12WAKE-UP CALL HEARD 14RESTLESS WORKFORCE 16WORKFORCE LOSSES 18FOSTERING INNOvATION 20REBUILDING REvENUE 21cASe STudy: HeAlTHcARe 22TIme FoR cHAngeSKILLS SHORTAGES RETURN 26jOB SEEKING SWELLS 28REASON FOR CHANGE 30NEW WORKLOAD REGIME 32GETTING THE RIGHT TEAM 34RAISING THE BAR 36DISTINCTION OF HIGH PERFORMERS 38cASe STudy: FInAnce 40cASe STudy: InduSTRIAl 42RecommendATIonSFOUNDATIONS OF GOOD HIRING 46HIRING MISFIRES 48PERFORMANCE DRIvERS 50‘WANT TO’ NOT ‘KNOW HOW’ 52ReSeARcH meTHodology 54
  • 5. FOREWORD The last year has been an uncertain and volatile period for the global economy, putting a great deal of pressure on our local business environments and workforces. Midway through 2010, it is clear that both Australia and New Zealand are in recovery. Our economies are now growing – Australia’s growth is well ahead of the international curve and New Zealand’s recovery is strengthening. For both countries the economic outlook is broadly positive. This optimism is mirrored, to a large degree, within our businesses, in the frames of mind of employers and employees alike. However, to steer through the crisis our organisations were forced to take a range of swift actions that, in many cases, reduced the size of the workforce and affected the security, finances and future of many employees. Actions such as this do not come without taking their toll. The purpose of this 2010 Hudson 20:20 Series whitepaper is to assess the current state of play inside Australia and New Zealand’s businesses and look at what organisations need to do to build the collective muscle of their teams, with the aim of driving better business performance. Our employers face myriad challenges. They need to replace workforce losses, retain their current teams, attract new employees to grow those teams and ensure that new recruits are high performers. All this is set against a backdrop of a unique post-downturn business environment – increasingly competitive and with an imperative of escalating profitability and growth. In today’s context of juxtaposed workforce liquidity and returning skills shortages it is crucial that employers get the right people into the right roles to enhance the performance and tenure of individual employees and teams. Ultimately this report provides recommendations on what employers can do to ensure that they are correctly identifying, attracting and retaining high performers. Rigorous hiring procedures, including sophisticated measures that assess motivational and cultural fit, not only identify talent in people, but also their propensity to be retained by their employer – key to sustaining long-term growth. Mark Steyn CEO, Hudson Australia/New Zealand4 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 6. INTRODUCTION Positioning for Growth – Building The whitepaper looks closely at This year’s research included of a Dynamic Workforce in a New the job-seeking behaviour of qualitative in-depth interviews Economic Era is the latest employees, at what is now driving and discussions with key whitepaper in the Hudson 20:20 them to seek new roles and what Hudson clients to produce case Series. It assesses the fallout of they are looking for in their roles studies detailing how different the downturn in Australia and and ongoing careers. It also employers in different New Zealand’s businesses and explores what employers need to professions felt the impact of the workforces, with specific focus do to make sure that their teams economic downturn and what on today’s increasing labour and workplaces are cohesive and this means for their workforce market liquidity. It also provides high performing and therefore requirements going forward. recommendations on how to find drive greater profitability This initial phase was followed and retain high performing and growth. by extensive online survey-based employees in an increasingly Released annually, the Hudson interviews of 1,690 employees competitive, skills-short market. 20:20 Series is Hudson and 605 employers in regard to Australia/New Zealand’s the impact of the downturn on flagship research publication. their organisations/workplaces The series investigates talent and their views, behaviour and management issues that have approach to job seeking and the critical impact on business hiring process in the post- performance. Recent topics downturn market. Full details of include: Talent Tightrope – the research design can be Managing the Workplace through found in the Research the Downturn; Candidate Buying Methodology section (See pages Behaviour; and Seven Key 54 and 55). Drivers of Mature-aged Workers. Hudson commissioned Sweeney Research to conduct a robust qualitative and quantitative research study into the lingering impact of the recent economic downturn on Australia and New Zealand’s workforces and the ramifications for the hiring process going forward. POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 5
  • 7. SUMMARY OF KEY FINDINGS NEW ECONOMIC ERA employees’ true feelings. employers say they are focussed growth returns Accurate perception of on growth but to grow they need Australia and New Zealand’s employees’ mood, particularly the the processes in place to identify employers are showing a strong fact that loyalty is low, is crucial. innovative, competitive and degree of confidence in the motivated people who can, and Restless workforce post-downturn market – 29% want, to succeed. The proportion of employees say their organisations’ outlook who say they value their job less Rebuilding revenue is ‘upbeat and opportunistic’ and over the previous year has Over half of employers (51%) 56% is ‘cautiously optimistic’. doubled, from 5% in 2009 to report that their profit/revenue For those employers who 10% in 2010. Employers report decreased, 38% downgraded reported some negative impact noticing this shift in their their profit outlook, and 13% as a result of the downturn, 92% workforces already – over half was forced to cut prices. One in agree we have now emerged (51%) agree that ‘a lot of five employers reduced or from the worst. A quarter say employees are now looking for cancelled bonuses for all staff they are ‘back to business as jobs because they feel they have and 11% of employers usual’. However, 67% say whilst more choice than during the implemented pay cuts for some ‘the worst is over’ they are ‘still downturn’. A quarter of or all staff. The pockets of many feeling the effects’ of the employers (24%) also think their employees were hit and there downturn to some degree. current employees feel less will be an expectation amongst Prudent optimists satisfied with their jobs. many in the workforce that they Of those still feeling the effects, must be recompensed to keep workforce losses 52% say they expect to stop them in their roles. About four in 10 employers feeling negative effects within a (43%) made roles redundant year, and a further third (36%) TIME FOR CHANGE during the downturn. Overall, Skills shortages return within 18 months. Employees employers lost 11% of their Nearly three-quarters of are in agreement – 52% and workforce through voluntary employers (73%) faced skills 32% expect to be back to redundancy, enforced shortages prior to the downturn. normal within a year and redundancy or staff leaving of During the downturn, this 18 months respectively. their own accord. Organisations proportion decreased to 44%. Employees are much less ‘cut the fat’ but results suggest This year, the proportion of concerned about the wider many also ‘cut into the muscle’. employers reporting a skills economy than this time last year Almost two-thirds of both shortage has risen swiftly to its – 22% are not worried at all, and employers and employees (59%) current 57%. Employees are a further 54% are prudently believe their organisations to be seeing greater liquidity and optimistic. under-resourced following loss therefore more choice in the wake-up call heard of headcount. workplace. For them the Last year’s great divide in the Fostering innovation movement has begun. workplace has diminished and A third of employers (32%) Job seeking swells employers have a much more report the business market has Almost two-thirds (62%) of realistic view of the mood of their become more competitive as a employees are actively or workforces. This year, 17% of result of the downturn. Over half passively job seeking – a marked employees say they feel ‘more of the employers surveyed (53%) increase on last year’s 49%. Of loyal’ to their organisation in the report that ‘some scheduled the two-thirds of employees aftermath of the downturn and business development/plans seeking new roles, almost all 18% of employers agree – were put on hold’. Four in 10 (93%) are planning to be in a almost exactly in tune with6 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 8. new role within 18 months. getting the right team performers. Further, 82% say three hiring tools/measuresNearly two-thirds (61%) of those The majority (80%) of employers high performers inspire others used (most frequently) byplanning to switch jobs aim to do are focussed on growth but and 81% say they boost team Australia and New Zealand’sso within six months – 39% of 43% say currently they do not productivity. employers are: ‘referencethese within the next three have the right team in place to checking’ used by 88%; ‘resumemonths. In short, roughly 40% of grow their business. A large RECOMMENDATIONS screening’ used by 76%; andall employees have a personal majority of employers (84%) Foundations of good hiring ‘background interview’ used bygoal to be in a new role within the says their organisations made Employers must develop a 66%. All of these measures fallnext six months. too many redundancies during sophisticated Employee value into the ‘know how’ category. In the downturn and 23% of total Proposition in order to fact, 63% of employers’ totalReason for change differentiate themselves – only losses were high performers. hiring procedures and tools are‘Career development 23% say they are now working just over a third (34%) believe focussed only on the ‘know how’considerations’ continues to be harder to demonstrate to teams have been weakened and category. Almost a third (30%)the most important trigger for candidates why they should 83% are now focussed on of their efforts address the ‘canseeking a new role for 64% of work for them. Over a third of building the right team for do’ category and only 7%employees, showing an increase employees (37%) will ‘use growth. Over half (57%) agree measure the ‘want to’ category.on last year’s 58%. At the same networks or word of mouth more’ that there is now moretime, ‘financial considerations’ when seeking a new role. Thus, ‘want to’ not ‘know how’ competition for candidates thanhas leapt forward with 57% of the nature of what existing All 605 employers were asked before the downturn and 54%employees now nominating this employees say about a company their thoughts on the difference say most organisations in theirfactor as a trigger. ‘Company is critical. between an average and a high industry are now hiring more.considerations’ has also moved performer. Not a single employerforward for 34% of employees. Raising the bar Hiring misfires cites ‘good references’, ‘years ofOut of the downturn, 38% say Over half of employers (53%) Well over three-quarters of experience/experience’,they will be ‘much choosier acknowledge that when re-hiring employers (79%) say their hiring ‘education/qualifications’ orabout who they work for’. they have to ‘raise the bar process is ‘formalised’, 60% says ‘where they have worked before’ higher’ than before the downturn they have streamlined or yet these are the measures thatnew workload regime improved their hiring processes and 54% say they are ‘taking employers are most commonlyTwo-thirds of employees (62%) since the downturn and 43% more time to find the right using to bring new people intofeel they are working harder as a says they now have a greater candidates rather than simply their businesses. The tools theyconsequence of headcount focus on better matching filling the role’ since the currently use, which theyreductions in the workforce and candidates to roles. However, downturn. However, 35% say perceive to be the most effectiveeven more employers confirm employers report that 44% of most of the hiring being done are ‘behavioural interviewing’ atthis is the case (71%). Despite their hires are not good. They are now is about replacing the 32% and ‘reference checking’this, ‘work/life balance’ has held concerned about the people that were lost during the and ‘background interview’ bothsteady on last year’s result at consequences of bad hires: 51% economic downturn. at 9%. Employers clearly need to42%. Over half of employers about the negative impact on drive a layer of sophistication(54%) say they will ‘monitor or distinction of teamwork and engagement; 34% through their hiring methods andscrutinise people’s performance high performers loss of productivity; 34% impact understand better the directa lot more closely going forward’ Employers classify 35% of their on morale; 21% opportunity cost; relationship between thebut employees understand this staff as high performers. 18% impact on customer service; effectiveness of the procedures– almost two-thirds (60%) say Employees provide a very similar and 9% decreased business. they use and the success ofthey expect employers to be assessment of their work Performance drivers their hires.more demanding of new recruits colleagues. Employers say highin the aftermath of the performers are 34% more Performance drivers fall intoeconomic downturn. productive than average three categories: ‘know how’, ‘can do’ and ‘want to’. The top POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 7
  • 9. 018 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 10. NEW ECONOMIC ERA POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 9
  • 11. GROWTH RETURNS “THe economIc Last year saw the worst This positivity wanes somewhat downTuRn ReSulTed recession to hit the globe in in both employers’ and In my oRgAnISATIon 70 years. Despite the fact that employees’ account of the TIgHTenIng ITS the local Australian and impact of the downturn on their PuRSe STRIngS – we’ll conTInue To New Zealand markets coped organisations. Two-thirds of be ASked To cuT well in comparison to the rest of employers (66%) report there ReSouRceS buT the world, our business was some ‘negative impact’ on we’Re bAck on A environments and workforces their organisations during the SuSTAInAble TRAck” were adversely affected. downturn, but only a small Manager, Accounting & Finance However, our economies have proportion (15%) reports this rallied and, for both countries, was ‘significant’. A quarter (25%) the economic outlook is broadly say that the downturn had ‘no positive. impact whatsoever’ on their organisations and a further 9% Employers and employees agree report a ‘positive’ impact. their organisations have a strong Employees are in agreement – degree of confidence in the 67% report some negative post-downturn markets in both impact, with the proportion Australia and New Zealand. A describing the impact as third of employers and a quarter ‘significant’ only marginally of employees, (29% and 25% higher at 18%. respectively) say their organisations’ outlooks are Of those employers and ‘upbeat and opportunistic’, with a employees who report there was further 56% and 57% some negative impact as a result respectively citing an outlook of of the downturn, almost all agree ‘cautious optimism’. A high that we have now emerged from proportion (85% of employers the worst (92% and 93% and 82% of employees) is respectively). A quarter of this feeling positive about the future. group of employers (25%) goes (See Fig. 1) further saying they are now ‘back to business as usual’. However, whilst the majority of employers (67%) says ‘the worst is over’ they are ‘still feeling the effects’ of the downturn to some degree. A marginal 8% is yet to feel the full force of the recovery – these employers say they are currently ‘experiencing the worst effects of the downturn’. (See Fig. 2)10 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 12. – Australia outpacing new Zealand.FIg 1 OvERALL OUTLOOK Whilst 29% of Australian employers who were Employers 29% 56% 12% Q2.5 Employers and Q2.6 negatively impacted by the Employees: How would you describe the overall downturn report they are outlook of your Employees 25% 57% 14% organisation in today’s now back to business as post-downturn market? usual, the proportion is Outlook upbeat and opportunistic much lower in Outlook one of cautious optimism Outlook one of uncertainty New Zealand at 14%. Outlook is bleak Don’t know – Technology jobs Base: Employers, n=574 Base: Employees, n=1,633 weather well. Most sectors report similar effects with the exception of ICT and Technical &FIg 2 CURRENT FEELING Engineering where a higher proportion of Employers 8% 67% 25% Q2.3 Employers and Q2.4 employees reports Employees: Which best describes how your organisation currently feels ‘no impact’ (36% and about the recent economic Employees 7% 69% 24% downturn? 31% respectively). Currently experiencing the worst of the effects of the – Victorian victory. economic downturn The worst of the economic downturn is over, but it is still 80% of victoria’s having an effect employers who are still The worst of the economic downturn is over, and we’re back to business as usual feeling the negative Base: Employers, n=421 Base: Employees, n=1,138 effects, expect a recovery in the next 12 months EMPLOYEES BY PROFESSION – well above the 52% for Public Sector 4% 82% 15% employers overall. Office Support 5% 70% 25% ICT 6% 67% 27% Sales, Marketing & Communications 8% 71% 21% Accounting & Finance 10% 66% 24% Technical & Engineering 6% 70% 25% Currently experiencing the worst of the effects of the economic downturn The worst of the economic downturn is over, but it is still having an effect The worst of the economic downturn is over, and we’re back to business as usual Base: Employees, n=1,138 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 11
  • 13. PRUDENT OPTIMISTS “we’Re now PlAnnIng For employers in Australia and Amongst Australia and New FoR A PeRIod oF New Zealand still feeling the Zealand’s employees in general, gRowTH, THeRe’S An effects of the downturn, there is some signs of the personal oPTImISTIc AIR In THe optimism that the end is in sight. stresses under which they were comPAny THAT we’Ve mISSed” Over half of these employers placed during the last 12 months CMO, Sales, Marketing & (52%) say they expect to stop linger. However, employees’ level Communications feeling these negative effects of concern regarding the within a year, and a further third stability of the wider economy (36%) within 18 months. today is significantly less than Employees who felt negatively that expressed at the same time impacted are in agreement – last year. Hudson’s 2009 20:20 52% and 32% expect to be Series whitepaper Talent back to normal within a year and Tightrope reported climbing 18 months respectively. concern amongst employees of (See Fig. 3) the potential effects of the downturn on their personal circumstances – 35% said they were extremely/quite worried. This year, only 24% report being extremely/quite worried about the current economy. Almost a quarter (22%) are not worried at all, and a further half (54%) prudently express a little caution. (See Fig. 4)12 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 14. – light on the horizon. For employers in Australia WHEN DO YOU ExPECT TO STOPFIg 3 FEELING NEGATIvE EFFECTS? and New Zealand still feeling the effects of the Employers 13% 39% 36% 8% 4% Q2.4 Employers and Q2.5 downturn, there is Employees: When does your organisation expect to stop feeling the negative optimism that the end is effects from the downturn? Employees 18% 34% 32% 13% 3% in sight. Within 6 months – employees’ pain In 6 to less than 12 months lingers. In 12 to less than 18 months Amongst Australia and In 18 months to 2 years More than 2 years New Zealand’s employees Base: Employers, n=272 Base: Employees, n=574 in general, some signs of the personal stresses under which they were EMPLOYEES’ CURRENT LEvEL OF placed during the lastFIg 4 CONCERN ABOUT THE ECONOMY 12 months remain. 5% Q2.2 Employees: Which of – but worries alleviated. the following best describes how you feel about the economy now? Only 24% of employees 19% 22% report being extremely/ quite worried about the current economy, fewer than last year’s 35%. 54% I am extremely worried I am quite worried I am a little bit worried I am not worried at all Base: Employees, n=1,668 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 13
  • 15. WAKE-UP CALL HEARD “THe downTuRn Signs are good that Australian Similarly with motivation – last HAS mAde A bAd and New Zealand’s workplaces year 42% of employers thought ImPReSSIon on my are more cohesive environments their workforce was ‘more emPloyeeS And we than last year. The results of last motivated’, compared to the 22% know we’Re now beIng Held To THAT year’s Hudson 20:20 Series of employees that actually felt ‘ImPReSSIon’” whitepaper Talent Tightrope that way. This year results for HR Manager, Office Support clearly highlighted a great divide employees remain roughly the between the sentiment of same – 24% report feeling ‘more employees and their employers’ motivated’ in the aftermath of the perception of this sentiment. In downturn. However, 18% of every aspect measured – loyalty, employers this year report job satisfaction, motivation, thinking their employees are morale, stress levels, job security ‘more motivated’, demonstrating a – employers consistently much more accurate perception thought that employees’ of the mood of their workforce. sentiment was twice as good as Australian and New Zealand it was in reality. Now, a year on, employers have clearly woken up it’s evident that this divide has to the mood of their people and greatly diminished. it’s important that they maintain Overall, employers have a much this clarity. Accurate perception more realistic view of the mood of employees’ mood, particularly of their workforces. In 2009, the fact that loyalty is low, is 20% of employees reported going to become crucial to every feeling ‘more loyal’ to their employer as we move further organisation as a result of the along the economic recovery downturn. This year, the path. Employees are becoming proportion of employees who more optimistic about the say they feel ‘more loyal’ to their economy in general and with this organisation in the aftermath of feeling a renewed sense the downturn has decreased of choice and power is marginally to 17%. However, the becoming apparent. change is marked for employers. In 2009, 43% thought their workforce was ‘more loyal’ – a view that was vastly out of sync with reality. This year, the proportion has decreased significantly to 18% – almost exactly in tune with employees’ true feelings. (See Fig. 5)14 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 16. – Realism reigns. Employers have a much CHANGES TO ATTITUDES FOLLOWINGFIg 5 THE DOWNTURN more realistic view of the ARE EMPLOYEES MORE OR LESS LOYAL mood of their workforces. IN THE AFTERMATH OF THE DOWNTURN? – loyalty low. Employers Aust/NZ 18% 57% 25% Q2.10 and Q2.11 Employers Accurate perception of and Employees: How are you/the employees in your employees’ mood, organisation feeling now, in Employees Aust/NZ 17% 62% 21% the aftermath of the particularly the fact that economic downturn, in terms of loyalty/motivation? loyalty is low, is crucial to every employer. ARE EMPLOYEES MORE OR LESS MOTIvATED IN THE AFTERMATH OF THE DOWNTURN? – Flight risk. Employees’ optimism Employers Aust/NZ 18% 61% 21% about the economy in general is breeding a Employees Aust/NZ 24% 60% 16% renewed sense of choice More and power. Same Less Base: Employers, n=605 Base: Employees, n=1,690 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 15
  • 17. RESTLESS WORKFORCE “we’Re STRugglIng In 2009 58% of employees said Indeed, employees are To keeP THe they valued their jobs more as a displaying a fair amount of good PeoPle result of the downturn – a figure ambivalence towards the wHo HAVe noT that, rather than denoting a organisations they work for. leFT yeT AS moRe oPPoRTunITIeS oPen dedication to their employer, may Exactly half has felt no change uP And beTTeR JobS have demonstrated a pragmatic in how positively they feel about become AVAIlAble” response to a difficult economic their organisation since the Finance Manager, Accounting climate. In 2010, the proportion downturn, with the other half & Finance of those who say they value their roughly split down the middle of jobs more in the aftermath of the feeling more and less positive downturn has dropped back to (27% and 23% respectively). 44%. (See Fig. 6) Ultimately, well over a third of employees (38%) report they The majority (46%) feels about are more likely to switch jobs in the same as last year, but the the aftermath of the downturn, proportion of those employees underscoring a sense of who say they value their job less restlessness and foretelling has doubled, from 5% in 2009 greater liquidity in the workforce. to 10% in 2010. This is a notable During the downturn the shift, influenced not only by their pendulum of power swung increasingly optimistic outlook towards the employer but it’s but also an increasing sense of rapidly swinging back. an alternative. Employers report noticing this shift in their workforces already – over half (51%) agree that ‘ a lot of employees are now looking for jobs because they feel they have more choice than during the downturn’. (See Fig. 7) A quarter of employers (24%) also think their current employees feel less satisfied with their jobs.16 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 18. – mood of malcontent. The proportion of those CHANGES TO jOB vALUE FOLLOWINGFIg 6 THE DOWNTURN employees who say they DO EMPLOYEES vALUE THEIR jOBS MORE OR LESS value their job less in the IN THE AFTERMATH OF THE DOWNTURN? last year has doubled, Employers Aust/NZ Q2.13 Employers and from 5% in 2009 to 10% 50% 44% 6% Employees: Do you/do you think your employees value in 2010. your/their job(s) more or less in the aftermath of the Employees Aust/NZ 44% 46% 10% economic downturn? – expanding horizons. Over half of employers More (51%) agree that ‘ a lot of Same Less employees are now Base: Employers, n=605 Base: Employees, n=1,690 looking for jobs because they feel they have more choice than during the downturn’.FIg 7 DO EMPLOYEES HAvE A GREATER SENSE OF CHOICE? – Tossing the coin. Accounting & Finance Q3.13b Employers: Agreement - A lot of employees are the most employees are now looking 22% for jobs because they feel likely to be switching jobs they have more choice than during the economic (46%). downturn. 51% – changing fortunes. 27% During the downturn the pendulum of power swung towards the employer but it’s rapidly swinging back. Disagree + disagree strongly Neither agree nor disagree Agree strongly + agree Base: Employers, n=573 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 17
  • 19. WORKFORCE LOSSES “IT’S HARd To FInd Despite the clear positivity and Many of the cost-cutting THe bAlAnce optimism Australia and New initiatives implemented by beTween SAVIng Zealand’s organisations are now employers during the downturn coSTS And HAVIng demonstrating the fact remains had a direct impact on enougH PeoPle To geT THe Job done that many experienced minimal employment levels within wITHouT SIgnIFIcAnT growth, in some cases decline, their organisations. ReSouRcIng throughout the last year. The PReSSuRe” About four in 10 employers defensive measures that they Manager, Office Support (43%) made roles redundant were forced to take have directly during the downturn. This alone, impacted competitiveness, has had a significant impact on innovation and profitability – all the output of the workforce but crucial factors in successful employment levels were also business performance. impacted in a number of other Organisations are clearly facing ways. Almost half of employers problems with the size of their (46%) implemented headcount workforces. When asked about freezes; 42% implemented ways in which the downturn hiring freezes and 12% offered affected their organisations, half voluntary redundancies. of employers report that some Overall, employers report that roles were merged or made they lost 11% of their workforce redundant (50%); almost half through voluntary redundancy, (43%) report that ‘workloads enforced redundancy or staff increased for most in the leaving of their own accord organisation’; a third (31%) during the economic downturn. report that their company (See Fig. 9) ‘underwent a restructure’ and a quarter (22%) that ‘some Organisations have slimmed divisions, services or offices down. They ‘cut the fat’ but were merged or closed’. these results suggest many ‘cut (See Fig. 8) into the muscle’. Almost two-thirds of both employers and employees (59%) believe their organisations to be under-resourced following loss of headcount. This combination of factors has left organisations stretched, stressed and with a desperate need to bolster the workforce or risk growth being stunted.18 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 20. – new Zealand roles suffer. TOP 10 WAYS IN WHICH THE DOWNTURNFIg 8 AFFECTED ORGANISATIONS Almost half (49%) of employers from New Some scheduled business developments/plans put on hold 53% Q2.2 Employers: In which of these ways has your Zealand says they made organisation been affected Profit/Revenue decreased 51% by the recent economic redundancies, compared downturn? to 41% in Australia. Some roles in the company were merged or made redundant 50% New Zealand employers Workloads increased for most in the organisation 43% are also more likely to Downgraded profit outlook 38% have cancelled bonuses for management Market has become more competitive 32% (31% vs. 20% in Australia). Company underwent a restructure 31% – wA and Victoria down, Some divisions, services or offices were merged or closed 22% SA up. Company forced to cut prices 13% Results show that WA and Base: Employers, n=605 victoria’s workforce losses, at 15% were significantly higher than the average of 11%, whilstFIg 9 TOTAL PERCENTAGE OF WORKFORCE LOST SA fared relatively well with a workforce loss of TOTAL AUS 11% Q3.4 Employers: What percentage of your only 4%. workforce left, either victoria 15% through voluntary redundancy, enforced – levels of losses. redundancy or of their own Western Australia 15% accord, during and since the 9% of redundancies economic downturn? New South Wales 10% during the downturn were at executive or senior Queensland 9% management level, while South Australia 4% middle management comprised 21% of losses. TOTAL NZ 10% The majority were in non Auckland 14% managerial professionals/ Base: Employers, n=348 who lost staff specialists (38%) and admin/support staff (32%). POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 19
  • 21. FOSTERING INNOvATION “ouR mARkeT IS An increasingly competitive Employers are clearly focussed PReTTy cuTTHRoAT market is defining a tight on replacing losses within the SInce THe downTuRn timeframe within which workforce, but if they are to hit – we’Re STRugglIng organisations need to respond to all of these targets – To comPeTe wITH A SmAlleR TeAm” these effects. A third of competitiveness, innovation Strategy Director, Sales, employers (32%) report the and profitability – the people they Marketing & Communications business market has become bring in must be good hires. Four more competitive as a result of in 10 employers say they are the downturn. Organisations need focussed on growth and to grow to find the right people if they are they need the processes in place to stay ahead of the game. to identify innovative, competitive and motivated people that can, To outpace their competition and want, to succeed. They need organisations also need to high performers. develop. Again, innovation in organisations has been badly impacted by the downturn. Over half of the employers surveyed (53%) report that ‘some scheduled business development/plans were put on hold’. Organisations must get these plans back on track if they are to compete in their respective markets. To do this requires that they find the best people – those that have the capability and motivation to truly drive change are not everyday people.20 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 22. REBUILDING REvENUE“we FAce PRoblemS Organisations’ difficulties are Almost a quarter (22%) reduced As – Sales/marketing/ to companies attempt both bRIngIng SAlARIeS compounded by the fact that or cancelled bonuses for repair communications. these losses and begin to bAck uP To many are now less profitable. management. One in five hire back in,likely than other More it’s imperative that comPeTITIVe leVelS Now that they have such an employers reduced or cancelled they do so profitably have they professions to – that gIVen Two yeARS oF below HISToRIc urgent requirement to hire, they bonuses for all staff and 11% of get the workforce they need downgraded profit outlook bonuS And PAy have tighter budgets with which employers implemented pay cuts with limited budgets and that (42%) and to report that RISe leVelS. we to do so. They are being asked to for some or all staff. The pockets any people costs has back into the market put become RISk loSIng good do more with less. Over half of of many employees were hit and the business are contributing to more competitive (47%). PeoPle” employers (51%) report that their there will be an expectation the bottom line.Director, Accounting & Finance – Financial Services. profit/revenue decreased; well amongst many in the workforce Significantly more likely over a third (38%) report that they that these cost cuts, that directly than other professions downgraded their profit outlook; affected their personal financial to have undergone a and 13% were forced to cut situations, must be recompensed merger (23%). prices. These are stark figures. to keep them in their roles. This will be of particular importance if – Public Sector. Again, cost-cutting initiatives put employers are forced to pay Significantly more likely in place during the downturn higher rates to secure new staff than other professions to compound employers’ financial as skills become increasingly say their workload has challenges. Over a third of scarce. (See Fig. 10) increased (63%). employers (37%) implemented pay freezes for some or all staff. – eye on the bottom line. As companies attempt both to repair these losses and begin to hire back in, it’s imperative that they do so profitably.FIg 10 INITIATIvES TAKEN DURING THE DOWNTURN % ORGANISATIONS Q3.1 Employers: Which, if WHO TOOK INITIATIvE any, of the following initiatives did your current/ Headcount freeze 46% most recent employer take (i.e. could still replace current headcount) during the economic downturn? Made roles redundant 43% Hiring freeze (i.e. freeze on new hires) 42% Pay freezes for some/all staff 37% Reduced/cancelled bonuses for management 22% Reduced/cancelled bonuses for all staff 20% Offered voluntary redundancies 12% Reduced work hours and corresponding pay 11% for some/all staff Pay cuts for some/all staff 5% Base: Employers, n=605 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 21
  • 23. CASE STUDY HEALTHCARE22 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 24. CASESTUDYHEALTHCARE This large healthcare company There is a general feeling that There is a drive to refine the weathered the downturn without the pool of potential employees recruitment process and any real impact on the is greater than before the streamline it across the organisation. “It’s been business downturn. Employees who organisation as a whole. as usual.” However, with previously stayed with a Currently, different areas of the Government PBS reforms, and company for job security during business have varied procedures the Government stimulus the downturn are now feeling and there is seen to be a need to package no longer having an more comfortable about looking put in place a more rigorous and impact, the retail side of the around for new opportunities. consistent process. In place of company has seen consumer This trend is reflected in the interviews and resume checks, spending drop off during 2010. Employee Engagement survey the organisation wants to put in Whilst the company is aware that conducted in 2010 which place additional tools such as this is a common trend across revealed low levels of rational psychometric personality testing retail in general, it is a concern and emotional commitment to which are seen as less for the management team the company, with a substantial subjective. Setting up looking forward. decrease in employees claiming relationships with just a few they intended to stay with the recruitment agencies is seen as The level of confidence is far organisation in the future. This is the most effective means of lower than it was six months ago, seen as an area of particular maintaining a consistent quality although as yet this is unlikely to concern, especially if the of candidates. These agencies have filtered down to employees. organisation hits hard times. would be required to work more There has been a recruitment as partners than suppliers, with freeze recently imposed across The data from the 2010 a good understanding of the the whole organisation, with any Employee survey is still being business and therefore new recruitment requiring disseminated and strategies cognisant of the behavioural and specific justification. If the have yet to be developed. leadership characteristics that fit downward trend continues However, the survey is seen as a the company’s culture and needs. through 2010, as predicted, it is vital tool to gauge employee likely that there will be a sentiment and inform the “There is a lot to be said for renewed focus on reducing executive team. The focus is on getting the right person in the costs, through reduced work being action-oriented, and in right role rather than getting hours or even head count. particular learning from teams bums on seats.” One of the likely where engagement is higher and implications of the recruitment In terms of resourcing, one applying this information to other freeze may be that as soon as it section of the business has just areas of the business. is lifted there will be a rush to undergone a move from manual employ new staff in case it is to automated systems and this There has been a move towards re-imposed. The organisation has affected staff morale. There focussing on greater wants to ensure that any has been some staff turnover as development and rigour around recruitment is strategic in nature. a result of the changes, and employee potential and The repercussions of a bad hire change in the skills sets required, performance, and putting are wide-reaching and setting particularly in more senior roles. measurements around these. As up more thorough and Other areas of the business have part of this move, management structured practices is seen to remained fairly stable. is considering the skill sets minimise the risk of recruiting needed for each role to ensure the wrong person. that each position is filled by the most appropriate person. POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 23
  • 25. 0224 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 26. TIMEFOR CHANGE POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 25
  • 27. SKILLS SHORTAGES RETURN “THeRe weRe Some Three-quarters of Australia and On the other hand, employees RedundAncIeS New Zealand’s employers (73%), perceive greater turnover within wITHIn THe InduSTRy across all industry sectors agree the workplace than their buT THe SkIlled that prior to the downturn they employers have actually cAndIdATeS ARe VeRy quIckly were battling with skills recorded. While one in five SnAPPed uP by shortages across all professions. employers (21%) report greater oTHeR comPAnIeS During the downturn, this staff turnover within their And THe RemAInIng proportion decreased organisations since the oneS ARe noT significantly and suddenly to downturn, this proportion is far AlwAyS THe beST oR HIgHeST 44%. This year, following the higher for employees. Over a PeRFoRmeRS” downturn, employers are once third (35%) report greater HR Manager, Technical & again feeling the skills pinch – turnover amongst their teams Engineering the proportion of employers and colleagues. The accuracy of reporting a skills shortage has employees’ perception of risen swiftly to its current 57%. turnover, in this context, is of (See Fig. 11) Indications are lesser importance compared to strong that skills shortages will the fact that they are seeing continue to increase steadily greater liquidity and therefore throughout the year –17% of more choice in the workplace. employers already are saying it Their confidence in the labour will be much harder to find talent market is increasing. For because many good people left employees the movement has their industries altogether during clearly begun. the downturn. Over the same period slightly fewer employees perceived skills shortages, though their changing perceptions have followed a curve similar to their employers. Prior to the downturn almost two-thirds of employees identified a skills shortage. This dropped significantly to 36% during the downturn, but has increased rapidly with almost half (47%) now saying they see a shortage of skills in their professions.26 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 28. – Feeling the skills pinch. The proportion of SKILLS SHORTAGES: BEFORE,FIg 11 DURING AND AFTER employers reporting a skills shortage has risen swiftly Prior to the downturn 73% 21% 6% Q2.9 Employers: How much of a skills shortage to its current 57% from During the downturn 44% 32% 24% do you think there is/was 44% during the downturn. prior to, during and Following the downturn 57% 26% 17% following the economic downturn? – Turning tide. Skills shortage No skills shortage Over a third of employees Skills surplus (35%) report greater Base: Employers, n=605 turnover amongst their teams and colleagues. They are seeing greater liquidity and therefore more choice in the workplace. POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 27
  • 29. jOB SEEKING SWELLS “IT’S HARd To In 2010, as employees become Throughout the workforce a ReTAIn STAFF generally less concerned about renewed vigour in employees’ AS conFIdence the wider economy and perceive underlying desire for change is ImPRoVeS And moRe increasing power to move jobs clearly evident. Of the two-thirds RoleS become AVAIlAble In oTHeR those seeking a new role have of employees seeking new roles, oRgAnISATIonS” increased in number accordingly. almost all (93%) are planning to Manager, Technical & Almost two-thirds (62%) are be in a new role within Engineering actively or passively job seeking 18 months. (See Fig. 13) – a marked increase on last year. Nearly two-thirds (61%) of those In 2009, 22% of employees planning to switch jobs aim to do were actively seeking a new role. so within six months – 39% of In 2010 this proportion has these within the next three increased to 29%. Similarly, in months. These figures forewarn 2009 27% were passively of a staggering degree of seeking – this year the movement within Australia and proportion has increased to New Zealand’s workforces. 33%. (See Fig. 12) Roughly 40% of all employees have a personal goal to be in a new role within the next six months. The ‘talent exodus’ predicted in last year’s Talent Tightrope is clearly gaining momentum.28 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 30. – more on the market. Almost two-thirds ofFIg 12 CURRENT jOB SEEKING STATUS employees (62%) are actively or passively job 2009 2010 Q4.4 Employees: Which of the following best describes seeking. This is a Actively seeking a new job 20% 29% your current job-seeking marked increase on status? Passively seeking a new job 27% 33% last year’s 49%. Plan to stay in current job 53% 38% – Set on seeking. Base: Employees, n=1,690 *Note that sample has been sourced differently from Public Sector employees 2009 to 2010: comparison is indicative only are the most fervent job seekers with 38% actively looking for a new role. – exodus begins.FIg 13 WHEN EMPLOYEES PLAN TO MOvE jOBS Roughly 40% of all employees have a Q4.6 Employees: When do you think you’ll be personal goal to be in a moving jobs? 22% new role within the next six months. 25% 39% 11% 1% 2% In the next 3 months >3-6 months time >6-12 months time >12-18 months time >18-24 months time Longer than 24 months Base: Employees, n=857 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 29
  • 31. REASON FOR CHANGE “THe mAJoRITy oF Last year Talent Tightrope Employees, in many cases, will emPloyeeS ARe identified a fundamental shift in be looking for financial lookIng FoR cAReeR the psyche of Australia and recompense for last year’s pay gRowTH And wIll New Zealand’s employees in freezes and reductions. Money is wAnT A comPAny THAT SuPPoRTS terms of the triggers that would clearly back on the table – but THeIR goAlS – now cause them to look for a new so too is a progressive and clear And AlSo In THe role. Previously ‘financial career path within an FuTuRe” considerations’ had been the organisation with a good culture General Manager, Sales, main push factor for almost and a well defined, inspiring Marketing & Communications two-thirds of employees (63%). business strategy. Out of the In the midst of the downturn, this downturn, 38% say they will be proportion dropped significantly ‘much choosier about who they to 45%, to be overtaken by work for’. ‘career development Employees are highlighting a considerations’ highlighted by lack of career progression and 58% of employees. ‘Work/life boredom as their biggest issues. balance’ remained the third most They are looking for different important trigger, though in experiences and acknowledging 2009 had decreased on the this is crucial not only for previous year by five percentage attracting new staff but for points (2008 47%; 2009 42%). retaining existing talent. (See Fig. 14) The results clearly reflected a desire to safeguard themselves and their careers in an uncertain economic climate – a desire for long-term security over instant financial gratification. This year’s results show a further evolution in the mindset of employees. ‘Career development considerations’ continues to be the most important trigger for seeking a new role for 64% of employees, showing a marginal increase on last year’s figure. At the same time, ‘financial considerations’ has leapt forward with 57% of employees now nominating this factor as a trigger. ‘Company considerations’ has also moved forward for just over a third of employees (34%).30 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 32. – Push factors. ‘Career developmentFIg 14 TRIGGERS FOR SEEKING NEW EMPLOYMENT considerations’ continues 64% to be the most importantCareer development e.g. lack of progression/ Q4.7 Employees: 58% Which of these trigger for seeking a new boredom/looking for different experiences 58% reasons are/would trigger you to seek a role for 64% of employees 57% new role? Financial considerations but ‘financial e.g. pay/bonuses/budgets 45% 63% considerations’ has leapt 42% forward from last year’s Work life balance e.g. too many or 42% 45%, with 57% of not enough hours/travel/flexible working 47% employees now 34% Workplace relationships e.g. relationship nominating this factor with managers/colleagues 37% 35% as a trigger. 34% Company aspects e.g. culture/strategy/ – Show me the money. 32% mergers and acquisitions Employees, in many cases, 24% 31% will be looking for financial Changes in personal circumstances e.g. moving locations/starting family 35% recompense for last year’s 39% pay freezes and 2010 2009 reductions. 2008 Base: Employees, n=1,396 – but show me the future. Employees want a progressive and clear career path within an organisation with a good culture and a well defined, inspiring business strategy. – who are you? Out of the downturn, 38% of employees say they will be ‘much choosier about who they work for’. POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 31
  • 33. NEW WORKLOAD REGIME “InVeSTmenTS In Two-thirds of employees (62%) Rather than looking for relief, TRAInIng And feel they are working harder as a employees are cognisant of the deVeloPmenT wIll consequence of headcount new workload regime and the become A mucH reductions in the workforce and majority are fine with it provided HIgHeR PRIoRITy FoR buSIneSSeS even more employers confirm they are paid fairly, they are IF THey wISH To this is the case (71%). Despite motivated by their work and they keeP THeIR HIgHeST this, ‘work/life balance’ has can see a progressive career PeRFoRmeRS FRom remained in third place and held path ahead of them. beIng PoAcHed steady on last year’s result at oR SeekIng emPloymenT 42%. This is an extremely telling elSewHeRe” response. One might assume CEO, ICT that the added workload demands of covering for headcount losses would have pushed employees to cry for some relief. Not so. Employees appear to be demonstrating a lack of tolerance for underperformance. They are under no illusions about the emerging higher benchmarks for workloads and productivity. Over half of employers (54%) say they will ‘monitor or scrutinise people’s performance a lot more closely going forward’ (see Fig. 15) and employees understand this – almost two-thirds (60%) say they expect employers to be more demanding of new recruits in the aftermath of the economic downturn. (See Fig. 16)32 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 34. – Putting in the hours. Two-thirds of employeesFIg 15 EMPLOYEES WORKING HARDER (62%) feel they are working harder as a 4% Q3.7 Employees: How consequence of has the loss of headcount in your organisation affected how hard you now headcount reductions in have to work? the workforce and even 34% more employers confirm this is the case (71%). 62% – The hard yards. Almost two-thirds (60%) of employees say they expect employers to be more demanding of new I’m working much/somewhat harder I’m working about the same amount recruits in the aftermath of I’m working much/somewhat less hard the economic downturn. Base: Employees n=885 – High pressure jobs. Employees in the Sales, Marketing & EMPLOYEES’ PERCEPTION OF Communications professionFIg 16 DEMANDS ON NEW RECRUITS are expecting to feel the most pressure from new Q4.1 Employees: How much more or less demanding do employers with 68% you think your organisation as an employer will be of expecting greater demands. 44% new recruits in the aftermath of the economic downturn? – making the effort. Employees are cognisant 37% of the new workload regime and the majority 16% are fine with it provided they are paid fairly, they 1% 2% are motivated by their work and they can see a Much more demanding Somewhat more demanding progressive career path Neither more or less demanding ahead of them. Somewhat less demanding Much less demanding Base: Employees, n=1,322 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 33
  • 35. GETTING THE RIGHT TEAM “mAny oF ouR To increase profitability, However, almost half of SenIoR STAFF ARe competitiveness and innovation, employers (43%) across the neARIng ReTIRemenT. to grow and compete in their board say they face difficulties enSuRIng respective markets, it is attracting staff to increase knowledge IS noT loST PluS enSuRIng imperative that employers have a headcount. For those employers THe new STAFF HAVe strong, high-performing who say they don’t currently THe bReAdTH oF workforce. The majority (80%) have the right team in place the knowledge wIll be of Australia and New Zealand’s difficulty is exacerbated – they cRucIAl To SucceSS” employers is focussed on growth have an even more urgent Project Director, Public Sector but 43% say currently they do requirement to build their teams not have the right team in place and a greater proportion (51%) to grow their business. is experiencing problems attracting staff. A large majority of employers (84%) says their organisations Over half of employers (57%) made too many redundancies agree that there is now more during the downturn. In addition, competition for candidates than disregarding the nature of their before the downturn and 54% exit, of all those employees that say most organisations in their left the workforce during the industry are now hiring more. downturn, employers say 23% (See Fig. 17) Additionally, over were high performers. half (54%) say that candidates are much more cautious about This has had a significant impact taking new roles. (See Fig. 18) on the strength of remaining Over a third of employees teams. just over a third of (38%) confirm that they will be employers (34%) believe their ‘much choosier about who they team has been weakened. work for’. Employees go further – over half (54%) say the team they work in is weaker. Consequently, the vast majority of employers (83%) say they are now focussed on building the right team for growth.34 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 36. – How will my business grow? ORGANISATIONS STARTING TOFIg 17 HIRE MORE 43% of employers say currently they do not have Q3.13a Employers: Agreement - Most the right team in place to companies in my organisations industry are grow their business. 29% hiring more now (than they did during the economic downturn – Tech troubles. 32% A larger than average proportion of employers in 23% the ICT (62%) and 13% Technical & Engineering (52%) professions say they 3% don’t have the right team in place for growth. Disagree strongly Disagree – Top performers gone. Neither agree nor disagree Agree Of all those employees that Agree strongly left the workforce during Base: Employers, n=406 the downturn, employers say 23% were high performers and just over a third of employers (34%) CANDIDATES CAUTIOUS ABOUTFIg 18 believe their team has been TAKING NEW ROLES weakened. Q4.13c Employers: Agreement - Candidates are a lot more cautious about – Fighting for the taking new roles than before the downturn. high flyers. 26% Over half of employers 45% (57%) agree that there is now more competition for candidates than before the 19% 9% downturn and 54% say most organisations in their 1% industry are now hiring more. Disagree strongly Disagree Neither agree nor disagree Agree Agree strongly Base: Employers, n=406 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 35
  • 37. RAISING THE BAR “ulTImATely, THe Employers face a twofold issue. To truly innovate, Australia and delAy In SouRcIng Simply getting the headcount New Zealand’s employers need THe RIgHT TAlenT numbers they require is clearly to find the best people. The best wIll Reduce THe challenging in the aftermath of people are essential to uphold SPeed wITH wHIcH ouR buSIneSS the downturn and in the face of the crucial factors of successful needS To ImPRoVe increasing skills shortages – business growth. The best ITS PeRFoRmAnce” doubling the pressure is the people are high performers. HR Manager, Sales, Marketing need to deliver results. Over half & Communications of employers (53%) acknowledge that when re-hiring they need to ‘raise the bar higher’ than before the downturn, but are they ‘raising the bar’ enough? (See Fig. 19) just over half of employers (54%) say they are ‘taking more time to find the right candidates rather than simply filling the role’ since the downturn. This reported shift in focus towards quality is a move in the right direction. However, employers must maintain this focus as they backfill workforce gaps as well as hire for new roles – particularly since a third of employers (35%) say most of the hiring being done now is about replacing the people that were lost during the economic downturn.36 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 38. – quality counts. Over half of employers EMPLOYERS RAISINGFIg 19 THE HIRING ‘BAR’ (53%) acknowledge that when re-hiring they have Q4.13a Employers: Agreement - When next to ‘raise the bar higher’ re-hiring we now have to 15% 19% raise the bar higher than than before the downturn. before the downturn. – Taking the time. 54% of employers say they are ‘taking more time to 38% 28% find the right candidates rather than simply filling the role’ since the downturn. Disagree Neither agree nor disagree Agree Agree strongly Base: Employers, n=406 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 37
  • 39. DISTINCTION OF HIGH PERFORMERS “ouR HIgH Understanding the The majority of employers (81%) PeRFoRmeRS ARe characterising traits of a high says that high performers also Fully engAged wITH performer is key to identifying boost team productivity and their THe PuRPoSe oF the best people to bring into a individual productivity is around THe buSIneSS, HAVe AlIgnmenT wITH business. Employers say that 34% higher than that of an THe oRgAnISATIon’S high performers differ from average performer. It is clear that VAlueS And average performers in their high performers make a beHAVIouRS And willingness to go the extra mile considerable difference to the Feel VAlued to exceed targets, their higher performance of the business THemSelVeS” level of motivation and their overall and drive growth. HR Manager, Accounting & Finance enthusiasm. These manifest in a With competition for good desire to continually improve candidates increasing every day, themselves and maintain a employers must be able to positive attitude underpinned by attract the right people, have a loyalty and commitment. robust process in place to (See Fig. 20) ensure that new hires are high Using these definitions, performers and take steps to employers on average classify retain the high performers just over one in three (35%) of currently in their organisations. their staff as high performers. Employees provide a very similar assessment of their work colleagues. Employers are aware that high performers can have a wide impact within the business. Four in five employers (82%) say high performers inspire others (see Fig. 21) and employees agree, saying the key benefits of working in a high performing team are the level of motivation and job satisfaction they enjoy as well as financial rewards, pride, morale and skills exchange.38 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 40. – on a high. High performers differ WHAT DIFFERENTIATESFIg 20 HIGH PERFORMERS? from average performers in their willingness to goExceeding targets/gets the job done/goes the extra mile 29% Q4.6 Employers: What would you say is the the extra mile to exceed Motivation 17% difference between an targets, their higher level high performer and an Attitude/willingness to work/positive attitude 13% average performer? of motivation and their enthusiasm. Showing initiative 11% Always looking for new ways to better themselves/ 11% – Proportions ofimprove/succeed/learn new things/challenge themselves performance. Loyalty to the business/commited/committed to the job 11% Employers on average Base: Employers, n=605 classify just over one in three (35%) of their staff as high performers. – benefits abound. HIGH PERFORMERS’ EFFECTFIg 21 ON WIDER TEAM 81% say that high performers also boost Inspire other employees 82% Q4.11 Employers: Which of the following effects would team productivity and their Better team productivity 81% you say high performers individual productivity is have on your wider team/ Base: Employers, n=418 organisation? around 34% higher than that of an average performer. – Find and keep them. Employers must ensure that new hires are high performers and take steps to retain the high performers currently in their organisations. POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 39
  • 41. CASE STUDY FINANCE40 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 42. CASE STUDY FINANCEThis large financial organisation With both the industry and In reality, this means that the The reputation of the hiring teamwas impacted by the downturn, competitors picking up after the hiring team is able to be more has improved as a result of thealthough potentially to a lesser downturn, there is more proactive about finding new staff. new strategy. Closerdegree than some competitors. competition for good employees. Prior to the downturn and this relationships are being forgedHiring numbers decreased There is a concern that key change in strategy, the hiring within the business andsignificantly, and the business talent may be tempted away team were often not informed feedback so far suggests thatwas forced to focus on from the organisation with the about departing staff until they the quality of recruits hasconsolidation and cost lure of increased pay, whereas had already left, putting them improved. Even though volumescontainment. The organisation last year people were holding under pressure to fill positions have increased significantlyhas an optimistic but onto the jobs they had. Staff with little time available. Now, since the downturn, the team isconservative outlook for the turnover has increased since the they are kept up to date with able to manage as they havefuture, feeling that the full downturn, perhaps as a result. people’s development and warning of upcoming vacanteffects of the downturn have not “It is easy to forget what normal performance management plans, positions and have time toyet been realised. levels of attrition are. Now we giving them more time to recruit consider the best way of filling have to start trying to retain staff the right people. the role. “We need to use ourDuring the downturn, the and build teams back up after knowledge to use the rightorganisation implemented a The advantages of this new the downturn.” recruitment method for eachnumber of strategies to try to direction are myriad. Firstly, the position.” They are also aiming tocontain costs. Employees were After a number of redundancies organisation can fill jobs more leverage internal relationshipsencouraged to take as much were made before and during efficiently. Secondly, it can and referrals from employees asleave as possible, and take up the downturn to cope with target people with the right a recruitment method.the organisation’s policy of decreased business volumes, skills. Thirdly, it avoids time-offering the option of buying an the focus now is on building pressured decision, giving more Looking ahead, there is aadditional four weeks leave in those teams up again in the time to think about the best perceived need to place moreany one year. In one part of the most efficient way. Some of the strategy they should use to find emphasis on the talentbusiness, employees were issues involved with re-building applicants for any given role. management scheme in order tooffered a 5% reduction in their teams involve a lack of system “We need to make quality retain employees once they havehours and pay which was seen process documentation and the recruitment decisions rather than been recruited. As the marketto work well. There have also need to train a lot of new rushing through and just doing starts to pick up again after thebeen pay and bonus freezes for employees at the same time. the same as we did the last time downturn, there is a risk thatsenior management. It can also take some time for round.” Aligning resourcing turnover will continue to increase new employees to get up and managers to key businesses has and managing this is likely to running and comfortable with a also helped with forecasts and become a priority. new culture and processes. networking opportunities in terms of finding new talent. The The downturn gave the internal hiring team is also able to play a hiring team the opportunity to greater role in providing their reassess their relationship with knowledge and expertise to the the business, and to redefine hiring process, for example their strategy and service around leadership testing and offering. “We [the hiring team] cultural fit. want to be a strategic resourcing partner, rather than just a transactional recruitment consultant who ticks boxes.” POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 41
  • 43. CASE STUDY INDUSTRIAL42 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 44. CASE STUDY INDUSTRIALA large manufacturer, this With the retrenchments came a shortage, the organisation has The organisation takes aorganisation saw a significant drop in staff morale. This has doubled its training budget, and competency-based approach fordrop in sales during the been improving since the now has two technical trainers recruitment and so an interviewdownturn. Decisions had to be downturn, but slowly. Remaining as opposed to one. Combined pack is developed with the hiringmade regarding profitability and staff have had to take on with the use of international manager taking into account thein 2009 a retrenchment program additional work as a result of the training programs, the amount of core competencies required.affecting 15% of the workforce reduced workforce. training has significantly Interviews, reference checks andwas implemented. The increased as a result. In addition medicals are all conducted as The organisation hasretrenchment was cost driven to this focus on training, the standard. The recruitment team acknowledged the stress thatand based purely on business organisation is developing an is focused on trying to ensure employees have been underneeds, rather than performance. attraction and retention strategy that hiring managers are trained during and since the downturnThis meant the organisation lost for technicians, and is reviewing in knowing how to conduct and has undertaken a number ofsome very good employees. In its remuneration strategy. There interviews and talk to initiatives to address this. Thethe future, management wants to is also a talent management candidates. “The emphasis is on key initiative was an employeegrow the business in a way that program in development. getting the selection correct survey which covered a numberensures that this situation does Although some of these because there are huge costs of areas including motivation,not happen again. Looking initiatives may have happened associated with poor selection.” participation, competence andahead, they are cautiously despite the downturn, the To this end the recruitment team health. As a result of this survey,optimistic with ambitions for downturn highlighted the fact is reviewing the competencies the organisation is consideringsustainable growth. that there was an urgent need to that candidates are required to implementing some wellness address the talent exodus meet as currently there are tooDespite the retrenchments, the programs and a high level of taking place. many for them to be applieddownturn was also seen as a loyalty towards the organisation effectively. In order to get thetime of opportunity. The overall has been recorded, largely due to The recruitment process is a right people through, thebusiness strategy was reviewed its proactivity in trying to improve very structured and formal one. organisation feels its processin terms of how the company staff wellbeing. “The focus is now There is an in-house needs to be more streamlinedcould better service their on building stronger teams recruitment team who are given and focused on the primarycustomers, including expanding moving forward from the a request for any new employee. competencies required.its offer to create total solutions downturn.” Structured The team then has discussionsfor the customer via a one-stop- participation forums and focus with the hiring manager toshop approach. The company groups are being conducted assess what type of recruitmentalso reviewed who and where it internally to encourage method is likely to be the mostshould be selling products to employees to discuss what is effective. If a recruitment agency— in effect, who their core and is not working within is chosen then the agency iscustomer should be — with a the organisation. briefed and provided with afocus on sustained profitability position description and the The organisation is now goingwhich they see as key for hiring manager is encouraged to through a period of growthlong-term growth. liaise with the agency where following the downturn. possible. Online job advertising However, there is a skills is also well utilised, as well as shortage with regard to local newspapers. In addition, technicians who make up a large every job is advertised internally proportion of the workforce. The on the intranet. mining industry is attracting a lot of technicians as they are able to offer higher salaries than some other industries. As one way to counteract this skills POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 43
  • 45. 0344 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 46. RECOMMENDATIONS POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 45
  • 47. FOUNDATIONS OF GOOD HIRING “we’Re ATTRAcTIng Australia and New Zealand’s Employers must have a clear What’s being said externally unSolIcITed employers face a unique set of picture of their Employee value about a company is also of cAndIdATeS oF A challenges in the new economic Proposition – yet only 23% say concern. The proportions of HIgH cAlIbRe due To era. They need to replace they are now working harder to both active and passive job THe SAFe, RelIAble And TRuSTed workforce losses, retain their demonstrate to candidates why seekers have swelled this year elemenTS oF ouR current teams, attract new they should work for them. In a to 29% and 33% of the bRAnd” employees to grow those teams market where there is greater workforce respectively. However, Manager, Human Resources and ensure new recruits are high competition for candidates; and as skills shortages increase and performers. All this is set against candidates are looking for more competition for the best people a backdrop of a unique post- in order to move (triggers for intensifies the balance between “A lAck oF FoRwARd PlAnnIng on A downturn business environment seeking: career development sourcing from these two wIde ScAle HAS – increasingly competitive and 64%; financial considerations groups is likely to swing exAceRbATed ouR with an imperative of escalating 57%) and becoming choosier increasingly towards the passive SkIllS SHoRTAge” profitability and growth. about who they work for, candidate segment. Manager, Technical & employers have to have a Engineering Well over half of Australia and This shift means employers need sophisticated Employee value New Zealand’s employers have to ensure their selection and Proposition in place in order to indicated that they are under- hiring processes are clearly differentiate themselves. resourced as a result of loss of defined to protect the company headcount during the downturn. This clarity not only helps to brand. In a talent-short market The key to positioning for growth explain to new recruits why they more investment is typically made is to have the strongest possible should work for the organisation in ‘head-hunting’ activities. Hiring team in place. This means both but, importantly, why existing activities that target passive retaining existing high performers employees should stay. Over a candidates need clear evaluation and, for many employers, hiring third of employees (37%) will ‘gates’ early in the process so more good people. ‘use networks or word of mouth that unsuitable candidates can be more’ when seeking a new role identified and redirected without Given the new market dynamics so the nature of what existing damaging the employer’s of increased workforce liquidity, employees say about a company reputation. Taking passive pressure on remuneration and is critical. Measuring candidates through a lengthy competition for top talent, engagement through formal process only to decline to offer employers need to forecast employee engagement surveys them a role at the end of it results their resourcing requirements and getting regular feedback in employment brand damage. through workforce planning from the workforce will help and approach their hiring employers keep their finger on activities as a proactive, the pulse of employee opinion, well-considered program. improve the current low level of loyalty (which has dropped further to 17% from last year’s low of 20%) and retain their current high performers.46 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 48. – Employers need to forecast their resourcing requirements through workforce planning and approach their hiring activities as a proactive, well-considered program. – Employers must have a clear picture of what their Employee value Proposition is in order to differentiate themselves. – This clarity not only helps to explain to new recruits why they should work for the organisation but, importantly, why existing employees should stay. – Measuring engagement through formal employee engagement surveys and getting regular feedback from the workforce will help employers keep their finger on the pulse of employee opinion and retain current high performers. – As skills shortages increase and competition for the best people intensifies the balance between sourcing from active and passive candidate groups is likely to swing increasingly towards the passive candidate segment. – This shift means employers need to ensure their selection and hiring processes are clearly defined to protect the company brand. – Hiring activities that target passive candidates need clear evaluation ‘gates’ early in the process so that unsuitable candidates can be identified and redirected without damaging the employer’s reputation.POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 47
  • 49. HIRING MISFIRES “ouR oRgAnISATIon Once employers have laid the Employers acknowledge that the Australia and New Zealand’s needS To bReAk foundations of workforce consequences of getting hires employers cannot afford to InTo new mARkeTS planning and have clearly wrong are far reaching and go make bad hiring decisions. They – FIndIng THe RIgHT defined their Employee value beyond simply the cost of back appreciate the importance of PeoPle To do THIS eFFecTIVely IS VeRy Proposition they must then filling a role, highlighted by 17% robust processes and good hires ImPoRTAnT” ensure that their recruitment as a concern and directly to the overall health and HR Manager, Sales, Marketing procedures are rigorous and fit impacting profitability. Over a performance of their businesses, & Communications for the purpose of identifying the third (34%) are concerned about they say they have these best performers to bring into loss of productivity, one in five processes in place, and yet they their teams. (21%) cites opportunity cost, admit that nearly half of their “AT THe momenT we ARe noT cAPITAlISIng 18% impact on customer service hires are not good. It is not surprising that almost all on oPPoRTunITIeS and 9% decreased business – of Australia and New Zealand’s There is clearly a disconnect becAuSe we do noT all circumstances that will affect HAVe THe RIgHT mIx employers (95%) agree that between employers’ perception business performance in an oF PeoPle To do robust hiring practices have a of how robust their hiring increasingly competitive So…ouR gRowTH positive impact on successful procedures are and how IS STunTed by ouR environment. (See Fig. 23) hires. To this end, well over effective they are in reality. InAbIlITy To IdenTIFy three-quarters of employers The greatest concern, shared by Employers must address this THe RIgHT PeoPle” (79%) say their hiring process is 51% of employers, is the discrepancy if they are to build Director, Technical & ‘formalised’, 60% say they have ramifications of poor hiring on the high performing teams that Engineering streamlined or improved their teamwork and engagement. they clearly need. hiring processes since the Another third (33%) is downturn and 43% say they now concerned about harmful effect have a greater focus on better on staff morale. Employees also matching candidates highlight detrimental affects on to roles. team performance, morale and motivation. These are harder to Yet Australian and New Zealand’s enumerate and potentially employers report that 44% of crippling. Ultimately, all of these their hires are not good. (See Fig. factors will negatively impact the 22) This is an astounding pillars of business performance proportion. Their hiring practices that are key to growth. are clearly not meeting the goal of bringing good people into their businesses. The bar is not being raised.48 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 50. – Employers must ensure that their recruitment PROPORTIONS OF GOOD,FIg 22 AvERAGE AND BAD HIRES procedures are rigorous and fit for the purpose of Q6.5 Employers: Based on your past experiences, identifying the best 13% approximately what performers to bring into proportion of hires in your organisation would be considered good, average or their teams. bad? 56% – The consequences of 31% getting hires wrong are far reaching will adversely affect business performance in an increasingly competitive A good hire environment. An average hire A bad hire Base: Employers, n=315 – Having a ‘formalised’ process is not enough – employers’ current hiring practices are not meetingFIg 23 CONSEQUENCES OF A BAD HIRE the goal of bringing good people into their Impact on teamwork/engagement 51% Q6.7 Employers: Comparatively, what is your businesses. Loss of productivity 34% level of concern with the following possible – Hudson research shows Impact on staff morale 33% consequences of a bad hire? (Respondents chose that there is a clear Opportunity cost to your organisation 21% two.) disconnection between Impact on customer service 18% employers’ perception of The cost to your organisation of back-filling the role 17% how robust their hiringDecreased business earnings/revenue 9% procedures are and how Base: Employers, n=418 effective they are in reality. – Employers must address this discrepancy if they are to build the high performing teams that they need to support the pillars of business performance – competitiveness, innovation and profitability – that are key to growth. – A robust hiring process includes sophisticated measures to identify those who have the potential to be high performers and help employers get the right person into a role. POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 49
  • 51. PERFORMANCE DRIvERS “TIme And AgAIn With the end goal of supporting The ‘want to’ category assesses All of these measures fall into we HIRe PeoPle the key drivers of business a candidate’s ‘motivational fit’ the ‘technical’ or ‘experience’ wHo look good on growth, a robust hiring process and ‘career fit’. These measures measurement categories. In fact, PAPeR, buT don’T includes sophisticated measures provide a much richer picture of 63% of employers’ total hiring PeRFoRm wHen In THe buSIneSS” to identify those who have the the true depth of commitment a procedures and tools are Strategy Director. Technical & potential to be high performers candidate will bring to a role focussed on the first ‘know how’ Engineering and help employers get the right – whether they will engage in category. A third (30%) of their person into a role. The the role, work harder, apply efforts address the ‘can do’ Performance Driver Model discretionary effort and be category and only 7% measure “we wAnT To FInd provides a framework for retained for longer. All of these the ‘want to’ category. cAndIdATeS wITH THe RIgHT culTuRAl understanding the drivers of measures are necessary to (See Fig. 25) FIT FoR uS – THeRe individual performance and sets ensure hires are good. ARe PlenTy oF out the most appropriate method cAndIdATeS wITH The top three hiring tools/ of assessing these. (See Fig. 24) THe RIgHT TecHnIcAl measures most frequently used SkIllS” The drivers fall into three by Australia and New Zealand’s CFO, Accounting & Finance categories: ‘know how’, ‘can do’ employers are: ‘reference and ‘want to’. The ‘know how’ checking’, used by 88%; ‘resume category provides the basic screening’ used by 76%; and measures of a candidate’s ‘background interview’ used by technical skills and experience 66%. (See Fig. 26) – that they have the specific A similar pattern emerges in the skills and experience necessary tools and procedures employees for the role. The ‘can do’ say they have experienced category assesses a candidate’s during the interview and ‘capability’ and ‘attributes’ and assessment process for a new provides a deeper insight into role. The top three are again whether they are able and willing reference checking (82%), to apply their skills and background interview (76%) and experience to the role. These resume screening (69%). measures provide a clearer (See Fig. 27) understanding of an individual’s behavioural capability that can be applied adaptively in our ever-changing organisations.50 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 52. – The Performance Driver Model provides a frameworkFIg 24 for understanding the drivers of individual performance LOw CURRENT INDICATOR OF PERFORMANCE DRIVER MODEL FOCUS and sets out the mostPERFORMANCE appropriate method of cATegoRIeS meASuReS assessing these. PERFORMANCE Technical Skills (KNOW HOW) – The drivers fall into three Experience categories: ‘know how’, ‘can POTENTIAL Capability do’ and ‘want to’. (CAN DO) Attributes – The ‘know how’ category provides the basic measures RETENTION Career Fit (WANT TO) of a candidate’s technical hIGh INDICATOR OF Motivation EFFECTIVENESS skills and experience – thatPERFORMANCE they have the specific skills and experience necessary for the role. – The ‘can do’ category assesses a candidate’sFIg 25 ‘capability’ and ‘attributes’ TOOLS/PROCEDURES CURRENTLy bEING USED by EMPLOyERS by % Q5.5 Employers: Which procedures/tools does your and provides a clearer organisation currently use during the hiring process? understanding of an PERFORMANCE Technical Testing individual’s behavioural (KNOW HOW) Skill Testing Resume Screening 63% capability that can be applied Background Interviewing adaptively in our ever- Reference Checking changing organisations. POTENTIAL Behavioural Interviewing (CAN DO) – The ‘want to’ category Assessment Centres job Trial 30% assesses a candidate’s Personality Testing ‘motivational fit’ and ‘career Intelligence Testing fit’ and provides a much richer RETENTION 7% picture of the true depth of Cultural Fit Measures (WANT TO) commitment the candidate Base: Employers, n=605 will bring to the role. – All of these measures are necessary to ensure hires are good. – The tools employers currently use, which they perceive to be the most effective are the more basic tools ‘behavioural interviewing’, ‘reference checking’ and ‘background interview’. POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 51
  • 53. ‘WANT TO’ NOT ‘KNOW HOW’ “we need To FInd All 605 employers surveyed Employers predominantly are They know they need high THe RIgHT PeoPle were asked their thoughts on hiring on ‘know how’ – they are performers, they are going to be wITH THe RIgHT the difference between an thinking far less about what the more demanding of their communIcATIon And average and a high performer. employee might want from their employees, they need to replace dRIVe – THIS IS AS ImPoRTAnT AS THe Not a single employer cites career and how much value they the gaps left in their TecHnIcAl SkIllS” ‘good references’, ‘years of will deliver to the performance of organisations and build muscle General Manager, ICT experience/experience’, the business. The key trigger for to drive business performance. ‘education/qualifications’ or an employee to seek a new role They know what sets high ‘where they have worked before’, is ‘career development performers apart – it is “ouR PeoPle ARe yet these are the measures that considerations’ – they leave on a imperative that they review their ouR PRoducT. we need To be Able employers are most commonly lack of career fit. This is a key hiring procedures and tools to To IdenTIFy HIgH using to bring new people into component of the richer ensure that they are correctly PeRFoRmeRS their businesses. ‘want to’ category. indentifying them within the pool RelIAbly oR we of potential candidates. Once don’T HAVe A Employers repeatedly cite In short, employers are putting these high performers have buSIneSS” ‘exceeding targets’, ‘high the majority of their hiring been brought into the business it Creative Director, SM&C motivation’, ‘getting the job done’, efforts into the most basic is also crucial to understand ‘going the extra mile’, category of assessment with what drives and motivates them, ‘enthusiasm’ and ‘a desire for barely any emphasis on the to show them a clear and personal achievement and measures associated with high progressive career path and continuous improvement’ as the performers. It is little wonder therefore retain them. characteristic traits of high they are finding that 44% of performers. These are all their hires are not good. measured by the ‘want to’ Employers clearly need to drive category. a layer of sophistication through And yet, almost half of their hiring methods and employers (43%) say the biggest understand better the direct staffing challenge they face in relationship between the the short to medium term is effectiveness of the procedures finding people with the right they use and the success of qualifications. This is not a rich their hires. performance indicator. This is basic ‘know how’. The tools they currently use, which they perceive to be the most effective are ‘behavioural interviewing’ at 32% and ‘reference checking’ and ‘background interview’ both at 9%.52 POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 54. – Whilst employers say that motivation, desire for TOP THREE HIRING TOOLS FIg 26 USED BY EMPLOYERS continuous improvement and a good cultural fit are Reference checking 88% Q5.5 Employers: Which tools/procedures does the key attributes of high Resume screening 76% your organisation currently performers, they not use in the hiring process?Background interview (past work experience) 66% (Respondents chose two.) measuring these aspects Base: Employers, n=418 in candidates in their current hiring process. – Employers are putting the TOP THREE HIRING TOOLS FIg 27 ExPERIENCED BY EMPLOYEES majority of their hiring efforts into the most basic Reference checking 82% Q5.3 Employees: Which tools/procedures have you category of assessment Resume screening 69% been put through during your most recent hiring with barely any emphasisBackground interview (past work experience) 76% process? on the measures Base: Employees, n=418 associated with high performers. – Unless all performance drivers are measured, employers cannot know that a candidate will ‘turn out’ to be a high performer – they are effectively guessing. – It is possible to take this element of guesswork out of the hiring process by using the Performance Driver Model and employers should immediately do so – they cannot afford the ramifications of bad hires or to lose good people to competitors with more sophisticated methods. – Identifying performance drivers in individuals also allows employers to understand what motivates each individual employee. Employers can then outline a clear and progressive career path and therefore retain them. POSITIONING FOR GROWTH — BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 53
  • 55. RESEARCH METHODOLOGY Hudson commissioned Sweeney Research EMPLOYER RESPONDENT PROFILE to conduct a robust qualitative and The charts below show the profile of the sample sourced from the Hudson client database: quantitative research study into the lingering impact of the recent economic downturn on GENDER, ROLE IN INDUSTRY SECTOR Australia and New Zealand’s workforces and HIRING DECISIONS AND NUMBER OF FULL TIME Government 23% the ramifications for the hiring process EMPLOYEES Construction/ Property/Engineering 15% going forward. GENDER: Financial Services/ Insurance 13% Male 58% QUALITATIvE RESEARCH Retail 9% Female 42% METHODOLOGY Healthcare (Government) 6% ROLE IN HIRING DECISIONS Initially two discussion sessions were carried Hiring 53% Professional Services 6% out with senior Hudson employees to help Manager Information HR 28% Technology 4% guide the research process. function/dept. Neither 19% Resources/Mining 4% Following this, four qualitative in-depth ROLE IN HIRING DECISIONS Utilities 4% interviews with key Hudson clients were conducted in order to produce case studies Less than 25 6% Education 3% detailing how different employers in different 26 to 99 11% Manufacturing 3% industries felt the impact of the economic 100 to 199 7% Telecommunications 3% downturn and what this means for their 200 or more 75% Advertising/ 1% Marketing/Media workforce requirements going forward. Don’t know/ Can’t say 1% FMCG 1% Healthcare QUANTITATIvE RESEARCH (Private) 1% METHODOLOGY LOCATION AND Non profit 1% WORK REGION 1,690 employees and 605 employers were Wholesale/ 1% COUNTRY: Distribution sourced from the Hudson database 79% Australia Tourism/Hospitality 0% interviewed online in regards to their views, New Zealand 21% Transport 0% behaviour and approach to the hiring process in the post-downturn market. CITY: Other 2% Melbourne 21% The questionnaire responses were collected Sydney 21% PRACTICE AREA from 6-11 May 2010. Respondents were Brisbane 11% 26% incentivised by a prize draw carried out Human Resources internally by Hudson. No quotas, or Adelaide 8% Accounting & Finance 17% screening criteria were set, however the data Canberra 7% ICT 14% has been weighted to represent the total Perth 7% Sales, Marketing & Communications 9% Hudson database by both industry and Newcastle 5% Technical & Engineering 8% location, and employees currently not in Darwin 0% Financial Services 5% employment were removed. Hobart 0% Office Support 5% Public Sector 5% Wellington 9% Legal 1% Auckland 8% Other 10% Christchurch 4% WORK REGION: Metropolitan 92% Regional 8% Rural 0%54 POSITIONING FOR GROWTH: BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA
  • 56. EMPLOYEE RESPONDENT PROFILEThe charts below show the profile of the sample sourced from the Hudson candidate database: GENDER WORK STATUS AND INDUSTRY SECTOR GENDER: ROLE TYPE Government 17% Male 57% WORK STATUS: Financial Services/ 11% Full time 73% Insurance Female 43% Construction/ Part time 8% Property/Engineering 7% ROLE IN HIRING DECISIONS On contract 20% Healthcare (Private) 7% Under 25 years 5% ROLE TYPE: Manufacturing 6% 25 to 29 years 12% Executive or 16% senior management Professional Services 6% 30 to 34 years 16% Middle management 25% Telecommunications 6% 35 to 39 years 15% Non managerial 36% Information professional/specialist technology 5% 40 to 44 years 15% Admin/support staff 18% Retail 4% 45 to 49 years 14% None of these 4% Resources/Mining 4% 50 to 54 years 11% Utilities 4% 55 to 59 years 7% NUMBER OF FULL TIME Education 2% 60 years or over 5% EMPLOYEES AND WORK REGION FMCG 2% NO. OF FULL TIME EMPLOYEES: Advertising/ LOCATION Marketing/Media 2% Less than 25 17% COUNTRY: Tourism/Hospitality 2% Australia 77% 26 to 99 13% Transport 2% New Zealand 23% 100 to 199 7% Healthcare 1% (Government) CITY: 200 or more 57% Don’t know/ Non profit 1% Melbourne 25% Can’t say 5% Wholesale/distribution 1% Sydney 19% WORK REGION: Metropolitan 92% Other 9% Brisbane 11% Perth 8% Regional 7% PRACTICE AREA Adelaide 7% Rural 1% Sales, Marketing & 19% Canberra 4% Communications Accounting & Finance 15% Newcastle 3% ICT 15% Darwin 0% Technical & Engineering 12% Hobart 0% Office Support 11% Wellington 11% Human Resources 6% Auckland 9% Public Sector 5% Christchurch 3% Financial Services 3% Legal 2% Other 11% POSITIONING FOR GROWTH: BUILDING A DYNAMIC WORKFORCE IN A NEW ECONOMIC ERA 55
  • 57. Hudson.comAdelaide + 61 8 8223 8800Auckland +64 9 977 9800Brisbane +61 7 3258 8333Canberra +61 2 6229 1555Christchurch +64 3 977 8500Greater Western Sydney +61 2 8836 0222Hunter/Central Coast +61 2 4927 2220Melbourne +61 3 9623 6666 ANZ.9000.07/10Mount Waverley +61 3 9535 8222Perth +61 8 9323 0222Sydney +61 2 8233 2222Wellington +64 4 917 9200

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