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Shouldn’t HR be able to recruit their own people?

Mindset Group - Tuesday, May 11, 2010

By Aaron Dodd, Operations Director

A couple of days ago a Twitter acquaintance of mine Ellison Bloomfield posted in her blog the rhetorical question; shouldn’t an internal HR department have the skills and knowledge to be able to recruit their own people?

Good question. Even though it was rhetorical, I’m going to answer it anyway as it’s a pet topic of mine. My view is this; recruitment AND selection are very specialised competencies within the overall scope of human resources management.

Not all HR Managers will have the necessary skills, commercial knowledge or time to be able to effectively do one or both. Often, particularly with senior executive search assignments, it will also be next to impossible to carry out the assignment appropriately via internal resources. Many companies have recognised this. Some bigger blue-chip companies even have specialised external recruiters sitting full time in their offices sourcing candidates (the RPO model). Some companies have specialised Recruitment Managers sitting within their HR teams. These examples are recognition enough of the specialised nature of recruitment and selection.

So what are these specialised skills?

Dictionary.com defines recruiting as; (the activity) to engage in finding and attracting employees, new members, students, athletes, etc. This is a very broad definition, and I draw distinction between “recruitment” and “sourcing”. Sourcing is the most difficult skill to acquire within the scope of recruitment activities. I’ve always held that anyone can recruit. In the traditional sense, recruitment is about drafting an advert and getting it out there on job boards, newspapers etc, wherever it will be seen (hopefully). Using this methodology certainly has a luck component. The success or otherwise of the advert will also largely depend on the language and marketing skills of the person writing it.

This form of recruitment is also largely a passive activity as an ad is posted and then one sits back and wait for the applicants. Sourcing however, is a much more active approach that involves detailed detective work, networking, market and/or industry knowledge, intuition, guile, time and persistence. A good sourcer (or researcher as they are often known) will uncover passive candidates and other potentials who are NOT out actively looking for roles. This is executive search methodology. These are difficult to acquire skills almost always outside of the scope of generalist HR personnel. At Mindset, it is the skill of our researchers in uncovering this so-called hidden talent that has made us so successful. Our researchers are one of the reasons why we are regularly engaged by HR Managers to find talent for their organisations.

The other and most important part of the process is selection. This is the choice of candidate (if any) from the available pool of talent that has been sourced by advertising or research.

In her blog Ellison goes on to ask; how well can a recruiter with an agency really know a position? Or, for that matter the personalities of the people in the team or the style the manager wants. Again this is a good question.

A skilled and competent selection consultant (this is distinct to a recruiter) will have taken the time to meet with and understand the often multiple stakeholders in the role. They will understand the company and its business as well as the internal and external issues that the company faces in order to achieve its goals. The more assignments a consultant carries out with a client the better they will know it and the more value he or she will create for their client. Further, if a consultant is a specialist in a field, say engineering or finance, they will often always be better at determining technical skills and experience than a generalist HR practitioner.

A company is only as good as the talent it is capable of attracting and retaining. As such, a skilled and commercially astute recruitment/search and selection partner will become a vital trusted advisor to a client. Their skills in attracting talent to the organisation can often have a positive strategic impact second only to the product or service that the client actually delivers.

And that is why so many companies turn to recruiters rather than their HR personnel to find them their people; their strategic advantage.

Life’s too Short to be a Drone.

Mindset Group - Thursday, April 15, 2010

By Aaron Dodd, Operations Director

The other day I took a call from a young HR practitioner enquiring about a position with Mindset as an HR consultant. She is a graduate with a good couple of years experience at officer level in public service and an SME. She was disillusioned with her current role feeling that it was too administrative, lacked intellectual challenge and wasn’t strategic enough. It was clear she had a real passion for HR and true belief in what good “HR” can do for a business and ultimately its bottom line.

Unfortunately we weren’t able to offer her a role, but her predicament is all too common. Many people study HR at University/TAFEs for either the wrong reason or because the profession has been misrepresented to them. After a couple of years in the “real” commercial world it dawns on them that they could well have made the wrong career choice. They then fall into one of three categories;

  1. Those that give in to the system and become administrative drones, often becoming increasingly bitter and institutionalised over time.
  2. Those that fight on valiantly against the forces of evil to try to effect change in their organisations and realise their dream of what HR should be for the business. Some will succeed, most won’t. Those that do succeed will go on to have stellar Director level careers. It’s a tough gig and I tip my hat to those who have beaten the system and made it.
  3. Those that leave the profession completely.
When I talk about “the wrong reason” to go into HR, the most common ones that I hear when I ask HR people why they did it are “I love people” or “I love talking to people” or “I love helping people”. For HR to be relevant and a vital part of the commercial world these practitioners need to understand that their role is to muster their available human resources to deliver the business strategy effectively and efficiently so as to deliver the best possible bottom line for the company. HR people must remember that they are their company’s advocate NOT the staff’s.

By “misrepresentation” I mean that they have been sold a pup by academics. Many HR academics that I have met know the theory intimately, have a passion for the subject, but lack real world experience and thus have a totally deluded understanding of how HR is perceived by most decision-making business executives. They are akin to Catholic priests giving marital advice.

So why couldn’t I help out my young HR practitioner? Through no fault of her own, she simply needs more commercial experience. A successful consultant is a salesperson. It is no use having the theory and the ability to deliver if you cannot win the assignments in the first place. To be a successful salesperson selling HR consulting services requires a broad and thorough understanding of business, finance, commercial issues and strategy. Being able to engage with a Managing Director or CFO at this level so as to be able to quickly and succinctly identify their BUSINESS issues and present AND CLOSE an HR solution is paramount. Then, and only then, will your HR delivery skills come into play.

So for HR people who are looking to move into HR consulting or make yourself more relevant to the/any business, I urge you to develop your business skills and your networks (not with other HR people, but with business people). Learn to sell. Leave HR for a while. Work in other disciplines (particularly sales). Gain experience. Don’t waste your time with administration-oriented HR diplomas, study business, do an MBA.

Whatever you do, don’t take the first option. Life’s too short to be a drone.

Questions raised about current HR practices in SMEs

Mindset Group - Wednesday, November 04, 2009

James Thomson from Smart Company has written a great article about the findings of a survey conducted by compliance and governance firm CompliSpace. The survey shows that Australian SMEs have not done enough to understand the effects the final phase of the Fair Work Act will have on business. 

The survey claims that 47% of organisations with 50-200 employees believe that management does not have a good understanding of the key changes to be introduced in the final phase of the Fair Work Act, including the introduction of the National Employment Standard and the Modern Awards.

The survey raises questions about current HR practices in SMEs.

Specifically, the survey found:
- 44% of respondents do not maintain copies of the relevant awards and/or agreements that apply to their organisation.
- 26% of respondents do not have an effective internal communication platform to provide all staff with easy access to current company policies and procedures.
- 33% of respondents do not adequately maintain an up-to-date suite of policies and procedures that deal with general conditions of employment.

The best way to protect yourself is by ensuring you have up-to-date, clear and concise paperwork including documented workplace policies and written records of staff dealings.  This can be a time consuming process, if you take the time now you will avoid difficulties in the future. 

Leadership commitment

Mindset Group - Wednesday, September 16, 2009

HR Daily have written an article explaining that the brands of top-performing companies are characterised by an emphasis on the experience of employees instead of customers.

The article explains that the “best employers” are differentiated from other employers in five key ways, one of these areas is leadership.

Leadership commitment
Leadership commitment is the fundamental starting point for high-engagement employers, David Clarke says. "This commitment is not about saying the right things, but exhibiting behaviours and making decisions that clearly signal people are their greatest asset."

The behaviour of leaders needs to demonstrate that developing and retaining strong talent is a critical element of business success, he says, "but their role goes beyond this. Leaders in 'best employer' organisations play a pivotal role in defining and championing the organisation's values and building a culture and an environment that values people".

Leaders, he says, set the tone through their openness, involvement and leadership style. "While they instil a strong sense of accountability, they also make a commitment to growing and stretching their people."

Clarke notes that while senior leadership is generally ranked in the top five most important engagement drivers during stable times, it ranks in the top two during times of change.

"Clearly, in the current economic environment, it is critical for leaders to demonstrate their commitment to the people in their organisation, and ensure that this message is effectively cascaded to managers."

Where HR can add the most value

Mindset Group - Wednesday, August 26, 2009

The HR leader and Libby Sartain have reported that CEO’s now rank HR as one of the functions that adds the most value to their organisation. CEO’s commented that people issues, such as finding and keeping the right talent and building a high-performance culture, are at the top of the corporate strategic agenda as keys to sustainable competitive advantage. By focusing on HR you can easily add value to any organisation.

Where HR can add the most value
Start the culture conversation at all levels. One way to accomplish this is to conduct a cultural assessment or audit of your organisation through employee surveys, focus groups or interviews. Review your organisational history, leadership styles, HR programming and industry practices to determine what currently drives and reinforces the culture. Finally, what is your customer experience? What cultural elements are obvious to customers? Is culture aligned with business strategy? Where are the disconnects? What needs to change? This can be the basis for healthy discussion at team meetings and employee chat sessions.

Develop a business case for cultural change. Why is the change needed? How will desired changes in culture support the business strategy?

Work with the senior leadership team to determine the desired culture. Core values, desired behaviours and shared vision are essential for a positive culture change effort to succeed. Every leader must embrace the need to change, or it won’t happen. Senior leaders must make new behaviours their way of life to reinforce desired change.

Develop an agenda or action plan for enhancing the culture or bringing about change. Start with the highest priorities and work on the toughest issues. For your culture to become self replicating, the way things are done will have to reinforce the core values and the culture.

Communicate what needs to change and why. Solicit input from people. Once the needed changes and process for change is defined, tell people what is expected. What are the rewards for changing, and the consequences for more of the same.

Change the organisational structure to enable change. Find new ways to accomplish work tasks. Use teams for one-time projects. Broaden roles and responsibilities.

Acquire talent based on cultural fit. Identify the characteristics of people who exhibit those behaviours that you’ve identified as desirable. The people who fit and thrive in your culture will perpetuate that culture in everything they do. If you have to choose between the candidate who has better skills or knowledge but doesn’t fit, and a candidate who is slightly less qualified but fits culturally, choose the slightly less qualified person and provide the necessary training or on-the-job experience. Get rid of those who don’t fit in the culture.

Redesign your on-boarding process. Make sure that every new hire knows what it will take to fit in, and understands the cultural imperatives. Talk about the ways of working that lead to success and those that will derail careers. Create legendary stories of successes and failures.

Create cultural messages. Be sure that every meeting, every training program, every communication to people includes cultural messaging and reinforces the values, mission, traditions and practices.

Involve everyone. Southwest Airlines has a culture committee, but there are many ways to get people involved. Try focus groups around topics. Form cross functional teams. Call random groups of employees together for monthly breakfast or lunch meetings. Engage the help and support of a group of passionate, committed people to identify cultural disconnects and recommend remedies.

Build an internal brand that supports the external brand. Make a promise to deliver a consistent employee experience. Be sure that your employees know the differentiating elements in their experience in the organisation that will enhance their work lives and careers. Begin to create an employer of choice reputation internally and externally.

Recognise and reward results. Your recognition and rewards should support the culture that you are working to reinforce.

Cultivate leaders who promote your culture. Develop excellent leaders who will propel the culture down the ranks. Identify high potential leaders and promote them. Invest in leadership development programs. Be sure content reinforces cultural messages. Keep the good ones, and get rid of those who are unable to pass the culture on.

Make it interesting and fun. Create contests, activities that enhance the culture. Decorate the office in inspiring ways. Celebrations and events can reinforce the message.

Use HR tools. Something as mundane as the annual benefits enrolment can be a source of key cultural messages. Every training class should reinforce the basic behaviours and values that reinforce the culture. Performance review forms should measure cultural fit, as well as, job performance.

No one should be locked out of the efforts to build a high-performance culture. Culture has to become the DNA that forms the building blocks over everything else. So the entire organisation must have a role in keeping it alive. Work with corporate communications, advertising, and marketing to capture the culture messages and tout these internally and externally. Let product management see that new product development manifests the cultural values in the way it responds to the marketplace demand for quality and service. Work with your legal department to demonstrate the company culture by developing ethical standards and a code of conduct that is not just in compliance but also the right thing to do.

And remember that no, one department can force corporate culture on to the rest of the company. You must achieve buy-in from everyone, from the CEO all the way down. This way you play it safe and also to win!

Leadership Today

Mindset Group - Thursday, August 06, 2009

Professor Susen Varghese from SIES College of Management Studies shares her views on leadership in today’s modern society and how to ensure leadership is effective.

Peter F Drucker once said “Leaders grow, they are not made”

Leadership today has become a very multi meaning term. Professionals from various disciplines have defined ‘Leadership’ in different ways. Paradigm shifts in the cultures of organisations and the consistent parallel and horizontal development of companies have raised the need to look at leadership in a new angle.

A strong company is the one that has leaders spread all across the company, not just at the top. The business world today needs both good leaders and good managers. However, because of the rapid change occurring in the industry today, a company needs far more leaders, not more managers.

Appointing the right Leader
Time after time again, businesses put the wrong person in charge. Unintentionally, they reward a "don't rock the boat" mentality. Conformity and status quo are the first steps leading down the staircase of a business disaster. Good leaders develop through a never ending process of self-study, education, training, and experience.

As correctly quoted by Ray Croc “The quality of a leader is reflected in the standards they set for themselves”. Effective leadership arises out of groups, organisations and communities that have built trust, and learned to collaborate and make decisions and solve problems constructively.

Successful Leadership
True leadership is about taking people to a place they wouldn't go to by themselves. Good leaders don't merely supervise; they create a sense of purpose and direction for those they lead.

Organisations can only build great leaders in an environment that nurtures and supports that development. If they don’t have such an environment, they need to change their culture to create one. But organizations cannot change their culture without good leadership.

Leaders need to "be present" and being literally; physically present is the fundamental meaning of that term. We're always surprised at how many leaders we encounter who spend most their time in their offices or on "executive row."

They seldom show themselves to those they lead. It has been over twenty years that the groundbreaking book ‘In Search of Excellence’ pointed out the virtues of "Management by Walking Around." Mayor Giuliani certainly demonstrated the wisdom of that practice.

But being present means more than just physical presence, important as that is. It means being present in the moment - focused totally and completely on what is happening right here and right now. It means, when you're with people, giving them your full attention, so that they will feel recognized and motivated. When you're not present to the people you lead, it weakens their willingness to commit.

Being present also means being flexible, able to deal spontaneously with rapid change. Think of being present as a focused but flexible dance with the world in which the leader can instantly change step or tempo as the music changes.

Using effective leadership to avoid Employee burnout and high staff turnover
Good leadership is also instrumental in avoiding employee burnout and reducing staff turnover. James Bradley lately pointed out that “Burnout is no longer the acknowledged domain of the highly pressured lawyer or doctor, but a condition that can hit anyone at any time in their career if they are faced with high productivity expectations in a hostile and unsupportive environment”. The key then, is a business philosophy that values its people and invests to nourish and support development through professional training, coaching and mentoring. Problems only arise when this is not set in place as a positive encouraging mechanism, but instead is used as a whip by ill-equipped management. It needs to inspire people, raise morale and restore a sense of purpose and self-worth, naturally leading to best performance.

As Natalie Calvert, MD, Calcom Group points out “Positivity and optimism in the workplace encourage tolerance and balanced judgement, and inspirational leadership enables access to those positive qualities that build our self-respect and contentment - the ultimate preventative medicine for burnout”.

Tips to achieve effective leadership
Thus, the ‘leader today’ requires to stick to certain must do’s in order to be effective, successful and sustaining in this ever changing corporate governance. These essentials can be listed as:-

01. Being there.

02. Always remember, Communication is the key.

03. Instilling optimism while staying grounded to reality.

04. Tell the hard truths.

05. Minimize status differences and insist on courtesy and mutual respect.

06. Master conflict. Deal with anger in small doses and engage dissidents.

07. Take care of yourself: Maintain your stamina and let go of guilt.

08. Reinforce the team message constantly.

09. Find something to celebrate and something to laugh about.

10. Have the courage to take big risks, and more.

11. Foster a spirit of tenacious creativity. Never give up—there’s always another move.

Psychological contract with workers key to success in era of change

Mindset Group - Tuesday, July 21, 2009

HR Daily discusses the importance of forming successful employer/employee relationships.  

In an era of constant change, an employer's capacity to adapt, succeed or survive hinges on the quality of employer/employee relationships, or the "psychological contract", according to a corporate psychologist.

"The psychological contract defines the 'essence' of the employment relationship," says Colin Beames in his book, Transforming Organisational Human Capital.

"It serves to bind individuals and organisations together and regulate their behaviour, making possible the achievement of organisational goals."

And it's a "powerful determinant", he says, of the behaviour and attitudes of workers.

"The quality of these employer/employee relationships... significantly impacts on both performance and retention."

Employees, Beames says, are more willing to accept change - such as downsizing, restructuring or the implementation of new initiatives - if their relationships with their employers are "healthy".

How the psychological contract is formed
Every relationship has a psychological contract, Beames says.

In business, he says, it can be defined as the set of expectations - based on stated or implied promises and understandings - that operate between employers and their staff. It is neither a written nor legal document, but "nevertheless 'real'".

The contract is established from the moment the organisation "promotes itself" (in a job advertisement, for instance) and develops progressively through every phase of the employment relationship, Beames says.

It is formed through what is written (from job ads through to HR policies), said or unsaid (by managers and colleagues), implied and observed, and is influenced by:

  • the salary package;
  • other financial and non-financial benefits;
  • job security and career development;
  • recognition of ontribution;
  • workplace safety;
  • the resources and training provided;
  • managerial support; and
  • promotion opportunities.

The "health" of the psychological contract, Beames says, depends on the employee's perception of the "delivery of the deal".

If they feel that their expectations aren't being met, he says, they're likely to become disengaged.

The cost of getting it wrong
Beames notes that while employers can increase the job satisfaction and engagement of workers by making and keeping promises, they can't be expected to fulfil every expectation.

There must be a "trade-off", or balance, he says, between meeting employee expectations and achieving business goals.

It is essential, therefore, that the psychological contract, or workforce strategy, is consciously linked to the business strategy, he says. A failure to do so can lead to excessive turnover.

For example, if the psychological contract places too much emphasis on remuneration based on short-term performance in an industry that relies on the development of long-term client relationships, those relationships will suffer and output will be restricted.

If employee salaries are stymied as a result, Beames says, talented workers are likely to leave and pursue other opportunities.

But even if workers manage to achieve outstanding results in these circumstances there is still a big chance they'll flee, he notes.

When a psychological contract is built almost entirely on short-term economic factors, he says, attachment tends to be tenuous.

Recruitment phase critical
The responsibility for managing the psychological contract is spread between executives, HR personnel and line managers, Beames says.

How they engage with the recruitment process, he says, is particularly critical.

"It is important that candidates are moved... from one part of the recruitment and selection process to the next, without them uncoupling or disengaging," he says.

Managers, he says, must maintain intermittent contact with recruits and provide them with regular debriefs and updates.

"The goal is to unite parties into a longer term relationship," he says. "However, the relationship is fragile in these early stages, and simple violations of the script or conventions are sufficient to terminate it."

Love Helping People? Don’t Go Into HR

Mindset Group - Monday, June 15, 2009

Lance Haun from Your HR Guy has written an article for people considering a career in HR. He says if you  Love Helping People? Don’t Go Into HR.

Let’s get something straight: you definitely have to have empathy for people in this position and enjoy the challenges of working with different people in difficult situations. When you are laying off people with families, bills and good company loyalty, I don’t think you can react any other way.

When you are helping a person figure out their payouts and beneficiaries for their life insurance because they have terminal cancer, you have to have the right personality and mindset going into the situation. When you are dealing with some of the more sensitive employee relations areas (discrimination, harassment, etc…), having the right approach can be the difference between success and failure.

I don’t know if “Fuzzy Wuzzy HR” (you know, all of the team building, cry on my shoulder, let’s hold hands and sing kum-ba-ya HR philosophies) was ever very successful but it certainly is going the way of the dinosaurs now. Businesses want savvy, business smart HR people that can also relate to the human side of our profession while still keeping the business solvent. It is a balancing act but businesses are demanding that more emphasis be placed on the business end of things.

The problem? People that love helping people (but are less skilled in other areas of HR) are being pushed out of the profession. What businesses are deciding is that you get a person who may be more skilled in HR but less skilled on the people side and perhaps you can prevent some of the instances where you actually need that super high emotional IQ person. If you can avoid layoffs due to better planning or you can offer better training to managers because you have higher skilled HR people, you can feel better about dropping the people person.

Of course, that doesn’t mean that having a high emotional IQ precludes you from having great HR analytic and leadership skills. In fact, the best HR people I know are strong in all of those areas. But I know that many of those people wouldn’t necessarily say their people skills are the biggest part as to why they are successful.

For people who are considering HR and love helping people, learn about HR and see if anything else intrigues you about the profession. If you are coming up short on that analysis, there are a lot of other ways you can help people in corporate America or elsewhere.

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