Talent Shortage “Tipping Point”…soon maybe!

Well signs keep pointing that way don’t they. If you are a decent business analyst in Auckland today then you are certainly a very sought after commodity for example.

The thing I feel that employers must keep in mind is the key HR practices.
Things like:
1. Is cross training an option or is the productivity curve to long?
2. Will our key people stay due to high engagement levels?
3. Do we act now or risk the counter offer war?
4. Who are our competitors for key talent and what are they up to?
5. If reward and recognition are the main factors behind people moving companies then are we doing the right things?

I have zero doubt that we are entering another talent short cycle but I do think we are at the early stages so there is time improve employee engagement and plan for the upcoming tipping point.
Workforce planning must have flexibility as a number one strategic imperative. Get the blend of Contractors and FTE’s right. The next thing I advise is some competitor mapping. This may be a bit new to some companies but I suggest this is also a strategic imperative. If you don’t really have a scan on what compelling opportunities might be in the market then don’t act surprised when people move on.
In certain skill sets the tipping point may be here now but generally I think its just getting very tight. This will be challenging for employers and recruiters!

Get the recruitment experience you want!

This may be over simplified but I believe two key words summarise how to have a rewarding experience using recruiters. These two words apply to both employers and candidates alike and also explain why the experience is sometimes more frustrating than rewarding for all parties.

1. Commitment 2. Communication

Some background… Recruiting is a ‘noisy’ profession. By this I mean it’s very high demand on consultants in terms of managing the expectations of both employers and candidates and it’s a high volume of activity task. Furthermore, all three parties (candidate, recruiter, employer) often engage in a process that is destined to frustrate due to its lack of appreciation of all the factors that need to be aligned for a successful outcome. GUILTY all parties!

For employers consider some key factors in a successful recruitment assignment and then ask yourself how often we mutually manage these effectively:

1. A well defined job and person specification

2. An agreed candidate sourcing plan

3. A signed off selection methodology

4. Pre and Post interview briefings

5. Controlled negotiation for offer and acceptance

6. On-boarding

For candidates consider these factors:

1. A clear brief on what you want

2. Immediate communication once anything changes

3. Total commitment to a decision once the brief is met (including ignoring any counter offer temptations)

4. Full communication on why you are seeking a change and your critera for acceptance

5. Clear examples of what you have done to add value to a previous employer

Layer these factors with the conflicts of Time, Change, Human Behaviours, Cost and Capability and we can appreciate where things can go astray. Yet we continue to put up barriers to successful experiences.

Example: Employers throw out poorly defined job specs to recruiters on a contingent basis, sometimes via an in-house recruiter who hasn’t had time to fully understand what is really wanted, recruiters then run off and have a quick go at it because speed is more important than quality. Candidates receive a quick call and very vague job brief and the process has begun… often all parties get what they committed to… a frustrating experience!

Two things can change this whole cycle for the better. (Employer, Recruiter, Candidate)

1. Commitment. Make a mutual commitment to each other. Work exclusively with one recruiter. The recruiter can then make a commitment to all parties to do their job properly because they know they will be rewarded for their efforts. Considerations of Time, Cost and Quality can then be managed in a controlled and professional manner which is surely a better result.

2. Communication. We are dealing with people. Everyday life intervenes and something changes which will have a bearing on the outcome. Candidates must keep recruiters fully informed, employers must de-brief candidly, recruiters must keep both parties fully informed and engaged at each milestone. If this happens then the experience can be a good one regardless of final outcome but if not then it’s rarely so.

Mutual Commitment and Great Communication can change everything.

Braindrain!

Two threads of information I’ve noted from Twitter over the last week cause some concern for employers in NZ.

1. 60,000 new jobs to be created in the mining sector in Australia over the next few years.
2. 35% of ICT professionals have indicated a desire to move offshore for work over the next couple of years.

Both items paint a picture of an increase in our already significant braindrain trend.

Do we have any news of anything that may lead to a reversal of this trend?

Top 5 changes in recruitment!

Reflecting on 23 years in this industry I was wondering what the top 5 changes have been?

In no particular order how does this look?

1. Applicant tracking recruitment software
2. Job Boards
3. In-house recruitment teams
4. The evolution of master vendor, managed services and full recruitment process outsourcing offerings
5. Social media recruiting

They seem the most significant in terms of changing how we think and operate.

Any thoughts?

Talent Shortage approaches “Tipping Point”

Is it possible that so soon after the GFC we could be trending towards a human capital marketplace whereby demand is outstripping supply?

It seems the answer is yes! According to an article published in CIO magazine in Australia last week an ex colleague of mine is quoted suggesting that demand for critical IT specialists will return to pre GFC levels by the end of Q2 this year. Richard Fischer is now MD of Greythorn in Australia and is well positioned to accurately reflect market conditions.

I must concur with him when reflecting on the state of the NZ market. (I’m referrring to the ICT sector here). We now have clients very actively seeking specialists in both contract and permanent capacities. This is in stark comparison to just six months ago when uncertainty and indecisiveness prevailed.

So what? Well at this stage I can only recommend vigilance and a focus on workforce planning. If you feel exposed by a stressed out workforce or light on critical skills then don’t procrastinate. Acting early could be the best plan as it may be harder to find who you want than what you are recently accustomed to and don’t assume the market is flooded with specialists awaiting an opportunity. It isn’t and it may get tighter.

Engage with an agency of choice and commit to a proper sourcing strategy. Recruiting will be back to the top of management KPI charts in no time!

http://www.cio.com.au/article/346206/it_workers_stick_their_guns_through_gfc_survey/?fp=4&fpid=51242

Outsourcing to NZ!

As salaries rise in Australia could we do more to promote NZ as a viable outsourcing destination?

I read with interest an article last week about how tight the talent marketplace has got in Australia. The article even stated that mission critical projects were at risk due to a lack of skilled resource.

Two immediate solutions come to mind:
1. Source some talent globally and NZ is low hanging fruit for good people!
2. Perhaps NZ consultancies should be proactively sourcing projects from Australia and utilise their NZ workforce for this deliverly!

An opportunity or at least an interesting trend to observe I think?

It’s “Counter Offer” Season…

… and I reckon it’s a mugs game for both the employer and the employee.
The counter offer is a knee jerk by employers to suddenly show their respect to an employee by promising the world will change and here is some money to accompany the promise. For the employee it’s often either a bargaining chip for a few extra dollars or a last chance extension of their tolerance for the employer. The fact is that it only has a 20% chance of success for either party. 80% of the time the employee and the employer have parted ways within six months, FACT!

So don’t get into the ‘counter offer’ war as it’s more about ego and winning or losing than addressing the real issues.

Why is it happening now?

Well in my opinion its because as we see more opportunity in the market employees will feel the urge to move as the last 18 months of battling through the GFC havn’t been very rewarding in most organisations. Remember that Reward and Recognition are the top two reasons people leave their jobs.

If you’ve got a beef with your employer deal with it before you enter the job market and don’t be fooled by empty promises at resignation discussion. As employers we need to reward and recognise our people now not on the day they resign!

Bounce…

2010 has got off to a busy start in terms of increased new job listings. The rhetoric is also pointing towards a busier recruitment marketplace.
I am getting the sense that organisations are committed to getting on with projects and growth plans by locking in new key people with much more urgency. State Sector is lagging this trend but certainly they too are in advanced planning for significant projects.
Our sector should be optimistic and keep our focus on relationships and quality delivery.

Actions speak louder than words!

I have to give a wrap to a colleague of mine this year as he has had his best year ever. The simple truth is that he has totally ignored any talk about the GFC and just got on the with basics. See people, listen, build relationships and deliver results.

As the Xmas break nears and we reflect on the year thats been I bow my hat to someone whom has had a fantastic year by setting goals and just doing it!

Great example for me and others… I like it!

Game Changing!

“09 is Game Changing?”

In my 21 years in the IT recruitment industry I think we may be just be coming out of the most ‘game changing’ period I have seen. Sure 1990 was tough post the ’87 crash and Y2K created huge opportunity, then a following lull, but this may be different!

1. The flexible workforce is now a reality!
2. Price transparency and value is for real!
3. Social networks is the great technology enabler!
4. “people are our most important asset”… this Mantra will now be tested like never before!

Flexible workforce: Yep. Short-term, fixed term, part-time, job share, hourly rate, fixed rate, daily rate, work from home, virtual workforce, webcasting, crowd-sourcing or cloud. Whatever it takes and whatever is affordable is driving very creative workforce solutions. This is now a reality and is a change that must be embraced by employers, recruiters, candidates, HR professionals and consultants. Whilst the rhetoric has been around a while we are now genuinely seeing these solutions being deployed with greater acceptance.

Price & Value: Perhaps it the stark financial reality everyone has needed to face that has finally cut through cultures of excess and lack of accountability. This has demanded an honesty amongst executives and suppliers that has driven price down where value didn’t equate. From this moment I reckon that value will be much more closely aligned to price especially in the services and consultancy supply community. People will still pay well for value but won’t accept excess.

Web 3.0: Social Networks are growing at such a rate that embracing it is the only option. Relationships, trust and knowledge will always underpin ultimate success but online branding and community development will drive our sourcing strategies, brand recognition, reputation and ultimately our effectiveness. Think price and value as above! Relevance to our audience and tools to reach them is extraordinarily challenging yet exciting for our industry. We’re all ears at this stage as we navigate forward trying out new tools and techniques!

“Yeah Right”: As green shoots appear company cultures will be tested like never before and lip service to employee engagement practices will come at a hefty price. Opportunities offshore will begin to open up again and a candidate short market will re-appear sooner than some think. Corporate behaviour over the last 12-18 months may just determine their success over the next 24 months. Some of the brutal treatment dished out by some large multi-nationals could come home to roost as people once again have choice.

Overall we see much more positivity than we did even 3 months ago. Unemployment forecasts and being reduced and most companies are cautiously optimistic about the year ahead. Have a happy and safe Xmas break.

Mark Chote
Managing Director
920 career agents

Follow

Get every new post delivered to your Inbox.