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CONNECTING THE BEST IN THE INTERNATIONAL MARKET
THE CHANGING
NATURE OF THE CEO
IN THE MODERN WORLD
ATTRACTING THE BEST
TALENT IN AN EXECUTIVE
SEARCH
Adapting to a candidate driven
market
THE BENEFITS OF A
RETAINED MODEL
Why engage a retained search model?
CONNECTINGTHEBESTINTHE
INTERNATIONALMARKET
TOP TALENT
AT THE CORE
Welcome to the Chad Harrison International annual magazine. This year has been a transformational
period for the company as we’ve introduced new services, expanded our team and opened a new
office in Europe.
Our Talent Acquisition and Executive Search teams have placed the best available candidates on
the market into roles across the Americas, Europe, the Middle East, Far East and Australasia. We’ve
operated diligently with clients to put talent at the core of their organisations.
Throughout the magazine we’re going to look at the key features of a talent acquisition strategy,
the main issues facing CEOs in the coming 12 months and an in-depth look at the Chemical & Life
Sciences, Built Environment, Packaging & Print and Mining & Metals sectors.
TABLE OF CONTENTS
How is search and selection
shaping the cement industry
An interview with Luke Robbins-Wells.
Mergers and acquisitions a key
trend in 2017
How has the Life Sciences sector been
affected by the major changes in the last
12 months?
The changing nature of the CEO in
the modern world
What challenges are facing CEOs in
today’s market and how can they adapt to
change?
Why engage a retained search
model?
The benefits to your organisation.
Talent acquisition in the packaging
sector
How are talent acquisition strategies in the
packaging sector impacting the movement
of talent?
Attracting the best talent in an
executive search
Why it’s important to adapt to a candidate
driven market in today’s recruitment
climate.
02 -
06 -
09 -
12 -
14 -
17 -
1
How search and selection is
shaping the cement industry
An interview with Luke Robbins-Wells
Chad Harrison International‘s
Managing Director Luke Robbins-Wells
offers his insight into headhunting in
the cement industry and how his vision
for Chad Harrison International has
evolved over the last decade.
How has headhunting changed in the
last few years?
As a result of social media platforms
such as Linkedin, Xing and others, client
expectations have changed. There is
often an expectation that head-hunters
can find and present every candidate
in the market, and provide them to the
client. Whereas the reality is that a
good head hunter will find all available
candidates, on the market not just IN
the market, that meet the criteria and
present those that are most interested.
Head hunters are not miracle workers
however a good head hunter should
be able to consult and guide their
client based on tangible results. If the
candidates in the market do not meet
the brief, is it the head hunter who
needs to change their approach or the
client who needs to re-evaluate their
expectations?
From a candidate point of view, they
are expecting a higher level of service, a
wider choice, a more detailed approach
and a variety of options that they may
not have been able to find themselves.
Savvy candidates are using head
hunters to help market themselves
appropriately and make them stand out.
How has technology impacted the
recruitment landscape?
A lot of organisations are using
internal recruitment processes and
technologies; building their own
databases, talent pools and social
media channels. Technology has
benefited the cement industry
tremendously. It has enabled the
recruitment process to become more
efficient as clients are able to interview
candidates through a variety of online
mediums such as Skype. Technology
has globalised the industry and reduced
the need for candidates to travel
long distances for interviews, it has
quickened the process, making it more
cost-effective and easier to manage for
the client.
How is the recruitment landscape
being shaped in the cement industry
by head-hunters?
We are providing a different dimension
to the industry. It is a small market,
a lot of senior level personnel know
each other which can be difficult when
looking for a new opportunity as the
candidates and clients risk a conflict of
interest and difficult situations. Head
hunters are able to access the majority
of candidates and bridge that gap that
hiring managers cannot. As consultants,
we do more than just bring the best
talent to the table, we are helping
companies to grow, become more
efficient, manage costs and increase
profitability. We are able to use our
understanding of the industry and
parallel industries to bring talent to the
industry from complimentary industries
and strengthen the talent pool.
We have access to networks not
everyone has as we spend every
day, speaking to the very best in the
international market
Would it be fair to say that head
hunters are able to introduce senior
level candidates from outside of the
cement industry?
Yes, using Chad Harrison as an example,
we have been able to introduce and
successfully place candidates from the
steel, packaging and paper industries.
Candidates have transferable skill
sets that we can move into the cement
industry, but it is also challenging
to convince hiring managers who
may have their sights set on an ideal
candidate that can tick all the boxes.
Is turnover of senior level staff
increasing or decreasing?
I would say the need for senior level
appointments in a lot of cement
businesses is decreasing as there is a
higher level of expectations for those at
the management level to take on more
responsibilities. There is an expectation
that more senior level employees
become multi-disciplined and with the
costs associated with the fall in oil price
and other economic factors, companies
are aiming to get more value from
their senior level staff. As a result, it
maybe that companies are expecting
their Industrial Directors to be more
commercial as well as possessing the
necessary technical skill sets.
How do you think that will play out in
the future?
It may lead to more astute, well-
rounded management and leaders
in the business that have an all-
encompassing understanding of the
industry and can add value in all areas.
It could also reduce the need for the
corporate technical structure and
corporate commercial teams as these
requirements spread out across the
operational teams, therefore making
the cement industry more streamlined
and efficient.
How are companies reacting to
that – do you find more senior level
candidates are appointed for the first
time from within?
Historically, within the cement industry,
there has always been the standard
internal progression. I think a lot
of recent mergers and acquisitions
have created significant movement
in a previously stable market. There
are some changes in the top five
cement manufacturers, so the current
requirements for a lot of these
businesses is in attracting the right
candidates, who are actively seeking
from those competitors while also
attracting candidates externally to
enter the industry. >
“We have been able to introduce
and successfully place candidates
from the steel, packaging and
paper industries.”
Managing Director, Chad Harrison International
2 3
What are the key traits Directors and
hiring managers are looking for from
senior level candidates?
What we’re finding is that clients
are looking for candidates who are
more commercially aware. It’s no
longer befitting to be solely technical
but being commercial and having
an understanding of the end goals
is important. Most of our clients
are looking to test a candidate’s
commercial awareness. For example,
when optimising production, you need
to understand not just how, but why.
Candidates need to illustrate that they
can improve processes that will save or
make the company money.
A lot of hiring managers we work with
are also looking for leadership traits,
management experience, the ability
to influence and knowledge share.
Flexibility is key, particularly when
entering emerging markets.
How do cement candidates compare
to those outside of the industry, such
as packaging or steel?
A lot of vacancy briefings we
undertake with clients demonstrate
that at times, the cement companies
can be quite blinkered in experience.
There is a tendency to stick to the
status quo within the cement industry,
whereas in other sectors there are
a wealth of commercially aware
candidates that have transferable
skills. Cement candidates overall are
generally very experienced and in high
demand not only in the cement sector.
There is a huge range of talent in the
industry, however, the industry needs
to also consider the extensive range
of candidates from similar industries
who could easily transfer to ensure it
doesn’t become stagnant.
What are your important messages
to candidates prior to meeting your
clients?
Know your numbers and facts, make
sure you’re aware of tangible results
that you have achieved. When a client
asks what has been done to improve
operations, a candidate should be
able to give a detailed answer with
examples to demonstrate their ability.
What are your thoughts on opinions
that there is a global talent shortage
in cement?
I would agree, there is a talent
shortage. There are a lot of senior
level profiles that are moving out
of the industry as a result of M&A
activity, and a large number heading
to retirement age. There is a lot of
technical expertise that is being
lost with the exit of those profiles.
As in every market, there is a global
talent shortage in engineering in
particular. The ability to find the full
package within cement, for example,
someone who is technical, operational
and commercial who is flexible and
willing to move is challenging. It’s
why, in addition to strong, graduate
schemes, training and development
and succession planning, I think
management need to look outside
of the cement industry to attract
those candidates with transferable
skill sets to fill the immediate hard-
to-fill requirements.
How do you ensure that you find the
right kinds of candidates in the face of
this challenge?
We ensure that we are speaking every
day to candidates and clients alike so
that we have the knowledge of who
is the best in the industry and who
has strengths in certain areas not only
those who are active but keeping
close to the best passive candidates
in the industry.
We understand the best cement
candidates’ skill sets. We are able
to keep in touch with the best in
the international market around the
globe which means when a position
becomes available we can go straight
to market with that opportunity and
select the right individual for the
client.
“For any senior level executive looking to make a step up into
board level or CEO it’s about ensuring that your external
network is just as strong as your internal network.”
We hear a lot about emerging
markets, how are you and your clients
organising yourselves to ensure
you’re are part of it?
Chad HarrisonInternational is working
with a lot of leading companies in
emerging markets already as well as
companies investing in new locations.
We’re working with private equity
firms that are investing in emerging
markets and we’re spending our time
working with local candidates and
expatriates looking to make that move
or have affinities and capabilities within
those regions.
What would your advice be to senior
executives looking to make the leap to
board level or CEO?
For any senior level executive looking
to make a step up into board level
or CEO it’s about ensuring that your
external network is just as strong as
your internal network. This ensures
that you are able to bring the best
opportunities to the business, to
be able to support the strategic
objectives and to have the right
oversight across the market with
your finger on the pulse.
4 5
MERGERS & ACQUISITIONS A KEY TREND IN 2017
LIFE
						SCIENCES
2017 was a record year for mergers and acquisitions (M&As) in
the Life Sciences sector. Following New Year, there have been
significant changes in the industry, with large multi-national
companies purchasing smaller firms. SMEs have also gained
traction in the market with M&As allowing them to acquire talent
and skill sets in sectors they didn’t previously operate in.
Mergers and acquisitions have been particularly prevalent within
contract research organisations (CROs). In 2016 the top 10 CROs
accounted for more than 50% of the market. This year’s activity
is likely to lead to the share of the $45bn market to increase
significantly.
M&As provide access to new
markets
One of the biggest trends in 2017
has seen US companies emerging
into new territories in Europe. One
example of this has been Quintiles
merger with IT consultancy IMS health
to form the newly branded IQVIA.
This partnership has allowed Quintiles
to access the European market. It has
strengthened its proposition in the
region with the support of IMS Health
and it’s expected to generate annual
growth of 1-2% annually.
Without the merger, Quintiles may
have struggled to establish itself in
the European market. However, with
the support of IMS Health, it obtains
almost instant access to the market
with a structure and network already
in place.
The impacts on talent during an
M&A process
As well as providing access to new
markets, M&As also impact on talent
acquisition. LabCorp’s acquisition
of Covance is an example of how a
company can quickly obtain talent and
propel its projects forward at a greater
pace.
In 2015 LabCorp consolidated its
place as one of the largest CROs in
the industry with the acquisition of
Covance. This was further cemented in
2017 upon its acquisition of Chiltern.
The latter had a strong focus on
oncology. The move is expected to
enhance and develop Covance’s late-
phase oncology footprint.
M&As such as LabCorps often result
in one of two conclusions for talent.
The first is that their role is secured
and the acquiring company obtains
talent in markets it didn’t previously
have. The second alternative is that
the talent enters the available market
by way of redundancy to the benefit of
competitors.
It’s possible that the latter will occur
with the acquisition of Parexel by
Pamplona. At the beginning of 2017
Parexel was listed at number three
in the top ten CROs. It specialises in
drug development, clinical logistics,
commercialisation and regulatory
consulting.
It was announced in June 2017 that
Pamplona Capital Management, a
private equity firm will acquire Parexel
for $5bn and will help it “successfully
navigate the complexities innate to
the biopharmaceutical industry and
bring new therapies to market.” The
likelihood is, that an acquisition such
as this will result in talent entering the
market through redundancy or choice.
When this happens, it’s important
that companies are well connected to
ensure that good talent isn’t snapped
up by competitors. Having a good
headhunting firm on your side can act
as a strong brand ambassador, helping
companies attract the best available
talent in the market.
76
THE CHANGING NATURE OF THE CEO
IN THE MODERN WORLD
In the modern fast-paced world in
which we live today, business and
leadership are changing at a rapid
pace. CEOs around the world are
having to adapt to these changes
or fall short of leading a business to
success during their tenure. What
do these challenges consist of and
in what ways are successful CEOs
implementing changes to ensure they
are leading in the right way?
Generational shift in employment
landscape
There is a lot of information about
how the employment landscape has
changed as a result of new generations
entering the workplace. Millennials as
a group have been analysed, discussed
at length and pigeonholed by a set of
characteristics that apparently define
them.
However, just as company get to grips
with Millennials, Generation Z (Gen
Z) are entering the market. Gen Z is,
at the moment, an unknown quantity.
Defined as the group born after 2000
who have grown up with technology
in the palm of their hands, they are
tech savvy and comfortable with
popualr social media.
Both of these generations are believed
to be independent and impatient.
They have grown up in an on-demand
economy and believe they have almost
a divine right that promotion and
seniority is something that should be
given to them from the outset. The
challenge for CEOs in such a market
is remaining a strong leader and
adapting to the ever-changing nature
of technology.
As well as that, CEOs or their senior
managers need to be able to identify
the talented Millennials that deserve
the promotion and seniority at a
young age. Sorting the chaff from the
wheat in a technology driven market
that a CEO doesn’t understand can be
very difficult.
Technological changes
Technological change is creating a
landscape where it’s much easier to do
business than ever before. Emails and
skype conversations allow business
decisions to be made quicker.
As technology advances, it’s important
that CEOs keep an eye on the horizon
or their business may get left behind.
A perfect example of this was how
late Blockbuster was to the online
market place. Without investing in
online media, the company lapsed
as technology and customer desires
changed and eventually failed.
There is also a darker threat that
CEOs face in the modern world. Cyber
Security is becoming an increasingly
important factor as companies and
institutions around the world are
found to be vulnerable. Every company
is under threat, not just large and
small. Governments are beginning to
implement harsh fines for companies
that fail to protect customer’s data.
Political administrations
The changing nature of the political
landscape is a key factor, particularly
for companies operating globally.
Increased nationalism in India, Europe
and the USA will present challenges
for CEOs looking to expand into
new territories or maintain close
relationship with existing clients.
Nationalism may be a threat but it
could, in fact, be the saviour of the
global corporation. Operating globally
could be more of a hindrance if, for
example, the Trump administration
decided to increase trade tariffs on
imports of certain products.
Ultimately, the primary goal of every
business is to achieve commercial
goals, deliver growth and protect the
longevity of a company. The CEO is
an integral part of adapting to change,
creating a sustainable and competitive
vision and executing it effectively.
From managing staff effectively and
positioning their focus towards a
cohesive, company oriented safe,
secure and technological foundation
for the business, a modern CEO will be
able to tackle all of these issues, whilst
still positioning the business in the
right direction for the future.
“Technological change is
creating a landscape where
it’s much easier to do business”
98
OUR NETWORK
IS OUR VALUE
EXPAND YOURS
TODAY
Why engage a
retained search model?
Thebenefitsto
yourorganisation
Weareoftenaskedaboutthebenefitsofusingaretainedsearchoveracontingent(feeon
success)modelwhenworkingwithourclients.Itisacommonmisconceptionthatretainedor
executivesearchisrestrictedpurelytoaseniorlevelhireinanorganisationandthataretained
searchislesscosteffectivethancontingent.
Whileit’struethatusingaretainedservicetoattractseniorlevelhirestoanorganisationis
moreeffective,itcanalsobemoreeffectivewhenaroleisatechnicalorskilledhireorwhena
roleisdifficulttorecruitfor,suchasageographicallyrestrictedsearch.
Inaddition,aretainedsearchisnotnecessarilymoreexpensive.
Demonstrating commitment
The purpose of a retainer is to demonstrate a business commitment for the extensive
time and effort that that the firm will invest into a project.
From a search firm perspective, what we can commit to is the guarantee that a
comprehensive and detailed search would be undertaken and all avenues explored to be
able to attract the best candidates to shortlist for the organisation. It is estimated that a
successful search requires approximately 150-200 man hours when done correctly.
Search firms are committed to delivery and outcomes. There is never any guarantee that
a successful hire would be made on the back of a search, but a search firm can guarantee
that they would work with the organisation to deliver the best profiles for consideration
within the timeframes agreed and would continue consulting and guiding where required
to accomplish a successful outcome for the client.
Is market expertise important for a search firm?
Boutique search consultancies specialising in niche sectors are bucking the trend in the
industry. However, any experienced, professional and dedicated search consultant from
any industry could manage a search project outside of their industry.
The benefit over using search firms with experience in specific industries is the added
ability to “consult” with the client and challenge expectations based on market knowledge
and competitor information. These consultants are able to guide clients through a
selection process and identify specific market pitfalls or anomalies that may not be
apparent outside of the specific industry.
The Difference
Comparing the service of a contingent search and a retained search is purely down to commitment
and dedicated resources. A reputable and successful search consultancy will always be busy with
new business, repeat business and existing searches. Engaging with a consultancy with a retained
search will ensure that your project will be a top priority and the resources required to deliver on
this project will have been mapped out and assigned to ensure a successful result.
A reputable consultancy would never take on a project that they would not be able to complete and
would be prepared to turn down business if they felt it was not feasible.
Operating under a contingent model, a consultancy, depending on their workload, would rarely
assign specific resources on the project and would usually deliver candidates from an existing pool
of candidates or have those generated as a result of a similar campaign they are either currently
or recently run. Some companies such as Chad Harrison International as an example, will always
conduct a full ‘headhunt’ search on all retained campaigns and will do so on contingent campaigns,
time permitting.
Retained business is always a top priority to any search firm.
Cost Models
Commitment can come in many forms and so can cost models.
A traditional approach to a retained search is a standard third on commencement, third on shortlist
and final on payment. As outlined above, a retained search purely demonstrates commitment and
many companies opt to engage in different structures such as a smaller commencement payment
upfront with remaining balance on completion or a staggered payment over specific timeframes
rather than milestones. Be creative and come up with something that works for everyone.
Financially however, a retained search does not always need to cost more than a contingent search
as the time involved in the retained search is usually more than contingent but the commitment has
already been secured.
What is important to consider when agreeing a retained search is to understand and agree the
structure up front, ensuring there is a commencement fee in place to retain the search consultant’s
time. What is also recommended is an agreement on milestones and timeframes. Agree the
expectations from both parties and ensure continued communication throughout the process.
12 13
Talentacquisitionin
thepackagingsector
Howtalentacquisitionstrategiesimpact
themovementoftalentinthepackgingsector.
T
he plastics and packaging
industry is going through a
period of exciting growth at
the moment with a plethora of M&A
activity. However, one of the sector’s
ongoing challenges is a reliable talent
acquisition strategy, particularly at an
entry level. The Managing Director
of Chad Harrison International, Luke
Robbins-Wells and his team in the UK,
Germany and the USA connect with
the best candidates in the international
market. They have first-hand
experiences of the challenges faced
by companies who are attempting to
attract talent. Here, he discusses the
strategies required and the companies
that are implementing them in order to
attract the best candidates.
What are the typical skill sets your
clients are looking for?
“Within commercial roles, our clients
are typically looking for experienced
hires who can come with a proven
ability to sell into the majors. Technical
experience is not necessary, however,
a good understanding and of the
products they have worked with and
the markets they sell into is vital.
In such a fast-paced market companies
are struggling to justify long lead times
to train new hires with a preference
to bring on proven sales professionals
with the right knowledge. They are
looking for profiles with market-
specific knowledge, so less generalist,
more specialists.”
What factors typically affect the
recruitment process, in terms of
timeline, country specific rules/
regulations?
“Given the speed of the market now
and ‘time poor’ management teams,
delays in the hiring process are
creating negative repercussions for
companies. Indecisiveness is causing
a loss of potential talent; the market
is very active and top talent doesn’t
remain available for long periods
of time. Companies need to work
quickly to ensure they attract the
best talent but also, they need to look
internationally, rather than thinking
only locally.”
What is the packaging industry doing
about skills shortages at an entry
level?
“Some key players in the industry
are beginning to align with training
providers and universities but we feel
this needs to be further increased.
Regulatory bodies are spotting the
talent shortage now and we noted
many are trying to get the word out
about the industry and make it an
industry of choice for graduates.
We feel that universities need to work
closer with industry partners to better
understand the practical elements of
the packaging industry. We are finding
talented graduates are prepared from
a theoretical perspective but they are
still experiencing a steep learning curve
from a practical point of view when
they first enter the market.”
What percentage of your clients have
a roadmap for succession planning?
“Across our client network, we
identified that less than 40% have
an established succession planning
strategy. Many of our clients are still
working reactively, particularly in the
SME market. We are working closely
with our clients to ensure they are
aware of recruitment trends in the
market, leveraging our expertise
gained from years of experience in
recruitment. Talent acquisition should
be a constant process for every
business. We suggest our clients focus
on keeping talented candidates warm
until a need arises.”
In international recruitment, what
factors are important to candidates
looking for a move to a new country?
“Many candidates are looking for
stability. Relocating for a new position
with a new company involves a lot
of trust. Often, candidates will move
their families so initial and ongoing
support from an employer can add
real value to securing top talent. As
experts in supporting many expatriate
candidates, we recommend, where
feasible, offering relocation support
and having a mobilisation expert on
hand who can guide them through
the entire process whether that’s
a consultant from Chad Harrison
International, an internal consultant or
someone external, on the ground.
Prospects are also key, ensuring
there are opportunities within
the business and a career path for
candidates to further progress in the
company. Safety is another key factor,
guaranteeing that the area they’re
moving to is safe for the family, has
low crime rate or appropriate security
measures in place, plenty of amenities,
leisure facilities and good international
schools.
Remuneration is also an important
factor with companies needing to
look at the net value of an offer to a
candidate including taxable benefits
and cost of living in the new country.
Some in the packaging industry are still
trying to attract the best international
candidates on local contracts. This
restrictive approach prevents
companies from attracting the best
international candidates.”
14 15
Attractingthebesttalent
inanexecutivesearch
Candidate availability has never been so low this side of 2008, with expertise being placed into positions quicker than ever
before. There is a growing demand for top talent at the executive level but there is a shortage. It is a candidate driven market
and some organisations are struggling to attract the best executive talent.
Countries such as the UK, Germany and USA find themselves with fairly low unemployment rates. Employees no longer see
themselves as ‘lucky’ to have a job but understand there are a number of options available to them. This has given candidates
leverage during the hiring process as they will typically have a number of companies seeking their services... >
Whyit’simportanttoadapttothecandidate
drivenmarket.
17
Reasons behind the candidate driven
market
In part, most countries have recovered
well from the financial crash. The
USA has an unemployment rate of
4.3%, Germany 3.7% whilst in the
UK that figure is 4.2%. The baby
boom generation is also heading for
retirement, creating a large vacuum
of opportunities at senior levels.
This issue in itself causes challenges
for succession planning, leading to
companies preparing millennials for
senior roles.
The way in which organisations
operate is transforming in a major
way. Digitalisation of processes and
procedures is changing the ways in
which business is done. Leadership at
the highest level is required to have an
understanding of technology in order
to implement these changes.
Collectively, this presents a difficult
scenario in which to attract relevant,
experienced and skilled candidates.
What can be done about this?
Move quickly to attract top executive
talent
The best executive talent does not
remain available for long. The current
scenario is that a candidate attends
several interviews, has bought into
the company culture, the organisation
see him or her as the right fit and then,
where there should be a job offer,
there is a period of stagnation.
Quick feedback should be provided
to ensure as smooth a process as
possible. Regardless of the position,
no candidate likes to be left hanging
and it can leave doubts over the
organisations ability and objectives.
Furthermore, candidates are likely to
have a number of offers or interviews
lined up. By showing a firm interest
and generating excitement, candidates
often buy into the organisation even
more.
Executive salary considerations
There are a number of considerations
when offering a remuneration
package. Primarily, salaries have
likely advanced significantly since the
last time the position was recruited
for. By understanding the market,
organisations can ensure that they are
offering the correct package.
Think of the net value for the
candidate. If they are relocating from
the USA to France where there is a
higher tax bracket for top earners, the
proposition doesn’t look as tempting if
their net salary is reduced.
Be flexible with relocation
Organisations need to understand the
challenges a candidate will face during
relocation. By ensuring someone is on
hand to help with the process will make
a significant difference.
This help will involve, finding a place
to live, schooling for their children,
transport and visas for the family. By
integrating flexible working solutions
with technology, you can benefit from
attracting excellent candidates by
allowing them to work remotely if
possible.
Create a positive company culture
Attracting candidates is just as
important as retaining them in the
future which is why an attractive
company culture is very important.
Building a company with opportunities
for development is important for
candidate attraction.
Innovation, transparency,
communication, are all key factors
too. An organisation’s branding
and reputation are important for
candidates who are keen to progress
in their careers. Employees with a
sense of pride are more attuned to the
common goal than those who are not.
“Digitalisation of processes and procedures is changing the
ways in which business is done. Leadership at the highest
level is required to have an understanding of technology.”
18 19
Chad Harrison International
is a global search and
solution specialist. Our skill
as an executive recruiter is
in connecting the best in the
international market.
We are an extensively
networked and trusted partner
working with major global
organisations, family-owned
businesses, equity backed
enterprises, small to medium-
sized enterprises, institutions,
associations and entrepreneur-
led start-up businesses,
delivering upon international,
national and local campaigns
across all continents.
We offer both permanent and
interim solutions at board level,
senior specialist, and Executive
level positions within Packaging
& Print, Built Environment,
Chemical & Life Sciences and
Mining & Metals.
Our search methodology
is shaped and driven by the
clients we work with, delivering
insight, quality, commitment,
communication and connectivity
to our clients, candidates and
stakeholders.
20
CONNECTINGTHEBEST
INTHE
INTERNATIONALMARKET
www.chadharrison.co

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Chad Harrison International Magazine 2018

  • 1. CONNECTING THE BEST IN THE INTERNATIONAL MARKET THE CHANGING NATURE OF THE CEO IN THE MODERN WORLD ATTRACTING THE BEST TALENT IN AN EXECUTIVE SEARCH Adapting to a candidate driven market THE BENEFITS OF A RETAINED MODEL Why engage a retained search model?
  • 3. TOP TALENT AT THE CORE Welcome to the Chad Harrison International annual magazine. This year has been a transformational period for the company as we’ve introduced new services, expanded our team and opened a new office in Europe. Our Talent Acquisition and Executive Search teams have placed the best available candidates on the market into roles across the Americas, Europe, the Middle East, Far East and Australasia. We’ve operated diligently with clients to put talent at the core of their organisations. Throughout the magazine we’re going to look at the key features of a talent acquisition strategy, the main issues facing CEOs in the coming 12 months and an in-depth look at the Chemical & Life Sciences, Built Environment, Packaging & Print and Mining & Metals sectors.
  • 4. TABLE OF CONTENTS How is search and selection shaping the cement industry An interview with Luke Robbins-Wells. Mergers and acquisitions a key trend in 2017 How has the Life Sciences sector been affected by the major changes in the last 12 months? The changing nature of the CEO in the modern world What challenges are facing CEOs in today’s market and how can they adapt to change? Why engage a retained search model? The benefits to your organisation. Talent acquisition in the packaging sector How are talent acquisition strategies in the packaging sector impacting the movement of talent? Attracting the best talent in an executive search Why it’s important to adapt to a candidate driven market in today’s recruitment climate. 02 - 06 - 09 - 12 - 14 - 17 - 1
  • 5. How search and selection is shaping the cement industry An interview with Luke Robbins-Wells Chad Harrison International‘s Managing Director Luke Robbins-Wells offers his insight into headhunting in the cement industry and how his vision for Chad Harrison International has evolved over the last decade. How has headhunting changed in the last few years? As a result of social media platforms such as Linkedin, Xing and others, client expectations have changed. There is often an expectation that head-hunters can find and present every candidate in the market, and provide them to the client. Whereas the reality is that a good head hunter will find all available candidates, on the market not just IN the market, that meet the criteria and present those that are most interested. Head hunters are not miracle workers however a good head hunter should be able to consult and guide their client based on tangible results. If the candidates in the market do not meet the brief, is it the head hunter who needs to change their approach or the client who needs to re-evaluate their expectations? From a candidate point of view, they are expecting a higher level of service, a wider choice, a more detailed approach and a variety of options that they may not have been able to find themselves. Savvy candidates are using head hunters to help market themselves appropriately and make them stand out. How has technology impacted the recruitment landscape? A lot of organisations are using internal recruitment processes and technologies; building their own databases, talent pools and social media channels. Technology has benefited the cement industry tremendously. It has enabled the recruitment process to become more efficient as clients are able to interview candidates through a variety of online mediums such as Skype. Technology has globalised the industry and reduced the need for candidates to travel long distances for interviews, it has quickened the process, making it more cost-effective and easier to manage for the client. How is the recruitment landscape being shaped in the cement industry by head-hunters? We are providing a different dimension to the industry. It is a small market, a lot of senior level personnel know each other which can be difficult when looking for a new opportunity as the candidates and clients risk a conflict of interest and difficult situations. Head hunters are able to access the majority of candidates and bridge that gap that hiring managers cannot. As consultants, we do more than just bring the best talent to the table, we are helping companies to grow, become more efficient, manage costs and increase profitability. We are able to use our understanding of the industry and parallel industries to bring talent to the industry from complimentary industries and strengthen the talent pool. We have access to networks not everyone has as we spend every day, speaking to the very best in the international market Would it be fair to say that head hunters are able to introduce senior level candidates from outside of the cement industry? Yes, using Chad Harrison as an example, we have been able to introduce and successfully place candidates from the steel, packaging and paper industries. Candidates have transferable skill sets that we can move into the cement industry, but it is also challenging to convince hiring managers who may have their sights set on an ideal candidate that can tick all the boxes. Is turnover of senior level staff increasing or decreasing? I would say the need for senior level appointments in a lot of cement businesses is decreasing as there is a higher level of expectations for those at the management level to take on more responsibilities. There is an expectation that more senior level employees become multi-disciplined and with the costs associated with the fall in oil price and other economic factors, companies are aiming to get more value from their senior level staff. As a result, it maybe that companies are expecting their Industrial Directors to be more commercial as well as possessing the necessary technical skill sets. How do you think that will play out in the future? It may lead to more astute, well- rounded management and leaders in the business that have an all- encompassing understanding of the industry and can add value in all areas. It could also reduce the need for the corporate technical structure and corporate commercial teams as these requirements spread out across the operational teams, therefore making the cement industry more streamlined and efficient. How are companies reacting to that – do you find more senior level candidates are appointed for the first time from within? Historically, within the cement industry, there has always been the standard internal progression. I think a lot of recent mergers and acquisitions have created significant movement in a previously stable market. There are some changes in the top five cement manufacturers, so the current requirements for a lot of these businesses is in attracting the right candidates, who are actively seeking from those competitors while also attracting candidates externally to enter the industry. > “We have been able to introduce and successfully place candidates from the steel, packaging and paper industries.” Managing Director, Chad Harrison International 2 3
  • 6. What are the key traits Directors and hiring managers are looking for from senior level candidates? What we’re finding is that clients are looking for candidates who are more commercially aware. It’s no longer befitting to be solely technical but being commercial and having an understanding of the end goals is important. Most of our clients are looking to test a candidate’s commercial awareness. For example, when optimising production, you need to understand not just how, but why. Candidates need to illustrate that they can improve processes that will save or make the company money. A lot of hiring managers we work with are also looking for leadership traits, management experience, the ability to influence and knowledge share. Flexibility is key, particularly when entering emerging markets. How do cement candidates compare to those outside of the industry, such as packaging or steel? A lot of vacancy briefings we undertake with clients demonstrate that at times, the cement companies can be quite blinkered in experience. There is a tendency to stick to the status quo within the cement industry, whereas in other sectors there are a wealth of commercially aware candidates that have transferable skills. Cement candidates overall are generally very experienced and in high demand not only in the cement sector. There is a huge range of talent in the industry, however, the industry needs to also consider the extensive range of candidates from similar industries who could easily transfer to ensure it doesn’t become stagnant. What are your important messages to candidates prior to meeting your clients? Know your numbers and facts, make sure you’re aware of tangible results that you have achieved. When a client asks what has been done to improve operations, a candidate should be able to give a detailed answer with examples to demonstrate their ability. What are your thoughts on opinions that there is a global talent shortage in cement? I would agree, there is a talent shortage. There are a lot of senior level profiles that are moving out of the industry as a result of M&A activity, and a large number heading to retirement age. There is a lot of technical expertise that is being lost with the exit of those profiles. As in every market, there is a global talent shortage in engineering in particular. The ability to find the full package within cement, for example, someone who is technical, operational and commercial who is flexible and willing to move is challenging. It’s why, in addition to strong, graduate schemes, training and development and succession planning, I think management need to look outside of the cement industry to attract those candidates with transferable skill sets to fill the immediate hard- to-fill requirements. How do you ensure that you find the right kinds of candidates in the face of this challenge? We ensure that we are speaking every day to candidates and clients alike so that we have the knowledge of who is the best in the industry and who has strengths in certain areas not only those who are active but keeping close to the best passive candidates in the industry. We understand the best cement candidates’ skill sets. We are able to keep in touch with the best in the international market around the globe which means when a position becomes available we can go straight to market with that opportunity and select the right individual for the client. “For any senior level executive looking to make a step up into board level or CEO it’s about ensuring that your external network is just as strong as your internal network.” We hear a lot about emerging markets, how are you and your clients organising yourselves to ensure you’re are part of it? Chad HarrisonInternational is working with a lot of leading companies in emerging markets already as well as companies investing in new locations. We’re working with private equity firms that are investing in emerging markets and we’re spending our time working with local candidates and expatriates looking to make that move or have affinities and capabilities within those regions. What would your advice be to senior executives looking to make the leap to board level or CEO? For any senior level executive looking to make a step up into board level or CEO it’s about ensuring that your external network is just as strong as your internal network. This ensures that you are able to bring the best opportunities to the business, to be able to support the strategic objectives and to have the right oversight across the market with your finger on the pulse. 4 5
  • 7. MERGERS & ACQUISITIONS A KEY TREND IN 2017 LIFE SCIENCES 2017 was a record year for mergers and acquisitions (M&As) in the Life Sciences sector. Following New Year, there have been significant changes in the industry, with large multi-national companies purchasing smaller firms. SMEs have also gained traction in the market with M&As allowing them to acquire talent and skill sets in sectors they didn’t previously operate in. Mergers and acquisitions have been particularly prevalent within contract research organisations (CROs). In 2016 the top 10 CROs accounted for more than 50% of the market. This year’s activity is likely to lead to the share of the $45bn market to increase significantly. M&As provide access to new markets One of the biggest trends in 2017 has seen US companies emerging into new territories in Europe. One example of this has been Quintiles merger with IT consultancy IMS health to form the newly branded IQVIA. This partnership has allowed Quintiles to access the European market. It has strengthened its proposition in the region with the support of IMS Health and it’s expected to generate annual growth of 1-2% annually. Without the merger, Quintiles may have struggled to establish itself in the European market. However, with the support of IMS Health, it obtains almost instant access to the market with a structure and network already in place. The impacts on talent during an M&A process As well as providing access to new markets, M&As also impact on talent acquisition. LabCorp’s acquisition of Covance is an example of how a company can quickly obtain talent and propel its projects forward at a greater pace. In 2015 LabCorp consolidated its place as one of the largest CROs in the industry with the acquisition of Covance. This was further cemented in 2017 upon its acquisition of Chiltern. The latter had a strong focus on oncology. The move is expected to enhance and develop Covance’s late- phase oncology footprint. M&As such as LabCorps often result in one of two conclusions for talent. The first is that their role is secured and the acquiring company obtains talent in markets it didn’t previously have. The second alternative is that the talent enters the available market by way of redundancy to the benefit of competitors. It’s possible that the latter will occur with the acquisition of Parexel by Pamplona. At the beginning of 2017 Parexel was listed at number three in the top ten CROs. It specialises in drug development, clinical logistics, commercialisation and regulatory consulting. It was announced in June 2017 that Pamplona Capital Management, a private equity firm will acquire Parexel for $5bn and will help it “successfully navigate the complexities innate to the biopharmaceutical industry and bring new therapies to market.” The likelihood is, that an acquisition such as this will result in talent entering the market through redundancy or choice. When this happens, it’s important that companies are well connected to ensure that good talent isn’t snapped up by competitors. Having a good headhunting firm on your side can act as a strong brand ambassador, helping companies attract the best available talent in the market. 76
  • 8. THE CHANGING NATURE OF THE CEO IN THE MODERN WORLD In the modern fast-paced world in which we live today, business and leadership are changing at a rapid pace. CEOs around the world are having to adapt to these changes or fall short of leading a business to success during their tenure. What do these challenges consist of and in what ways are successful CEOs implementing changes to ensure they are leading in the right way? Generational shift in employment landscape There is a lot of information about how the employment landscape has changed as a result of new generations entering the workplace. Millennials as a group have been analysed, discussed at length and pigeonholed by a set of characteristics that apparently define them. However, just as company get to grips with Millennials, Generation Z (Gen Z) are entering the market. Gen Z is, at the moment, an unknown quantity. Defined as the group born after 2000 who have grown up with technology in the palm of their hands, they are tech savvy and comfortable with popualr social media. Both of these generations are believed to be independent and impatient. They have grown up in an on-demand economy and believe they have almost a divine right that promotion and seniority is something that should be given to them from the outset. The challenge for CEOs in such a market is remaining a strong leader and adapting to the ever-changing nature of technology. As well as that, CEOs or their senior managers need to be able to identify the talented Millennials that deserve the promotion and seniority at a young age. Sorting the chaff from the wheat in a technology driven market that a CEO doesn’t understand can be very difficult. Technological changes Technological change is creating a landscape where it’s much easier to do business than ever before. Emails and skype conversations allow business decisions to be made quicker. As technology advances, it’s important that CEOs keep an eye on the horizon or their business may get left behind. A perfect example of this was how late Blockbuster was to the online market place. Without investing in online media, the company lapsed as technology and customer desires changed and eventually failed. There is also a darker threat that CEOs face in the modern world. Cyber Security is becoming an increasingly important factor as companies and institutions around the world are found to be vulnerable. Every company is under threat, not just large and small. Governments are beginning to implement harsh fines for companies that fail to protect customer’s data. Political administrations The changing nature of the political landscape is a key factor, particularly for companies operating globally. Increased nationalism in India, Europe and the USA will present challenges for CEOs looking to expand into new territories or maintain close relationship with existing clients. Nationalism may be a threat but it could, in fact, be the saviour of the global corporation. Operating globally could be more of a hindrance if, for example, the Trump administration decided to increase trade tariffs on imports of certain products. Ultimately, the primary goal of every business is to achieve commercial goals, deliver growth and protect the longevity of a company. The CEO is an integral part of adapting to change, creating a sustainable and competitive vision and executing it effectively. From managing staff effectively and positioning their focus towards a cohesive, company oriented safe, secure and technological foundation for the business, a modern CEO will be able to tackle all of these issues, whilst still positioning the business in the right direction for the future. “Technological change is creating a landscape where it’s much easier to do business” 98
  • 9. OUR NETWORK IS OUR VALUE EXPAND YOURS TODAY
  • 10. Why engage a retained search model? Thebenefitsto yourorganisation Weareoftenaskedaboutthebenefitsofusingaretainedsearchoveracontingent(feeon success)modelwhenworkingwithourclients.Itisacommonmisconceptionthatretainedor executivesearchisrestrictedpurelytoaseniorlevelhireinanorganisationandthataretained searchislesscosteffectivethancontingent. Whileit’struethatusingaretainedservicetoattractseniorlevelhirestoanorganisationis moreeffective,itcanalsobemoreeffectivewhenaroleisatechnicalorskilledhireorwhena roleisdifficulttorecruitfor,suchasageographicallyrestrictedsearch. Inaddition,aretainedsearchisnotnecessarilymoreexpensive. Demonstrating commitment The purpose of a retainer is to demonstrate a business commitment for the extensive time and effort that that the firm will invest into a project. From a search firm perspective, what we can commit to is the guarantee that a comprehensive and detailed search would be undertaken and all avenues explored to be able to attract the best candidates to shortlist for the organisation. It is estimated that a successful search requires approximately 150-200 man hours when done correctly. Search firms are committed to delivery and outcomes. There is never any guarantee that a successful hire would be made on the back of a search, but a search firm can guarantee that they would work with the organisation to deliver the best profiles for consideration within the timeframes agreed and would continue consulting and guiding where required to accomplish a successful outcome for the client. Is market expertise important for a search firm? Boutique search consultancies specialising in niche sectors are bucking the trend in the industry. However, any experienced, professional and dedicated search consultant from any industry could manage a search project outside of their industry. The benefit over using search firms with experience in specific industries is the added ability to “consult” with the client and challenge expectations based on market knowledge and competitor information. These consultants are able to guide clients through a selection process and identify specific market pitfalls or anomalies that may not be apparent outside of the specific industry. The Difference Comparing the service of a contingent search and a retained search is purely down to commitment and dedicated resources. A reputable and successful search consultancy will always be busy with new business, repeat business and existing searches. Engaging with a consultancy with a retained search will ensure that your project will be a top priority and the resources required to deliver on this project will have been mapped out and assigned to ensure a successful result. A reputable consultancy would never take on a project that they would not be able to complete and would be prepared to turn down business if they felt it was not feasible. Operating under a contingent model, a consultancy, depending on their workload, would rarely assign specific resources on the project and would usually deliver candidates from an existing pool of candidates or have those generated as a result of a similar campaign they are either currently or recently run. Some companies such as Chad Harrison International as an example, will always conduct a full ‘headhunt’ search on all retained campaigns and will do so on contingent campaigns, time permitting. Retained business is always a top priority to any search firm. Cost Models Commitment can come in many forms and so can cost models. A traditional approach to a retained search is a standard third on commencement, third on shortlist and final on payment. As outlined above, a retained search purely demonstrates commitment and many companies opt to engage in different structures such as a smaller commencement payment upfront with remaining balance on completion or a staggered payment over specific timeframes rather than milestones. Be creative and come up with something that works for everyone. Financially however, a retained search does not always need to cost more than a contingent search as the time involved in the retained search is usually more than contingent but the commitment has already been secured. What is important to consider when agreeing a retained search is to understand and agree the structure up front, ensuring there is a commencement fee in place to retain the search consultant’s time. What is also recommended is an agreement on milestones and timeframes. Agree the expectations from both parties and ensure continued communication throughout the process. 12 13
  • 11. Talentacquisitionin thepackagingsector Howtalentacquisitionstrategiesimpact themovementoftalentinthepackgingsector. T he plastics and packaging industry is going through a period of exciting growth at the moment with a plethora of M&A activity. However, one of the sector’s ongoing challenges is a reliable talent acquisition strategy, particularly at an entry level. The Managing Director of Chad Harrison International, Luke Robbins-Wells and his team in the UK, Germany and the USA connect with the best candidates in the international market. They have first-hand experiences of the challenges faced by companies who are attempting to attract talent. Here, he discusses the strategies required and the companies that are implementing them in order to attract the best candidates. What are the typical skill sets your clients are looking for? “Within commercial roles, our clients are typically looking for experienced hires who can come with a proven ability to sell into the majors. Technical experience is not necessary, however, a good understanding and of the products they have worked with and the markets they sell into is vital. In such a fast-paced market companies are struggling to justify long lead times to train new hires with a preference to bring on proven sales professionals with the right knowledge. They are looking for profiles with market- specific knowledge, so less generalist, more specialists.” What factors typically affect the recruitment process, in terms of timeline, country specific rules/ regulations? “Given the speed of the market now and ‘time poor’ management teams, delays in the hiring process are creating negative repercussions for companies. Indecisiveness is causing a loss of potential talent; the market is very active and top talent doesn’t remain available for long periods of time. Companies need to work quickly to ensure they attract the best talent but also, they need to look internationally, rather than thinking only locally.” What is the packaging industry doing about skills shortages at an entry level? “Some key players in the industry are beginning to align with training providers and universities but we feel this needs to be further increased. Regulatory bodies are spotting the talent shortage now and we noted many are trying to get the word out about the industry and make it an industry of choice for graduates. We feel that universities need to work closer with industry partners to better understand the practical elements of the packaging industry. We are finding talented graduates are prepared from a theoretical perspective but they are still experiencing a steep learning curve from a practical point of view when they first enter the market.” What percentage of your clients have a roadmap for succession planning? “Across our client network, we identified that less than 40% have an established succession planning strategy. Many of our clients are still working reactively, particularly in the SME market. We are working closely with our clients to ensure they are aware of recruitment trends in the market, leveraging our expertise gained from years of experience in recruitment. Talent acquisition should be a constant process for every business. We suggest our clients focus on keeping talented candidates warm until a need arises.” In international recruitment, what factors are important to candidates looking for a move to a new country? “Many candidates are looking for stability. Relocating for a new position with a new company involves a lot of trust. Often, candidates will move their families so initial and ongoing support from an employer can add real value to securing top talent. As experts in supporting many expatriate candidates, we recommend, where feasible, offering relocation support and having a mobilisation expert on hand who can guide them through the entire process whether that’s a consultant from Chad Harrison International, an internal consultant or someone external, on the ground. Prospects are also key, ensuring there are opportunities within the business and a career path for candidates to further progress in the company. Safety is another key factor, guaranteeing that the area they’re moving to is safe for the family, has low crime rate or appropriate security measures in place, plenty of amenities, leisure facilities and good international schools. Remuneration is also an important factor with companies needing to look at the net value of an offer to a candidate including taxable benefits and cost of living in the new country. Some in the packaging industry are still trying to attract the best international candidates on local contracts. This restrictive approach prevents companies from attracting the best international candidates.” 14 15
  • 12. Attractingthebesttalent inanexecutivesearch Candidate availability has never been so low this side of 2008, with expertise being placed into positions quicker than ever before. There is a growing demand for top talent at the executive level but there is a shortage. It is a candidate driven market and some organisations are struggling to attract the best executive talent. Countries such as the UK, Germany and USA find themselves with fairly low unemployment rates. Employees no longer see themselves as ‘lucky’ to have a job but understand there are a number of options available to them. This has given candidates leverage during the hiring process as they will typically have a number of companies seeking their services... > Whyit’simportanttoadapttothecandidate drivenmarket. 17
  • 13. Reasons behind the candidate driven market In part, most countries have recovered well from the financial crash. The USA has an unemployment rate of 4.3%, Germany 3.7% whilst in the UK that figure is 4.2%. The baby boom generation is also heading for retirement, creating a large vacuum of opportunities at senior levels. This issue in itself causes challenges for succession planning, leading to companies preparing millennials for senior roles. The way in which organisations operate is transforming in a major way. Digitalisation of processes and procedures is changing the ways in which business is done. Leadership at the highest level is required to have an understanding of technology in order to implement these changes. Collectively, this presents a difficult scenario in which to attract relevant, experienced and skilled candidates. What can be done about this? Move quickly to attract top executive talent The best executive talent does not remain available for long. The current scenario is that a candidate attends several interviews, has bought into the company culture, the organisation see him or her as the right fit and then, where there should be a job offer, there is a period of stagnation. Quick feedback should be provided to ensure as smooth a process as possible. Regardless of the position, no candidate likes to be left hanging and it can leave doubts over the organisations ability and objectives. Furthermore, candidates are likely to have a number of offers or interviews lined up. By showing a firm interest and generating excitement, candidates often buy into the organisation even more. Executive salary considerations There are a number of considerations when offering a remuneration package. Primarily, salaries have likely advanced significantly since the last time the position was recruited for. By understanding the market, organisations can ensure that they are offering the correct package. Think of the net value for the candidate. If they are relocating from the USA to France where there is a higher tax bracket for top earners, the proposition doesn’t look as tempting if their net salary is reduced. Be flexible with relocation Organisations need to understand the challenges a candidate will face during relocation. By ensuring someone is on hand to help with the process will make a significant difference. This help will involve, finding a place to live, schooling for their children, transport and visas for the family. By integrating flexible working solutions with technology, you can benefit from attracting excellent candidates by allowing them to work remotely if possible. Create a positive company culture Attracting candidates is just as important as retaining them in the future which is why an attractive company culture is very important. Building a company with opportunities for development is important for candidate attraction. Innovation, transparency, communication, are all key factors too. An organisation’s branding and reputation are important for candidates who are keen to progress in their careers. Employees with a sense of pride are more attuned to the common goal than those who are not. “Digitalisation of processes and procedures is changing the ways in which business is done. Leadership at the highest level is required to have an understanding of technology.” 18 19
  • 14. Chad Harrison International is a global search and solution specialist. Our skill as an executive recruiter is in connecting the best in the international market. We are an extensively networked and trusted partner working with major global organisations, family-owned businesses, equity backed enterprises, small to medium- sized enterprises, institutions, associations and entrepreneur- led start-up businesses, delivering upon international, national and local campaigns across all continents. We offer both permanent and interim solutions at board level, senior specialist, and Executive level positions within Packaging & Print, Built Environment, Chemical & Life Sciences and Mining & Metals. Our search methodology is shaped and driven by the clients we work with, delivering insight, quality, commitment, communication and connectivity to our clients, candidates and stakeholders. 20