By Aaron Dodd
Operations Director of the Mindset Group

Today I was dismayed reading a twitter feed from a recruiter boasting that she had managed to talk her way out of meeting with a client who wanted a face-to-face with her. When I queried her she went on to boast that with technology she no longer had to even visit clients.

I have been in sales for most of my career. I first learned to sell with Pitney Bowes PLC in the UK, a truly excellent and professional sales environment that gave me a grounding and a sales ability that has subsequently seen me be successful in varied industries; office equipment, food ingredients, industrial filtration systems and lastly professional recruitment and HR services. One of the principal tenets that I learned at Pitney Bowes was to get face-to-face with your client/prospect. Doing so allows you to better develop rapport, understand their needs and close orders (it’s harder to say no to someone when they are in front of you in your office!).

I have been in the recruitment industry now for 12 years, and maximising time face-to-face with the decision maker has been a key to my and my company, Mindset’s approach. It is integral to our process;

1.    We spend significant time with key stakeholders gaining their input into the position description, key selection criteria, personality demands etc. This allows us to genuinely understand the role. Many of our clients now seek our expertise in being able to bring alternative aspects to the requirements.

2.    We present our shortlists face-to-face so that we can discuss each candidate in-depth with our clients, answer their questions and discuss their strengths and limitations.

3.    We present our Prevue assessment, reference checks and decision reports on shortlisted candidates face-to-face. We make our selection recommendations face-to-face.

What does all this client contact mean?

We develop an extremely close relationship with our clients. In competitive terms, we are almost unassailably close. Our numerous contacts often lead to discussions about other aspects of their business that Mindset can assist with. For us recruitment projects have thus led to software sales (our Performance Advantage appraisal software), leadership development programs, cultural surveys etc, not the least of which is more recruitment and selection assignments.

These discussions also lead us to better understanding of our clients’ businesses and the issues they face. Through this understanding we also do better selection work as we know their culture and market issues. Our clients also visually see the work we do and therefore appreciate the work we do and know how we earn our fees.

Let’s also not forget that visiting clients on their premises is much more fun than sitting in the office shuffling paper!

My proudly deskbound tweeter is correct in that technology more than ever makes it easier to avoid real client contact, but my experience is that avoiding client contact on the basis of “efficiency” is a very short-term approach. I urge professional consultants to get out there amongst it. New consultants to the industry, especially those establishing their own client bases should particularly heed this.

Many years ago (pre consulting) a sales rep of mine came back from a customer visit and said “Wow…it’s amazing what you can uncover when you visit customers”. That naïve statement still, and will always, hold true.

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By Aaron Dodd, Operations Director of the Mindset Group

Prior to the GFC we saw articles almost daily on the so-called talent shortage. Such clichéd headlines as “Winning the War for Talent” were commonplace. My own company, Mindset used them as did everyone else. These headlines and articles have subsided of late but the talent shortage is still there. It's like a wild beast hibernating; waiting for the thaw - which will be here sooner than most Australians think. In fact, many would argue that it’s waking now as the extra cold metaphorical winter we've just experienced comes to an end.

Apart from the shortage of growth capital that the GFC has induced, the biggest threat to corporate growth in Australia (indeed the Western world) is the shortage of talent. The only reason the headlines have subsided is that the demand side of the economic equation has dropped. The supply side has not moved.

So what has caused this talent shortage?

• The populations of Western economies, such as Australia, are aging. As more of the population retire and leave the workforce, we have relatively fewer productive members remaining in it.

• The dwindling labour supply is increasingly less qualified. In Australia this is the result of decades of financial neglect of the country's schools, TAFEs and universities. Both Labor and Liberal parties have been guilty of this, although under John Howard, the issue  became noticeably worse with a corresponding increase in expensive private school enrollments as desperate aspirational parents attempted to provide their kids with an education supposedly better than the States' systems (although often not).

• The increasing affluence of Australian society has meant that most people are wealthier. Many formerly working-class families are now economically classed as “middle-class” although most would not realise or acknowledge it. What this has meant is that their children now have different career expectations  and are now no longer interested in the sorts of labour-intensive jobs their parents may well have been happy to accept at their age.

• Like any economic equation the shortage of talent has put pressure on its cost; i.e. wages have increased relative to their productive merit. This has in turn put pressure on the prices of services and manufactured goods. In numerous cases it has become more cost effective to manufacture goods in talent rich, low-cost countries such as China and India. Even services are now often outsourced to call-centres in India, the Philippines and others. 
• If a business cannot pay more for its staff, find more productive ways of utilising their people or relocate then it is likely to be in serious financial trouble in the medium-term. As we move out of the effects of the GFC, there will be a significant period of employment turmoil within Australia. Many unhappy employees who were biding their time will start actively looking for alternative employment. Adding to this, as employer confidence returns they will start seeking more employees to help them grow their businesses...i.e. the demand side of the equation will rise again increasing the gap between the static supply side and the rising demand side still further.

As an employer, what can you do?

• Proactivebusinesses are focusing on their existing staff NOW. They are putting in place whatever measures they can to retain their staff and minimise the losses they expect from the coming turmoil. My company Mindset, has been active with numerous clients determining staff engagement levels, coaching managers to be better motivational leaders and putting in place effective performance management, feed-back and feed-forward systems.

• Other businesses are utilising Mindset's talent-mapping processes to effectively understand and develop relationships with the key people in their sector so that when they need those people they can simply tap them on the shoulder and draw them into their businesses with minimal fuss and expense.

•  Many organisations are reviewing their relationships with their recruitment suppliers. They are re-establishing relationships so that when the need comes they can speed up the briefing process. Most companies are now looking for relationships with highly consultative recruitment suppliers recognising that traditional transactional contingent recruiters offer little value, especially when the going gets tough and they have to find candidates from outside the industry or from alternative more innovative sources.

   

For maximum strategic impact these actions need to start NOW. For a confidential discussion on how Mindset's transformation, talent and technology divisions can work together to deliver an integrated approach to delivering  solutions to your business's forthcoming recruitment and retention challenges, please contact us. 

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By Aaron Dodd, Operations Director at the Mindset Group

On the weekend I watched the AFL Grand Final and witnessed probably two of the greatest AFL teams in history battle out an exciting tight contested game. Neither team deserved to lose, Geelong prevailed in the end. St Kilda’s leaders will use the loss as a motivator for next and subsequent years.

Many parallels can be drawn between successful sports teams and businesses (teams of people as well). A quick review of the two teams leads to some interesting (though not unexpected) conclusions.

Both clubs have recruited and selected well. Without the raw talent, no amount of excellent coaching will transform it. This is a fundamental precondition for any successful organisation. In the business world, there has been much criticism of recruiters of late. In my opinion, much of it is justified. However, specialist, consultative recruiters have continued to do well and be in demand throughout the financial crisis. This is because they create genuine value for their clients. In the AFL football world, most clubs recognise that sourcing talent is a critical skill that they may not have in-house. These clubs routinely use external talent scouts (the code’s equivalent of recruiters) to spot talent in the junior leagues, remote leagues (e.g. the NTFL and even Gaelic Football in Ireland). Not only do these scouts (recruiters) identify the talent, they then facilitate bringing the individual to the respective club. All AFL clubs will acknowledge that good talent scouts can make the difference to their clubs’ successes. It is no different in the business world, and let’s face it, AFL clubs are big business.

Once the talent is sourced, success is then determined by club leadership and coaching. St Kilda is arguably one of the least successful clubs in the competition’s history having famously only ever won one premiership (by a single point) in 1966. Although I’m a Kangaroos supporter, most of my local family are passionate St Kilda tragics so I have some insight into the club. It is a club renowned for management instability and dubious Machiavellian internal politics. For decades, club members have watched their beloved club tear itself apart from the inside. Lack of success on-field has inevitably followed. Only in the last few years has management/leadership stability finally come to the club and with that success has followed. A key lesson to be learned therefore is strong, stable, consistent focused leadership. The club has devised a strategic plan and the management team, functioning as a team, has delivered it. Success has followed. Geelong similarly has had a stable successful leadership team that has now delivered them two premierships in three years. For success therefore, businesses must have stable, consistent and proactive leadership with a defined plan for success.

And finally, one of the keys for delivering on-field success for all AFL clubs is performance management. Every player is meticulously measured and tracked. Many wear miniature GPS units on the field to track how far they run, where they run etc. Each player is constantly measured on dozens of KPIs; fitness, skin-fold tests, handling-errors, teamwork, skills, time-keeping, tackle-counts, goals, to name but a few. Each player knows their individual KPIs and also recognises that if they don’t meet them they could be dropped. Equally, if they do meet them, they will be rewarded with more game time, better contracts etc.

In summary therefore, like football, your business will be successful if you recruit and select well (don’t hesitate to use outside advice from competent consultative recruiters if it helps to get even a marginally better result). Ensure your business has a stable cohesive and focused leadership team and make sure you scrupulously measure what you actually do (both company and individuals).

The Mindset Group, can assist with all three areas; recruitment and selection, leadership development and performance management. Contact us for a confidential discussion on how we can help your organisation win a premiership.

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