Top Talent - As rare as hens teeth !

It’s not a new idea, but according to KPMG’s study, ‘Rethinking Human Resources in a Changing World,' talent is increasingly critical to a company’s success — 81 per cent of executives surveyed said talent management will serve as a key competitive advantage over the next three years.

In a Start Up, it’s even more critical as teams are small, cash is sparse and the head winds can be stiff. There is no doubt that top talent is in increasingly short supply and the competition for the engagement and retention of that rare talent is now feverish. For Start Ups and small business, the desire and need for top talent is obvious but that’s so much easier said than done, according to McKinsey Global Institute’s report, ‘Preparing for a New Era of Work'. The study found that – thanks to global competition, changing demographics and persistent ‘geographic mismatches’ between the supply of workers and the demand for them – a stark skills shortage is emerging worldwide. In the US, McKinsey reported that the gap between the number of people graduating and the number of graduates businesses need could reach 1.5 million by 2020. China, meanwhile, will face a shortage of 23 million university-educated workers by that time.

The shortage of top talent is real, increasing and leaving the mass market of hiring companies and recruiters fighting over B & C grade talent.

There is no shortage of mediocre talent and mediocre management and that’s the oil that lubricates the staff attrition swivel door at the reception of most companies. Recruiters have paid off homes and fed off this market reality for years and put simply, it’s ridiculous and surely unsustainable !

The effects of this top talent shortage are already being felt worldwide – finding, attracting and retaining top talent is more difficult than ever. According to a survey conducted by Genesis Research on behalf of oDesk, 70 per cent of businesses surveyed reported that ‘traditional hiring methods are painful.’ If you’re still using traditional hiring methods you’re stuck in the large herd of employers and recruiters who do little more than shuffle B & C Grade talent around the marketplace.  Despite rare exceptions, traditional recruiters add no value other than shouldering the workload associated with sourcing under-performers and you won't find many A graders having coffees with recruiters. Why? they don’t need them because top talent is sort after and usually head hunted through private networks within the hidden job market. The only recruiters worth engaging are those specialists that add value to both the employer and employee. These exist but a few and far between. Better to go searching for hens teeth.

To be competitive in this increasingly harsh talent climate, businesses need to get savvier at three things:

1- Going global:

Our hyper-connected world is flatter than ever. This is impacting the way we work; 71 per cent of executives surveyed by KPMG said working across borders and collaborating with teams across countries has increased over the past three years.

But businesses are still figuring out how to take full advantage of ‘going global’, especially Startups that are establishing global models earlier in their growth than ever (often from inception). KPMG’s survey found that expanding workforces in new markets (including identifying and hiring talent internationally) was the second-biggest concern for HR departments, second only to retaining talent. And there’s still a lot of work to do – only one-quarter of respondents said their HR departments ‘excel at sourcing key talent globally.’

According to an article by Roy Mauer for the Society for Human Resource Management, Global Mobility Increasingly Tied to Strategic Talent Management, companies today should be ready to go global. Why? Because organisations report that their global mobility programs are critical to supporting new business growth, improving financial performance and enhancing employee engagement, succession planning and talent management.

In fact, 65 percent of top-performing companies with global mobility strategies reported a positive impact on financial performance, new business growth and talent retention, according to Unlocking the Value of Cross-Border Assignments, a Harvard Business Review Analytic Services survey report, sponsored by EY.

This shift towards global HR is only expected to grow. According to oDesk’s Online Work Study, 95 per cent of businesses surveyed agreed that ‘in the future, hiring will be more dependent on having the right skills than on location.’

Still so many traditional and institutionalised managers think the same way about recruitment as they did 20 years ago. Today, one needs an open mind and a willingness to be very agile and creative as to how work gets done. Only hiring someone from within your back yard means you're already limited pool of top talent just shrunk in a very big way.

2) Becoming Virtual:

Thanks to advances in cloud-based technology, as well as growing access to internet access worldwide, we can now work from anywhere.

This isn’t limited to web developers or writers, either. Anything that can be done in front of a computer – from legal work to business consulting – is being done virtually. I have published a previous article on this subject as I am passionate about employee empowerment and trust. Work with your talent to mutually develop KPIs and expectations and then get out of their way and help. "Work is something you do, not a place you go!”

KPMG’s survey found that:

         60 per cent of businesses surveyed have increased their use of virtual workspaces

         48 per cent have reduced their reliance on physical office premises

         72 per cent maintain that their companies should ‘increase the use of both virtual and flexible workers’

Similarly, two-thirds of respondents in the oDesk study believed that at least half their workforce would be online by 2015. However, there’s still room for improvement – only 24 per cent of executives told KPMG that their HR department ‘excels at supporting an increasingly virtual/flexible workforce.’ HR is part of the problem here. Again, it’s traditional and dated leadership styles that are leaving some organisations totally locked out of the top talent pool. If management still think work is their office address then you can almost bet the talent is sub standard.

3) Dynamic:

It’s clear that our workforce structure is shifting, and the composition of teams is changing along with it. KPMG claim that 55 per cent of respondents have hired more contract or temporary workers in the last three years.

Indeed, businesses are realising that teams are not one-size-fits-all. From entirely virtual companies, to in-house core teams with support from a flexible bench of online freelancers, to fully blended teams of local and virtual workers, a variety of workforce structures have emerged – leading to more nimble, high-performing businesses.

This shift is only expected to become more pronounced in the coming years; 95 per cent of businesses in oDesk’s survey plan on increasing or maintaining their hiring of online contract workers in the next year. And within 10 years, 94 per cent of respondents believe that most businesses will have ‘blended’ teams composed of both on-premise workers and online contract workers.

In addition, when you build these flexible teams of on-demand workers with specialised skills, you can empower employees to do only the work they do best by breaking down projects into skill-specific tasks. Indeed, 67 per cent of businesses in oDesk’s survey reported that online contract workers allow them or their in-house employees to focus on higher-level skills.

One example of the best talent pools is part time mothers returning to work. There is an abundance of highly professional, under utilised, under estimated and misunderstood top talent in this market yet some companies simply won't consider part time employees or flexible hours and discriminate against people who have been out of the workplace for a period. Such a big mistake by traditional and incompetent leadership. If you want committed, productive, disciplined, organised, focussed and resilient employees then consider part time mums for roles where you normally hire a full time person just to tick a box.

Therefore, before we look at your profile and appeal as an employer of top talent, you need to assess yourself and understand if you really have the right leadership mindset to lead and operate a top performing team of high profile talent in the new world. If you still think recruitment is place an Ad in your local market, run some interviews, hire someone and then clock watch, then I suggest you place a bulk order on oil for that swivel door.

So let’s now take a look at you, the employer, and your employee value proposition through the top talent lens.

What are you offering that’s going to be deemed as compelling enough to attract and retain the top talent? Why would they join you over the growing herd of potential suitors?

Here are my top 10 initiatives that will bolster your arsenal on the talent battle field.

1- Empowerment:

Nothing is more demotivating than working for an insecure boss who controls decision making, can’t delegate and simply doesn’t understand the value of empowerment. Top talent simply won't operate under these conditions and they will be probing during the recruitment process for what will be a certain deal breaker. They will also be doing their own research around culture and management style. They won't go near you if they sense the boss is an old school controller. Put simply, if you want the best talent then you need to provide an environment where they have room to move, influence, decision-making power, discretion, budget ownership, trust and a clear sense that management is an enabler, not a director or centre of authority. Big companies struggle with this but Starts Ups can nail it from the outset and offer a freedom and level of support that bureaucratic, policy centric, risk averse, traditional corporates just can’t match. Now more than ever, the top graduates are gravitating to the innovation ecosystem where they feel they can have more impact. They are right and this is a big problem for the biggest brands.

2- Flexibility:

Top talent need context, clarity, clear expectations and a realistic set of collaboratively developed targets and KPIs. How they go about meeting those expectations should be up to them. The best employers allow staff to work however they want as long as they meet performance expectations.

The moment you start to impose traditional expectations and conditions, your appeal to top talent diminishes. Offer flexibility or give up now on ever hiring the best people.

3- Remuneration:

Top talent is in very short supply and very high demand which usually means you can expect to pay a premium. Never has the saying ‘You get what you pay for' been so relevant in an employee market starved of talent. Unless you’re offering equity and a bunch of other valuable perks, then you should expect and want to pay above the market rate. This can be a problem for Start Ups who simply can't support that level of cost and risk.  If you can, then be bold and pay well. It will come back to you in a big way when it comes to top talent as long as you tick all the other boxes. Don’t over pay B & C Graders. You won’t get the return unless you genuinely know there is room from capability uplift and that’s always speculative.

4-Enablement:

Invest in tools, technology and all other forms of support that make it easier for the A Grader to flourish. Top talent won’t work in environments that are under-invested and don’t offer efficiency and support. Top talent will demand this and qualify this themselves during the recruitment process. As a Start Up, this can again be challenging but be smart about how you enable tools and support. This can be done relatively cost effectively and it’s a smart investment in productivity and talent enablement. Don’t allow anything to detract from your top talents' time and mind set. You wouldn’t put diesel in a Ferrari.

5- Recruitment & Onboarding Process.

Let’s be clear, when it comes to top talent, it’s the employer who is being interviewed. Be very conscious of the perception your recruitment process creates. Be different, memorable and show some humility. If you run a traditional 'recruitment 101' process, then top talent will head for the hills and engage with a company that delivers a truly unique and compelling recruitment process. Spice it up and don’t be predictable.  More on this in future articles.

In terms of onboarding, you must make this elite, amazing and unique. Do not deliver a lame and predictable first impression. Map out a program and experience that leaves top talent raving about you to their networks. More on this in ensuing articles.

6- Equity:

If you really want to attract the best talent, then offer value beyond the above. Skin in the game can be the tipping point for top talent and, if structured correctly, can underpin a longer term engagement and keep the wolves from the door who will be seeking to poach your higher quality talent. This proposition needs serious consideration and expert advice but there is no doubt that equity can be a great hook and differentiator for employers. It’s another compelling driver that is underpinning the accelerating transition of top talent from larger to emerging brands.

7- Personal Development:

What will you do to enhance the skills and capability of top talent? What will you offer your new employees around personal development? 

You must invest in your best talent despite the fact that they are highly competent. Most employers deploy their valuable L&D budgets at poor performers and areas of under-performance. The best ROI always comes from throwing more investment at your best talent. You must be able to demonstrate to top talent that employment in your company will open up a development pathway for individuals. This pathway must be relevant and customised in terms of content and delivery. This will back fire if you promise development and then roll out some boring, generic classroom training just to ‘tick a box’. Top talent will be demotivated quickly if asked to engage in sub-optimal and irrelevant training. Make sure you have a clear personal development proposition and articulate this well during the recruitment process. Even better, ask the talent what they feel they want and need. Do what you can meet that requirement and include it in their offer. The solution is often not training. Mentoring, both for and by the talent, is a good example of the type of thing that can appeal to top talent. Paid mentoring from a respected 3rd party outside of the organisation is an example of a differentiator an employer could offer. Just be different and invest in your talent.

“The only thing worse than training your employees and having them leave is not training them and having them stay."

Henry Ford, Founder, Ford Motor Company

8-Perks:

You have to offer additional perks of value to the employee beyond the pay cheque, laptop, free fruit and some annual leave. Find out what top talent want and design an unrivalled employee experience EX. 

Gym memberships, discounts on services, child care support, extra leave on special occasions, clever incentives, special days, massages, elite performer clubs/awards, volunteering opportunities, free food at the office are among many of the creative and compelling initiatives the smarter employers are offering to secure the best talent in the market.

Some are going as far as 4 day weeks, formal participation in innovation programs, discounted services through partners/suppliers and lifestyle services to enhance employee health and fitness.

9- Facilities:

How do your facilities and office stack up? Don’t underestimate the impact this has. Make your environment as good as it can be. Top talent will see your facility as a reflection of your culture and performance. Invest in your environment. There is proof that it influences productivity and employee engagement. Poor office = sub-standard productivity. If you have fantastic facilities, then showcase this as part of the recruitment process. If you’re encouraging virtual work, then make certain your top talent have everything they need to be mobile and operating on best practice tools!

The war for talent (and bandwidth!) is fierce, hugely important, and just beginning…

As with anything, there is no silver bullet solution, but taking the time to staff up a new, more competitive team that is global, virtual and flexible will certainly help. These teams will need the same management care and attention as traditional teams, of course, but that’s a conversation for another day.

Making sure you are offering an employee value proposition that can compete for the best talent is business critical. Do not think for a minute that your cool idea will be enough of a weapon in the talent war. As the talent gap increases, the demand for the ‘cream of the crop’ will increase. How will you compete and what do you have to offer beyond a good idea and a reasonable pay cheque? Do not be delusional about your ability to engage the best talent if you’re offering a ‘me too’ employee recruitment process and value proposition.

As with anything new, you may require some time to adjust. Take it slow – try starting with a few test projects with virtual team members. See which perform best, and build longer-term relationships with them as trusted team members. Go back to the drawing board and review your employee proposition, do some research on what other companies are doing who are successfully engaging the best talent. Have a think about what you can do differently that will make you stand out from the herd as an employer. Speak with HR experts who can tell you what the best talent are seeking and be open to constructive feedback around your potential lack of appeal. Theres every chance you will just never be able to attract A Grade Talent and this a reality you may need to face. You must then work out where and how to source talent that is higher risk but able to be developed.

All the above sounds great on paper but is totally compromised if you don’t have leadership that understands, embraces and can lead and organisation conducive to the engagement of top flight talent. The key reason people leave jobs is because of discontent with leadership. Often a key reason people select and join companies is because of the great job leadership did with the positioning and conveyance of the employee proposition. The facts are that A grade talent wont work for B grade leadership. A grade talent is too smart to even be hired by B grade leadership so before you worry about getting all of the above in place, you better start with a very good look in the mirror and ensure you have a leadership capability that can even facilitate the right conversation with prospective top level talent. If there is a question mark over leadership then address this before you even consider any of the strategies in this post.

Whatever you do, go buy some shoe nugget, rub some under your eyes, dust off your helmet and gun because you're now in a talent acquisition dust up that makes the shoot out at the OK Corral look like a Sunday picnic.

In the war for talent, you can not bring a knife to a gun fight !

Author

Doug Hawkins

Business Transformation and New Venture Commercialisation Specialist.