Hiring the wrong person poses the greatest recruitment risk to organizations. A bad hire can lead to loss of earnings, contracts, reputation or customers. It can also negatively impact staff morale. The consequences are more severe for senior roles. Overly long or poorly managed recruitment processes can result in losing good candidates to competitors. This is a growing issue as talent markets tighten. A lack of transparency or poor communication with candidates during the hiring process can damage an employer's brand and reputation.
The document discusses the board's role in talent management. It states that talent is the one thing that can distinguish a company from its competitors and that without the right people to execute strategy, a business will fail to reach its full potential. The board's oversight responsibility extends beyond just hiring executives to include ensuring talent strategies are in place to support business objectives and managing talent-related risks. The document provides steps boards can take to improve oversight of talent risks, such as regularly reviewing risks with management and monitoring the talent pipeline.
How to Turn Wasted Talent Into Killer LeadershipJohnny Russo
Ryma's May 11th webinar will be presented at noon EST by Si Alhir. In 2010, Ryma's Grandview community hosted a 3 part Tribal Leadership webinar series. Dave Logan’s, John King’s, and Halee Fischer-Wright’s Tribal Leadership is a proven transformational process and leadership model for fostering organizational health, which leverages natural groups to build thriving organizations by focusing on language and relationship structures within a culture.
The document discusses the challenges that organizations face in attracting and retaining top talent in a dynamic business environment. It notes that the availability of skilled workers is declining globally while demand is increasing, leaving companies competing intensely for talent. The imperative for organizations is to take a strategic and customized approach to talent management focusing on components like high potential development, leadership, and performance management in order to achieve competitive advantage.
This document discusses research on talent management and the war for talent. It finds that talent matters greatly for company performance, yet most companies are ill-prepared for this war for talent. While past approaches to talent management worked in the past, new strategies are needed for the future. The best companies view talent management as a top priority, instill a talent mindset throughout the organization, develop talent through diverse jobs and feedback, and work to retain their top performers.
Five key lessons are provided for upgrading talent by hiring outside superstars:
1. Identify current and future internal stars through performance management before committing to outside hires.
2. Align hiring decisions with needs for current and future talent by understanding what types of talent are needed now and in the future as well as what talent is available.
3. Temper expectations as high performance may not always be portable, especially for roles requiring collaboration, as support is needed for stars to succeed.
4. Do not let eagerness cause shortcuts to the selection process which can increase legal risks and insult current employees.
5. Underpromise and overdeliver to avoid issues like "package envy" and build credibility
The document discusses Hightech Partners' experience recruiting women for non-executive board positions. It finds that the pool of experienced women candidates is limited, especially in technology sectors. It also notes that while women have the skills for board roles, taking the first position is challenging and they often wait until retirement. The document also mentions that legislation in some countries now requires quotas for women on boards, which could lead to underqualified candidates being chosen to meet quotas.
The document discusses the board's role in talent management. It states that talent is the one thing that can distinguish a company from its competitors and that without the right people to execute strategy, a business will fail to reach its full potential. The board's oversight responsibility extends beyond just hiring executives to include ensuring talent strategies are in place to support business objectives and managing talent-related risks. The document provides steps boards can take to improve oversight of talent risks, such as regularly reviewing risks with management and monitoring the talent pipeline.
How to Turn Wasted Talent Into Killer LeadershipJohnny Russo
Ryma's May 11th webinar will be presented at noon EST by Si Alhir. In 2010, Ryma's Grandview community hosted a 3 part Tribal Leadership webinar series. Dave Logan’s, John King’s, and Halee Fischer-Wright’s Tribal Leadership is a proven transformational process and leadership model for fostering organizational health, which leverages natural groups to build thriving organizations by focusing on language and relationship structures within a culture.
The document discusses the challenges that organizations face in attracting and retaining top talent in a dynamic business environment. It notes that the availability of skilled workers is declining globally while demand is increasing, leaving companies competing intensely for talent. The imperative for organizations is to take a strategic and customized approach to talent management focusing on components like high potential development, leadership, and performance management in order to achieve competitive advantage.
This document discusses research on talent management and the war for talent. It finds that talent matters greatly for company performance, yet most companies are ill-prepared for this war for talent. While past approaches to talent management worked in the past, new strategies are needed for the future. The best companies view talent management as a top priority, instill a talent mindset throughout the organization, develop talent through diverse jobs and feedback, and work to retain their top performers.
Five key lessons are provided for upgrading talent by hiring outside superstars:
1. Identify current and future internal stars through performance management before committing to outside hires.
2. Align hiring decisions with needs for current and future talent by understanding what types of talent are needed now and in the future as well as what talent is available.
3. Temper expectations as high performance may not always be portable, especially for roles requiring collaboration, as support is needed for stars to succeed.
4. Do not let eagerness cause shortcuts to the selection process which can increase legal risks and insult current employees.
5. Underpromise and overdeliver to avoid issues like "package envy" and build credibility
The document discusses Hightech Partners' experience recruiting women for non-executive board positions. It finds that the pool of experienced women candidates is limited, especially in technology sectors. It also notes that while women have the skills for board roles, taking the first position is challenging and they often wait until retirement. The document also mentions that legislation in some countries now requires quotas for women on boards, which could lead to underqualified candidates being chosen to meet quotas.
Skills Management Best Practices Webinarguest637256
1.How does skills management fit into an overall human resources program?
2.What is the value proposition for skills management?
3.What are the best practices for planning and implementing skills management?
4.What is the most appropriate “skillware” for your business?
The document discusses talent management definitions, practices, and challenges based on interviews with four participants from different companies and countries. It begins by defining talent management and discussing its importance for sustaining competitive advantages. It then examines topics like the talent pipeline approach, the demand and supply gap from a supply chain perspective, global talent management challenges, and building high-quality colleagues. The document also assesses human capital metrics and retention factors across the different companies. Overall, the document provides an overview of talent management theories and practices based on insights from industry professionals.
Talent Management: Accelerating Business Performance - Right ManagementСветла Иванова
Right Management’s latest study provides a global overview of talent management trends, drawing on feedback from more than 2,200 business leaders and HR professionals in 13 countries and 24 industries.
How we start our strategic partnership with clients? We usually run a HR due diligence project. Have a look at it and do not hesitate to contact me about details.
www.humanvalue.eu
Aiming for the top: A guide for aspiring COOs and their organisationsEY
Our latest report on COO's titled 'Aiming for the top: A guide for aspiring COOs and their organisations'. The report provides insight on the skills and experiences needed to become a COO, it explains how companies can develop a robust pipeline of well-rounded talent for the succession to an existing COO position, or how to find a strong candidate for a new COO role. Read it to know how companies, and especially COOs currently in the role, can support the operations talent within their teams with the aim of eventually developing a strong successor.
Whitepaper - How to Eliminate the 5 Hidden costs of Offshore OutsourDefinity First
This document discusses how nearshore outsourcing to Mexico can help eliminate five hidden costs of offshore outsourcing to India: 1) the cost of selecting a vendor due to lower travel costs for meetings, 2) the transition costs of training due to proximity allowing for shorter visits, 3) cultural differences that impact productivity are less due to similarities with the US, 4) layoff costs are reduced by outsourcing existing teams rather than replacements, 5) ramp up costs are mitigated by ensuring the outsourcer has strong project management processes. Nearshore outsourcing is a viable alternative to traditional offshore models.
The Edge 53 March 2014 Editorial Letter GCC HR and Recruitment ChallengesMiles Masterson
This document discusses challenges with attracting and retaining talented workforces in Qatar and other Gulf countries. It notes that vacancies often remain open for long periods, burdening existing employees and being filled by underqualified candidates. This leads to inefficiencies that hurt organizations' bottom lines. Poor HR management exacerbates the problems and leaves leadership roles poorly performed, hindering company and department goals. The document questions why recruiting and job placement are challenging in the resource-rich Gulf despite a global pool of qualified professionals willing to work there. Upcoming major events like the 2022 World Cup increase the need to address Gulf countries' HR issues.
This document discusses the key responsibilities of boards of directors in developing and overseeing organizational strategy, business models, and risk management. It outlines four main steps in strategic development: defining corporate strategy, developing and testing business models, identifying key performance indicators, and identifying and mitigating risks. The document provides details on how boards should evaluate each of these areas to ensure management appropriately builds and protects shareholder value.
This document outlines nine best practices for effective talent management. It discusses how talent management has become a critical organizational function and competitive advantage. Organizations must identify talent gaps, develop a talent management plan integrated with business strategies, and ensure accurate hiring, promotion, performance management, and development. Effective talent management leads to higher business performance, earnings, and financial outcomes. It is driven by factors such as changing employee and demographic trends, increasing complexity, and expectations from boards and investors for leadership to create value through talent.
The document provides an overview of Deloitte's approach to talent strategies. It discusses key workforce trends, Deloitte's point of view on talent management, and a framework for developing talent strategies. The framework focuses on identifying business priorities, critical workforce segments, and implementing strategies around developing, deploying, and connecting talent. The document also provides examples of diagnostic tools and a sample prioritization roadmap that can be used to assess an organization's talent programs and identify improvement opportunities.
The Conference Board is a global, independent business membership and research association working in the public interest. It provides its over 1,200 member companies around the world with practical knowledge and solutions to critical business issues through research reports, conferences, peer networking, and executive education programs. Some of its notable products and services include consumer confidence indexes, economic indicators, employment trends data, CEO surveys, and human capital benchmarking. It addresses issues like corporate strategy, economics, leadership, and human resources through councils, working groups, webcasts and briefings with industry experts.
The Next High-Stakes Quest - Balancing Employer and Employee Priorities by To...Elizabeth Lupfer
The document discusses the challenges that organizations face in attracting and retaining critical talent. It finds that nearly three-quarters of organizations have difficulties attracting critical-skill employees, and over half have problems retaining them. Additionally, employees are experiencing high levels of stress and pressure at work. The document advocates that organizations focus on crafting an effective employee value proposition (EVP) to balance employer and employee needs. It presents a model showing that organizations that effectively communicate their EVP, deliver on EVP promises, segment their workforce, and differentiate their EVP achieve better engagement, attraction, retention and financial outcomes.
The document discusses the challenges that organizations face in attracting and retaining critical talent globally. It finds that nearly three-quarters of organizations have difficulties attracting critical-skill employees, and over half have problems retaining them. Additionally, employees are experiencing high levels of stress and pressure. The document advocates that organizations focus on crafting an effective employee value proposition (EVP) to balance employer and employee needs. It presents a model showing that communicating, delivering, segmenting, and differentiating the EVP leads to better outcomes of engagement, attraction, retention, and financial performance. Organizations are grouped based on their progress with the EVP, with the most advanced group customizing EVPs and experiencing the best results.
- The document discusses the results of a global survey of 614 board professionals from 50 countries on how corporate boards are addressing radical innovation and its role in company growth.
- While boards are taking on responsibility for overseeing radical innovation efforts like Division-X units, the survey finds many boards lack understanding of innovation, talent to develop new revenue streams, and risk tolerance for failures.
- Only 22% of respondents have a Division-X unit focused on new products and services, and growth expectations for the next 24 months average only 5-10%, despite increasing competitive threats from disruptive startups.
High-potential employees are the future leaders of your organisation and twice as valuable as other employees. Based on a decade of research and analysis from 6.6m staff assessments, "The HR Guide to Identifying High-Potentials" is a comprehensive look at everything you need to know to help your HiPo programme succeed.
Marc Effron, author of One Page Talent Management: Eliminating Complexity, Adding Value (Harvard Business Press) showed how companies have buried talent processes under layers of bureaucracy and complexity that make them unusable and unused. More importantly, he’ll show you how to cut through the clutter with One Page Talent Management (OPTM), a powerfully simple approach that significantly accelerates a company's ability to develop better talent faster. The OPTM approach combines the best behavioral science research with lean process design to create easy to use talent processes that managers truly value. This webinar is for anyone who leads a team or wants to one day.
Intro Session Global Workforce Mobility for Talent ManagementRussell Klosk (智能虎)
Strategic workforce mobility aims to optimize talent development and retention. The presentation discusses frameworks for executing global mobility to increase talent optimization and retention. It covers global mobility across continuums of traditional mobility, modern mobile workforces, and globally integrated enterprises. The objectives are to provide common definitions for workforce management, talent management, and global mobility, and to discuss how to design positions and organizations for increased mobility.
Managing talent is no longer an episodic exercise. Leading companies are taking a holistic view, from building their employer brand, to attracting new people, to developing their best people, to crafting succession strategies. Korn Ferry can deliver all this and more through a consistent methodology, IP framework, and global team of experts.
This guide provides the definitive list of Korn Ferry’s integrated talent solutions. It includes information on what each of them does and how we can use them to meet your organization’s unique needs.
The new guidance is based on IRM’s professional standards and is aimed at organisations of all types seeking to recruit a Chief Risk Officer (CRO), perhaps their first, or to make other senior risk appointments.
This newsletter provides updates on performance, governance, risk and compliance issues. It discusses the importance of innovation but also managing the risks of innovation. It outlines 5 rules for managing innovation risk: 1) Understand customer needs, 2) Develop a risk/return model, 3) Recognize model limitations, 4) Expect unknowns, 5) Consider infrastructure needs. It also discusses emerging strategic risks around people and culture enabling resilience against disruptors.
Dominance of Automation over Traditional Managerial Practicesijtsrd
Human resource management is an essential part of every company. Whether it's hiring new employees, training, or ensuring that local labour laws are complied with, HR processes are a vital part of every company. But hour has typically been thought of as a extremely manual department method. They are used to rolling up their sleeves and getting the job done themselves. But all that's changing. Automation is invasive the hour area, and very soon everything that can be automated, will be automated. Current HR staff needs to adapt to the coming changes or get left behind in the dust. What will this mean for hour currently and within the future Are workers going to become obsolete Are they going to find their job roles differ from what's typically expected of them Let's take a closer look. Prof. Manoj Jagnade | Vaibhavi Anil Dhotkar | Tanmay Chhapparghare | Pratik Wankhede | Shantanu Zade | Kartik Salve "Dominance of Automation over Traditional Managerial Practices" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-1 , December 2019, URL: https://www.ijtsrd.com/papers/ijtsrd29658.pdf Paper URL: https://www.ijtsrd.com/management/hrm-and-retail-business/29658/dominance-of-automation-over-traditional-managerial-practices/prof-manoj-jagnade
Skills Management Best Practices Webinarguest637256
1.How does skills management fit into an overall human resources program?
2.What is the value proposition for skills management?
3.What are the best practices for planning and implementing skills management?
4.What is the most appropriate “skillware” for your business?
The document discusses talent management definitions, practices, and challenges based on interviews with four participants from different companies and countries. It begins by defining talent management and discussing its importance for sustaining competitive advantages. It then examines topics like the talent pipeline approach, the demand and supply gap from a supply chain perspective, global talent management challenges, and building high-quality colleagues. The document also assesses human capital metrics and retention factors across the different companies. Overall, the document provides an overview of talent management theories and practices based on insights from industry professionals.
Talent Management: Accelerating Business Performance - Right ManagementСветла Иванова
Right Management’s latest study provides a global overview of talent management trends, drawing on feedback from more than 2,200 business leaders and HR professionals in 13 countries and 24 industries.
How we start our strategic partnership with clients? We usually run a HR due diligence project. Have a look at it and do not hesitate to contact me about details.
www.humanvalue.eu
Aiming for the top: A guide for aspiring COOs and their organisationsEY
Our latest report on COO's titled 'Aiming for the top: A guide for aspiring COOs and their organisations'. The report provides insight on the skills and experiences needed to become a COO, it explains how companies can develop a robust pipeline of well-rounded talent for the succession to an existing COO position, or how to find a strong candidate for a new COO role. Read it to know how companies, and especially COOs currently in the role, can support the operations talent within their teams with the aim of eventually developing a strong successor.
Whitepaper - How to Eliminate the 5 Hidden costs of Offshore OutsourDefinity First
This document discusses how nearshore outsourcing to Mexico can help eliminate five hidden costs of offshore outsourcing to India: 1) the cost of selecting a vendor due to lower travel costs for meetings, 2) the transition costs of training due to proximity allowing for shorter visits, 3) cultural differences that impact productivity are less due to similarities with the US, 4) layoff costs are reduced by outsourcing existing teams rather than replacements, 5) ramp up costs are mitigated by ensuring the outsourcer has strong project management processes. Nearshore outsourcing is a viable alternative to traditional offshore models.
The Edge 53 March 2014 Editorial Letter GCC HR and Recruitment ChallengesMiles Masterson
This document discusses challenges with attracting and retaining talented workforces in Qatar and other Gulf countries. It notes that vacancies often remain open for long periods, burdening existing employees and being filled by underqualified candidates. This leads to inefficiencies that hurt organizations' bottom lines. Poor HR management exacerbates the problems and leaves leadership roles poorly performed, hindering company and department goals. The document questions why recruiting and job placement are challenging in the resource-rich Gulf despite a global pool of qualified professionals willing to work there. Upcoming major events like the 2022 World Cup increase the need to address Gulf countries' HR issues.
This document discusses the key responsibilities of boards of directors in developing and overseeing organizational strategy, business models, and risk management. It outlines four main steps in strategic development: defining corporate strategy, developing and testing business models, identifying key performance indicators, and identifying and mitigating risks. The document provides details on how boards should evaluate each of these areas to ensure management appropriately builds and protects shareholder value.
This document outlines nine best practices for effective talent management. It discusses how talent management has become a critical organizational function and competitive advantage. Organizations must identify talent gaps, develop a talent management plan integrated with business strategies, and ensure accurate hiring, promotion, performance management, and development. Effective talent management leads to higher business performance, earnings, and financial outcomes. It is driven by factors such as changing employee and demographic trends, increasing complexity, and expectations from boards and investors for leadership to create value through talent.
The document provides an overview of Deloitte's approach to talent strategies. It discusses key workforce trends, Deloitte's point of view on talent management, and a framework for developing talent strategies. The framework focuses on identifying business priorities, critical workforce segments, and implementing strategies around developing, deploying, and connecting talent. The document also provides examples of diagnostic tools and a sample prioritization roadmap that can be used to assess an organization's talent programs and identify improvement opportunities.
The Conference Board is a global, independent business membership and research association working in the public interest. It provides its over 1,200 member companies around the world with practical knowledge and solutions to critical business issues through research reports, conferences, peer networking, and executive education programs. Some of its notable products and services include consumer confidence indexes, economic indicators, employment trends data, CEO surveys, and human capital benchmarking. It addresses issues like corporate strategy, economics, leadership, and human resources through councils, working groups, webcasts and briefings with industry experts.
The Next High-Stakes Quest - Balancing Employer and Employee Priorities by To...Elizabeth Lupfer
The document discusses the challenges that organizations face in attracting and retaining critical talent. It finds that nearly three-quarters of organizations have difficulties attracting critical-skill employees, and over half have problems retaining them. Additionally, employees are experiencing high levels of stress and pressure at work. The document advocates that organizations focus on crafting an effective employee value proposition (EVP) to balance employer and employee needs. It presents a model showing that organizations that effectively communicate their EVP, deliver on EVP promises, segment their workforce, and differentiate their EVP achieve better engagement, attraction, retention and financial outcomes.
The document discusses the challenges that organizations face in attracting and retaining critical talent globally. It finds that nearly three-quarters of organizations have difficulties attracting critical-skill employees, and over half have problems retaining them. Additionally, employees are experiencing high levels of stress and pressure. The document advocates that organizations focus on crafting an effective employee value proposition (EVP) to balance employer and employee needs. It presents a model showing that communicating, delivering, segmenting, and differentiating the EVP leads to better outcomes of engagement, attraction, retention, and financial performance. Organizations are grouped based on their progress with the EVP, with the most advanced group customizing EVPs and experiencing the best results.
- The document discusses the results of a global survey of 614 board professionals from 50 countries on how corporate boards are addressing radical innovation and its role in company growth.
- While boards are taking on responsibility for overseeing radical innovation efforts like Division-X units, the survey finds many boards lack understanding of innovation, talent to develop new revenue streams, and risk tolerance for failures.
- Only 22% of respondents have a Division-X unit focused on new products and services, and growth expectations for the next 24 months average only 5-10%, despite increasing competitive threats from disruptive startups.
High-potential employees are the future leaders of your organisation and twice as valuable as other employees. Based on a decade of research and analysis from 6.6m staff assessments, "The HR Guide to Identifying High-Potentials" is a comprehensive look at everything you need to know to help your HiPo programme succeed.
Marc Effron, author of One Page Talent Management: Eliminating Complexity, Adding Value (Harvard Business Press) showed how companies have buried talent processes under layers of bureaucracy and complexity that make them unusable and unused. More importantly, he’ll show you how to cut through the clutter with One Page Talent Management (OPTM), a powerfully simple approach that significantly accelerates a company's ability to develop better talent faster. The OPTM approach combines the best behavioral science research with lean process design to create easy to use talent processes that managers truly value. This webinar is for anyone who leads a team or wants to one day.
Intro Session Global Workforce Mobility for Talent ManagementRussell Klosk (智能虎)
Strategic workforce mobility aims to optimize talent development and retention. The presentation discusses frameworks for executing global mobility to increase talent optimization and retention. It covers global mobility across continuums of traditional mobility, modern mobile workforces, and globally integrated enterprises. The objectives are to provide common definitions for workforce management, talent management, and global mobility, and to discuss how to design positions and organizations for increased mobility.
Managing talent is no longer an episodic exercise. Leading companies are taking a holistic view, from building their employer brand, to attracting new people, to developing their best people, to crafting succession strategies. Korn Ferry can deliver all this and more through a consistent methodology, IP framework, and global team of experts.
This guide provides the definitive list of Korn Ferry’s integrated talent solutions. It includes information on what each of them does and how we can use them to meet your organization’s unique needs.
The new guidance is based on IRM’s professional standards and is aimed at organisations of all types seeking to recruit a Chief Risk Officer (CRO), perhaps their first, or to make other senior risk appointments.
This newsletter provides updates on performance, governance, risk and compliance issues. It discusses the importance of innovation but also managing the risks of innovation. It outlines 5 rules for managing innovation risk: 1) Understand customer needs, 2) Develop a risk/return model, 3) Recognize model limitations, 4) Expect unknowns, 5) Consider infrastructure needs. It also discusses emerging strategic risks around people and culture enabling resilience against disruptors.
Dominance of Automation over Traditional Managerial Practicesijtsrd
Human resource management is an essential part of every company. Whether it's hiring new employees, training, or ensuring that local labour laws are complied with, HR processes are a vital part of every company. But hour has typically been thought of as a extremely manual department method. They are used to rolling up their sleeves and getting the job done themselves. But all that's changing. Automation is invasive the hour area, and very soon everything that can be automated, will be automated. Current HR staff needs to adapt to the coming changes or get left behind in the dust. What will this mean for hour currently and within the future Are workers going to become obsolete Are they going to find their job roles differ from what's typically expected of them Let's take a closer look. Prof. Manoj Jagnade | Vaibhavi Anil Dhotkar | Tanmay Chhapparghare | Pratik Wankhede | Shantanu Zade | Kartik Salve "Dominance of Automation over Traditional Managerial Practices" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-1 , December 2019, URL: https://www.ijtsrd.com/papers/ijtsrd29658.pdf Paper URL: https://www.ijtsrd.com/management/hrm-and-retail-business/29658/dominance-of-automation-over-traditional-managerial-practices/prof-manoj-jagnade
Employees were surveyed about what factors are important in their careers. While work-life balance, job security, and financial rewards were universally rated as very important, there were differences among subgroups:
- Younger employees valued career advancement more than older employees.
- Women placed more importance on work-life balance, job security, and professional development than men, especially at early career stages.
- Asians and Europeans valued international opportunities far more than Americans.
However, what employees said was important did not always match what actually improved retention and commitment. Understanding these differences is key to attracting and retaining talent.
A Case Study On Talent Acquisition At OrganisationsSara Alvarez
This case study examines the key dilemmas in talent acquisition at organizations. It discusses perspectives from HR specialists and industry leaders on issues such as whether talent acquisition or retention is more important, developing accurate job descriptions, attracting talent without an established brand, and unrealistic candidate expectations. A primary dilemma highlighted is finding the right balance between talent acquisition and retention. The case also explores how industry differences impact talent acquisition approaches and how evolving education models pose challenges for organizations in acquiring talent. The goal of the case study is to analyze talent acquisition strategies and consider potential solutions to common dilemmas faced by companies.
“Business people need to understand the psychology of risk more than the mathematics of risk.”
― Paul Gibbons, The Science of Successful Organizational Change: How Leaders Set Strategy, Change Behavior, and Create an Agile Culture
HR Standards & metrics driving good governance, slides by Marius Meyer, CEO o...SABPP
The document discusses the need for HR standards and metrics to promote sound HR governance, risk management, and compliance. It outlines how developing national HR standards can help improve consistency and quality of HR practices. The presentation also emphasizes the importance of HR measurement and integrating HR practices into an organization's governance, risk management, and compliance frameworks.
Pre-Employment Checks: An Employers GuideMiqui Mel
This document provides guidance for employers on conducting pre-employment checks. It discusses:
1. The purpose of pre-employment checks is to establish eligibility for employment and identify risks, such as theft, bullying, or safety issues. Checks vary by sector but may include criminal records, references, and verifying qualifications.
2. Employers have discretion to decide if candidates are suitable based on all available evidence. Factors like attitude and experience are also important, especially for senior roles.
3. Guidance is needed due to increasing use of social media in hiring and outsourcing of checks. Employers should aim to be fair, non-discriminatory, and fact-based in their processes.
Creating a Culture of Operational Discipline that leads to Operational Excell...Wilson Perumal and Company
As the world becomes more complex, the best companies and leaders are beginning to realize that improving culture is their greatest lever for achieving Operational Excellence. Complex systems require a different kind of culture—one with a specific set of guiding principles. In order to instill these principles in your organization, it is necessary to learn what the current culture is and what people think it ought to be like, establish the guiding principles necessary to be successful, align them to every level of the organization, and develop and sustain them through committed leadership and integration into key management system processes.
Wilson Perumal & Company has a long track record of helping companies in all industries transform their cultures and dramatically improve operational results. In this Vantage Point, we will share the most important lessons we have learned through our research and experience working directly with High-Reliability Organizations (HROs) and our clients as they pursue Operational Excellence.
Creating a Culture of Operational Discipline that leads to Operational Excell...Christopher Seifert
As the world becomes more complex, the best companies and leaders are beginning to realize that improving culture is their greatest lever for achieving Operational Excellence. Complex systems require a different kind of culture—one with a specific set of guiding principles. In order to instill these principles in your organization, it is necessary to learn what the current culture is and what people think it ought to be like, establish the guiding principles necessary to be successful, align them to every level of the organization, and develop and sustain them through committed leadership and integration into key management system processes.
Wilson Perumal & Company has a long track record of helping companies in all industries transform their cultures and dramatically improve operational results. In this Vantage Point, we will share the most important lessons we have learned through our research and experience working directly with High-Reliability Organizations (HROs) and our clients as they pursue Operational Excellence.
This document discusses strategic human resource management (SHRM) at Siemens AG. It begins by explaining the importance of SHRM for organizations in areas such as recruitment, training, performance management, and communication. It then provides an overview of Siemens AG, describing it as a large multinational corporation involved in industries like transportation, energy, and healthcare. The document proceeds to analyze the key responsibilities of HR managers at Siemens AG and evaluates alternative approaches the company could take to strengthen its SHRM practices after a major bribery scandal.
The document discusses the top challenges for human resource management as revealed by a survey conducted by PricewaterhouseCoopers. The top 10 challenges according to the survey are: change management, leadership development, HR effectiveness measurement, organizational effectiveness, compensation, staffing and recruitment of skilled labor, succession planning, learning and development, diversity in the workplace, and compliance with changing laws and regulations. The document then provides more details on some of the challenges such as change management, leadership development, HR effectiveness measurement, recruitment of skilled candidates, and retaining talented employees.
This document discusses the importance of candidate care, which refers to how companies treat and manage job applicants throughout the hiring process. It argues that candidate care is a strategic issue that should involve the entire company, as poor candidate experiences can negatively impact a company's reputation and brand. The document provides recommendations for how companies can improve their candidate care practices, such as shortening delays between interview stages and ensuring interviewers are prepared. It emphasizes that world-class talent will be attracted to companies that represent strong leadership throughout the hiring process.
17th Learning EB: Current trends and challenges on talent managementSonnie Santos
This document discusses current trends and challenges in talent management in the Philippines. It notes that attracting and retaining skilled talent is difficult for many organizations globally. Specifically, the document outlines difficulties in attracting critical-skill, high-potential, and top-performing employees according to a recent survey. It also discusses strategic recruiting challenges such as increasing turnover, the need for faster hiring, limited resources, and the shortage of qualified recruiters. The document concludes by highlighting 12 of the hottest recruiting opportunities for 2014, such as using social media and video interviews.
Organizations often fail to properly identify and leverage their high potential (HIPO) employees. It is essential to use transparent, objective criteria to select candidates for HIPO programs based on their demonstrated potential, abilities, ambition and track record. Development Dimensions International identified 10 common factors considered in HIPO assessments, including the capacity for leadership, bringing out the best in others, and adapting to change. Properly separating potential and readiness is important, as is aligning HIPO employees' development with the organization's future vision to keep them engaged until their next role.
The document provides advice from industry experts on best practices for global recruitment. It discusses the importance of localizing the candidate experience for each market, incorporating diversity into the hiring strategy, ensuring data privacy and compliance globally, using tools like video interviewing, job distribution technologies, background screening, and candidate assessments to facilitate international recruiting, and having the right talent acquisition system to support global hiring needs. Specific success stories from Hard Rock International and TT Electronics on expanding their recruitment globally are also highlighted.
The document discusses key processes for effective talent management. It defines talent and talent management, and emphasizes identifying individuals who can significantly impact organizational performance. It also stresses the importance of attracting, developing, engaging, and retaining top talent. The document outlines six key talent management processes: defining talent, identifying talent, attracting and retaining talent internally and externally, managing talent, nurturing and developing talent, and evaluating talent programs.
The document provides an overview of HR due diligence. It discusses:
- The importance of due diligence and identifying risks and issues before making decisions
- The key areas of focus for HR due diligence including personnel, management, contracts, and financial areas
- The steps involved in conducting HR due diligence for a merger or acquisition, including comprehensively studying the firms, assessing risks, negotiating, and integrating policies and processes
- A case example of how to handle HR due diligence for an upcoming merger between two companies to ensure post-merger talent retention
Chain Reaction - Making Recruitment Supply Chain WorkDan Cooper
This document discusses resource supply chain models used for recruitment. It finds that the preferred supplier list (PSL) model is the most widely used (48% of organizations), followed by recruitment process outsourcing (RPO) (38%) and master vendor (26%). Nearly half of organizations use a single model. The top priorities for organizations in choosing a model are attracting the right people (67%), reducing costs (42%), and reducing time to hire (39%). While PSL is most common, master vendor is perceived as most effective for candidate experience, efficiencies, and process management. As models mature, organizations want more strategic partnerships from suppliers, but often focus too much on cost and transactional metrics. Overall suppliers need
Human Capital Risk — Identifying Talent Beta for Mergers and Acquisitions and...
A question of balance managing recruitment risk
1. ““"Internal recruitment executives in many companies have
succeeded in instilling process and efficiency in their global
hiring practices, and in many cases adding science to what
had been considered primarily an art. Along with this has
come recognition of the risks involved in recruitment:
good hires add value to the business, but bad ones – or
badly managed hiring experiences – can damage it in
many ways... While the sources of recruitment risk vary,
they can usually be traced back to a lack of clarity about,
and ownership of, the recruitment process."
Denis McCauley, Report author.
researchCORPORATE RESEARCH FORUM
A question of balance –
managing recruitment risk
October 2015
Sponsored by
2. researchCORPORATE RESEARCH FORUM
CONTENTS
Contents
About the research / About CRF 3
Foreword 4
Executive Summary 5
1 What are the potential consequences if your recruitment
process goes wrong? 6
2 Sources of risk 9
3 Cross-border complexity 12
4 Checklist for minimising recruitment risk 14
5 Conclusion 15
All rights reserved.
A question of balance – managing recruitment risk
No part of this publication may be reproduced, stored in a retrieval system or transmitted
in any form or by any means without prior permission in writing of the publisher.
Corporate Research Forum One Heddon Street Mayfair London W1B 4BD United Kingdom
ISBN: 978-0-9934094-0-0
3. 3
researchCORPORATE RESEARCH FORUM
ABOUT THE RESEARCH
About CRF
Founded in 1994, Corporate Research Forum (CRF) is a membership organisation
whose international focus is on research, discussion and the practical application of
contemporary topics arising from people management, learning and organisation
development. CRF has become a highly influential focal point and network for over
160 members representing a cross-section of private and public sector organisations.
• Its annual programme of research, events and publications fully reflects members’
interests, in addition to the annual international conference. Side meetings and interest
groups are also initiated to meet challenges that members might have.
• Contributors are acknowledged experts in their field with a worldwide reputation
as leaders and innovators in management thinking and practice.
• Sharing and collaboration among members is a key feature of CRF’s activities.We actively
encourage networking at all events, and especially through member lunches and HR
director dinners.
• CRF is led and managed by highly-regarded former HR professionals who have a passion for
delivering excellence in the leadership and development of organisations and people.
CRF’s goal is to be valued for excellence, rigour, relationship building and providing an
independent view which, together, lead to measurable improvement in members’ people
and organisation performance.
For more details on how your organisation can benefit from membership to CRF please
contact Richard Hargreaves, Commercial Director, on +44 (0) 20 7470 7104 or at
richard@crforum.co.uk.Alternatively, please visit our website at www.crforum.co.uk.
About the research
This Corporate Research Forum report, sponsored by HireRight, is based on a series of in-
depth interviews with senior recruitment executives and experts, as well as extensive desk
research, conducted in June and July 2015. We would in particular like to thank the
following individuals for providing their insights:
• Greg Allen, Global Head of Resourcing, Lloyd’s Register
• Jonathan Briggs, Head of Talent Acquisition, IP & Science,Thomson Reuters
• Steve Bright, Director, International Human Resources, Northrop Grumman Corporation
• Scott Fitzgerald,Talent Acquisition Specialist, European Bank for Reconstruction and
Development (EBRD)
• Steve Girdler, Managing Director EMEA and Asia Pacific, HireRight
• Gary Knight, Group Head of Strategic Resourcing, First Quantum Minerals Ltd (FQML)
• Steve Wing, Director, Strategic Dimensions.
About the author
Denis McCauley is a writer, editor, speaker
and moderator with particular expertise in
how businesses, governments and individuals
use technology. He has spent much of his
career with the Economist Intelligence Unit
(EIU) in a variety of editorial roles, most
recently as Editorial Director, Thought
Leadership, EMEA. Denis also directed its
global technology practice and is the author
or editor of numerous technology and
management practices reports.
Denis McCauley
4. 4
researchCORPORATE RESEARCH FORUM
FOREWORD
Steve Girdler
Managing Director EMEA
and Asia Pacific, HireRight
Foreword
In an ever growing global workforce, one of the biggest challenges for recruiters is avoiding
a bad hire. With the challenges recruiters’ face increasing, getting the right person for the
job is a hard task, and the stakes are higher than ever. One bad hire can destroy a company.
As Warren Buffett so famously said, “It takes 20 years to build a reputation and five minutes to
ruin it”, therefore, mitigating risk should be a top priority for recruiters. They have to know
everything about a candidate to ensure they are a good fit for the company and that the
candidate can do the role in question.
However, it cannot all be about mitigating risk and avoiding a bad hire. In the modern
day, candidate experience is a vital consideration for all recruiters. A laborious and time
consuming application process, poor communication and long delays in feedback are just
some of the things that can put off potential candidates, and with the globally connected
world, sharing a bad experience with a mass audience is available at the click of a button,
and can be potentially harmful to even the most well established reputation.
But how do you mitigate risk and not put off potential candidates? As Corporate Research
Forum (CRF) highlights in this report, it is all about getting a balance. Recruiters must
ensure they protect their business from a poor hiring decision whilst also making the
candidate experience as easy as possible. It is about understanding the candidates’ needs
whilst protecting their company’s best interests.
I am delighted that CRF chose to bring this subject into the industry spotlight. At
HireRight we screen over 12 million candidates a year for 40,000 clients, across 240
countries and territories. Ultimately, our role is to mitigate risk for our clients but we
recognise that screening is often stressful for any candidate and therefore strive to put
the candidate experience at the heart of the service.
Reducing recruitment risk is an essential part of any new hire and is something that can no
longer be skimmed over.The danger of a bad hire is real, and it is up to the HR community
to manage it.
Steve Girdler
Managing Director EMEA and Asia Pacific, HireRight
5. 5
researchCORPORATE RESEARCH FORUM
EXECUTIVE SUMMARY
Executive Summary
With most of the world’s major economies in growth mode again,
talent wars are heating up. The internal recruitment functions of
businesses large and small are straining to fill key roles, with the power
shifting from the client to the candidate. Internal recruitment executives
in many companies have succeeded in instilling process and efficiency
in their global hiring practices, and in many cases adding science to
what had been considered primarily an art.Along with this has come
recognition of the risks involved in recruitment: good hires add value
to the business, but bad ones – or badly managed hiring experiences –
can damage it in many ways.
This report sheds light on the different types of risk involved in
organisations’ recruitment practices. It finds that when the biggest
risks materialise, the consequences can be as or more ruinous as a
major security breach or regulatory violation. It also uncovers that,
while the sources of recruitment risk vary, they can usually be traced
back to a lack of clarity about, and ownership of, the recruitment
process. The report also examines how some organisations are
seeking to minimise recruitment risk.
Key findings:
1. The greatest recruitment risk facing organisations today is hiring the
wrong person. A bad hire can lead to loss of earnings, contracts,
reputation or customers. It can also lead to a loss of other key staff,
if morale is affected.The more senior the hire, the greater the risk.
In the most extreme cases, a bad hire at chief executive or board
chairman level can bring down a business. Many organisations fail
to vet the backgrounds of their most senior hires thoroughly.
2. Overly long or poorly managed recruitment processes can result in
the loss of good candidates.With organisations’ greater attention
to due diligence, the recruitment process is getting longer.
In competitive talent markets, however, excessive deliberation in
hiring can be costly.A lack of communication and engagement
with candidates during the process can have the same result.
3. Much recruitment risk stems from a loose brief – failure to carefully
define the role requirements at the outset. Other key sources of risk
include
• lack of transparency with candidates and internal stakeholders
• over-reliance on one part of the process (such as interviews or
testing)
• laxity in screening and vetting internal candidates
• inattention to the recruitment web portal.
4. Any one of these drawbacks is usually a symptom of a larger
problem – unclear ownership of the recruitment process. Unclear
division of responsibilities between the hiring and recruitment
manager leads to lack of accountability, and failure to ensure
processes and timelines are adhered to and issues addressed.
5. The closer co-ordination of recruitment practices globally should
serve as a complement to a company’s overall business strategy.
Central policy is essential, but it needs to allow for local
interpretation. In-country teams must have the ability to adapt
to local conditions. Vastly different hiring rules and practices
around the world – for example, in interviewing, reference
checking or other aspects of background checks – dictate the
need for local flexibility.
Along with growing awareness of the risks involved in recruitment is
recognition that the company’s brand and reputation are at stake in
every hiring process.A well-managed process can improve the chances
of the right candidate being impressed and accepting the offer. Even if
the candidate doesn’t make the cut, a good impression will have been
created. Enough negative candidate experiences, however, especially if
shared widely in social media, can undo all the good work of building
an employer brand.
6. 6
1WHAT ARE THE POTENTIAL CONSEQUENCES IF
YOUR RECRUITMENT PROCESS GOES WRONG?
Hiring the wrong one
In November 2013 Paul Flowers resigned in disgrace from his post as chairman of The
Co-operative Bank, then one of Britain’s largest lending institutions, after being arrested
on charges of purchasing recreational drugs.The board which recruited him in 2010 also
resigned after it transpired that concerns about his experience and lifestyle were set aside
during the hiring process and his background not thoroughly vetted. This scandal, along
with evidence of gross mismanagement by the executive team under Revd. Flowers’s
stewardship, created a downward spiral in which the bank has come close to collapse.1
Although unusually high-profile, this episode underscores the greatest risk facing organisations’
recruitment teams today – hiring the wrong person. The repercussions of poor recruitment
practices are often not as dramatic as The Co-operative's, but they can be extremely
damaging, leading to loss of earnings, contracts or customers.
At Northrop Grumman, the country chief executives that Steve Bright, Director of International
Human Resources, and his team hire, negotiate defence contracts at the highest government
levels. Gravitas, good diplomatic skills and demonstrably solid ethics are sine qua non for
new hires, he says. “At this level one misstep can completely undermine all the good work
we’ve done to build relationships.”
Hiring the wrong candidate can also have repercussions for staff morale and retention:
colleagues may leave if they feel an underperforming new recruit is not dealt with. “The
impact of bad hires is a lot wider than the time spent trying to manage someone performing
poorly or replacing them,” says Greg Allen, Global Head of Resourcing at Lloyd’s Register.
The more senior the hire, the greater the risk.According to the consultancy PwC, the average
cost to large firms of forcing out the chief executive officer (CEO) is US$1.8 billion in
shareholder value.2
It is all the more concerning, then, that many organisations fail to vet the
backgrounds of their most senior hires thoroughly. Several of our interviewees observed that
practices for senior hires across their industries are often patchy. One observes from
previous experience, for example, that candidates for senior roles sometimes refuse to
submit to psychometric testing. “Recruitment processes are often bypassed entirely in such
cases,” he says.
1
At the time of writing, the bank was in the process of being sold to hedge funds.
2
“A Forced CEO Turnover Costs a Large Company $1.8B More in Shareholder Value than a Planned
Turnover”, PwC press release, 13 April 2015.
7. 7
researchCORPORATE RESEARCH FORUM 1
WHAT ARE THE POTENTIAL CONSEQUENCES IF YOUR RECRUITMENT PROCESS GOES WRONG?
According to a recent report half of the UK firms surveyed stated that ‘connections’ win
high-level positions. Boards at almost as many companies (46%) rely on personal
recommendations when hiring new members.3
But, these hires needs to be supported by
the same background screening that would apply to any new senior hire, whichever route
they have taken to get there. In other countries, such as India, points out Steve Girdler,
Managing Director EMEA and Asia Pacific with HireRight, a ‘cult of seniority’ prevails in
which the people screening candidates find it difficult to ask tough questions of senior-level
people. “Important questions simply go unasked,” he says.
Losing the right one
Overly long or poorly managed recruitment processes can rebound on organisations in other
ways. One is when good candidates slip through the net. London-based recruitment managers
attending a Corporate Research Forum meeting in June 2015 reported that talent markets
are heating up in Europe and North America now that most economies are growing again.
(Scarcity of skilled managerial talent has been a long-standing feature of emerging markets.)
This is creating a dilemma for many firms, as the added attention to due diligence – partly to
minimise the risk of bad hires – has also served to lengthen the recruitment process.
Steve Wing, Director of Strategic Dimensions, a UK-based executive search firm, reports that
for the candidates it works with, the time between first interview and an offer being made is
longer than ever. More than five interviews and assessment processes lasting several months
have become commonplace. “Whilst due diligence is of course critical to making the correct
hiring decision,” says Wing, “businesses also need to be aware that good candidates are in
demand. Organisations that are decisive and move candidates quickly through the process
will snare the best talent.”
Source: HireRight. Data on discrepancy rates in background checks of candidates (EMEA data).
The figures represent the percentage of cases where one or more discrepancies are uncovered.
49% = organisations in which senior leaders
who join as a result of M&A are not checked
beforehand
34% = HR directors aware of a potential
scandal resulting from this that could affect
their organisation
Source:The Untouchables: Protecting your
organisation from leadership risk, HireRight, 2014.
Senior Hire Discrepancies in EMEA
More than half of hires have at least one discrepancy in their background screening
70%
60%
50%
40%
30%
20%
10%
0%
Jan13
Mar13
May13
Jul13
Sep13
Nov13
Jan14
Mar14
May14
Jul14
Sep14
Nov14
Jan15
Mar15
49%
34%
3
The Untouchables: Protecting your organisation from leadership risk, HireRight, 2014.
8. 8
researchCORPORATE RESEARCH FORUM
WHAT ARE THE POTENTIAL CONSEQUENCES IF YOUR RECRUITMENT PROCESS GOES WRONG?
1
Jonathan Briggs, Head of Talent Acquisition, IP & Science for Thomson Reuters, a business
information provider, confirms that in some markets excessive deliberation in hiring can be
costly: “We’re exceptionally quick in San Francisco, for example, where the market for
technology talent is extremely tight; if we were slow we would just lose candidates.”
A matter of legality … and reputation
A screening process gone awry can land organisations in legal hot water. Inappropriate
questions posed during interviews are a common source of employment tribunal hearings.
Even job descriptions can lead to problems, warns Greg Allen of Lloyd’s Register. In the UK,
the job description is the tool for selection, and designs the questions and skill sets
required in the fair selection process. Too prescriptive a job description could lead to no
candidates; too vague could bring claims of discrimination on gender, race, age or other
grounds, he says. (See “Cross-border complexity” later in this report.)
As we will discuss later, transparency and good communication can keep candidates onside
even in a lengthy recruitment process. Their absence, however, may not only cost the
organisation the best hire, but can also damage its brand. Poor candidate experience will
almost certainly hurt the organisation’s image in his or her eyes. “If the candidate has a
negative experience where the hiring company isn’t completely open about what to expect
from the entire recruitment process, including the outsourcing of services such as psychometric
testing and background screening or not get back to them in a timely manner,” says Steve
Girdler of HireRight, “that can have a knock-on effect.The candidate may be an existing or
potential customer that will look at you in a different light.” In the age of social media and
websites such as glassdoor.com, a disgruntled candidate can also spread the word about
such negative experiences widely.
Good management of the entire candidate experience is thus critical if organisations want
not only to protect their overall brand equity, but to build their employer brand.
9. 9
2SOURCES OF RISK
Why does recruitment sometimes go wrong? Below we discuss some common failings in
the recruitment process. However, when something goes wrong, it is usually a symptom of
a larger problem – unclear ownership of the recruitment process.
In most large organisations – particularly in the developed world – the recruitment function
is highly professional, with a great deal of process and rigour.All too often, however, hiring
managers take the lead on filling vacancies and seek only tangential support from
recruitment professionals. Other hiring managers exempt themselves from the process
entirely until it is time to interview screened candidates.
Decision by committee can be another manifestation of unclear ownership.This is not always
the case: there are often good reasons to widen the universe of senior managers involved
in the screening process. Steve Bright of Northrop Grumman maintains it is critical for the
types of high-profile country roles that his team fills. This is not only to vet the candidate
thoroughly and ensure no one on the senior executive team has red flags. It is also, says
Bright,“to get their emotional buy-in to the candidate when the latter is appointed, because
for that individual to be successful when they’re back in-country, they need to know they
have the backing of the executive team.”
Handled the wrong way, however, committee decision making can lead to a loss of
accountability and to indecision. Jonathan Briggs of Thomson Reuters observes that “when
people get nervous in the recruitment process they throw more people into it, which creates
more indecision.”This can lead to the loss of good candidates as they tire of the process.
Following are specific manifestations of unclear recruitment processes – and sources of
recruitment risk.
• The loose brief
“If you end up getting the wrong person, or if the process takes too long, nine times out of
ten you will find that there wasn’t a good enough quality conversation at the start about
how you’re going to hire and the type of hire it needs to be.” Jonathan Briggs explains why
a failure on the part of the hiring manager and recruitment manager to define the job
profile with precision – and especially what new requirements the role may entail – can
result in hiring the wrong person.
Gary Knight, Group Head of Strategic Resourcing at First Quantum Minerals Ltd (FQML),
agrees: “When a vacancy arises, managers often assume they need to hire someone with
the same skills as the person departing. Hiring managers – with the help of their recruitment
colleagues – need to ask where the business is going and whether the role needs to be
changed accordingly. Every vacancy should be an opportunity to rethink the role.”
One-third of UK HR directors say that
every time they recruit a new board
member, they use a different process
Source:The Untouchables: Protecting your
organisation from leadership risk, HireRight, 2014.
10. “If a rocket’s fired and is one degree
off course, you don’t notice it much in
the first couple of seconds, but at 30
seconds it can be a kilometre or two
off course. It is similar with the hiring
brief – it sets the direction for
everything you do.”
Scott Fitzgerald,Talent Acquisition Specialist,
European Bank for Reconstruction and Development
“If I had my way nobody would be
able to conduct an interview unless
they’d received some form of
accreditation.”
Jonathan Briggs, Head of Talent Acquisition,
IP and Science,Thomson Reuters
10
researchCORPORATE RESEARCH FORUM
SOURCES OF RISK
2
• Failure to communicate
Good candidates normally have multiple irons in the fire, and will walk away if they feel
ignored during a protracted hiring process.“Feedback we receive from our candidates suggests
that how they are engaged by the potential employer throughout the process colours their
decision on whether to accept an offer,” relates Steve Wing.
With growing recognition of the importance of due diligence, a lengthy recruitment process
may in many cases be unavoidable.This need not mean that candidates will withdraw, provided
they are kept informed and engaged along the way.This may be as simple as communicating
time frames when an additional interview or test can be expected to take place. “The market
is tight, meaning time is of the essence, yet at the same time more robust screening and
selection are required,” says Scott Fitzgerald, Talent Acquisition Specialist at the European
Bank for Reconstruction and Development (EBRD).“To strike the right balance requires good
relationship management with all parties, both internally and externally, and making sure that
when you’re defining the process you put in a clear timeline right from the onset.”
An explanation of why a candidate wasn’t selected, along with some constructive advice on
areas for improvement, can also go a long way to building the employer brand. A lack of
communication throughout the process or a perfunctory rejection notice, on the other hand,
can move some to share poor feedback on social media.
• Over-reliance on one part of the process
Recruitment professionals generally regard interviews as a flawed but necessary part of the
hiring process. Multiple interviews allow hiring managers and other key executives to ask
probing questions of a candidate, and also to build a personal picture of his or her cultural fit
with the team and organisation. Interviews are only one part of the puzzle, however, and poor
questioning (see below) can limit their value.
This recognition led to psychometric and other forms of testing to become standard at many
organisations as long as two decades ago.The benefit for many recruitment practitioners has
been to add a substantial quantitative basis to the selection process. “There’s been an
increased emphasis on data in the past few years,” says Scott Fitzgerald. “This has pushed
tests to the forefront, because people want quantitative results that they can analyse and use
to justify their hiring decisions.”
Psychometric tests also have limits. Some high-profile examples of executive wrongdoing,
including lying about credentials, have involved individuals who went through testing when
they were hired. Likewise, testing plays an important role in assessing capability and fit but
cannot uncover flaws in ethical behaviour.The lesson is to weigh each part of the screening
process in a balanced fashion.
• Failure to coach interviewers
“Managers are generally not very good at interviewing,” says Gary Knight. “They default to
interviewing people based on their technical skills, and they base their decisions on whether or
not they like them.”This is a common complaint among recruitment managers interviewed for
this report. Most people involved in the hiring process, in Scott Fitzgerald’s view, have an
inflated impression of how good a judge of character they are.“This represents a big risk in the
interview process,” he says.
11. 11
researchCORPORATE RESEARCH FORUM
SOURCES OF RISK
2
Managers at all levels need coaching on how to conduct an interview effectively. Few
organisations provide this in a systematic way. As the resources at their disposal grow,
mandatory training in the art of interviewing may be expected to become more common in
management development programmes.
• Inattention to the ‘shopfront’
The recruitment portal on the employer’s website often serves as the candidate’s introduction
to the organisation, and his or her main source of information during the hiring experience.
Organisations must pay attention to the ‘shopfront’, which should be user-friendly and
informative for the candidate, and kept up to date. Like other elements of the process, a
professional looking and informative recruitment portal can help create a positive candidate
impression.
• Lack of discipline in internal recruitment
When internal and external candidates apply for vacant positions, they are not always treated
equally in all parts of the recruitment process. When it comes to screening, Steve Girdler
believes organisations generally have a less comprehensive approach to internal candidates
as opposed to external ones.
Lloyd’s Register, says Greg Allen, treats all candidates the same.An internal candidate must go
through the same interview process as externals, and is measured against a standard
competency framework from the job description.At senior level, internal candidates must also
go through the same external search process.“We need them to measure up to industry
standards and expectations,” he says.
Turning weakness into strength
“Don’t look for perfection in the marketplace.
A good training programme will help to address
a new hire’s weak areas.”
This advice from one interviewee has been taken
to heart by Northrop Grumman. Psychometric
tests, says Steve Bright, are instrumental in
helping the hiring team make the right decision
about a candidate. But their use doesn’t stop
with the job offer.A new hire’s weaknesses that
are identified in testing are a focus of the
company’s 90-day development plan. The four-
phase plan – encompassing pre-employment,
the first 30 days, the first 60 days and the first
90 days – incorporates standard elements of
most on-boarding programmes, including
personal goals set by the new employee, outputs
to be provided by their line manager and steps to
be taken by HR.As part of the plan, an internal
mentor is appointed who helps the new joiner
to navigate their way around Northrop
Grumman’s U.S. organisation.
The mentor, however, is someone who
recruitment and HR deem is best suited to
work on the new hire’s chief blind spot. Bright
explains: “If we hire someone with a good
aerospace background but who doesn’t
understand enough about the cyber-world,
then we’d appoint a mentor from the cyber
side of the business; that mentor will also
help explain how the U.S. organisation works.
Because if you’ve not worked for a U.S. defence
business before, it’s quite complicated.”
Bright’s team then appoints an external coach
who continues to work on the new manager’s
weak areas as identified in the psychometric
testing.The external coach may stay on beyond
the 90-day period if necessary. If the new
manager is senior, Bright himself will meet
regularly with the coach and the individual
to work on what amounts to a constant
development plan.
Northrop Grumman is far from the only
organisation to take this approach. Both
Thomson Reuters and Lloyd’s Register, for
example, takes new hires through the results
of their behavioural tests and discusses
potential areas for a development plan.
The biggest risks of not screening leaders
Damage to reputation of the business
Leadership which has negatively affected...
Damage to culture
Rise in fraud
Loss of company confidential data
Management that is not aligned with the...
Theft
Increase in staff turnover
Falling share prices
Decrease in company profits
58%
56%
54%
51%
50%
46%
46%
44%
44%
41%
Source: The Untouchables: Protecting your organisation from leadership risk, HireRight, 2014.
12. 12
3CROSS-BORDER COMPLEXITY
The key question for multinational organisations is: what degree of co-ordination is
necessary? Most – though not all – of the recruitment executives interviewed for this report
have sought to create a global recruitment template of one sort or another. All, however,
recognise that a highly centralised approach could do more harm than good.
Degrees of centralisation
“Our model is very de-centralised,” says Gary Knight of FQML. “We pride ourselves – in
recruitment as well as management decision-making – in being very nimble.We provide
guidelines, and expect people to take responsibility and accountability for working within
those guidelines whilst not stifling their ability to solve problems in different ways.”The
reason for the de-centralised approach, he explains, is simple: “All of the countries we
operate in are different.All of the roles that we are hiring for are different and require
different levels of intervention, so we don’t have a one-size-fits-all approach.”
Thomson Reuters, according to Jonathan Briggs, takes a regional approach when applying
recruitment guidelines.The US and UK are treated fairly similarly, he says, along with Europe,
but with distinct treatment of some European markets such as Germany. Asia is entirely
different: Japan, Singapore and Hong Kong are highly competitive markets for the types of
talent Thomson Reuters employs, and Briggs says the hiring process for many high-level
positions likely to take a lot longer there than in Europe or the US. External recruitment
agencies are also more commonly used in Asia than elsewhere.
At Lloyd’s Register, Greg Allen has developed a global template – based on an algorithm –
which specifies the different hiring conditions, including different rules and restrictions,
prevailing in each country where it operates.This, he says, has become an extremely useful
tool in managing recruitment risk at the global level (see the column).
Legal minefields
Vastly different hiring rules and practices around the world dictate the need for some local
flexibility. Steve Girdler points out that countries have different rules on background checks,
ignorance of which could land a company in court. Poland, for example, recently introduced
restrictions on credit and criminal checks. European courts are paying attention to where
candidates’ personal data gained during screening is held. If it is stored in the US – which has
different data privacy rules than the European Union – a European employer could face sanctions.
Candidates with international experience can make the screening process more complex
even in their home country, says Girdler. “If you’ve got someone who’s worked in Angola,
Saudi Arabia and Taiwan in the past five years, it’s going to take longer to check on their
employment history or their credit and criminal history than it will if they’ve never worked
outside the home country.”
Lloyd’s Register’s global recruitment
algorithm
Lloyd’s Register has developed an algorithm to
guide how it recruits talent in different countries.
Part of the algorithm, Greg Allen explains, is a
ratio that compares the actual time against the
theoretical time to recruit in each country.4
“The ratio looks at the time from application
and screening to first and second interview
that results in a placement. Through this we
can determine what the average recruitment
cycle looks like, and then compare that with
our theoretical model.” The ratio also takes
into account the relevant legislation in each
country – another indicator of how difficult it
is to source talent there.
Combined, these not only help determine how
effective the recruitment process is in the
country, but they also allow Allen to plan the
number of recruiters he will need to fill the
targeted number of roles there.“The algorithm
allows us to monitor and look at what we have
done in the past as a predictor of what we are
going to use in the future,” he says.
It all builds up to a global ratio.This enables
him to compare any country’s recruitment
performance against the global standard.“A
zero means that country has hit the target on
the nail; above zero means that it’s getting less
efficient, while under zero means it’s getting
more efficient.”
The underlining algorithm is reviewed and
updated about every two years. Now his team is
trying to determine if their recruitment success
rate has actually improved since they started
using it.
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In May 2015 Greg Allen was named In-House Recruitment Leader of the Year by the Recruiter website.
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researchCORPORATE RESEARCH FORUM
CROSS-BORDER COMPLEXITY
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Obtaining legal permits for newly hired expatriates is another risk. FQML hires expats to
work in its Africa mining businesses, and Gary Knight reports that the due diligence required
for a work permit or visa is getting more complex. “This is starting to become a challenge
in certain countries where we operate,” he says.
Cultural nuances
Tracking rules and restrictions should (in theory) be straightforward. Navigating the different
cultural norms around hiring in different countries is trickier. Background checking, for one,
needs to be tailored to the established practices in each country. In Japan, for example,
according to Jonathan Briggs, it’s not accepted for background checks to be intrusive or
aggressive. In some Asian cultures there’s a reluctance to ‘grill’ senior candidates in interviews.
The kaleidoscope of varying legal and cultural norms makes it difficult to enforce global
recruitment policies too strictly. Probation is another good example: not all organisations have
standard probation periods, but those that do find they are generally accepted, and adhered to,
in the US and UK. In other countries, and depending on the position being filled, probation may
not make sense at all.
Gary Knight says that FQML has a standard three-month probation period but it is not always
enforced strictly.“Who wants to admit three months after you’ve made an important hire that
it was the wrong decision? We need to educate managers more on how to use probation
effectively.”
Senior country roles at Northrop Grumman are too visible to have a probation period, says
Steve Bright.“After announcing to an ambassador or prime minister that you’re making a big
commitment to the country in hiring a high-profile individual to lead the business, you cannot
then say this person will be gone if they fail their probation period. Doing that would critically
undermine our strategy for the country.”
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4CHECKLIST FOR MINIMISING RECRUITMENT RISK
Define the recruitment process clearly, and establish accountability.
No business operations run effectively without clear processes to guide them – recruitment is no exception. Even if hiring
decisions are made by committee, someone must be fully responsible for ensuring the processes and timelines are adhered to.
Think global, act local.
Global guidelines are necessary to ensure the organisation’s core standards are met, both for new hires and the recruitment
process itself. However, every country is different – some degree of local flexibility is imperative.
Get the brief right.
Every position should be reviewed by the hiring manager when it becomes vacant and the requirements updated. Rigour at this
stage will help minimise the risk of a bad hire later, and could save time.
Explain and communicate.
Keep candidates informed and be clear about timelines. Explain the whole approach upfront including the process for any
outsourced companies, what they will ask for and why they are being used. Those who feel ignored or unwanted are likely to
lose interest in the organisation, and may harm the employer brand if they are vocal about it.
Train your interviewers.
Few managers always probe candidates effectively in interviews.Training in the art of the interview should be part of management
development programmes. Hiring and recruitment managers should at least discuss the line of questioning before interviews.
Beware gut feel – test thoroughly.
Personal endorsements and impressions gained in interviews have a place in selection decisions, but they only provide a partial
picture of a candidate.Testing is also just one part of the process, but it can uncover weaknesses – and strengths – not apparent
elsewhere.
Work on the new hire’s weaknesses.
No candidate is perfect – weaknesses uncovered in an otherwise strong contender for a role need not disqualify them.
Weak areas can be targeted in the candidate’s development plan after joining.
Good, ethical behaviour counts just as much as skills.
From a risk perspective, thorough probing into a candidate’s behaviour, through testing, reference checks and background checks,
is paramount. Skills can be developed even at senior levels; but it is a lot harder to change bad behaviour.
Talk with your corporate risk manager.
A hiring process gone wrong can have damaging consequences for a business. Keeping the risk manager up to date will create
a fuller picture for senior management of the company’s risk exposure. Much can also be learned from the risk function about
mitigation.
Make rigour in recruitment your organisation’s selling point.
Rigorous interviewing, testing and screening should convince candidates that the organisation is serious about doing things right,
and should also help strengthen the employer brand.
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15. 5CONCLUSION
So is successful recruitment an art or a science? In recent years a good deal more science
has been added to the body of recruitment practice in the form of psychometric and other
testing, advanced data analysis, and the use of algorithms and models. Gary Knight is one
proponent of the scientific approach: “We wouldn’t accept decisions about a sales strategy
or a marketing plan, or in any other part of the business, based on a manager’s gut feel.
Why should we do it with our people?”
The management of recruitment risk is not yet a discipline in its own right. It may never
need to be, provided the recruitment function as a whole, as well as the executives who
manage each individual hiring process, recognise the potential risks to their organisation of
poor recruitment management. The application of scientific methods will undoubtedly help
recruitment managers identify risks in any hiring process and plan accordingly.
But even for those who believe strongly in the art of recruitment, process and rigour are
paramount. “The best way to minimise risk in recruitment,”says Jonathan Briggs, “is to
have a really robust selection process. It is not having four people meet a candidate for
coffee. Not only do you get a better result, but a good candidate will have more respect
for an organisation that tests them through the recruitment process than one that simply
courts them.”
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