We’re doing things a little differently…

There is a BIG problem in the title of this piece that is reflective of the Recruitment industry.

Consulting in general is all about value proposition. ‘Where, and how do I add value to this scenario?’ So if we’re adding value, why do we feel the need to exclaim “We do things differently!”?

On a transactional level, recruitment is only successful if you have all 3 corners of the triangle. If any one of these is missing, then there is no success.

Transactional success is different to value. You can have transactional success without being seen as adding value to the industry; and so often this is the reputation of recruitment consultants. Typically, large recruitment organisations are labelled this way as a result of pushing their consultants with high KPI’s (how many cold calls; how many CV’s sent).

The problem this high-transaction behaviour develops is the commodification of people and relationships. People quickly become frustrated by being treated as a commodity, hence the recruitment industry getting a bad reputation. However, this is not limited to large consultancies.

What consultants seem to forget is these candidates have career ambitions, families, and mortgages. As do we all. There is no excuse for consultants not taking the time to extend their professional courtesy with each of their candidates.

In one of my earlier blogs http://selectionpartners.com.au/what-marine-biology-taught-me-about-recruitment/ I talk about the quality staples of our industry:

• Speak the truth, and offer transparency around your process.
• Keep open lines of communication. People need to be informed and kept up to date.
• Maintain your empathy. Filling a role is not just a statistic and a commission. These are people with goals, ambitions, families and mortgages. If they are unsuccessful, they don’t need your pity, but they do expect and should receive your professionalism.
• Build quality relationships with your clients and your candidates. These people will truly value your relationship, your knowledge and professional courtesy. Given the opportunity, these people will want to help you also.

If you’re adding value to your relationships, invariably these relationships will come back and add value to you and your organisation.

At Selection Partners, we do things differently! I wish I didn’t have to say that.

Who’s excited about the upcoming election? Don’t worry, me neither.

I have long abandoned my engagement in politics as a spectator sport. I sense that I’m not the only one that is frustrated with our state of government, and the hopelessness I feel when the day arrives that I’m told it’s compulsory that I vote, and I lose my Saturday.

I don’t support ANY government policies, just as these government policies don’t support me or my views. If we were running a true representative democracy, we (the people) would be asked what we want. We would be able to vote on individual issues, rather than have two parties spend millions of dollars telling us how good they, and their policies are. We know that once they are elected they will do whatever their corporate sponsors want them to do.

Admittedly, voting on individual issues in our current system would be nothing short of a nightmare! I couldn’t imagine lining up at the local polling station, getting my name marked off (so I don’t get fined), and put my ‘X’ in the box of every single issue in debate. We’d be saying goodbye to 52 Saturdays a year! But it doesn’t have to be this way.

How about a smart phone app where a policy suggestion is a pop up that people can respond Y or N to instantaneously? A digital solution where data is collated and tallied instantly. Issues could be raised by individuals, groups, or organisations and if they achieve 100,000 signatures (through a change.org type platform) it becomes a national vote. Easy. This would be a representative democracy where THE PEOPLE decide what the real issues are.

Whilst I just thought of this as a possible innovation off the top of my head; I’m sure there are smarter people than me that can come up with even better solutions. But even what I have just mentioned sounds a lot better to me than having politicians tell me what’s important. Telling us where and why we need to increase taxes and cut support and benefits. I don’t swallow any of it!

Why don’t I? Glad you asked…

You’re selling us (up the) what?

The 2013 prediction that for the Federal Election Campaign spending to reach $90m. I would guess that this would be a conservative figure for this year’s election campaign.

It makes me sad to I consider how much these advertisements annoy me, and the fact it has been estimated to ONLY cost an extra $68m a year to house domestic violence victims! That’s just one option, and so begs the question, could this money not be better spent? Surely I’m not alone, loathing having to digest the seemingly endless advertisements of politicians peddling their self-interests leading up to elections.

It pays to be worldly.

Considering that company tax in Australia calculated at 30% (a figure any business owner in Australia will be well aware of), there are some interesting declared tax payments from some of Australia’s largest companies. Privately owned companies earning more than $200 million in revenue were captured under the tax transparency measure, which picked up 321 firms. The Australian Taxation Office said 98 of those firms did not pay tax in 2013–14!

Google pays less than 0.2 per cent tax in Singapore on the estimated $2 billion paid by Australian companies as revenue for Google ads. The reason for the low tax bill is that despite the huge revenues, Google reported a profit of only $US1.9 million in Singapore in 2013. While Google, Apple and Microsoft channel most of their Australian sales through Singapore, corporate filings there show that all but a tiny fraction of these earnings are passed directly to tax haven structures through royalty and licensing agreements.

Want another cracking example of why Australians need to pay their fair share? Chevron paid ONLY $248 tax on $1.7Bn profit in Australia!

A 29-year-old accountant and father-to-be is facing jail for lifting the lid on a global tax rort worth trillions, when he downloaded documents from his employer PriceWaterhouse Coopers in Luxembourg. These documents discovered that in just one year, 10 companies operating in Australia shifted $31 billion to Singapore where they paid hardly any tax. More than $100 billion was shuffled through Singapore in 2013 with 1,470 companies involved – a 50 per cent lift on the previous year.

You don’t need to be an accountant to calculate how much tax revenue that would be here in Australia, and what that money would do for our economy.

Spending time at sea.

The world I see today is a global village, multicultural, digitally connected, and dominated by global brands. It is a vastly different world from 100 or even 50 years ago. Threats to stability and peace will more than likely come from within our own borders. World domination is more by corporate interests trying to squeeze every dollar out of the resources they consume at the expense of the people and the planet. Arguments about economic inequality and climate change aside, I believe there is disparity between the government budget priorities and the modern-day challenges we are facing.

An example of this is the recent announcement that the Government will provide Defence with $31.9 billion in 2015–16 and $132.6 billion over the Forward Estimates. This includes the AUD$50Bn contract recently won by the French to deliver 12 new submarines to the Australian Navy.

Obviously this is in the interest of our national security – the old submarines certainly came in handy and they definitely need upgrading. Whilst I’m quite cynical about this as another gross waste of money, I know and appreciate there will be a lot of differing views about this. My point being: If people in the community (i.e. The Australian Navy) wanted to spend AUD$50Bn on 12 new submarines AND this was topping their priority list, then they could put a business case together (on Change.org or the like) get 100,000 signatures and send it to a national vote. I wouldn’t vote for it, but maybe 24 million other Australians would, and the outcome would be fair. However, we didn’t have a say.

I am almost certain that I’m not the only person disillusioned by the current state of affairs, and thinking there must be a better way. I hope to see more people discussing opportunities for improvement of our political system. I, for one, am listening.

In the meantime, I guess it’s time for me to waste yet another Saturday at the polling booths. 

No dearth in the SPAM market……Or variety for that matter!

This morning my Junk email folder housed four new emails – all as fresh as a daisy (Good job Microsoft by the way). Whilst I am alarmed that the volume of spam I am getting is ever increasing, I am more alarmed at how un-original these attempted scams are. Four of the five emails received were identical except for the sender’s name. This lack of variety would alert even the most gullible of recipients.

I can only think about these poor underprivileged (would-be) scammers wasting their time on a Sisyphean task that I can’t see any potential of success. Or am I wrong? If people actually fall for these ill-thought-out and artless cons, it seems there are larger issues at hand and the human race is doomed!

Back to my point, assuming that each and every one of these spam-scams end up in the recipients junk folder and subsequently deleted; are there no better endeavours for these scammers? Then I consider how many people are wasting their time on these activities, and the resulting lost productivity. There are better pursuits out there people!

Even rudimentary IT skills (like email set ups and mass-mailings) should be able to find legitimate employ. Perhaps scammers, it’s time to collaborate and use your collective wits to embark on an honest enterprise together. You may surprise yourselves.

Recruitment in 2016

As outlined in my 2015 Recruitment Forecast (here), there has been a lot of change in Australia, and globally for that matter, in 2015. Locally we have seen our infrastructure sector kick into gear after what has been 3 years of very low activity.

The most significant influences in the Australian economy in 2015 has been:

1. A dramatic downturn in the mining sector (after the ‘mining boom’ of recent years); and
2. Soaring demand in the residential property market. Property demand and corresponding sale prices fuelled by international (largely Chinese) investment.

Residential construction is at an all-time high in Australia, the question is will it now start to taper off; and where will the growth areas be?

Infrastructure:

Finally the pistons are firing in the infrastructure sector! We are seeing unprecedented infrastructure investment, particularly in transport. Not only is there significant investment in projects, but there has also been a lot of M&A activity in this sector, particularly in the Tier 1 and Tier 2 sector. This provides a lot of strategic sourcing opportunities for well-versed recruiters.

Projects that are currently in start-up are:

Construction

In 2015 the construction sector has largely been focused on the residential sector. Whilst this will continue in 2016, new project numbers will decline in line with housing demand. However, we will see the construction sector continue to be buoyant, moving to a more traditional balance between residential, and public and private sector jobs in health, education, defence and sporting. I don’t see a residential market crash as purported by many media outlets.

Mining and Resources

The Mining sector is continuing to slump with falling resource prices. This is not forecast to change within the next 18 – 24 months.

Digital

Digital innovation is continuing to shape the way we live our lives, communicate and market our businesses. Australia’s new Prime Minister, Malcolm Turnbull is an avid innovation and start-up sponsor and venture capitalist. As the core of most disruptive innovation businesses is a digital solution, I believe this sector will continue to demand talent.

Resourceful recruiters will look to pool talent internationally, and from within our tertiary education sector. The offer of Australian sponsorship, strong salaries and desirable work environments being significant draw cards to securing talent.

Financial Services

In general the financial services sector in Australia has been underperforming since 2008. Whilst the big 4 are still posting incredible profits, they have lacked growth. The recent interest rate hike will boost forecast profits, and a change in C-Level executives will spur innovations and provide renewed focus in establishing new growth sectors. This will provide opportunity for change, an environment where resourceful and astute recruiters can prosper.

Manufacturing and Supply Chain

The drop in the Australian Dollar has fuelled the Australian manufacturing and supply chain sector which is now in positive growth for the first time in years. Whilst growth figures are low, the export market will continue to grow as long as the dollar remains low, and sourcing goods locally may become more attractive.

Where is the balance? 

The age-old debate around work/life balance continues…

The simple truth is that the way we work has changed dramatically. This may be due to globalisation and the requirement to work across multiple time zones; greater requirement for travel; family impacts; project deadlines… Luckily, rapid advances in technology have assisted us to adapt, stay connected and work outside of the office, and outside of office hours. So why would we still need to sit in the office for our core hours as well?

In an article in the Sydney Morning Herald on November 19, 2014 (http://bit.ly/1Mflo9u), Anna Patty reports that work-life balance is getting worse for Australians.

Is this subjective feeling justified? Are workplaces continuing to be inflexible? Anna covers this as well:

Unfortunately so much time can be wasted in our workplaces due to archaic practices that may no longer be contemporary. These include; unnecessary meetings or rigid hours of work resulting commuting in peak flows among others.

In an article in FastCompany on September 29, 2015 (http://bit.ly/1WOiuA3), Adele Peters shares a number of workplaces in Sweden which are adopting more efficient workplace practices and moving to a 6-hour work day. But is this the answer?

One perspective for a better solution is for workplaces is to adopt an outcome focused environment. This would involve setting tasks/outcomes for individuals with clear communication and deliverables. These may be on a daily, weekly, monthly, or even quarterly basis. The outcomes can then be measured, as opposed to the inputs.

Efficient people may get their tasks done more quickly than others, or achieve more in the same timeframes. Less efficient people can learn to adopt smarter ways of reaching their deliverables. Rather than enforcing efficient workplace practices through managing and monitoring, employees will seek to optimise their time to produce the appropriate outcomes.

Technology often allows people to work anywhere at any time, which can allow employees to choose whether they wish to sit in an office; vary their office hours; or conduct follow up work outside of normal hours when the kids are asleep for example. The benefit of this is that employees can learn to prioritise their time to achieve balance, whilst employers get a happier, healthier and more productive workforce coupled with clear and measurable outcomes.

If your organisation or department does not currently embrace work place flexibility and you feel you could perform more effectively in your role if this were the case, then perhaps you could consider the following;

• Think about what flexibility might look like specifically for you. Write this down so that your employer fully understands what you are seeking and why
• Check your company policies to uncover if a flexibility policy does in fact exist that you could take advantage of
• Create a business case which outlines how this flexibility will enable your effective performance
• Speak to others who may be working under flexible arrangements to generate supporting information
• Speak to others in your organisation to assess the impact on them and customers
• Have a conversation with those in your organisation who are in the position to help implement this change

As identified by the Australian Government’s Workplace Gender Equality Agency (here: http://bit.ly/1MhFpvZ), it is beneficial for business leaders to lead by example when implementing any workplace change strategy.

Large organisations such as NAB, AGL and the like have terrific work place flexibility policies.  Many other medium or smaller sized organisations have less well formed policies.  When approaching your employer always keep in mind the impact of this change may have on your employer, efficiency, productivity and customer service.  

Culture is key
Company culture is at the heart of Icon’s business, and determines all new hires. Management are in place not to give orders, but to support staff from the top down. Icon have managed minimal staff turnover, even in Sydney, where the construction market is booming, and headhunters are out in force. If staff have nowhere better to go, they will stay!

Know what you do well
Consistent growth through delivery of an outstanding product at profit is a challenge in the Australian construction market. Notwithstanding the temptations of opportunities in other sectors, Icon have maintained their focus in the residential sector where they have an outstanding brand and reputation for quality, and know how to consistently deliver. This ‘bread and butter’ business provided Icon a platform to strategically plan and position the business for future growth.

Strategy and planning
Icon’s strategy has always been razor-sharp. Whilst they have maintained their focus on what they do well, their strategy for growth and diversification has been developing behind the scenes for some time. Entering the NSW market in 2011 was a calculated entry, executed with impeccable timing to simultaneously acquire the Southern Cross business.

Forward planning is crucial in what can be a volatile construction market. Utilising the appropriate technologies and mastering their full functionality can be a vital tool for project planning, staff allocation, hiring, and budgeting. Appropriate planning mitigates risks, enables staff to feel secure and remain focused.

Relocating your best people to another state to replicate your business won’t (necessarily) replicate the same results
Icon have always been clear about one thing: Culture is key. Further, when establishing interstate operations, the best people to run said operation will be local. Different states and territories have different cultural nuances in the way business is conducted. These slight variations can have a significant impact on a new business in an unfamiliar landscape. Much of Icon’s success stems from searching and finding a local leader. Someone who understands the local landscape, has strong client and subcontractor relationships, but also shares the same core values at the heart of the Icon business.

The art of good business is all in your Customer Service
Customer service should be part of every businesses value offering, and these courtesies should not just be limited to your clients. Great customer service is the foundation of forming sustainable relationships. In a competitive market these relationships can win your business reliable and loyal subcontractors; drive your brand; and word-of-mouth marketing will build your reputation among clients.

Whilst these points pertain to the construction sector, most translate across various industries.

These opinions are my own, formed from studying the success and growth of the Icon Construction business in Australia. If you have any thoughts on proven successful business practices, please feel free to comment, or send me an email.

Attract, Change, Develop, Transition

The above key growth outcomes are the staples Selection Partners is built upon. We consult and deliver assignments to our clients to assist them to manage outcomes in these key areas. Namely via:

• Attracting new talent to businesses through search campaigns;
• Working with businesses to manage and optimise change;
• Developing staff capabilities through executive coaching and training; and
• Transitioning staff from organisations and in to new endeavours through our managed outplacement service.

Being a talent consultancy, however, doesn’t mean we are impervious to the same challenges that our clients face. We are like any other business that faces organisational and cultural change with growth, and new talent joining the organisation.

 I joined the founding two Directors of Selection Partners at the beginning of 2013. In two years the business has now grown to 10 employees in Victoria’s Head Office, and a new office now established in Brisbane.

In recruiting each new employee, we have to balance talent considerations (are these the best practitioners available in the market to represent our brand), as well as whether these individuals fit the Selection Partners culture standards. Each new employee inevitably impacts the office dynamic. For us, so far this has been done effectively as newcomers complement the existing personalities and the office continues to work cohesively.

 Personality considerations are paramount and as such, each of our new employees undertake not only SPQ Gold to gain an understanding of their consulting capabilities, but also Facet 5 personality profiling. This rigorous testing not only shows new consultants some of the tools we use, and their application with clients, but also gives us the understanding of how this person is likely to work in the Selection Partners business.

Outstanding talent can always be incorporated into a business. These aforementioned tools provide an understanding on how to relate to and communicate with new employees. This understanding will help to ensure a smooth and harmonious working environment, and ultimately the company’s growth and success. We don’t want everyone to have the same personality, we want a diversity that works cohesively and delivers an outstanding service to our clients.

 How do you mitigate poor hiring decisions in your organisation?