Recruitment

hrmid cover (i).qxd

25/05/2007

10:50

Page 1

ISSN 0967-0734

Volume 15 Number 3 2007

Human Resource Management International Digest

Recruitment

www.emeraldinsight.com

Table of contents Recruitment

Volume 15 Number 3 2007

Feature articles Access this journal online Viewpoint

2

Coping with the talent shortage

3

How GE, Rochester and other US firms have approached the recruitment conundrum

6

Are you thinking what I’m thinking? Probably not!

Today’s talent contest: the battle for talent in the UK is hotting up

9

Recruiters and applicants expectations in China

Chris Phillips

Better than Brand X

12

Abstracts

39

Brand image plays an important role in the recruitment and retention of staff

Suggested reading

43

Interview with Glyn House

45

Interview by Rachel Brown

What’s on the web

15

Communicating Total Reward at O2

18

Rachel Fyffe

Age discrimination: don’t let the joke be on you

21

Best practices from JD Wetherspoon, the Metropolitan Police and McDonalds

A critical mass of women

24

A study of senior management at five Australian universities

Guarding against discrimination

26

How to keep lawsuits at bay

Education for life?

30

Quantifying the factors behind students’ choice of HE

Selecting international business managers effectively

33

Assessment methods and core competencies for success

Interview with Marcus Buckingham

36

Interview by Rachel Brown

VOL. 15 NO. 3 2007, p. 1, # Emerald Group Publishing Limited, ISSN 0967-0734

|

HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST

|

PAGE 1

www.emeraldinsight.com/hrmid.htm As a subscriber to this journal, you can benefit from instant, electronic access to this title via Emerald Management Xtra. Your access includes a variety of features that increase the value of your journal subscription.

How to access this journal electronically To benefit from electronic access to this journal, please contact [email protected] A set of login details will then be provided to you. Should you wish to access via IP, please provide these details in your e-mail. Once registration is completed, your institution will have instant access to all articles through the journal’s Table of Contents page at www.emeraldinsight.com/ 0967-0734.htm More information about the journal is also available at www.emeraldinsight.com/hrmid.htm Our liberal institution-wide licence allows everyone within your institution to access your journal electronically, making your subscription more cost-effective. Our web site has been designed to provide you with a comprehensive, simple system that needs only minimum administration. Access is available via IP authentication or username and password. Emerald online training services Visit www.emeraldinsight.com/training and take an Emerald online tour to help you get the most from your subscription.

Additional complimentary services available Your access includes a variety of features that add to the functionality and value of your journal subscription: Xtra resources and collections When you register your journal subscription online, you will gain access to Xtra resources for Librarians, Faculty, Authors, Researchers, Deans and Managers. In addition you can access Emerald Collections, which include case studies, book reviews, guru interviews and literature reviews. E-mail alert services These services allow you to be kept up to date with the latest additions to the journal via e-mail, as soon as new material enters the database. Further information about the services available can be found at www.emeraldinsight.com/alerts Emerald Research Connections An online meeting place for the research community where researchers present their own work and interests and seek other researchers for future projects. Register yourself or search our database of researchers at www.emeraldinsight.com/ connections

Choice of access Key features of Emerald electronic journals Automatic permission to make up to 25 copies of individual articles This facility can be used for training purposes, course notes, seminars etc. This only applies to articles of which Emerald owns copyright. For further details visit www.emeraldinsight.com/ copyright Online publishing and archiving As well as current volumes of the journal, you can also gain access to past volumes on the internet via Emerald Management Xtra. You can browse or search these databases for relevant articles. Non-article content Material in our journals such as product information, industry trends, company news, conferences, etc. is available online and can be accessed by users. Reference linking Direct links from the journal article references to abstracts of the most influential articles cited. Where possible, this link is to the full text of the article. E-mail an article Allows users to e-mail links to relevant and interesting articles to another computer for later use, reference or printing purposes. Structured abstracts Emerald structured abstracts provide consistent, clear and informative summaries of the content of the articles, allowing faster evaluation of papers.

Electronic access to this journal is available via a number of channels. Our web site www.emeraldinsight.com is the recommended means of electronic access, as it provides fully searchable and value added access to the complete content of the journal. However, you can also access and search the article content of this journal through the following journal delivery services: EBSCOHost Electronic Journals Service ejournals.ebsco.com Informatics J-Gate www.j-gate.informindia.co.in Ingenta www.ingenta.com Minerva Electronic Online Services www.minerva.at OCLC FirstSearch www.oclc.org/firstsearch SilverLinker www.ovid.com SwetsWise www.swetswise.com

Emerald Customer Support For customer support and technical help contact: E-mail [email protected] Web www.emeraldinsight.com/customercharter Tel +44 (0) 1274 785278 Fax +44 (0) 1274 785201

Viewpoint Today’s talent contest: the battle for talent in the UK is hotting up Chris Phillips

t’s of little surprise to anyone working in HR that the two biggest challenges they face in 2007 are the recruitment and retention of staff. In fact, more than two-thirds of senior HR managers in the UK perceive these to be the most important challenges over the coming year, according to a survey entitled ‘‘2007: The Challenges for HR,’’ conducted by talent management company Taleo at the end of last year.

I

Chris Phillips is senior director for international marketing at Taleo, Windsor, UK

The UK has the highest employment rate of the G8 countries with slightly more than 29 million people in work during the last quarter of 2006. This is good news for the government, which has been trying to encourage people back to work. But what worries many of HR professionals is the fundamental shift occurring in the age distribution of the working population. The UK faces a ticking time bomb as the baby boom generation moves towards retirement because there are insufficient numbers of younger workers to take their place, let alone satisfy the requirements of a growing economy for more labor and different skills. Estimated forecasts into the state of the future workplace from the Office of National Statistics speak for themselves: in 2020 there will be three million more over 50s and one million fewer under 50s. What’s more, the median age of the UK population will rise from 38 years in 2001 to 44 years in 2051, while the percentage of the population between the ages of 16 and 44 will fall from 41 per cent to 34 per cent. The consequences of these trends are already apparent in the workplace today, through the increasingly competitive battle to recruit individuals in possession of scarce skills; growing international dimension to recruitment and internal mobility strategies; and employers’ renewed focus on developing and retaining key employees. As the population ages, the pressure on traditional sources of talent intensifies – and talent in this context does not refer to an elite group of high achievers or very skilled people in an organization but everybody within the workforce that contributes to its success. There are very few industries – if any – not challenged by a general shortage of talent. The results of a study by recruitment agency, Manpower, in February 2006 identified the following jobs as being the five most challenging roles to fulfill: sales representatives, administrative assistants, skilled tradesmen, engineers and drivers. In light of these stark facts, it’s little wonder that 52 percent of senior HR managers consider attracting candidates to the organization as one of their top three challenges, while just less than three out of five view employee retention as one of their top three challenges this year. This has a number of cost implications for an organization. One strategy for addressing a recruitment shortage is to use a recruitment agency to source and attract new candidates but this can be expensive. Even worse, the cost of recruitment advertising rises the longer it takes to find the right people, which eats into the HR budget and puts inflationary pressure on costs. Recruiting and retaining staff is particularly tough when HR budgets are tightening, as they are for 79 percent of HR directors this year, as revealed in the Taleo survey that budgets

DOI 10.1108/09670730710743907

VOL. 15 NO. 3 2007, pp. 3-5, Q Emerald Group Publishing Limited, ISSN 0967-0734

j

HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST

j

PAGE 3

would stay the same or fall. With HR budgets constrained, organizations need to look for more cost-effective ways of improving key talent management processes. Ideally, they need to find a way of simultaneously reducing recruitment costs while improving the organization’s ability to attract the best talent and, ultimately, retain talented individuals. Technology within the HR department plays a valuable role in speeding up non-strategic HR tasks and reducing costs by automating administrative functions. While it might not be the panacea for all ills, on demand technology can improve visibility and measurement, and increase control over talent management processes. Indeed, talent management best practices such as automated skills-based matching of candidates to roles and the proactive recruitment from a strategic talent pool rely on best-of-breed talent management technology. According to the Taleo survey, 37 percent of HR directors believe better visibility of employee’s skills will help them perform their job better in 2007. One of the challenges for many organizations is that they do not have a central repository to capture current employees’ skills and capabilities in one place. This is more important than it might first appear, given that the single biggest reason for most employees leaving an organization is not because of pay but a lack of development opportunities within the company. It is also ironic that in some organizations it can be easier for an employee to find out about jobs at a competitor than it is to find new roles within their own company. By putting in place a system that enables HR to view employees’ skills and capabilities across the workforce, the organization can not only gain visibility into its skills base but, perhaps more importantly, identify which internal candidates could be suitable for a vacant post and improve retention rates through greater internal mobility. Nearly a third of senior HR managers think that if they could find an easy way to measure the effectiveness of HR processes, such as recruitment, it would help them perform better in 2007. A comparison of HR against other departments, such as sales, marketing, finance and customer service reveals that HR is still relatively immature in terms of its ability to measure processes and their outputs, and relate these to overall business objectives. Recruitment can be an expensive process, especially if it drags on over a long period of time, so many organizations measure costs as they have to control internal budgets. A smaller but significant percentage of organizations measure the time taken to hire, as this indicates how quickly recruitment can respond to the business need. But in an era where talent is scarce, it’s surprising that very few organizations measure what is perhaps a greater indication of how successful – or not – a recruitment drive has been: the quality of the hire. It might help the business in the short term to focus on recruiting people quickly to a vacant position, but to ensure the candidate stays within the organization and contributes to the company’s long-term success, the most important criteria is not how long it took to find them but whether he or she is the right person for the job. The primary reason why most HR departments do not measure this target – and the reason why measurements are difficult to obtain – is because many organizations do not have the underlying systems and processes that would deliver these metrics. This is another area where technology can play a valuable role. It can ensure end-to-end control and management of recruitment processes by storing all the relevant information on candidates and employees in one central location. Perhaps a more immediate advantage of talent management systems in the current legislative environment is that they provide a way of helping to ensure fair and unbiased employment processes. The Taleo survey revealed that more than 41 percent of HR directors view complying with new legislation as one of their top three challenges this year. The most recent Act concerning equal opportunities was the age discrimination legislation, which came into force in October 2006. With any equal opportunities legislation, an employer has to be able to demonstrate that its selection decisions have not been biased by information pertaining to age, sex, race or religion. But if a company’s selection process involves a recruiter sifting through a pile of CVs and mentally comparing these against a job spec (that might not even be formally defined in a document) to compile a shortlist, the employer could be opening the door to claims of

j

j

PAGE 4 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST VOL. 15 NO. 3 2007

unfair selection procedures. Indeed, from a practical perspective, it is virtually impossible for an employer to defend a selection process based on personal judgments made with the support of spreadsheets, CVs and paper. One way of eliminating bias or discrimination from the recruitment process is to use technology to capture data about the skills and capabilities of a candidate, which can then be compared against a set of skills the company has defined in the system as necessary for each vacant role. Each automated match leaves an audit trail so, if necessary, an employer can track every single step in the process and identify how decisions were made. Taken together, these best practices are major steps towards tackling the talent shortage that is about to unfold in the coming years. When the majority of HR budgets aren’t increasing, they provide a way of ensuring more can be done with less resources. From a strategic point of view, they give organizations a competitive advantage in responding faster and more proactively when identifying and retaining talent. 2007 might be a tough year for HR directors, but the outlook suggests the market is likely to become ever more competitive in years to come. So getting the right processes and systems for talent management in place now will ease the challenges ahead for HR leaders.

j

j

VOL. 15 NO. 3 2007 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST PAGE 5

Coping with the talent shortage How GE, Rochester and other US firms have approached the recruitment conundrum

T

here is no doubt that the war for talent is raging. Armies of recruitment consultants, brigades of head-hunters and battalions of HR professionals are all joining the fight in a bid to identify and recruit the brightest stars.

Talent, what talent? But what is talent? How can it be defined? Some organizations talk about their talent management programs that cover the whole organization which makes their definition too broad to carry any meaning whereas other companies see talent as only their new recruits which rules out any high potential performers already within the company. However you choose to define talent, there can be no argument that it is becoming increasingly rare. This is due to a number of factors: B

Over the decades we have seen a shift from a commodity-based to an intellectual economy. In fact, it is estimated that around 70 percent of a company’s assets are intangible compared to just 20 percent in 1980. However the numbers of jobs becoming available that require such skills are growing at a faster pace than the number of people able to fill them.

B

The working population is dropping – and fast. By 2025 the number of people of a working age will have fallen in Japan (14 percent), Germany (7 percent) and Italy (9 percent). China has also introduced a one baby policy and will therefore not grow at the rate it did previously.

B

The baby boomer generation is getting ready to retire. According to a recent report in the Economist magazine, half the senior managers in America’s top 500 companies will be retiring over the next five years. And to make matters worse, due to the constant organizational restructures of the last decade, our next generation of senior management is already much fewer in numbers than its predecessors.

B

Career paths have become more fluid. Gone are the days when you would expect to stay with a company for life, joining in the lower ranks and working your way up to a senior management position. Today most workers are poised to start looking for a new job as soon as the economy picks up. In other words, companies have to work harder to retain talent (something that not all organizations appear to be aware of) as well as attract it.

Global concern In the past these issues would have just been the concern of the major players but today talent management is an issue on almost every boardroom agenda across the globe,

PAGE 6

j

HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST

j

VOL. 15 NO. 3 2007, pp. 6-8, Q Emerald Group Publishing Limited, ISSN 0967-0734

DOI 10.1108/09670730710743916

‘‘ There is no doubt that the war for talent is raging. ’’

regardless of company size or status. HR has moved into center stage as companies realize that there is truth in the old adage that their most important assets are their people. And this is not mere rhetoric. In fact, the Economist report states that in a recent Aon survey, there were 172 HR executives that ranked amongst the five most highly paid people within the organization. And these execs were not in lesser known organizations – Viacom, Black & Decker, Home Depot and Timberland to name but a few. There is going to be less and less to choose from amongst the talent pool so organizations are going to have to get smarter at finding the right people. But how would you go about finding the right talent?

Range of approaches Be open to finding talent in the most unlikely places In a recent Sales & Marketing Management article, US speaker Barry Maher tells the tale of the time he worked in sales with an office above a seedy strip bar in a mid-western town. One evening a dancer came up from the bar as she had seen a sign advertising a salesperson position and was tired of working as in the bar. Ignoring most company protocols, Maher invited the lady in for an interview and ended up hiring her. The dancer went on to become the top regional seller. Employ effective screening processes Dominica Recreation Products, a US park equipment sales company, set up a voice mail box so that all applicants for sales positions had to leave a message rather than speak to a person. This enabled the company to sift out those people who sounded unsure or nervous when leaving a message so that they did not waste time interviewing unsuitable candidates. In fact, the people that got the job were those that had either hung up and called back later with a considered response or the people that had worked out how to get around the message system and speak to someone in person. Use competency modeling More and more companies are turning to this tool during the recruitment process as they decide that ‘‘selling’’ the job in an advert resulted in mismatched applicants for them. They also ask behavioral questions (how did you deal with x?) rather than hypothetical questions. Make internships count Another way of recruiting bright young stars, as Rochester Financial Services found out, is to make the most of internship programs within your organization. Traditionally interns have been given rather menial jobs (data input, making drinks, fielding calls) however Rochester found that by giving interns more responsibility, project experience and a wider remit, many of these people came back to work there full time after graduation. Set up research facilities in other countries Organizations such as Infosys and Hewlett Packard are setting up research centers in countries such as India and China in order to broaden their talent pools on a global scale. Develop relationships with former Alumni Global consultants Ernst and Young have found this approach of particular value – it fills around a quarter of its vacancies in this manner.

j

j

VOL. 15 NO. 3 2007 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST PAGE 7

‘‘ Care must be taken that you are recruiting not just the best performers, but the people who best fit with the culture and values of your business. ’’

Grow your own leaders If you are reading about best practice in talent management then you are more than likely to come across General Electric. Former CEO Jack Welch is famed for bringing HR to the top of the boardroom agenda in a bid to hire and develop the brightest talent. In a time when corporate universities were rare he set up the Crotonville institute (now re-named in Welch’s honor). Although Welch was criticized for his strict adherence to firing the bottom 10 percent of performers each year, he spent a lot of time and energy developing his high potential performers. It is no surprise then that so many of his senior management went on to become CEOs of other organizations. The approaches detailed above are all good ways to improve your chances of growing talent within the organization but a word of warning to those who think that filling up your company with the brightest and the best will guarantee good results. At one point Enron was employing up to 250 MBA graduates a year and yet it still managed to breed corruption, malpractice and downright illegal attitudes. Care must be taken that you are recruiting not just the best performers, but the people who best fit with the culture and values of your business.

Comment This is a review of ‘‘Finding your future stars’’ by T. Arbel, ‘‘Desperately Seeking Stars’’ by J. Chang and ‘‘The battle for brainpower’’ by A. Woolridge.

Keywords: Recruitment, Human resource management, Retention, Skills shortages

‘‘Finding your future stars’’ is a short article that looks at how some companies in the USA use internships to identify and recruit potential star performers. Rather than giving interns predictable, mundane tasks, this article suggests that you give them more challenging, project-based assignments in order to let them fulfill their potential and so that they consider your company when looking for a long-term employer. ‘‘Desperately seeking stars’’ is a slightly longer piece that details how 3 different companies approached the issue of recruiting top talent. The main theme of the article is that talent can be found in all manner of places and so having an open mind is critical. Finally, ‘‘The Battle for brainpower’’ charts the rise of HR issues to the top of the management agenda. As the baby boomer generation retires and the population in so many countries is shrinking, the talent pool is diminishing by the year and companies are going to further lengths to fill their vacancies. This article provides some examples of how organizations are filling these gaps as well as casting an eye to the future.

References Arbel, T. (2006), ‘‘Finding your future stars’’, Sales & Marketing Management, Vol. 158 No. 8, ISSN: 0163-7517. Chang, J. (2006), ‘‘Desperately seeking stars’’, Sales & Marketing Management, Vol. 158 No. 8, ISSN: 0163-7517. Woolridge, A. (2006), ‘‘The battle for brainpower’’, The Economist, Vol. 381 No. 8498, ISSN: 0013-0613.

To purchase reprints of this article please e-mail: [email protected] Or visit our web site for further details: www.emeraldinsight.com/reprints

j

j

PAGE 8 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST VOL. 15 NO. 3 2007

Are you thinking what I’m thinking? Probably not! Recruiters and applicants expectations in China

hen you go for a job interview, you have preconceived ideas about what the recruiters are looking for. You think they’ll want to know where you went to university, have you the right software experience, what salary are you expecting? They’ll also have an idea of what matters to you, the benefits that go with the job, the workload, the advancement opportunities. But are you thinking the same thing? Some studies have been done on what recruiters are looking for. Studies have been done on what applicants are looking for. Studies have been done on what applicants think recruiters are looking for, and vice-versa, but none of these studies have been done in relation to China, a complex nation with cultural rules and a strong political influence.

W

Do the expectations of Chinese recruiters match what the students think the recruiters expectations are? Do Chinese applicants expect what they are believed to expect? One suspects not. Hao Zhao has conducted a study with a small number of recruiters in Beijing, and a number of students at a Beijing University job fair, with the aim of answering these questions, and finding out just what is important to Chinese recruiters, and their applicants. Before we delve into the results, let’s establish a couple of terms used in the study, particularly relevant to China.

Hukuo Hukuo is a certificate of permanent citizenship in a local city, very much like a ‘‘green card’’ for the city. This is based on place of birth, and only people with a local Hukuo are entitled to things like health insurance, government pension, and employment privileges. Those without a local Hukuo are second class citizens when it comes to job applications.

Guanxi Guanxi is a term which relates to your social networks. Simply put, it’s the embodiment of ‘‘it’s not what you know it’s who you know’’. If you have good Guanxi, you might be a friend of an employee of the organization. A family member may already work there. You may have done business with the organization before. Good Guanxi is essential for getting on the career path in China, it puts you in a favourable position compared to other applicants. Zhou questioned recruiters and applicants and came up with two lists of 15 items relevant to the Chinese employment context, one for applicant’s skills, and one for organization characteristics.

DOI 10.1108/09670730710743925

VOL. 15 NO. 3 2007, pp. 9-11, Q Emerald Group Publishing Limited, ISSN 0967-0734

j

HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST

j

PAGE 9

‘‘ It’s considered that those without a local Hukuo are second class citizens when it comes to job applications. ’’

Forty-eight randomly selected recruiters, and 141 randomly selected applicants gave rankings to the importance of the 15 terms given. They marked what was important to them, and what they thought was important to the other party (the recruiter or the applicant).

Were you thinking what I was thinking? Generally recruiters had a good idea of what was important to applicants, and the applicants in turn were quite aware of what recruiters were looking for. However, there were some items that parties had wildly underestimated. Recruiters were underestimating just how important the location of a job is for applicants. Applicants were shown not to be as influenced by organization size and benefits as recruiters thought they were, and yet they were more concerned with voice opportunity and job security than the recruiters estimated. The recruiters were also out of sync with what recruiters are looking for in applicants. The students from the job fair at Beijing were expecting their conscientiousness, academic major, and education level to be the most important things recruiters were looking for. It turns out that recruiters were actually looking for the right academic major, conscientiousness, and teamwork ability. Perhaps not a significantly different order of preference at the top, however the applicants were also shown to be very concerned about their university reputation (unnecessarily) and their local Hukuo (unnecessarily), and they wildly underestimated how important their analysis skills were to potential employers. Zhao then took the results from the job applicants and looked at them a different way. Was there a difference in what local candidates looked for compared to non-local candidates? Turns out, there was. Non-local candidates were seriously more worried about their local Hukuo quota, much less worried about their voice opportunity, and not as worried about the job location as the local applicants were. Most recruiters were happy to provide a Hukuo for a new employee. Zhao also looked at the differences in importance for the recruiters from state-owned organizations and the foreign organizations. The only significant differences noted were that the foreign organizations placed more importance on analysis skills, and the state-owned organizations were more interested in Communist Party membership.

So is it who you know? Or what you know? So did our two terms from the beginning come into it at all? Is Hukuo important? Is Guanxi? Well, it turns out neither are as important as applicants expected. When the recruiters questioned were asked to comment on their responses to the Hukuo question, the majority implied that a Hukuo transfer would be arranged for the right candidate, and that it would be very rare for an applicant to be turned away based on their Hukuo alone. Whilst it was shown that Guanxi could give favorable considerations to applicants when their skills and qualifications are equivalent to their competitors, it’s unlikely to be the dominant factor of a job offer. So Zhao’s predictions were all correct, there are disparities between what recruiters think is important to applicants, and in what applicants think is important to recruiters. There are also differences between what local and non-local applicants priorities are, and there are differences in the hierarchy of priority expectations of applications dependant upon whether the organization is foreign, or state owned.

j

j

PAGE 10 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST VOL. 15 NO. 3 2007

‘‘ State-owned organizations were more interested (than foreign owned organizations) in the applicant’s Communist Party membership. ’’

Keywords: China, Recruitment, Job applications, Jobs, Skills

Comment This paper is a very interesting look at the expectations of recruiters and job applicants in China, a country not previously studied in this context before. The author puts forward possible reasons for various results, and makes the effort to analyze results further based on locality and organization ownership. Although the results are only from a small sample, it’s worth a read for anyone involved in or studying the recruitment process in China.

Reference Zhao, H. (2006), ‘‘Expectations of recruiters and applicants in large cities of China’’, Journal of Managerial Psychology, Vol. 21 No. 5, pp. 459-75, ISSN 0268-3946.

To purchase reprints of this article please e-mail: [email protected] Or visit our web site for further details: www.emeraldinsight.com/reprints

j

j

VOL. 15 NO. 3 2007 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST PAGE 11

Better than Brand X Brand image plays an important role in the recruitment and retention of staff

Competing with ‘‘Brand X’’ If you are as old as I am (and that is classified information) you may remember the power of ‘‘Brand X’’ with some fondness. Advertisers in the 1960s were prevented either by gentlemen’s agreement or marketing regulations from naming their competitors. In order to promote their product as superior, advertisers would compare it to ‘‘Brand X’’. As there would be little point in comparing a product to one with less recognition, ‘‘Brand X’’, without being named, acquired an extremely powerful aura. One imagined that the undisclosed product must be the first that would spring automatically to mind by anyone desiring a particular type of goods or services. It is even possible that advertisers did themselves a disservice by making potential customers think of the hidden brand rather than focusing on the product being advertised. Even though ‘‘Brand X’’ has been consigned to the annals of marketing history, firms still tread the same path of trying to convince the buying public that their products are the best. One very powerful method of doing this is to create a corporate brand. Corporate branding provides the public with a strong image with which they can identify. Take a few minutes right now to think of the following items: running shoes, car insurance, home hair coloring products, cell phones. While personal preferences may differ, I will wager that 99 percent of readers have just pictured in their minds items associated with a strong brand image rather than just a generic product. Even language demonstrates the power of the brand image. How many people do you know who get out ‘‘the Hoover’’ to vacuum up crumbs from the floor? Although Dyson vacuum cleaners are very popular today, I have yet heard someone say they need to ‘‘dyson’’ the carpets.

Attracting applicants through employer brands Attracting customers is not the only way in which brand images can benefit corporations. In a competitive job market, firms need to devise strategies for recruiting the best potential employees. It makes sense. Without excellent staff, companies can’t create excellence in any other area. One way of doing this is to develop a strong employer brand. In this context, a brand has been described as a multi-dimensional construct designed to attract suitable candidates for employment. While this is similar to corporate branding, it has important differences. The idea is not to attract customers, but to appeal to potential employees. An employer brand provides job applicants with a realistic image of what it would be like to work in a particular company. It encompasses all the factors that make the company a good place to work. These might include: bright and cheerful office space, an ethos of collaboration and team work, flexible working hours, creˆche facilities, or even an excellent canteen! While these factors can’t replace salary differentials, they can influence employment choices.

PAGE 12

j

HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST

j

VOL. 15 NO. 3 2007, pp. 12-14, Q Emerald Group Publishing Limited, ISSN 0967-0734

DOI 10.1108/09670730710743934

‘‘ Advertisers in the 1960s were prevented either by gentlemen’s agreement or marketing regulations from naming their competitors. In order to promote their product as superior, advertisers would compare it to ‘Brand X’. ’’

Furthermore, it is not just that a firm has a good canteen or provides child care facilities or allows flexible work schedules. It is that, in doing these things, an employer demonstrates a people-centered philosophy that shows employees they are valued individuals, not just fodder to keep the corporate beast satisfied. A good employer brand has another important function: retention. Attracting good employees is one thing but holding on to them is even more important. A recent survey indicated that about 40 percent of all employees are either actively planning to move jobs or are strongly considering doing so. An employer brand, where the image reflects the reality is a good way to keep key staff. If people are happy in their work, feel valued, see the possibility of carving out a real career pathway and are adequately remunerated, why should they wish to change jobs?

Creating an employer brand If creating a vibrant, appealing employer brand is the best way to attract talented recruits, how should a firm undertake this important task? The first and most important thing is to decide just what type of image the company wishes to present. Good questions to ask are: What makes this company different from other similar firms? Why do people like working here? What sort of employees do we want to attract? Once these questions have been answered, it is important to ensure that all forms of corporate communication targeting potential recruits reflect a consistent image. This should include any promotional material, media reports or interviews, personal contact by company recruiters, and most importantly, the firm’s internet presence. The web site should be professional, up to date, and have that certain ‘‘aahhh!’’ factor that makes people say: ‘‘I wish I worked there!’’ Personal contact is also crucial. Many jobseekers say they have been put off applying for jobs or continuing with the interview process when faced with recruiters who show neither real enthusiasm for their own jobs, nor a genuine interest in potential employees. Representatives of a firm must remember that to outsiders, they ARE the firm. This is important in dealing with clients but it is just as crucial when attempting to attract high quality staff.

HR: at the heart of business One method of ensuring good recruitment practices is by involving the firm’s HR (human resource) department in all aspects of recruitment. HR people are key professionals and should be utilized right from the development of employer branding through to interview and selection procedures. Although HR professionals have achieved chartered status, HR is still seen as a backwater in many firms. However, more progressive companies are beginning to realize that good HR professionals form the very heart of their business. High-Flyers aiming for future executive posts would be well advised to spend some time in HR. As one commentator recently pointed out, HR should be viewed as part of the executive career pathway, not as a ghetto. In fact, one firm recently held a competition among leading advertising agencies to help HR itself develop a better employer brand. Some of the salient points noted by the agencies included the fact that over 70 percent of business is now in the service sector, that public attitudes toward HR need changing (and equally that HR professionals need to change the way they see themselves) and that HR is as much about retaining good staff as recruiting

j

j

VOL. 15 NO. 3 2007 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST PAGE 13

‘‘ Representatives of a firm must remember that to outsiders, they ARE the firm. This is important in dealing with clients but it is just as crucial when attempting to attract high quality staff. ’’

new employees. Images generated by the campaign included amusing pictures of robots sitting on photocopiers (mimicking an all too human office party stunt) to more serious depictions of the litany of problems HR professionals may be called on to help employees with. However, the most memorable was the simple idea submitted by TMP Worldwide. This depicted a heart shaped wreath with the logo: at the HeaRt of it.

The importance of the reality check One important bit of advice for anyone involved in creating an employer brand is to keep it real! Some companies have included activities such as charitable donations, sporting events and family-friendly activities in their brand images. If the directors and employees of the company really care about preserving the habitat of the lesser spotted toad; enjoy cycling to work; and cherish their families, including these images in the employer brand is all well and good. However, if a firm is full of workaholic couch potatoes who just drove their powerful company cars right over the last specimens of the afore-mentioned rare breed of toad and can’t remember the last time they had dinner with their partners or children, then it would be advisable to avoid such images! Both the public, and potential recruits want to deal with firms that are honest, friendly and clear about their short and long term goals. Companies heeding this advice should have little difficulty in recruiting and retaining quality employees whose own goals and aspirations are congruent with those of the firms they choose to work for.

Comment

Keywords: Brand image, Recruitment, Retention

This review is based on the editorial and two articles indicated in the reference list. If you only have time to read one of these, choose the editorial from October’s edition of HR Focus. This includes the key points about employer branding in a very succinct format. The article by Barrow et al. (2006) asks readers to vote for the best advertising campaign to give HR a better employer brand. I think the heart logo and slogan win hands down, but why not read it for yourself and see if you agree with me. Knox and Freeman’s article focuses on the different ways employer brands can be perceived, from within a company and from outside. The authors report on a recent survey asking how employer brands influence the career choices of final year students from UK universities.

References HR Focus (2006), ‘‘Editorial: ‘Brand’ your company to get- and keep- top employees’’, HR Focus, October. Barrow, S., Rosethorn, H., Wilkinson, A., Peasnell, R. and Davies, H. (2006), ‘‘HR’s unique selling point (employer branding)’’, Personnel Today, July 18, pp. 19-23. Knox, S. and Freeman, C. (2006), ‘‘Measuring and managing employer brand image in the service industry’’, Journal of Marketing Management, Vol. 22 Nos 7-8, pp. 695-717.

To purchase reprints of this article please e-mail: [email protected] Or visit our web site for further details: www.emeraldinsight.com/reprints

j

j

PAGE 14 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST VOL. 15 NO. 3 2007

Interview with Glyn House Interview by Rachel Brown

lyn House is the people and brand director of the rapidly growing restaurant chain Wagamama. He joined Wagamama in May of 2005 after a long career with Sainsbury’s. This previous career saw him start in an operational role as part of their management training scheme, before becoming one of their youngest store managers of the time.

G

Glyn House

He moved across into HR in 1997. Amongst many HR roles, he was the first employment brand manager, where he held responsibility for HR policy and colleague engagement for the 150,000 staff of Sainsbury’s also working extensively with the marketing team at Sainsbury’s. His final role was as HR business partner for the London stores. Glyn took on responsibility for marketing in April 2006.

Could you begin by giving our readers a brief background of Wagamama? Wagamama started in 1992, so we’re coming up to our 15th birthday. We’re a branded restaurant chain and we’ve got 65 restaurants around the world. We’ve got 43 in the UK and the remainder over seas: about 11 in Australia and a couple in Dubai, the Benelux, Ireland and Istanbul. We started in London and are going cross national in the UK to cities like Glasgow, Exeter and Norwich. We’re slightly different than other restaurant chains; you go into Wagamama and sit on a long bench where the food is cooked fresh and you sit next to people you don’t know. We make a point of not being like other people – it gives us a point of difference and it’s very successful.

How big an obstacle do you see the expansion of Wagamama being to its brand image? We’re quite excited about it. We’ve got private equity banking and so it’s important that we do grow because that’s why people have invested in us. We’re now going to do America because there isn’t much like us there. We franchise in international countries but own all of our restaurants in the UK, but now we’re actually going to own our restaurants in America so that’s very different to us. The challenge for us in the brand really is this knife edge of keeping what is special about Wagamama as it grows and not losing sight of what makes us great. We’re very precious about the consistency of our food and our service, in terms of how our restaurants operate. The challenge really is to keep the culture alive and keep the culture the same. We’ve done some work recently in terms of defining the brand in a much more traditional way, and from that we can hopefully expect to keep the brand and what’s special about it, but also develop it. We’ve looked at a number of trends that are going to hit brands over the next few years and I think we’ve identified the key trends that apply to us; so it will be partly

DOI 10.1108/09670730710743943

VOL. 15 NO. 3 2007, pp. 15-17, Q Emerald Group Publishing Limited, ISSN 0967-0734

j

HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST

j

PAGE 15

keeping what’s great, what’s special and what people love, and partly developing it. At the end of the day we’re a cool fashionable brand and fashionable brands need expansion.

Is the fashionable brand a reason why employees like working for Wagamama? It’s the number one reason why they like working for us. When we ask them, or when we ask our management, the brand comes up as the number one reason why people want to work for us, and the pay comes out at about three or four. The notion of what people think of Wagamama is important when employees work for a ‘‘cool’’ brand.

How do you recruit staff? We don’t have to spend a lot of money recruiting staff because everyone wants to come in and work for us; we don’t do a lot of advertising to start with. They’ll have an initial interview with a manager – we leave it very much up to the managers at each site. After their initial interview they go onto what is called a ‘‘trial shift’’. This is a three hour trial which allows the staff to self-select and maybe say, well this isn’t for me, this is a bit pacy and a bit different; but it also allows the team to look at these people and think, well are these people going to help my restaurant, are they going to help my tips, are they going to help our mystery diner scores? It also allows the manager to have a look. We pay them £20 for those three hours, and at the end of the shift they decide whether the job is for them. The rest of the team and the manager also decide whether or not they like them, and if it all works out they start from there.

What is the importance of training to staff retention rates? Training is everything really. Training is everything in terms of maintaining the consistency of what we do, but it is also coming out in all the research, especially development, that learning is a key reason to why people stay with a company. The opportunities to develop your career but also to develop yourself are really important. We invest in an enormous amount of training. We train our management – the people who are going to manage our kitchens, the floor managers in our kitchens and the front of house managers – for nine weeks in one of our training restaurants. We have two restaurants that train everybody for all the management positions in the world. They have to spend nine weeks before we’ll allow them into their own kitchen, and seven weeks for the front of house training. I don’t know the figures for our competition but that’s pretty big. When we open another restaurant we’ll typically choose somebody with experience from another restaurant, then we’ll tell them that we’re going to train them the Wagamama way for nine weeks. That’s quite an investment when somebody’s been running their own kitchen for ten years but it just shows them that we’re serious; that this is how we do things and this is how we’re going to get them to do things.

You are responsible for both HR and marketing. What do you think the importance is of communication between HR and marketing? I’ve always been a strong believer that HR should work much closer with marketing, so if you’re wearing both hats then the communication becomes much easier. The way I describe it is I think marketing benefits from having some of the rigor and disciplines that HR typically brings to an organization, while HR benefits from some of the risk and creativity that marketing might bring to an organization. They complement each other if you can play them at those skills. A lot of what we do in the brand is people related. If you eat in one of our restaurants then it is not only the name and the physical look of the restaurants that attracts you but also the food that you get served and the people that serve it; so from that point of view a huge intent behind our brands is people. The fact that we decided to bring them together is a really positive and powerful thing and it works very well for us.

j

j

PAGE 16 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST VOL. 15 NO. 3 2007

How do you encourage staff diversity? It’s interesting because when I was at Sainsbury’s I led on diversity particularly as a sort of management concept for about two and a half years. I did a lot of work to get it integrated across the whole organization so people would stop talking about difference and start talking instead about how we do things, and I think we’d just started to get to that point. At Wagamama no-one really talks about the word ‘‘diversity’’ because it’s just how we do things. So I’ve turned up in an organization that’s the most diverse organization I’ve ever worked in, yet nobody really talks about it. We translate our training materials into seven languages because it’s important that people who are going to work in our kitchens can understand what we do and also work in a safe environment. We have to teach them in Polish or Italian or Chinese, but we don’t talk about it from a diversity standpoint and say this is really good for our diversity, we just say that this is a great for our restaurant. We don’t spend a lot of time talking about diversity but we do spend a lot of time talking about how we manage a multi-cultural workforce. There’s a slight difference.

How does Wagamama effectively create employee engagement? Talking about engagement is interesting but you have to define it; it is more than just people being happy and satisfied at work although that is important too. Our ideas about engagement say that it is about people having opportunities for development. The biggest driver of engagement that we found in one of the studies was people being able to recommend our food, because if they would recommend our food then they are engaged in what we do. It’s also about the quality of their management, it’s about the management saying thank you for a good job well done, and it’s about people feeling empowered in what they do. And those five things put together are what make people engaged in a retail business. From that point of view we believe, and everybody tells us, that everybody is very engaged in what they do. A good example of this is that everybody in our restaurant eats for free when they’re at work. So if you have statistical desk top research that says if an employee can recommend your food they’re engaged in what they do, and then we give everybody free food, it makes people more engaged in what they do. It’s something that has been done for years and not something I’ve introduced, but it does work.

What hopes do you have for the future of Wagamama? My sincere hope is that we carry on expanding and we capture what is special about what we do, then when we have about 400 restaurants across the world everybody still says yeah, that’s pretty good, it’s still a bit different, and everybody loves what they do. Keywords: Restaurants, Brand image, Recruitment, Retention

If we can look back in five years and think we’ve achieved that: we’re still making lots of money, customers still love us and it feels like we’re still not massively different than we were when we had 45 restaurants, then I’ll be very happy. This interview took place at the CIPD 2006 conference: www.cipd.co.uk

To purchase reprints of this article please e-mail: [email protected] Or visit our web site for further details: www.emeraldinsight.com/reprints

j

j

VOL. 15 NO. 3 2007 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST PAGE 17

Communicating Total Reward at O2 Rachel Fyffe

Rachel Fyffe has been Head of Executive Reward for O2 for three years and joined O2 at its inception. She has been involved in building all aspects of reward at O2 through its time as a UK plc to its current status as a subsidiary of Telefonica S.A. She previously worked in consulting, specializing in executive reward, particularly long-term incentive design and Remuneration Committee support.

s reward professionals it is all too easy to become involved in the technical design of a reward program. But is this what employees really want or need? Since O2’s formation in 2001, we have been on a journey both in terms of its reward structures and the way it communicates the reward package. Over time we have learned that how a benefit or reward initiative is communicated is at least as important as the item being communicated – it is through communication that we get ‘‘bang for our buck’’ and return on investment for the reward spend.

A

Communication is a two-way process – establishing a dialogue with people in the business before design is finalized often results in a better solution, and helps to get early engagement and interest in what you are introducing.

In the beginning When O2 first formed, reward communications were not at all joined up – each communication was isolated, and not set in any context about the total reward package. Typically we relied heavily on e-mail and formal, ‘‘dry’’ letters. The reward programs were very paper-based and quite bureaucratic, often with complex form-filling and significant amounts of small print, giving the effect of majoring on the negative messages rather than on the ‘‘great news’’.

Evolution We have moved away from this bureaucratic approach as far as possible - now our design process begins with the employee experience in mind. We put each communication in the context of total reward, try to remove as much jargon as possible, and use people brand (linked to our already powerful corporate brand and values) to put the messages across as strongly as possible. Ours has been a journey of constant lessons learned, refinement and improvement. We addressed the complex areas first – pensions and share plans received a complete communications face lift, to make sure that people understood the mechanics and the importance of these parts of the package. The share plan explanatory booklets were simplified and demystified. We wanted to move away from the norm of legalistic share plans material with lots of small print and jargon – and which is not read as a result. The packs for participants are colorful and glossy, and include a number of items to really drive the messages home, including an explanatory CD-ROM (branded, jargon-free, easy to read and interactive), a personal letter from the CEO congratulating the participant on being selected to participate, and a one-pager setting out the main headlines about the plan – ‘‘if you read nothing else just read this’’.

PAGE 18

j

HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST

j

VOL. 15 NO. 3 2007, pp. 18-20, Q Emerald Group Publishing Limited, ISSN 0967-0734

DOI 10.1108/09670730710743952

We invested a lot in keeping the communications going for the share plan so that people did not put the packs in a drawer and forget about them for three years. We established a Total Shareholder Return (TSR) website providing performance updates, held CEO briefings to senior managers, and provided modelers showing people the value of their awards based on actual company performance to date. To complete the cycle, at the time of vesting we ran drop-in surgeries for people to ask questions, provided them tax help and examples of how to fill in self assessment forms. We adopted a similar approach with pensions, by directing people to a new externally hosted website with clear, jargon-free information. We put modelers and games on the website; for example, ‘‘how much do I need to save to retire at age 55?’’ There is a life cycle game on the website explaining the various stages at which people may need to think about pensions and includes the forms they need. To support the website we have run surgeries and induction campaigns for new joiners to O2, and we make use of the plasma screens in our major sites to communicate key messages about pensions.

Pulling reward communications together It was important to us to set the context for each reward element, to get the message across that O2 reward is about more than just base pay. Key to this was our Total Reward website. The website it is externally hosted, so people can log in at home as well as at work. This is important for O2 as we have around 3,000 people working in our stores who do not have regular and personal access to the intranet in the workplace. The website is branded, has a secure log-in for access to personal data, and is refreshed monthly to reflect data changes, promotions etc. To reflect the level of investment in the site, the launch campaign for the website was extensive: B

champions across the business who acted as testers before launch and then spread the word post-launch;

B

articles in the company magazine;

B

a letter to home addresses with a tutorial CD-ROM explaining how the website worked;

B

we went on the road – with stands at the major sites demonstrating the website; and

B

we asked employees to provide on-line feedback – those that did were entered into a competition to win some great prizes including travel vouchers, DVD players and DVDs.

The results On the share plans we saw a huge increase in understanding of how share plans work and how they deliver value – our senior managers are now incredibly well informed about share-plans, which in turn makes them more demanding in terms of the communications they receive. We have seen a steady increase in pension scheme membership – initially we saw a 20 percent rise when we first launched non member campaigns – and we are now seeing a continuing steady rise in membership of around 5 percent a month.

‘‘ O2 reward is about more than just base pay. ’’

j

j

VOL. 15 NO. 3 2007 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST PAGE 19

‘‘ Our design process begins with the employee experience in mind. ’’

The total reward website was viewed very positively on our on-line employee chat forum, Open Voice. We have had nearly 60 percent of employees visit the site, and there were around 15,000 visits in the first few months of the site being launched.

The future

Keywords: Telecommunications, Shares, Pensions, Employee relations

Now that our people understand the individual elements of reward and conveyed to people the value of their total reward package we now want to give them choice on the back of this knowledge and understanding; as such, flexible benefits is coming on line next year. Our hope is that the understanding that people have of their total package will mean that they feel better equipped to make good choices about their benefits, and crucially, they will have more of an appreciation of the investment that O2 makes in them. This article is based on a session from CIPD 2006: www.cipd.co.uk

To purchase reprints of this article please e-mail: [email protected] Or visit our web site for further details: www.emeraldinsight.com/reprints

j

j

PAGE 20 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST VOL. 15 NO. 3 2007

Age discrimination: don’t let the joke be on you Best practices from JD Wetherspoon, the Metropolitan Police and McDonalds

n an age of increased sensitivity in the media and the workplace to issues of discrimination, ageism is something of a final frontier. Jokes about age abound on TV, at work and are a genre of greetings cards laying in wait for those milestone birthdays. But now that sixty is the new forty, forty the new thirty and twenty, well still twenty, a cultural revolution is taking place.

I

In western societies the demographics are of course driving it – it can feel that the surest way to tap into pools of young workers is to outsource to Mumbai, or begin drafting skilled worker visa applications. However, cultural change driven by external factors can be a slow process. The law, however, is a blunt instrument. While there is logic within a competitive recruitment market of gearing work towards those of a certain age, legal compliance or the lack of it focuses the mind and galvanizes even the most cynical into some sort of action. In the UK, the Age Discrimination Act is set to have a profound impact, just as earlier race and gender legislation did.

Counting on compliance The accounting profession has traditionally recruited young bright graduates from universities. Their workforces reflect this focus on youth. Ernst & Young, for example, has an average age of 32. However, there has been a quiet change of focus taking place below the surface in anticipation of the new act, grounded in some pragmatic realities. The simple fact is that employers are more likely to get ten years of service out of a 55-year old than they are from a 25-year old. In accountancy age limits on new trainees are being lifted, and gradually the age profile of trainees is broadening. However, the truth is that an influx of trainee accountants between the ages of 40 and 50 is not anticipated. More profound is likely to be the conflict between companies seeking to move new (usually younger) recruits onwards and upwards, and bumping into older workers no longer prepared to move aside. While companies keep expanding there will be places for all, but what of the lean years? Choices will have to be made. In complying with the Age Discrimination Act the following should be considered:

DOI 10.1108/09670730710743961

B

it makes direct or indirect age discrimination unlawful;

B

the recruitment process must not involve any reference to age, and training and development must be open to all regardless of age;

B

service-related pay and benefits can continue, such as holiday entitlements and pay increments, but must not be based on more than five years experience;

VOL. 15 NO. 3 2007, pp. 21-23, Q Emerald Group Publishing Limited, ISSN 0967-0734

j

HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST

j

PAGE 21

B

employers will not be able to cease to provide life insurance for employees once they reach a certain age; and

B

the default retirement age is set at 65 with earlier retirements carefully justified, and employees able to put in a request to work beyond the retirement age within a certain timescale.

A challenge, but an opportunity too Clearly the act will challenge all industry sectors, way beyond accountancy. The recruitment industry across the board can still be found actively screening applicants on the basis of age. Old habits, it seems, die-hard. However there are signs that the times are a’ changing. A survey from the Chartered Institute of Personnel and Development (CIPD) of more than 2,600 managers discovered that 22 percent of them still take age into account. Good news seekers will identify that 78 percent then don’t. The worry though is that the practice will go underground. If recruitment advertisements are being monitored then less visible ways of recruiting will flourish. These concerns seem based in a sense that businesses are to be laid less effective by the new legislation and must find ways to discretely circumvent the law. Can a more positive case be made for the older worker? UK pub chain JD Wetherspoon’s oldest employee is 75, and the company is actively seeking older workers. One of the major benefits of older employees is that they stay longer. Their approach to the conundrum is to move beyond legal compliance and be more positive, being the first in their industry to achieve the Age positive accreditation from the Department for Work and Pensions. In doing so they have changed job descriptions to emphasize skills rather than experience, they have got rid of their mandatory retirement age which sent the wrong signal, and their search-and-selection now contain information on age discrimination and the new act. London’s Metropolitan Police, known colloquially as the Met, have also gained the Age Positive accreditation. They have done so within a government regulatory context that requires them to operate a minimum recruitment age policy of eighteen-and-a-half years and a retirement age policy of 55. Within this they have found much scope for positive improvement. Their ‘‘30-plus scheme’’ has been instrumental in encouraging officers with 30 years of experience to forego retirement and keep working. Changes in recruitment practice have seen a growing number joining in the 40-50-age range, policing being a second career. The result has been something of a cultural change, and an encouraging one.

McSorted McDonalds tend to be associated with the younger worker – many a student has offset their student loan with part-time earnings from the fast-food giant. It is an impression that is beginning to change however. In the UK they employ more than 500 people over the age of 60. What’s their motivation? Older people have the social skills needed for success in service operations. Teenagers, it seems, have much to learn. Of course, 500 do not seem such a large number once you realize that the McDonalds UK workforce is some 67,000 strong. Yet with pressures on the value of final pensions, there is a new, flexible workforce out there waiting to be utilized, and in a battle for skills they cannot be ignored. McDonalds are actively targeting them, a recent recruitment advertisement featuring a 65-year old judo coach with the tag line ‘‘We have the shift patterns to suit the lifestyles of all our Crew’’.

‘‘ UK pub chain JD Wetherspoon’s oldest employee is 75, and the company is actively seeking older workers. ’’

j

j

PAGE 22 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST VOL. 15 NO. 3 2007

‘‘ The simple fact is that employers are more likely to get ten years of service out of a 55-year old than they are from a 25-year old. ’’

What is impressive about their approach is the attention to detail. Beyond recruitment, employee incentives have been carefully considered for the older worker. At the same time, benefits such as private health insurance and access to training are available regardless of age. Indeed the Hamburger University is central to the alignment of skills development with business development, and its effectiveness in developing all employees has been central to the company’s success. The recipe is to blend young and old, as any family strives to. The signs look good. The Age Discrimination Act will have a profound effect on organizations, just as previous equal opportunities legislation has. Compliance is a requirement, and efforts to circumvent the spirit as well as the letter of the law seem destined to end in tears. Compliance is needed and is ultimately inevitable, so plans and procedures must quickly be brought into place. Yet merely to comply is to miss the point. Given changing demographics, attitudes and healthier lifestyles a new, emerging labor pool has emerged with the skills to better your business. If they can rise to the challenge, will you?

Comment This multiple review article is based upon the following papers: ‘‘Age discrimination’’ by Sally Percy and Annette Partridge writing in Accountancy provides a perspective on key issues together with compliance advice and is a useful primer with broad implications. ‘‘Same old story’’ by Anat Arkin writing in People Management provides a more holistic view of managing older workers together with two short case studies – JD Weatherspoon and the Metropolitan Police. Keywords: Equal opportunities, Age discrimination

‘‘Age is the recipe for success’’ by Elizabeth Eyre in Training Journal relates the McDonalds experience in addressing these same issues and, while uncritical, provides some useful insights for others.

References Arkin, A. (2006), ‘‘Same old story’’, People Management, June 15, pp. 24-8, ISSN 1358-6297. Eyre, E. (2006), ‘‘Age is the recipe for success’’, Training Journal, October, pp. 26-8, ISSN 1465-6523. Percy, S. and Partridge, A. (2006), ‘‘Age discrimination’’, Accountancy, Vol. 138 1358, October, pp. 27-32, ISSN 0001-4664.

To purchase reprints of this article please e-mail: [email protected] Or visit our web site for further details: www.emeraldinsight.com/reprints

j

j

VOL. 15 NO. 3 2007 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST PAGE 23

A critical mass of women A study of senior management at five Australian universities

hough times are slowly changing, on average the number of women occupying senior positions in the workplace is still discouragingly low. Of the women who have managed to make it to the top, the vast majority are still to be found in the traditional ‘‘pink ghettos’’ such as Human Resources, and more often than not their job title is Assistant Director rather than Director. Yet business writers continue to argue the case for having more women in high places, and new legislation increasingly enforces hiring without regard for gender. But is this fight simply about striving for gender equality or is there more involved?

T

Australian universities have been at the forefront of encouraging a gender balance at the top. Legislation to support equal opportunities has been in place for over a decade, but efforts have increased again since the 1999 Action Plan for Women Employed in Australian Universities was strengthened in 2006. The past seven years have seen an improvement, with the number of female Vice Chancellors rising from two to eleven, and the number of female Deputy and Pro Vice Chancellors changing from 19 to 34. In senior management overall, a figure of 230 women has risen to 473. There are thus now encouraging proportions of women to men in the top jobs in Australian universities, matched only by Scandinavia, Canada and the USA. Given this situation, Colleen Chesterman and Anne Ross-Smith – both closely tied to the Australian academic world – conducted research to explore women’s roles in senior management in more detail. In particular, they wanted to know how different the career experiences of men and women in the top roles have been, how assisted the women who had found their way into those roles had been, and how the culture in universities with a greater number of female executives differed from where there were mostly men. They interviewed 81 people from five universities, 50 senior women and 31 senior men, between November 2001 and October 2002. With regard to career experiences, the results showed the men and women in senior roles had indeed led quite different career paths. On the whole, the women had entered universities later in their careers via sectors such as teaching, nursing and the public sector. They had also been slower to get to their positions due to child-rearing, putting their husbands’ careers first, their relative reticence in putting themselves forward for jobs and, in some cases, discrimination. Interviewees also concurred that the presence of women led to a very different corporate culture than in a men-only environment. They commented on increased collaboration and consensus and a more friendly, cooperative and people-focused atmosphere. What most interested Chesterman and Ross-Smith, however, was their findings concerning the techniques involved in successfully developing women into senior positions. The

PAGE 24

j

HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST

j

VOL. 15 NO. 3 2007, pp. 24-25, Q Emerald Group Publishing Limited, ISSN 0967-0734

DOI 10.1108/09670730710743970

‘‘ Is this fight simply about striving for gender equality or is there more involved? ’’

concept of ‘‘critical-mass’’ and how it pertained to senior female executives was well-discussed in connection to this issue. Simply, critical mass refers to the idea of reaching a number that tips a balance, so that a pattern forms beyond what may have been expected. This figure is taken to be 35 percent of a given group or above; when the smaller set become a ‘‘minority’’ with ‘‘sway’’ rather than mere tokens. Once a minority group reach the point of critical mass, they are likely to have a real effect on the culture. They also attract more people to join them, gradually tipping the balance until the ratio of minority to majority becomes closer to equal. Illustrating the critical mass theory, in the Australian universities the increasing number of women in senior roles has led to a snowball effect, whereby having watched a successful role model more females feel confident in applying for top jobs. As one Dean explained: ‘‘Just the fact of my coming communicated the message to women in the faculty. Suddenly every leadership role would have a bunch of really excellent women expressing interest in it to the point where I started to become a bit concerned that I needed to appoint a few men because they were feeling a bit left out.’’ For a truly beneficial experience for individual and organization alike, it is seen as very important that the proportion of women in a management group should reach or exceed the critical mass. The presence of just one or two ‘‘token’’ females will satisfy nothing more than basic appearances. However, women have proved that if numbers are sufficient they will alter corporate culture and, thanks to the communication values they espouse, they will alter it for the better. More and more male CEOs are now recognizing the benefits of having both genders well represented on their teams. It comes as no surprise that interviews showed that women felt they achieved more when there were other women around to network, bond and share experiences with. Recognizing that, the five universities in question created ATN WEXDEV, a program to support networking between women in the top jobs. This is just one of the signs that CEOs are officially supporting women in senior roles. In fact, so convinced are both men and women right at the top that women should take management roles, that the universities have set the target of having 50 percent of senior positions to be filled by women in five years. By drawing attention to the methods involved in attracting women and the support needed to keep them, Chesterman and Ross-Smith’s paper provides a helpful mirror on the situation – a useful learning guidelines for both the Australian universities as they unroll their plans, and for other institutions all over the world.

Comment Keywords: Women executives, Academic staff, Networking, Universities, Australia

This is a review of ‘‘Not tokens: reaching a ‘critical mass’ of senior women managers’’ by Colleen Chesterman and Anne Ross-Smith. The paper outlines the findings of a research project, which sought to explain how five Australian universities have managed to fill over 30 percent of their senior management positions with women. Having interviewed 81 people at these universities, the writers consider how the position of women in senior management might be further improved through challenging hierarchical and traditional cultures and networking.

Reference Chesterman, C. and Ross-Smith, A. (2006), ‘‘Not tokens: reaching a ‘critical mass’ of senior women managers’’, Employee Relations, Vol. 28 No. 6, pp. 540-52.

To purchase reprints of this article please e-mail: [email protected] Or visit our web site for further details: www.emeraldinsight.com/reprints

j

j

VOL. 15 NO. 3 2007 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST PAGE 25

Guarding against discrimination How to keep lawsuits at bay

s the emphasis on equality in the workplace increasingly reverberates around the business world, few self-respecting organizations will knowingly deploy practices that might be perceived as discriminatory. However, despite honorable intentions, many companies remain blissfully unaware that some of their practices may not be quite what they seem.

A

An open university So how can organizations identify and remedy issues that may at best threaten workplace harmony or at worst leave them facing a lawsuit? They could take a proactive approach, as the University of Westminster has done. Like other public bodies, this UK institution had to comply with requirements of the amended Race Relations Act. The university, though, went much further and widened the scope to examine the impact of its policies, systems and processes not only on ethnic minorities but in other areas too. After an initial pilot of the impact assessment program in selected academic schools and service departments, the exercise was carried out institution wide. During the test stage, diversity focus groups identified potential areas of concern and then program leaders created a template to help the university make informed decisions that would ensure across the board consistency for its policies and activities. Even more important was the aim to identify those activities that might negatively impinge on certain groups. Immediate consequences of the impact assessment program included: B

each school and department becoming responsible for taking necessary measures to ensure that their own practices positively contribute to equality and diversity objectives. Action plans formed are monitored at both department and institution level;

B

a checklist was created so that those involved in policy making could better assess the impact on equality and diversity; and

B

recommendations were reviewed and integrated within corporate planning activities.

A novel way to monitor training On this evidence alone, it’s clear that the university is passionate about equality and diversity. And that’s without considering its trump card – the diversity workbook introduced following a training needs analysis. Part of the diversity training program, the book is distributed to all staff with its purpose being to improve knowledge and raise individual awareness of attitudes and prejudices. Content includes case studies to illustrate good practice, and understanding is measured using questionnaires throughout each section and a short test at the end completed online or by telephone. Those who score above a certain

PAGE 26

j

HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST

j

VOL. 15 NO. 3 2007, pp. 26-29, Q Emerald Group Publishing Limited, ISSN 0967-0734

DOI 10.1108/09670730710743989

‘‘ Even more important was the aim to identify those activities that might negatively impinge on certain groups. ’’

level earn a certificate and the institution benefits from having a shrewd method of monitoring not only the effect of its training but also how many employees are properly taking part. According to twentieth century US historian Hannah Arendt, equality only results through human endeavor. The University of Westminster clearly buys into this belief because efforts to safeguard against potential discrimination don’t stop there. For instance, the impact assessment revealed that the level of diversity within its 23,000 strong student population was not mirrored among staff. However, employee turnover is remarkably low and a less dedicated organization might perhaps use this fact as justification for not addressing the issue. But this institution is nothing if not committed and attention soon turned to the selection process itself. Investigations revealed that ethnic minority candidates were frequently eliminated during the latter stages of the process and it was acknowledged that: B

the university was demanding higher qualifications than were needed; and

B

selection was based solely on interview performance.

Action since taken now means that: B

instead of expecting the highest levels of qualification at the outset, the university aims to offer more career development opportunities (this applies to all staff);

B

in addition to interview, candidates also undertake tests in order to demonstrate they possess the relevant capabilities; and

B

those on the interview panel receive training to ensure fair play during recruitment and selection.

Assessment also indicated that ethnic minorities were particularly under-represented in academic positions. The university’s response? To create a scheme aimed at attracting outstanding students from diverse backgrounds who were eager to follow an academic career. A comprehensive process is used to select the students, who are then financed for three years while they gain teaching practice and study for a PhD. If all goes to plan, the students will obtain the qualification and then secure an academic post at this or another university. It’s important to realize that Westminster needed to fight to secure funding for the scheme by proving that it wasn’t simply a show of positive discrimination.

Protecting the interests of all We all know that discriminatory behavior can affect anyone and this university has left no stone unturned in its efforts to promote equality and diversity. These efforts have also focused on: B

Raising disability awareness so that people become more familiar with different forms of disability and what adjustments might be needed in terms of working patterns, specialist equipment and the physical environment.

B

Staff harmony. Support staff felt undervalued even though many boast high levels of qualification. One solution was to set up programs to help academic and support staff work more closely. And seeing that many considered the term ‘‘non-academic’’ to be derogatory, inclusive language was also encouraged.

B

Providing part time staff with the same development opportunities and subjecting them to the same selection process as their permanent counterparts.

B

Promoting warm feelings between people of different faiths.

j

j

VOL. 15 NO. 3 2007 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST PAGE 27

Throw in gender specific training programs, subsidized childcare costs and a HR program that helps employees prepare for retirement and you quickly realize that this institution has every group’s welfare at heart. Its finger is clearly on the pulse and constant monitoring and discussion ensures it remains there. However, the university’s experience illustrates that any impact assessment demands: B

Effective management. The workload is challenging and time consuming.

B

Commitment from staff. This will only occur if they consider the exercise meaningful and receive appropriate training and support.

B

A model chosen through collaboration and appropriate to the specific culture and needs of the organization.

B

A template relevant to all concerned. In this case, the template proved more suitable to such as HR and academic schools than to service or delivery departments.

Playing by the book Whereas most companies will be aware of their obligations towards existing employees, the same might not be true in relation to those applying to join the ranks. Bur rules apply here too and any organization not following the letter of the law could soon find itself in hot water. Every employer seeks to choose the right candidate. Nevertheless, many can and do get it wrong – sometimes with disastrous consequences when, for example, the new employee exhibits violent tendencies or behaves dishonestly. Lawsuits can arise in such cases and US juries are increasingly blaming the organization for not properly carrying out its homework beforehand. Employers fortunate enough to win their case often still have costs and bad publicity to contend with. Prevention is invariably better than cure and it’s certainly no different here. Astute organizations realize this and will perform thorough background checks. Informing the candidate of such procedures may even serve to scare off the more unsavory applicants. But to guard against discrimination claims, employers must carry out their vetting procedures strictly by the rules. This involves: B

Asking the applicant for consent to carry out checks.

B

Making sure that the application form clearly states that providing false information will result in dismissal.

B

When asking about criminal records state that convictions won’t necessarily prevent employment and that the nature of the offence must be taken into consideration. Employers must be particularly aware of their obligation to provide valid reasons for exclusion on these grounds.

B

Protecting the candidate’s privacy and taking great care of credit or other personal information in the company’s possession.

Seeing that some aspects of law may be country or state specific, one cap can obviously never fit all where this matter is concerned.

‘‘ Such companies are playing with fire because even illegal workers are protected by employment laws, as the Equal Opportunities Commission and other agencies are quick to point out to employer and employee alike. ’’

j

j

PAGE 28 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST VOL. 15 NO. 3 2007

Legal or illegal? The fear of prosecution is never far from some US employers’ minds. Just ask those who hire immigrant workers. Such employers are coming under increasing pressure because of government crackdowns on the use of illegal immigrant labor. Many have successfully hired immigrants for years and have always ensured that the correct documentation is in place. However, that Social Security cards, work visa and green cards appear authentic may no longer be enough. Even though employers admit to having no way of knowing if documents are genuine, the onus is falling on them to ensure that everything is above board. The situation has taken a turn for the worse because those suspected of violating the rules can now be charged with criminal offences. Sure, government certification programs are in place. But many are flawed and stifled by bureaucracy. As a result, even employers who submit applications well in advance of when labor is required are not guaranteed to receive clearance in time. This not surprisingly plays havoc within farming and other industries that have seasonal demands. Many employers are caught between the devil and the deep blue sea because rejecting an applicant’s papers exposes them to a discrimination charge should everything turn out to be valid. Under the circumstances, it’s little wonder that some companies choose to ignore the law altogether. These companies feel the risk is worth taking. What’s more, they believe further advantage can be gained by exploiting the illegal status of the workers. How? By paying them considerably less than the minimum rate and depriving them of other rights. Such companies are playing with fire because even illegal workers are protected by employment laws, as the Equal Opportunities Commission and other agencies are quick to point out to employer and employee alike. Tough legal and financial penalties await those found guilty of unscrupulous practices. Under these conditions, compliance is clearly difficult if not almost impossible. Perhaps one way forward is for employers to develop effective ways of self auditing the necessary documentation. But with the specter of discrimination hovering, it would be wise to carry out these checks for all workers, not just certain groups.

Comment

Keywords: Discrimination, Equal opportunities, Recruitment

The review is based upon: ‘‘University of Westminster: assessing equality’’ by Kate Godwin, ‘‘Trouble on the hiring front’’ by Susan Ladika, and ‘‘How to avoid the repercussions of negligent hiring’’. Godwin provides a fascinating account of how the University of Westminster actively promotes equality and diversity. The author describes in detail the assessment program and subsequent monitoring, and notes the impact of many of the changes that have been implemented. The article by Ladika focuses on the dilemma faced by US companies that hire migrant workers. She remarks how these employers are being forced to comply with more stringent laws, while also facing accusations of discrimination from rejected workers. The final piece warns against negligence when hiring new staff. It urges employers to carry out thorough checks in order to eliminate unsuitable candidates but points out that those who fail to properly carry out procedures may face lawsuits from unsuccessful applicants. All of the articles will enlighten any practitioner about different issues surrounding discrimination.

References Godwin, K. (2006), ‘‘University of Westminster: assessing equality’’, Equal Opportunities Review, 158, November, pp. 6-10, ISSN 0268-7143. HR Focus (2006), ‘‘How to avoid the repercussions of negligent hiring’’, HR Focus, Vol. 83 10, October, pp. 4-7, ISSN 1059-6038. Ladika, S. (2006), ‘‘Trouble on the hiring front’’, HR Magazine, Vol. 51 10, October, pp. 56-61, ISSN 1047-3149.

To purchase reprints of this article please e-mail: [email protected] Or visit our web site for further details: www.emeraldinsight.com/reprints

j

j

VOL. 15 NO. 3 2007 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST PAGE 29

Education for life? Quantifying the factors behind students’ choice of HE

igher education in the UK has changed considerably in the ten years since Tony Blair’s government removed free tuition. The need for students to pay their way through college or university has resulted in a subtle shift in the primary role that higher-education (HE) institutions play, from a more academic to a more utilitarian function. Sixth-form pupils must increasingly weigh up the practical value of their further education, in terms of potential employment and functional skill-sets for a competitive job-market.

H

Felix Maringe, in his article ‘‘University and course choice: Implications for positioning, recruitment and marketing,’’ analyzes this shift in trends, the general decision-making process potential students go through to pick their HE institution, and gathers evidence from a case-study to identify any marketing strategies these institutions could employ. As he points out, ‘‘Choice and decision making in HE is an area of growing research interest primarily because HE has been transformed from a domesticated, centrally funded non marketised entity to a highly marketised and competitive environment.’’ As a result, the motivating factors for students in picking an HE institution have undergone changes also.

Decision-making behavior and analysis Previous to the introduction of tuition fees in Britain, the choice of universities or colleges for potential students was made along socio-economic, ethnic and cultural guidelines. Models which helped explain HE choice behavior also had to take into account the subjective nature of such choices, given the personality and judgment of the individuals involved. Projections about how school pupils might decide on their next step had to be made through layers of preconceptions and external influences such as family background, class, and life history. Since then, however, models are increasingly being based on what Maringe calls ‘‘purchase behavior of consumers.’’ In other words, as HE institutions begin to compete in a more traditional market environment, it is becoming possible to anticipate choice behavior through the rationale of consumer behavior. The first to identify this trend in consumer behavior was R. Chapman (1986). Chapman identified a number of identifiable stages which students and their parents negotiate in order to come to a final decision on an HE institution. These stages include:

PAGE 30

j

B

Pre-search behavior. This is identified as the point at which students first become aware of HE opportunities and the existence of information on these institutions.

B

Search behavior, meaning the process of gathering this information to make a short list of potentially suitable HE courses or institutions.

B

Application behavior, or the point at which students submit their applications to several institutions, with the understanding that they may not qualify for, or be accepted by, their first choice institutions.

HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST

j

VOL. 15 NO. 3 2007, pp. 30-32, Q Emerald Group Publishing Limited, ISSN 0967-0734

DOI 10.1108/09670730710743998

‘‘ Previous to the introduction of tuition fees in Britain, the choice of universities or colleges for potential students was made along socio-economic, ethnic and cultural guidelines. ’’

B

Choice decision, or the moment at which a final decision is made on the successful applications to HE institutions.

B

Registration, or the moment in which the offer is finally accepted by the student.

As Maringe argues, a clear grasp of the these stages is crucial in developing a successful student-recruitment strategy.

Historical research There have been three traditional levels at which research has been undertaken into the decision-making trends of HE education: the global level, analyzing why students choose to study abroad; the national level, which analyzes the driving factors behind a student’s choice of university; and the level at which students actually choose their courses of study. Maringe argues that this last level has been historically marginalized, but that it must take precedence if institutions are to successfully market to students who are aligning themselves for employability following graduation.

Research and findings Maringe’s field research focused on the choices of sixth form students deciding from a sample of 30 colleges involved in the University of Southampton’s PGCE secondary partnership program in Hampshire. The aim of the study was to ‘‘explore the factors which sixth form pupils in England considered important in their choice of university and courses of study.’’ Using a questionnaire, students were asked to rank up to 35 different factors on a scale of 1-10, demonstrating the importance attached to each factor. These factors were divided up into the following categories: place, prominence, prospectus, people, promotion, price and program factors. Factors which asked questions of course-choice included aspects of personal interests, institutional and course prestige, employment prospects and advice from teachers and parents. Finally, the questionnaires also incorporated issues of gender, age, ethnic origin, subjects currently being studied and other biographical information. The study seems to have produced some interesting and important findings for HE institutions. Results regarding students’ ‘‘intended field of study’’ indicated a gender bias between certain disciplines: for example, only one female student identified architecture/building as a potential field of study, while economics and engineering courses were largely male dominated. Obversely, medical/health studies registered a lot of female interest. Other factors which, today, are heavily influencing the choice of subject include future career opportunities that such courses open up, the influence of teachers, and the student’s own interests. Encouragingly, the perceived difficulty of a course does not seem to persuade a student’s decision to take that course, if it means a suitable and attractive qualification in a subsequent job market. However, career guidance at schools does not seem to be having the influence on their pupils counselors might hope. Finally, factors influencing a student’s choice of university seem to revolve mainly around programs offered, price, location and prominence. Therefore, worryingly for HE institutions, it would appear that the enormous amounts of money spent on marketing and producing prospectuses is being, if not wasted, then ineffectively channeled.

j

j

VOL. 15 NO. 3 2007 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST PAGE 31

‘‘ Socio-political, economic and cultural changes have resulted in a move away from the pursuit of knowledge for knowledge’s sake, towards a more pragmatic and commercially informed platform from which universities and colleges must begin to function. ’’

Conclusions From the findings that arose from Maringe’s series of questions, he is able to draw a convincing pattern of consumer behavior with regards to HE choice-making. With decisions in choosing a university, and a course of study, now being directly related to practical issues of cost in tuition and potential employability upon graduation, students are becoming more pro-actively involved in the decision making process. Just as students are becoming aware of their own value as laborers in a market place, so their choice-behaviors begin to follow consumerist assumptions about what a university can offer them. This, as Maringe coins, can be described as a ‘‘utilitarian’’ approach to HE choice-making. Universities have the opportunity, consequently, to aggressively recruit students according to market forces and behavior. What suffers under these conditions, unfortunately, is the purely academic appeal of more traditional courses and institutions, which have historically relied upon a more conservative approach to HE. Socio-political, economic and cultural changes have resulted in a move away from the pursuit of knowledge for knowledge’s sake, towards a more pragmatic and commercially informed platform from which universities and colleges must begin to function.

Comment

Keywords: Universities, Recruitment

This review is of ‘‘University and course choice: Implications for positioning, recruitment and marketing,’’ by Felix Maringe, of the University of Southampton. It is a clearly written, inherently interesting and well researched article which should be valuable not only to higher education institutions as a modeling tool for student-recruitment, but also as a marker of the change in educational culture in Britain over the last ten years.

Reference Maringe, F. (2006), ‘‘University and course choice: implications for positioning, recruitment and marketing’’, International Journal of Educational Management, Vol. 20 No. 6, pp. 466-79, ISSN 0951-354X.

To purchase reprints of this article please e-mail: [email protected] Or visit our web site for further details: www.emeraldinsight.com/reprints

j

j

PAGE 32 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST VOL. 15 NO. 3 2007

Selecting international business managers effectively Assessment methods and core competencies for success

hat is the profile of the ideal international business manager? Fewer young people are willing to accept assignments overseas for fear their experience will not be recognized and they will encounter difficulties when coming back. It is therefore becoming critical for companies to select with precision and recruit the right personnel. There exist a few methods to help them predict the behaviors of potential business managers as well as a list of core competencies employers should rely on to optimize success.

W

They are no longer ‘‘expatriates.’’ International business managers now tend to be sent overseas on short term assignments with or without their families. Since the early 1990s, their role has widened due to the globalization of markets and production. The new breed of international managers has to be adaptable, possess cross-cultural skills and have the ability to work with, and learn from, many cultures. The question for the company is how to select the right people.

Selection methods The selection process is subjective and often lacks depth. Research has been conducted to help determine the key competencies international business managers must acquire in order to protect the investment of the company abroad and find the experience fulfilling on a personal level. The Overseas Assignment Inventory is one of the few validated screening methods. It was specifically designed to assess the adjustment capability of an individual being considered for a career mainly overseas. Occupational psychologists can also help provide information on an individual’s ability to: B

adapt to life in different cultures;

B

adapt to different working practices;

B

interact effectively with colleagues abroad; and

B

cope with living away from their family.

The Myers-Briggs Type Indicator (1997) is another valuable tool in helping selection. It classifies managers into four types: 1. Introverts/extroverts: these can be self-motivated or outgoing and assertive. 2. Sensing/intuitive: they have the ability to see the ‘‘big picture.’’ 3. Thinking/feeling: people making decisions by logic or according to personal values.

DOI 10.1108/09670730710744005

VOL. 15 NO. 3 2007, pp. 33-35, Q Emerald Group Publishing Limited, ISSN 0967-0734

j

HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST

j

PAGE 33

‘‘ . . . previous overseas experience . . . is not necessarily an indicator of future successful performance. ’’

4. Judging/perception: judging types prefer closure whereas perceptive types are more spontaneous. Assigning poles to individuals on these four dimensions helps establishing personality types. Mendenhall and Oddou (1987) is another four-dimensional approach to help predict how successful potential international business managers will be in an overseas assignment: 1. Self-oriented dimension: measures concern for self-preservation and mental resilience. It usually reveals well balanced individuals. 2. Perceptual dimension: measures the degree of tolerance and understanding of different customs. This requires being non-judgmental and flexible in attitude. 3. Others-oriented dimension: measures the degree of concern about foreign workers and the extent of work and social integration. It indicates a willingness to communicate. 4. Cultural-toughness: measures the likelihood of coping with culture shock and achieving adaptation. These ‘‘dimensional’’ approaches focus on the cross-cultural skills and, therefore, complement other technical and management assessments.

Key competencies Most companies only take into account the technical competencies or track record of potential business managers in their recruitment process. Research has however been conducted in this field and the results of various studies reach a consensus on what key competencies candidates must possess to be effective overseas. These competencies are reflected in the Handbook of HR Management Practices: B

cultural sensitivity;

B

ability to manage ethical and cultural differences;

B

linguistic ability;

B

building and leading multinational teams;

B

adaptability;

B

resilience;

B

self-motivation; and

B

managing work/family balance.

Previous overseas experience does not seem required, nor does it qualify as an indicator of success for future assignments.

Added requirements Two pre-conditions must be met for international business managers to adapt successfully. They must want to operate effectively in another culture and they must be excited by the challenges ahead. Attempt to learn a foreign language to a reasonable standard is another favorable indicator. International business managers need to be sensitive to foreign cultures with no sign of prejudice. Their ability to cope with ambiguity, particularly when dealing with different business cultures and ethical dilemmas is an essential competence.

j

j

PAGE 34 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST VOL. 15 NO. 3 2007

Global perspective A 2005 survey by the London Business School of more than 100 executives in some 20 countries showed that the skills considered necessary for young managers to be effective on the international stage included: B

A global perspective.

B

The ability to work in multi-national teams.

B

Interact with their like-minded group of MBA students.

As a result of this study, leading business schools, realizing that they focused too exclusively on technical and functional knowledge, have added sessions devoted to intercultural exchanges and acquiring a global perspective to their curriculum. Some insist that MBA students reach a good level of fluency in a second language. Other studies add interesting findings to the research. According to the Canadian International Development Agency, individuals with a high degree of professional inter-personal skills have a much greater chance of becoming successful while abroad. Moreover adapting well to one country does not necessarily guarantee a successful adaptation to another. Many culture clashes can occur when the linguistic or cultural clashes are regarded as insignificant at first like the UK and the USA.

Outsourcing the selection Large international companies such as Shell, HSBC and BP have got assessment centers to select international business managers. Other companies resort to external agencies. The advantage of assessment centers is that they offer specifically designed tests to assess the qualities and competencies of the candidates. This method is still relatively recent with only 12 per cent of firms using those services according to The Price Waterhouse Survey (1997-1998). Some companies send potential candidates and their partners or family on a short visit to the overseas location. The risk in this method is that the candidate turns down the assignment after such a visit.

Expectations and concerns It is important for a company to stress the positive aspects and opportunities presented by a career overseas. In the experience of the author, employees have shunned such careers because of the following preconceptions: B

nomadic and transient lifestyle;

B

loss of ties to home and close friendships;

B

how to integrate with local people;

B

loss of usual support systems and to whom to turn in an emergency;

B

danger of terrorist activities and anti-western attitudes in some areas; and

B

children education and spouses’ careers.

Comments Keywords: Managers, International business, Recruitment

This is a review of ‘‘The selection of international business managers: part 1’’ by Brian J. Hurn. This paper offers clear insight into the recruitment processes of international business managers. It describes clearly the latest research available and gives practical advice on how to assess potential candidates.

Reference Hurn, B.J. (2006), ‘‘The selection of international business managers: part 1’’, Industrial and Commercial Training, Vol. 38 No. 6, pp. 279-86, ISSN 0019-7858.

To purchase reprints of this article please e-mail: [email protected] Or visit our web site for further details: www.emeraldinsight.com/reprints

j

j

VOL. 15 NO. 3 2007 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST PAGE 35

Interview with Marcus Buckingham Interview by Rachel Brown

n his role as author, independent consultant and speaker, Marcus Buckingham has been the subject of in-depth profiles in The New York Times, Fortune, Fast Company, Harvard Business Review, USA Today and is routinely lauded by such corporations as Toyota, Coca-Cola, Master Foods, Wells Fargo, and Disney as an invaluable resource in informing, challenging, mentoring and inspiring people to find their strengths and obtain and sustain long-lasting personal success. He has used his nearly two decades of research experience as a Sr. Researcher at The Gallup Organization to break through the preconceptions about achievement and get to the core of what drives success.

I

Marcus Buckingham

Marcus Buckingham holds a master’s degree in social and political science from Cambridge University and is a member of the Secretary of State’s Advisory Committee on Leadership and Management. He lives with his wife and two children in Los Angeles.

What attracted you to working in this field? I worked for the Gallup organization for about 17 years after going to university in Cambridge. My dad was the personnel director for both Allied Breweries and Gallaher. He wanted to find out how to select better pub managers because at the time he had 7,000 pubs, and pubs were rated by the quality of their manager and their spouse. He found a company over in Lincoln, Nebraska which was building psychometric pre-employment interviews and he brought them over. Their basic methodology was to study 100 great managers and 100 average ones and see whether or not the 100 great ones were different; see whether they had anything in common at all in terms of their talent; and see whether you could identify that talent before they were hired. So while I was at university I was sent over to Nebraska to study how to build interviews: how to find the right questions to get at the things people might not want to tell you about themselves. I then went back over after I graduated, one thing led to another and I never came back.

What role do you think a manager plays in helping an employee identify their own strengths? From all the research that I’ve been a part of it’s really clear that managers make a huge difference. We talk a lot about leadership at conferences like this, and at other places around the human resources world, but it certainly seems from the research I’ve been a part of that managers are the ones who make the difference. You’ll find within a company that there is a lot of talk about great companies and good companies – this company’s great and this one’s not – but what is really intriguing when you go inside a company is that you find a huge range in performance, a huge range in employee retention and huge range in quality by manager. In fact, two teams may be doing the same thing, working side by side but one is much more productive than the other.

PAGE 36

j

HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST

j

VOL. 15 NO. 3 2007, pp. 36-38, Q Emerald Group Publishing Limited, ISSN 0967-0734

DOI 10.1108/09670730710744014

You see this time and time again within Tesco’s for example, or Marks and Spencer’s or Barclays; clearly the manager has a huge part to play in making you productive and getting you engaged. Part of that is getting you to look in the mirror and understand what your strengths are, so managers I think are critical. However, some of us will probably never have a chance to work with a really great manager during our careers so we shouldn’t rely on a manger to help us identify our strengths.

What do think is the key difference between management development and leadership development? They are the opposite of each other in some sense. Great managers are not leaders in waiting. There’s so much of the literature I read that says managers are dependable plodders, doing things right but leaders are the grand strategists, looking out into the future and theorizing; and therefore every manager should want to be a great leader. All of that is rubbish really. If you look at what really makes an organization work it is a company’s ability to get the best out of each person and the role of the manager that is vital. Managers are brilliant at finding out what’s unique about a person and capitalizing on it, they can spot the differences between people. You might have ten sales people but a great manager will see that you’ve got ten individuals: one who’s driven by competitiveness, one by competence, and one by building a network of people in the community to help them. The great manager picks up on the differences between people. Leadership isn’t about that at all. Leadership is about capitalizing on what is universal in people. Great leaders seem able uniquely to tap into what we all share. For many of us there are many things that we share, some of which aren’t all positive. We share a fear of strangers, that’s why leaders sometimes use the amity within enmity without idea, the scapegoat idea, and that works. I mean everyone at Coke hates Pepsi and that sort of ‘‘ooh I hate them’’ feeling works quite well. But on a more positive note, what leaders seem to understand is that we all fear the future; we all have some anxiety about it because it’s different. So leaders’ greatest contribution is to bring clarity to us; they are vivid and detailed about the future they’re addressing. So you can be a very good manager, spotting the differences between people but be a rotten leader; or you can be a great leader, really good at vividly describing where you’re taking people. Those two things are not inter-correlated. It doesn’t mean you can’t have both, although frankly, whenever I’ve interviewed an executive they tend to lean more towards one than the other; but I think that most of the literature on leadership misunderstands it completely and talks about it in terms of things like initiative or integrity or creativity, none of which are leadership traits at all.

Which leaders do you most admire and why? I admire leaders who bring clarity to where they’re headed. I lived in New York while Rudolph Giuliani was achieving one of the greatest transformations of the twentieth century, in terms of creating a safe and growing and financially secure New York City. The man was an absolute genius at describing vividly and showing us vividly what a better New York would look like. I think Tony Blair was fantastic when two years ago at the Labour Party conference he described vividly that he doesn’t have a reverse gear, that he’s only got one gear, it’s forward. Now whether you agree with his policies or not, his desire to try and describe where he’s headed is admirable as a leader. One of the reasons why George Bush’s approval ratings were so much higher and why he got re-elected over John Carey was that John Carey couldn’t describe where he was headed, whereas George Bush very clearly said ‘‘I am serving people who want to be free; our future is about trying to be free’’. The reason why his approval ratings right now are so low is that he has been unable to describe what victory looks like, so he keeps saying victory, but we don’t see it anymore. So I think Giuliani, I think Tony Blair, and in the business world I think Jack Welch has done an extraordinary job, I don’t see anyone else doing anything quite as good lately.

j

j

VOL. 15 NO. 3 2007 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST PAGE 37

Could you briefly sum up what you will be talking about at the CIPD conference for our readers? One of the reasons why HR people come to these things is so that they can be assured that they have a seat at the table. Right now you hear the rhetoric of ‘‘people are our greatest asset’’; in fact you could talk to any chief executive on this side of the Atlantic or in the US and at some point in the conversation they’ll say their people are their competitive advantage, but they don’t actually mean that. What they mean is their people’s strengths are their competitive advantage. There’s not much point in having a bunch of people who are all in positions where they don’t get to use the best of themselves. So I am going to talk about why we are still so bad at getting people into positions where they can use their strengths at work. I will show data that shows that in the US, 14 percent of people say they use their strengths most of the time. In Britain this figure is 9 percent, so although one doesn’t expect 70 percent of people to say that they are using their strengths all the time, 9 percent is pathetic. Now there’s a huge range on that; you’ll go into a company and find some departments where 60 percent of people will say that everybody in their department gets to use their strengths, while in the team next door nobody will. But in general the British workforce is massively under utilized and most of us don’t find work a place in which we get to express our strengths.

Keywords: Management development, Leaders

I think if we want to have a seat at the table we need to stop banging on about a whole variety of issues and focus in on one or two key issues which everyone knows are relevant. These days if a CEO is saying our people are our greatest asset, then we in the HR community need to be able to say; how are we doing now? If we’re serious about it, 9 percent can’t stand, we as a function and we as a company need to double or triple on that number by focusing in on a few achievable, measurable goals that we can all agree are integral to the strategy. This interview took place at the CIPD 2006 conference: www.cipd.co.uk

To purchase reprints of this article please e-mail: [email protected] Or visit our web site for further details: www.emeraldinsight.com/reprints

j

j

PAGE 38 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST VOL. 15 NO. 3 2007

Abstracts A review of selected management articles from over 400 of the world’s top management publications.

Keywords: Call centres, Financial services, Human resource management, Recruitment, United Kingdom

Capital ideas (HR at Capital One) Nottage, A., Human Resources, November 2006, Start page: 24 (Pages 2) Purpose – Interviews Siobhan Sheridan, HR director at Capital One, the global credit card provider, about the approach taken to human resource management at the company. Design/methodology/approach – Discusses how the outsourcing of some human resources functions to Accenture was handled; the challenges of human resource management in a business that is largely based on call centres, particularly the approach taken to recruitment; and the development of the company’s European university, which trains and develops Capital One’s employees. Findings – Highlights the data-driven approach to selecting employees as an innovative human resource management practice. Also cites the practice of using company managers to deliver training programmes on the company’s intranet-based university as being particularly effective. Originality/value – Describes the human resource management practices used at Capital One. ISSN: 0964-8380 Reference: 36AA044

Keywords: Management strategy, Human resource management, Organizational performance, Stock exchanges, United States of America

Trading up (Chicago Mercantile Exchange)

Keywords: Competitive advantage, Recruitment, Team performance, Team working

Lift outs: how to acquire a high-functioning team

Ruiz, G., Workforce Management, 6 November 2006, Vol. 85 No. 21, Start page: 1 (6 pages) Purpose – Describes the transformation of the Chicago Mercantile Exchange’s performance and sets out how the organization’s human resource practices have contributed to this. Design/methodology/approach – Explains how the Exchange has changed its recruitment and selection practices, its employee development strategies and performance management processes to support the Exchange’s move into electronic trading, underlining the important role that electronic trading has played in the success of the Exchange. Findings – Points out that the human resource department has only come into prominence in the organization in the past seven years as it has moved from offering administrative support to playing a strategic role in the achievement of the Exchange’s business goals. Sees recruitment, training and performance management as lying at the heart of this strategic role. Originality/value – Profiles the contribution that human resource management has made to the success of the Chicago Mercantile Exchange. ISSN: 1092-8332 Reference: 36AA069

Groysberg, B. and Abrahams, R., Harvard Business Review, December 2006, Vol. 84 No. 12, Start page: 133 (8 pages) Purpose – To describe the practice of hiring away whole teams from a competitor. Design/methodology/approach – States that this is a high-risk, high reward strategy, potentially enabling firms to gain capacity and inflict financial or competitive damage on a rival. Points out that although companies can build capability by making strategic individual hires, the process is slower, adding that the success of star performers depends in part on their team relationships. Outlines four stages in this process, providing examples of successes and failures to illustrate the advantages and risks of a legitimate ‘‘lift-out’’. Discusses the courtship phase, intended to ensure that the market opportunity exists, define shared business goals and strategies, examine assumptions about the team’s external

VOL. 15 NO. 3 2007, pp. 39-42, Q Emerald Group Publishing Limited, ISSN 0967-0734

j

HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST

j

PAGE 39

relationships and start discussions with the team. Stresses that after the team has transferred, the first priority should be to integrate the team leader with the new company’s executive leadership, emphasizing the importance of cultural compatibility. Reflects on the need for subsequent operational integration followed by full cultural integration. Observes that an unsuccessful lift-out can impair employees’ effectiveness for many years, destroying relationships with former colleagues, clients and vendors. Points out that lift-outs represent a gamble on credibility, portability of performance and human capital both for teams and for hiring companies. Originality/value – Concludes that team lift-outs are an economical and effective manoeuvre in the war for talent. ISSN: 0017-8012 Reference: 36AA871 Keywords: Accountants, Human resource management, Recruitment, Retention, United States of America

Keywords: Marketing, Public sector organizations, Recruitment, United Kingdom

j

Understanding (how to recruit and retain) the best and brightest Dennis, A., Journal of Accountancy, November 2006, Vol. 202 No. 5, Start page: 41 (6 pages) Purpose – To investigate what US accountants want from their employers. Design/methodology/approach – Surveys ‘‘highly talented’’ non-partner accounting firm employees about the factors influencing their decision to join/stay with the firm, compares their answers with those of partners and identifies best practices for recruitment and retention. Findings – Young accountants gave their top three reasons for joining as career growth opportunities, paid personal/vacation time and salary while partners gave salary, medical benefits and paid personal/vacation time. Reasons to stay for both (although in different orders) were respect for the firm’s mission statement, career growth and salary. Best practices included understanding and meeting staff’s increased demand for quality time, work/life balance and a career development programme; and treating staff with respect, e.g. by including them in the hiring process, sharing financial information and finding out whether they are satisfied. Research limitations/implications – None stated. Originality/value – Provides up-to-date evidence of the factors affecting recruitment and retention in US accounting firms. ISSN: 0021-8448 Reference: 36AA572 A far, far better thing . . . (recruitment) Furness, V., Marketing Week, 5 October 2006, Start page: 41 (1 page) Purpose – To look at the differences in approach and measures of accountability in the recruitment of marketers for the private and public sectors in the UK. Design/methodology/approach – Reports the results of research from the Strategic Consulting Group. Findings – At COI Communications, the Government marketing communications body, 90 per cent of marketers are from the private sector, while 10 per cent of senior university marketers have moved to their post from the private sector. Reports that the not-for-profit sector and local government institutions are keen to bring in private sector expertise, particularly in areas such as direct marketing. For private-sector marketers, argues that the bigger marketing budgets available from any public awareness campaigns, as well as the chance to influence consumer behaviour, offer enough incentives to make the leap across sectors. However, while many of the skills required are the same, notes that the emphasis and measurement are different and some believe that in the private sector the speed at which campaigns move is faster, there is competitive urgency and goals are financially motivated. Adds that whereas the private sector might exclusively work with head-hunters to find the right person, the public sector has to take a fair and open approach and recruit from the broadest pool possible and the public sector recruitment process is also more formal and takes longer. Originality/value – While there are clear advantages for employers and marketers and in sharing skills across sectors, contends that the final decision comes down to individuals and whether they are willing to take a risk and embrace a new working environment. ISSN: 0141-9285 Reference: 35AY846

j

PAGE 40 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST VOL. 15 NO. 3 2007

Keywords: Human resource management, Recruitment, Retention

Keywords: Interpersonal communications, Interviews, Racial discrimination, Recruitment, United Kingdom

Keywords: Cost reduction, Direct labour costs, Indirect labour costs, Remuneration, Retention, United States of America

The burger meister Easterbrook, S. and Fuller, G., Personnel Today, 10 October 2006, Start page: 18 (4 pages) Purpose – To report an interview with Steve Easterbrook, chief executive and president of McDonald’s UK, in which Easterbrook talks about the importance of human resource (HR) management: ‘‘if you get the people part right, the rest will follow’’. Design/methodology/approach – Outlines Easterbrook’s career to date and discusses his approach and commitment to HR as a key driver in shaping and implementing the company’s strategy as a progressive employer. Notes, for example, that the organization’s vice-president (people), David Fairhurst, is one of Easterbrook’s four direct reports together with finance, marketing and IT. Mentions the fact that, despite its reputation for ‘‘McJobs’’, McDonald’s only recruits one in four of the applicants that apply to work for them. Touches on the ways in which Easterbrook and Fairhurst are attempting to address the poor public perception of the McDonald’s employer brand (the company invests about £14 million per year in training) although acknowledges that there is a long journey ahead to change its corporate image in the UK. Originality/value – Provides a glimpse at life as an employee, and what’s on offers for employees, inside a ‘‘ubiquitous global brand’’ with an image problem. ISSN: 0959-5848 Reference: 36AA650 Removing linguistic penalties in recruitment Roberts, C., Campbell, S. and Brennan, F., Equal Opportunities Review, October 2006, No 157, Start page: 22 (2 pages) Purpose – Examines the potential for discrimination in recruitment interviews for foreign-born ethnic minority candidates because of their lack of linguistic abilities. Design/methodology/approach – Reports research that was part-funded by the UK Department for Work and Pensions, which used videos of 61 interviews for low-paid jobs to investigate how linguistic capital (the language and cultural skills that are deemed appropriate for formal, institutional situations), the effects of positive and negative dynamics and judgments of English ability affect the decisions of recruitment interviewers. Notes the problems arising from more structured equal opportunities interviews and assesses the extent to which the interview process generates indirect discrimination. Findings – Considers that the interview process should be eliminated wherever possible for low-paid manual positions. Provides recommendations on how to set up a recruitment process that would not discriminate against people with the necessary skills to perform a job but whose language skills would prevent them showing this at interview. Originality/value – Addresses an overlooked issue. ISSN: 0268-7143 Reference: 36AA899 Managing pay/retention balancing act HR Focus, October 2006, Vol. 83 No. 10, Start page: 1 (5 pages) Purpose – Discusses how US human resource managers can balance the need to keep labor costs low with the need to recruit and retain a high quality labor force. Design/methodology/approach – Reports the results of a survey of 600 US human resource managers by the Institute of Management and Administration which asked how they structured pay within their firms, focusing on the changes they had made to performance rewards, merit pay, benefits, bonuses and incentives, among others. Also compares the use of the different strategies to reduce pay costs by industry and region. Findings – Reports that the most popular ways of reducing the pay bill were to concentrate performance pay rewards on top performers, reduce, eliminate or delay merit increases, cut back on the costs of benefits and the use of performance-related pay. Research limitations/implications – Outlines the research methods and the analysis. Practical implications – Indicates the strategies that were judged to be most effective. Originality/value – Reviews trends in remuneration in the USA. ISSN: 1059-6038 Reference: 35AY734

j

j

VOL. 15 NO. 3 2007 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST PAGE 41

Keywords: Benefits, Benefits management, Human resource management, Recruitment, Remuneration, Retention

Money talks (reward)

Keywords: Construction industry, Equal opportunities, Fire services, Recruitment, Retention, Women

Ladies first (equal opportunities)

j

Berry, M., Personnel Today, 10 October 2006, Start page: 43 (3 pages) Purpose – To discuss, in one of six articles in a special report focusing on talent management (see ‘‘Personnel Today’’, 10 October 2006, pp 32-51), the importance of getting the reward package right as part of the recruitment and retention strategy. Design/methodology/approach – Notes that the benefits offered by organizations in their efforts to become employers of choice have changed since the 1990s when employees seemed to want flash cars and gourmet meals; the emphasis now is more on rewards that contribute to the employee’s work-life balance (flexible working, childcare schemes, extra holiday days). Refers to Asda’s approach to reward and recognition which has enabled it to achieve the lowest staff turnover in the supermarket industry. Highlights the importance of communicating reward programmes and considers, briefly, the role the human resources (HR) function should play in this process. Points out that ‘‘cold, hard cash’’ has become a greater motivator over the last ten years than challenging work or personal pride, although this fact seems to have escaped some HR professionals. Provides a bullet-pointed guide to rewarding talent and a very short profile of the reward strategy introduced at MBNA, a credit card company. Originality/value – Sheds some light on the growing importance of financial reward as a key part of an organization’s recruitment and retention strategy. ISSN: 0959-5848 Reference: 36AA655

Grainge, Z., Personnel Today, 31 October 2006, Start page: 18 (3 pages) Purpose – To look briefly at ways in which industries that are traditionally male-dominated are attempting to attract more women into the workforce. Design/methodology/approach – Gives some statistics as to the proportion of women in the utility industry (only 2.8 per cent of registrations in 2004 were made up of women), the IT industry (20 per cent), the construction industry (of the two million workers, only 190,000 are women), and the Fire Service (3 per cent). Mentions the ‘‘Women in Networks’’ scheme set up by the National Grid (80 per cent men) in order to make the company a place where women want to work, and points out that there is a ‘‘compelling’’ business case for proactively seeking to recruit and retain women, for example to reflect the customer base and to address the ‘‘dire skills shortages’’ which characterize industries such as construction. Outlines some of the reasons why retention can be a problem in male-dominated workplaces such as the Fire Service (which is struggling to meet its target to have women comprise 15 per cent of its staff by 2009) and in the IT industry, and provides a very short profile of one woman in a man’s world, a female construction planner who is working towards an HNC qualification in Construction Management. Originality/value – Puts a spotlight on the failure of some industries to diversify their workforces and the potential consequences of this failure. ISSN: 0959-5848 Reference: 36AB038

j

PAGE 42 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST VOL. 15 NO. 3 2007

Suggested reading A round-up of the best book reviews recently published by Emerald.

Keywords: Skills, Labour market

Worker Skills and Job Requirements: Is There a Mismatch? Michael J. Handel, Economic Policy Institute, 2005 Any volume whose title announces that it seeks to answer a contentious contemporary question merits at least a cursory examination. In the case of Worker Skills and Job Requirements: Is There a Mismatch? A brief perusal yields rewarding dividends, not because it unequivocally answers the eponymous question of its title, but because the author reports that his close examination of the question reveals considerable ambiguity that will require much better data to resolve than are currently available. In fact, after examining over 150 published reports, labor market analyses and employer surveys, Michael Handel concludes that: ‘‘The very existence of a skills mismatch or skills shortage may be in doubt, and is by no means as obvious as is often asserted’’. Since the loudest voices in the 25-year public discourse on the topic of worker preparation have routinely asserted that there is a growing gap between worker skills and the increasingly sophisticated requirements of post-industrial employment, Handel’s inability to find any direct evidence of such a gap must be regarded as a revelation. Equally striking is the author’s conclusion that the available data, though somewhat limited and not entirely consistent, actually show no evidence of a skills decline in the US workforce. And, while he acknowledges employers’ widespread complaints about the skills of entry-level employees – especially high-school educated workers – Handel’s review of employer hiring criteria and recruit rejection statistics strongly suggests that firms are far more unhappy with young peoples’ inappropriate work attitudes than with their inadequate work aptitudes. Citing national employer surveys from 1983 and 2001, Handel points out that 80 to 90 þ percent of employers consistently identify ‘‘motivation,’’ ‘‘attitude’’ and ‘‘dependability’’ as recruitment criteria, while only 10 to 20 percent cite ‘‘computer,’’ ‘‘math’’ or ‘‘problem-solving’’ skills as desirable characteristics for new hires. Because this book is almost exclusively concerned with the overall national workforce and national job market, there is little discussion or data devoted specifically to future requirements for post-secondary skills. The author simply points out that ‘‘the claims of accelerating demands for college graduates also do not seem to reflect employers’ expressed needs.’’ Reviewer’s comment: Handel’s conclusion in this respect nicely complements the Bureau of Labor Statistics (BLS) ten-year job forecasts, reported elsewhere in this issue of On The Horizon, in which neither the occupational nor the sectoral economic data reflect future increases in labor market demand for college graduates – see ‘‘From higher education to longer, fuller, further education.’’ Worker Skills and Job Requirements does not immediately plunge the reader into a cold shower of iconoclastic data. The author begins by showing how social scientists like Daniel Bell (1976) created the expectation of a ‘‘post-industrial society’’ that would require a ‘‘technically skilled’’ workforce. Handel argues that Bell’s hopeful vision was subsequently turned into a baleful prospect by the 1983 Report of the National Commission On Excellence in Education, A Nation At Risk, which warned of dire consequences from declining US high school and college test scores, poor international test rankings and low adult literacy rates. He goes on to show that much of that alarmist data has since been subject to considerable refinement and revision. We now know, for example, that US adult literacy rates are not 50 percent, as was widely misreported in 1993, but over 90 percent – just like that of the other

VOL. 15 NO. 3 2007, pp. 43-44, Q Emerald Group Publishing Limited, ISSN 0967-0734

j

HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST

j

PAGE 43

mature industrial economies. But such clarifications came too late. The terms of the public policy debate had already been set. Handel then asserts that William Julius Wilson, among others, reinforced the alarmist mindset of the schools-skills debate by reaching the logical conclusion that, in the coming high-tech workplace – where a college degree would be needed to earn a middle-income wage – decaying city schools were preparing millions of poor African-Americans to become a ‘‘permanent urban underclass’’ (1987). In response to Wilson’s warning, the body politic – in the form of the US Secretary of Labor’s Commission on Achieving Necessary Skills (SCANS) – proceeded to create a daunting detailed inventory of basic skills that every high school graduate should possess to succeed in the workplace (1991). A ‘‘validating’’ survey of 2,500 Michigan employers rated every one of the 200 þ SCANS competencies ‘‘very important’’. The SCANS inventory made the case: since high schools could not reasonably be expected to deliver such a sophisticated array of capabilities, everybody would obviously need some sort of post-secondary schooling. But these ‘‘hortatory guidelines,’’ as Handel labels the SCANS inventory, were undifferentiated by level of complexity – or by the kind or number of jobs to which any combination of skills might apply. ‘‘They added nothing to our understanding of what needed to be done,’’ he writes ‘‘Notions of a workplace skills mismatch remained a confused jumble of different ideas; ‘sketchy, vague and diverse, if not internally contradictive’.’’ Not surprisingly, Handel ultimately announces that: ‘‘The need for a standard, common set of measures for worker skills and job skill requirements is one key finding that emerges from this review of the existing data’’. In the process of documenting this conclusion, Handel also clarifies two crucial parameters of the current debate over the relationship between workers’ skills and workers’ wages: ‘‘Cross-sectional studies suggest that employers are less concerned about cognitive skills deficits than they are about what they consider poor work habits, motivation, demeanor and attitudes’’. If employers are largely satisfied with the cognitive skills of current entry-level workers, and BLS forecasts reflect no increased future requirements for cognitive skills (as the author notes), does this mean that US educators should now concentrate on improving their students’ workplace attitudes? How would they go about that? Would employers be willing to pay higher wages for highly-motivated workers? Would such workers actually be more productive? Handel, a careful interpreter of his data, does not speculate on these questions. His findings, on the other hand, provoke the reader to reflect on these questions again and again. ‘‘Service sector employment requires higher average skills but pays lower average wages than manufacturing and other male-dominated jobs in primary industries, where workers are supported by substantial investments in productivity-enhancing capital plant and equipment’’. The failure to understand this second reality, Handel writes: ‘‘Has resulted in a misdirected policy debate generating a level of concern over worker skills that is disproportionate to what is warranted by a sober assessment of the evidence’’. With over 165 reference citations in just 104 pages, there is ‘‘never a dull moment’’ in this data-rich, enjoyably-written, important little book. A version of this review was originally published in On the Horizon, Vol. 14 No. 2, pp. 92-94, 2006

j

j

PAGE 44 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST VOL. 15 NO. 3 2007

What’s on the web When big is best

www.monster.co.uk Monster has won the ‘‘Best general job board’’ award (from the NORA awards sponsored by Alljobsuk.com in association with cashsimply.com) for two years running. ‘‘The users are always the main judges of whether we’re offering the right solution, and we’re constantly asking for their feedback and using it to tailor our services to their specific needs,’’ they say – and it does seem to be true. The newest site is for apprenticeships as in the UK and Ireland they are growing at a very fast pace. Monster UK is the local content and language website for Monster, the leading global online careers and recruitment resource. Monster Global Network consists of 26 local language and content sites in 24 countries worldwide. Monster is committed to connecting the most progressive companies with high-calibre, career-minded individuals. For jobseekers thinking about a new job, new career, a new city or a new direction, Monster.co.uk helps explore the possibilities and find the right opportunities. For employers looking to recruit the most qualified candidates, Monster.co.uk offers innovative technology and superior services to streamline the hiring process.

Awards for all

Other awards for recruitment sites in 2006 went to jobserve (www.jobserve.com for best specialist jobsite, to s1jobs (s1jobs.com) for best regional jobsite, to Badenoch & Clark for best national recruitment agency website to pfi Phee Farrer Jones (www.pfi.com) for best small recruitment agency website (3 branches or less), to Whitbread for best employer’s website (recruitment), to The Telegraph for best online recruitment section by a consumer publication and to Personnel Today for best online recruitment section by a trade publication.

Heard it through

www.executive-grapevine.co.uk Apparently this is the ‘‘gateway to executive recruitment in Europe’’. You’d be hard pushed to know this from their web site however. Their mission? ‘‘Executive Grapevine strives to maintain its position as the premium intermediary in the supply of business information to those who recruit, retain and release key talent.’’ Confused? How about this . . . ‘‘Our customers demand the highest levels of editorial integrity and to achieve this we segment our research process into high volume data cleansing and low volume qualitative analysis.’’ And, ‘‘Combined with our magazine and events divisions where we set out to encourage blue-sky thinking amongst a community that recruit, retain or release talent. (sic). It almost makes sense (even without the verbs) but not quite. The site is the same. There seem to be bits missing, especially key hyperlinks. Would you trust them to find your essential high-level staff? The website is beautifully designed and very fast – but someone, preferably from outside the industry, needs to cast a critical eye over the content.

CV street

Many companies (and their web sites) offer a CV writing service. There are two good reasons for HR managers need to look at these. The first is to help and advise anyone leaving their employ. The second is to recognise the tricks of the trade and be aware when a potential recruit has used such a service. There is no stigma attached to obtaining (good) professional advice but managers need to be aware when it has been taken. Some CV service companies taken at random include Perfect CV (www.aperfectcv.co.uk) who are consultants with ‘‘professional copywriting skills, recruitment backgrounds and

VOL. 15 NO. 3 2007, pp. 45-46, Q Emerald Group Publishing Limited, ISSN 0967-0734

j

HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST

j

PAGE 45

MBA qualifications – in essence, all the key skills to ensure you gain a competitive edge and secure the best job opportunities in a competitive employment market’’. Sadly they also have a web site that begins ‘‘At the early stage of the selection process, nothing says more about your skills, competence, confidence and professionalism than your CV resume’’ Note the lack of accents on ‘‘resume’’. There are other grammatical errors too (You consultant will create a stylish, streamlined, visually appealing format . . . ) and they are heavy on jargon, e.g. ‘‘Brand Manager – Set up Brand Management Forum to performance manage NPD, brand, account, marketing and manufacturing teams in the UK to work synergistically to deliver an end-to-end process’’. Then there are Hands on CVs (www.handsoncv.co.uk) who have some useful ideas but tend to make syntactical errors in their examples (perhaps to make them look authentic?), e.g.: ‘‘Handsoncv.co.uk has been a leading provider of CV writing services in the UK’’ (but isn’t today?). E_CVS.net offers CV Appraisal, CV Creation interview techniques and other advice. Each service costs but not excessively and the prices are clear and upfront (which makes a change). For example Appraisal costs £49.00 and CV Creation costs £89. Lastly we considered The CV Centre (www.cvcl.co.uk) who ask at the outset, ‘‘Why do some people almost always get the job they want? Because their CV wins them an interview and 99% don’t!’’ Confused by the language? Yes, so were we. There are literally thousands of CV companies out on the web. A piece of good advice is to trawl through and pick out the good ideas but don’t trust them to have all the answers.

Contact us

www.emerald insight.com For a particularly interesting and useful site you could always try the Emerald one! And if you have any favourite (or otherwise) sites that you would like us to review on these pages, please drop us an e-mail and we will submit them to our reviewers’ usual rigorous analysis.

j

j

PAGE 46 HUMAN RESOURCE MANAGEMENT INTERNATIONAL DIGEST VOL. 15 NO. 3 2007