The article below is a synopsis of the Keynote address given by Stephen Harvard Davis to the SumTotal Systems Users Conference held at BAFTA, London 3rd October 2007

“People are NOT your most valuable asset…The right people are”

Let me share with you two comments from Government reports earlier this year:

“The most important resource over the next twenty years will be talent: Smart, sophisticated business people who are technologically literate, globally astute and operationally agile”
US State Dep’t Report

The second comment concluded a report by stating: “CEO’s that fail to make talent management, the aquisition, groth and retention a strategic imperative NOW could find themselves and their companies casualties of an increasingly competitive and global environment”
UK Leitch Review

We can understand the shortage of global talent by focussing on just one reason, amongst others, for a shortage and what I know as the CHINDIA phenomenon.

The working population in the UK is 38 million,
in India it’s 670 million.

If we focus on relative salaries:

US $34,870
UK $33,630
China $ 8,144
India $ 520 (2006)

We can then understand why the Indian share of the global outsourcing market, currently at $13billion will grow by 2010 to $30billion and why much of this growth will be in business consultancy.

The growth in China is is equally as impressive. Harvard University estimate that by 2008 it is highly likely that China will generate intellectual property on a par with developed countries and that by 2010 will exceed it. (Other countries such as Russia, Brazil and Argentina and creating their own economic powerhouses).

Harvard University also estimate that by 2010 there will be more English speakers in China (based upon competance and understanding that English speakers in the USA.

The one thing, however, that all of these economic blocks require is talent in order to suppliment their own and maintain their level of growth. As a result they are buying in talent, particularly management and sales talent from wherever it can be found. So in this war for talent we have to accept that talent knows how valuable it is and is adept at finding a job and a lifestyle it seeks.

So in this war we need a strategy:

That’s why I get asked so often
a) How do we attract top talent to our company?
b) How do we retain it? To develop a strategy we need to start with a definition of Top Talent. Thedefinition that BRC uses is: “The top ten percent of those available in terms of qualifications, experience, attitude and determination and ho are prepared to work for the rewards offered”

This means that top talent can exist at all levels of an organisation and that it is possible to have a business filled with top talent. The one thing, however, is to avoid all of your talent being concentrated in one area.

So when is talent “at risk”

Universally it’s when top talent feels that its employers:

• Are not engaged with the talent
• Aren’t working for their development
• Are not appreciated
• See no chance of promotion
• employment doesn’t meet personal needs

But it’s specifically after organisational change or restructure, such as new management or an M&A that head-hunters and search companies will be contacting your top people.
BRC’s research has also identified that when a business loses one person who is top talent leaves then the risk of losing more increases by 50%.

So how can we retain our talent?

The starting point is to recognise that that talent is looking for more than a pay cheque and as a result won’t all be flying off to India and China. That said we can all agree that different types of talent will look for different things which is why talent can’t all be treated in the same way with a “one fix meets all” solution. This makes it difficult for HR but in the war for talent flexibility is going to be essential.

• Have an audit of your talent’s needs and keep them up to date
• Audit past talent to see what they say about you as an employer
• Identify the cost of replacement (include opportunity costs)
• Detail the benefits of working for your organisation
• Manage the talent’s career and development effectively
• Train managers in managing top talent
• Monitor and reward line managers for retaining talent
• Identify talent for promotion
• Have a good internal and external “E-image” to attract talent

So what are the future trends in the war for talent?

1. The CHINDIA factor and other economic blocks will mean that Top Talent will become even scarcer in the future
2. Talent movement is likely to become increasingly global
3. Companies will develop talent management strategies and those that don’t (no matter what their size) will lose out to their competitors
4. Having a process to identify, develop and retain talent will be vital for success
5. The organisation will need to share information on talent with HR, Line Managers, Trainers.
6. Having a good internal and external “e-image” will be vital to attract and retain top people

Talented candidates for a job are all different, but there is one thing that they will all be looking for and that’s the best salary they can get. In today’s competitive market a company wanting to attract top talent to it must offer the chosen candidate an attractive salary.

The salary negotiation, however, brings hidden dangers if handled badly. Inevitably the company will want to recruit at the lowest salary they can whilst the prospective new hire is looking to increase it as far as possible. The moment a candidate knows the top end of the salary range they will strive towards that figure. The anticipated result is that both parties meet halfway so that everyone is happy! Too often this doesn’t happen

In the UK many senior jobs are advertised on a Circa £70k (salary about figure). This then becomes the expectation of the candidate whilst the Company will often have a salary figure between £65k to £72k in mind. So having identified their preferred candidate the company will come enter into salary negotiation and start at a salary bid below the one advertised(£68K) with a promise of an increase or bonus after a number of months satisfactory work.

The difficulty with this tactic is that it upsets the relationship with the preferred candidate at the earliest possible stage and the candidate now feels that the company is less trustworthy than anticipated. The result is that the prefferd candidate turns the offer down (causing wasted time and face as the company struggles to offer the post to the second or third candidate). If the preferred candidate accepts the job then it often results in early disgruntlement and the causes for early departure or lack of motivation.

The best position is for a company to make the salary a fixed one at their preferred rate of  £68K and to negotiate on a “reward package” which includes a bonus. Naturally the bonus will be based upon measurable results but the candidate will most likely accept this as a benefit that has been successfully negotiated from the company. As such he/she will congratulate themselves on gaining something that wasn’t on the table in the first place. Whilst the company can work within the salary scale they had originally envisaged paying whilst saying to the candidate that they have driven a hard bargain.

In this way both parties can be satisfied without any loss of face.

The long-awaited credit crunch has arrived.

Whilst many media commentators suggest that the effects will be increased re-posessions and defaulters (although being smaller than in the USA) the effects on the UK economy may be huge. Queues oustide Northern Rock offices to withdraw savings?will only heighten the more hysterical tabloid headlines and increase concern, despite?the fact that the UK economy is sounder than most of the other G7 countries.

However, the squeeze on credit is likely to cause layoffs and “Hiring freeze”. In fact, this has already begun with Lehaman Bros announcing job cuts and much of the UK’s financial square mile halting recruitment. The effect is likely to be increasing unemployment?that will ripple from the City’s square mile as other business prepare for hard times.

But actually halting recruitment altogether might not be a sensible strategic move. A company wanting to exit the downturn faster that its competitors might well use the opportunity to re-inforce its “Top Talent”.??

I’m not?not saying that?companies should?not downsize at all. Just that, if the business can afford it and most banks?and many other companies can, NOW might be the time to attract that “Top?Talent” required to weather the storm. The?talent that companies should consider as good investments?are?Grade “A” strategists, marketeers and salesteams.

Attracting “Top Talent”?at this time should be particularly easy when people in other companies feel pressured by staff cuts and a halt on recruitment. The result could reduce the time that most companies will feel current pain and create a springboard for increased competitiveness.

But one has to wonder how many will be brave enough!

Some months ago I was working with a client who had a senior member of staff, James, in the same job for over ten years. Whilst James had done an excellent job for the first six years he had lately lost the drive to implement new ideas. In recent times James admitted that the jobwas easy and enjoyed the social aspects of his work. He was well liked by his colleagues and those that reported to him.

James was full of expectation that he could remain with the company for many more years. However, he felt that the company should be rewarding him more for his long and faithful service. He had mentioned his expectation of a substantial increase to his salary to his new boss at the last appraisal.

James thought his new boss, Philip, was difficult to work with and had a difficult management style. James often found that his boss gave him irritating tasks to do and he often didn’t understand their purpose. James thought that Philip was demanding and often rejected his warnings that change caused reduced morale and confused working methods. In particular James was able to point out to Philip when suggested changes had been tried before and failed.

Philip, his boss, saw things differently, however. He felt that James was the kind of individual that he longed would leave so that a more enthusiastic employee could be recruited. Someone with new ideas and who wouldn’t always verbalise the reasons why something couldn’t be done. In fact James was the type of employee that the boss dreamed of supplying a job reference that read, James Smith has informed me that he has led the production department for the past ten years to HIS entire satisfaction. Philip was against giving James a merit increase on his salary for his past year’s work.

Indeed, for the past six months Philip has been working with HR Director to develop a strategy that would result in the Company not being taken to an Industrial Tribunal in the event of James being dismissed. Over the past twelve months Philip and the HR department has been creating a log of the times when requests had been made to James and which had not been carried out or completed in an unsatisfactory manner.

You don’t have to be a soothsayer to predict that James is heading for trouble and whilst not every situation is as clear-cut how do you recognise when it’s time to jump ship? After all, the trick is to jump ship on your terms and to avoid the situation where you are being asked to leave where there is little chance of a good severance package and it will be difficult to find another job.

There are three distinct areas that you should consider:
The first is the way you feel about the work itself

• Has the work ceased to be fun?
• Has the work ceased to be a challenge?
• Have you stopped learning?
• You’ve stopped communicating with the boss
• The work is comfortable without being stretching or bringing joy
• Does the current job afford you the benefits of a desired lifestyle in terms of leisure time, time with friends and family?
  

Secondly consider the management style of the boss and the actions that your boss might be taking. Never concentrate on just one of the situations detailed below to decide the time has come to find another job. Consider them in clusters and based upon past behaviour: ( If the boss begins to check you expense claim form in detail it might just be because the Finance Director or Accounts Department have instructed all managers to reduce expenses).
However, if three of more of the situations below become evident over a period of three or more months then alarm bells should be ringing.

Finally there is your overall career pattern.

However, before you rush to write your resignation letter you might like to consider gaining some career advice from a professional. There are many companies on the Internet that offer such services. However, be clear about the sort of advice you are wanting as many of the companies that advertise on the Internet are job search firms and their advice may not be what you are looking for.

Then you need to develop that network of contacts you should have but never got around to contacting. Too often people leave a business and find that they have few people outside their current employers that can help find a new job or offer practical help and advice if wanting to change career. Joining on-line networking clubs such as Linkedin and Ecademy long before you jump ship can provide many contacts. In addition begin attending those networking events run by the institute that you are a member of or join one. Networking isn’t just something that the self-employed do, it’s important to everyone.

Choosing the exact time to jump ship is always problematical, not least because it often has an impact of family as well as oneself. The art is to do it at a time that suits you, giving a better set of work results than exist and which provides a further career prospects when it’s time to jump ship next.

Stephen Harvard Davis is a leading business relationship specialist and the author of  “Why do 40% of Executives Fail?”  He advises senior executives and organisations on transition management and how to attract and retain top talent within the business. He is also a sought after speaker at high profile conferences and business meetings. Stephen can be contacted on 44 (0) 1727 838321 www.stephenharvarddavis.com & www.busrelcon.com

How important is an internal network of contacts for job success?

In your opinion, what type of contacts would be most important to success?

• Decision makers?
• Those with influence?
• Those that the boss listens to?
• Those that have technical ability?
• others?

Below are 25 of the most common interview questions, together with some advice.

1. Tell me about yourself:
This is probably the most often asked question at an interviews. It requires short statement answer previously rehearsed. It’s best to restrict the time to under four of five minutes (So as not to bore the interviewer) Be careful that it does not sound
too rehearsed. Start with the item farthest back and work up to the present.

2. Why did you leave your last job?
Always present a positive aspect to the answer, Refrain from talking about problems with management and never speak ill of the previous organization. If you do, you will be the one looking bad.

3. Do you consider yourself successful in your career?
You should always answer yes and briefly explain why. Talk about how you have set goals, those that you have met and those that you expect to achieve in the future.

4. What would your team say about you?
Be prepared with a quote or two from team members.

5. What do you know about this organization?
This question is designed to see if you have undertaken research into the business. Failure to do so can lose a job. I know of one interviewing panel for a drinks firm thast asked “How much is our pint of ***** beer charged in bars? Only one candidate was able to answer and he got the job!

6. What have you done to improve your knowledge or skills in the last year?
Include activities that relate to the job.

7. Why do you want to work for us?
This is a similar question to no5 and can only be based on the
depth of the research you have done. It’s best to relate your answer to your long-term
career goals.

8. Are you a team player?
You are, of course, a team player. Be sure to have examples ready.
However, also specify that you are also a self-starter and self-motivated.

9. Have you ever had to dismiss anyone? How did you feel about that?
Don’t make a joke when answering this question. The point to stress here is that when it comes to the organization versus the individual you will always protect the
organization. It’s also beat to emphasise that the correct HR procedures were followed and that the individual that was fired felt fairly treated. (If that was the case)

10. Have you ever been asked to leave a job?
If you have be honest, be brief.

11. Explain how you would be an asset to this organization
If this question isn’t asked directly then think of a way of answering it anyway by including the information as part of your answer to another question. It gives you a chance to highlight the talent that the organisation wants to hire.

12. Why should we hire you?
See Q 11

13. What irritates you about co-workers, subordinates or a boss?
This is a trap question. Don’t be tempted to answer. Think real hard but fail to come up with anything that irritates you. “I seem to be able to see other peoples actions and opinions as being their best efforts to get the job done.

14. What is your greatest strength?
Numerous answers should be included in your answer. A few good examples:
An ability to manage tasks, problem-solving skills, ability
to work under pressure, leadership skills, positive attitude

15. What would your previous supervisor say your strongest point is?
This is similar to Q14. and again there are endless good answers:
Loyalty, Energy, Problem solver , Leadership qualities, Team player, Technical skills,
Initiative, Patience, Hard work, Creativity.

16. Tell me about a problem you had with a supervisor
deepest of all holes you will dig if you answer. This is a test to see if you will speak ill of
your boss. If you fall for it and tell about a problem with a former
boss, you may as well say “goodbye” to the job there and then. Develop a poor memory about any trouble with a supervisor.

17. Tell me about your ability to work under pressure.
Give an example that relates to the type of position applied for.

18. Are you willing to work overtime? Nights? Weekends?
This is up to you. Be totally honest. If you have family commitments then it’s best to say so now.

19. Would you be willing to relocate if required?
You should be clear on this with your family prior to the interview if
you think there is a chance it may come up. Be honest and save yourself
future grief.

20. Describe your management style.
Try to avoid management jargon. Say that you prefer to manage according to the
situation, instead of a one size fits all model.

21. Do you have any weaknesses?
Another trick question. If you know about any weknesses they should be very minor ones or positive ones. (I tend to take work home too often)

22. What qualities do you look for in a boss?
Talk about the qualities that all bosses claim to posess. A sense of
humor, fair, loyal to subordinates and someone who works to high standards.

23. What position do you prefer on a project team?
Be honest. If you are comfortable in different roles then say so.

24. Describe your work ethic.
Emphasize benefits to the organization. Things like, determination to
get the job done and work hard but enjoy your work are good.

25. What’s been your biggest professional disappointment?
Be sure that you refer to something that was beyond your control.

The Final Question . Do you have any questions for me?
Always have some questions prepared that reinforce your strenghts.

Having a positive e-image is essential to attracting top talent to a company and for creating a “feel good factor” for existing staff. Companies that have a good e-image for staff recruitment include TESCO, Barclays Bank and?Standard Chartered Bank.

?Essential information?includes:

• A career pathway
• Training and development opportunities
• Collection of talent contact details
• Culture
• Vacancies and fast track promotion ?

?Which other companies do you think have a positive e-image and why?

Recent research indicates that gaining promotion at work is as stressful as Divorce.

Do you agree?

Research indicates that 81% of Accountancy and finance firms say they are likely to find recruiting talent difficult during 2007 and that this situation is likely to get worse over the foreseeable future.Further research from Manpower UK reveals that 71% of employers feel that retaining talent will be the number one priority over the next few years. As a result HR management are being asked to increase their skills in reward management and retention strategies. The survey also reveals that the most common strategy being adopted by firms is to throw money at the problem by matching competitor’s salaries.However?in my?experience such a tactic is bound to fail. The reason is that the firms at most risk are SME’s and as a result there will always be someone else with more money. Another reason is talent rarely moves just for money and in addition a “one size fits all” retention policy is proved not to work. Dealing with Top Talent is more complicated that that. Instead BRC recommends the following: