As mentioned at the end of the last Blog post, my peers (search firm owners from around the country) and I asked a few clients questions about the overall business climate.  Here, in very brief summary form, are some of the more critical answers/themes:

The answer to the first question really summarized the theme of all the answers:

• All of the companies surveyed, regardless of industry, size and structure, were either very optimistic or somewhat optimistic about their outlook for the year.

With this rather positive answer as our base, our next question was about challenges that businesses will be facing this year (and beyond).  The answers were telling – four items were consistently mentioned and three of those items involved talent:

• Finding the right talent
• Staff retention
• Succession planning
• Sustaining growth

Companies are taking a more strategic view

While we never heard companies mention that the recession is over or that business is back to normal, they were focused on strategic growth and investment, something that was very different than even one year ago.  Obviously as search firms, our questions were clustered about talent and talent needs.  The answers were clustered as well.  The people we talked with – heads of human resources and company executives (presidents and operations-focused executives) are talking planning:

• Business planning
• Succession planning
• Retirement planning

The term War for Talent was mentioned more than once – and not by us.  Companies are aggressively looking at long-term positioning and mentioned two areas that will be key for future leaders:

• Candidates need to have a more global view of business – their specific industry, general business trends and how to compete globally
• Candidates need to understand business, not just their own functional area

This was just the beginning.  Again as mentioned on May 1st, we will continue to report on some of our findings and conference learnings.  For now, I can say that talent management will be at the forefront of company planning.  Stay tuned . . . . . .

What is the shelf-life on new information?

I was once told that a person is 50% out-of-date in the technology of their field (whatever their professional field is) after only two years.  Continuous learning, especially today, takes on added meaning if this above reference is even close to true.  The Small Search Firm Forum (SSF) meets two times/year.  For those of us that attend, it is almost a requirement.  Why?  Where else can we learn together with our peers in this field?  Our focus – to better serve our customers to assure we are identifying, assessing and placing the best possible talent.  We facilitate some of our own sessions; we also bring in outside speakers to assure we are getting a very broad and up-to-date perspective.

The likely subject of many posts . . . . .

Two days of meetings can produce an amazing amount of material.  Here are just a few of the topics we covered:

• Update on New Technologies
• Economic Update
• Client Feedback
• Use of Social Media
• Best Practices in Search – Dashboards for our Industry

Best Practices

I often hear companies talking about the need to identify best practices in their respective industries. Thousands of professional and industry associations exist for this reason – and countless articles are written within almost all business niches.

Over the next few months, we will be taking the liberty of expanding on some of the conference learnings. The next post will specifically be on what we learned from client surveys we each conducted. Each attendee asked three clients questions about the overall business climate as well as areas we as search firms could better serve them.  The data was put together and the findings are great guidelines for better serving your needs.  Details coming mid-May!

Approximately once per quarter, I address a group of executives in transition on the topic of How To Work With A Recruiter.  (I made one of these presentations this past week.)  The purpose of this presentation, given at the offices of some of the Twin Cities premier career transition consultants, is to tell the truth about search and demystify the process.  The message I give these job seekers is simple:

• We work on behalf of the employer.

Working with a recruiter is not something candidates wake up and simply choose to do.  The largest misconception is that we work solely on behalf of the candidates.  While we are certainly their advocates if they are right for the job, our client is the employer.

Are you visible and responsive?

Candidates in these transition groups want to know how they can be found.  More correctly put, they want to know how they can become more likely to get a call from a recruiter.  The answer is visibility and responsiveness.  Let’s start with responsiveness.

While sounding self-serving, I asked last week’s group (roughly 25 people) how many of them had returned every recruiter call they had received PRIOR TO being in transition.  Three people raised their hands.  I then asked how many would return those calls now.  All hands were raised (one person raised both hands).

All search firms, regardless of size, have some type of candidate database.  While rarely the only way a search is completed, it is a great starting point.  Search firms have to have a database in order to track the multitude of candidates that have to be contacted to find the one right person for any specific assignment.  We as a firm have records of past candidates (our records go back 14+ years).  These records contain notes from past conversations.  Each candidate is coded in such a way that we can find them again.  Codes kept are about industry, function, education, salary, etc.  One of the key pieces of information we keep – did the candidate call us back when we had reached out to them.  Were they helpful?  If they weren’t interested, did they have networking thoughts, ideas and/or referrals?  Not surprisingly, we reconnect with people who we know will be helpful to us – by looking at the candidate’s past history/responsiveness.

What about getting known in the first place?

This goes to the visibility question.  One of the other questions I commonly ask is who is involved ACTIVELY in their profession and industry?  Sadly, very few people raise their hands.  Some are members of professional associations, but have not been to a meeting in years.  The reason – too busy.  They are members because they have always been members and they get information/updates from the group.

Being involved, by my definition, simply means showing up (at least).  Being ACTIVELY involved means getting on a committee, writing an article or becoming a board member.

There are other ways to be visible.

LinkedIn is one of our research tools.  (It is not our only tool, but it is one of them.)  There are multiple user groups and discussion boards on LinkedIn that are affiliated with different industries and professions.  Being a member is helpful for your visibility.  Actively participating in on-line discussions is even more helpful.  Our clients want people who are active in their profession.  This is just another sign of your involvement.

Do you volunteer your expertise for a non-profit group?  Do you guest lecture at the local college/university?  There are so many things a person can do within their profession to get known.  Most of these activities are actually fun!  While they do involve taking some of a person’s spare time, the career development and networking benefits that come from ‘visibility activities’ are well worth it.

But one more question . . . . . can’t I just send my resume to every search firm and have coffee with you?

I would love to say we read/respond to each unsolicited resume we receive.  And I do love coffee.  That said, our job is to fulfill the specific needs of our clients (the employers).  Sending a resume is certainly a good idea – especially if you were referred by someone we know.  Use the referral name prominently – and don’t expect coffee.  Follow-up to make sure we got the e-mail – and then get visible and return our calls.  You will increase future call likelihood dramatically.

• Terror – why do they need to know?  How do I approach it?
• Concern – what if I make too much?  What if I make too little?

Why do we need to know?

To the simple question (what is your salary?) comes a simple answer.  When we are conducting a search, we are given a salary range with an upper limit.  Our goal – find the best candidates (best has multiple definitions – to be covered at another time) that fit the parameters of the job – INCLUDING the salary range.  While we sometimes have flexibility, it is limited.

As of this writing, we are about to take on a search that is, in part, the result of not having this discussion early in the process.  Our prospective client made an offer to a great candidate they had sourced only to find out they were $100,000 apart.  They had just gone through a long process that did not end well.  Those four words could have been very helpful.

It’s not polite to discuss salary.  (AND I was given advice not to answer the question!)

At least in Minnesota (where ‘Minnesota-nice’ is commonly referenced), I was once told (during my Pillsbury employment days) that salary is not discussed until late in the hiring process because both parties are trying to be polite.

• The candidate does not want to be the first person to bring it up.
• The employer wants to keep the conversation positive; talking about salary can cause tension.

Is is more polite to be $100,000 off (an extreme, but actual/recent example) and have expectations raised/time spent – yet ending with no result?

What do we do with the answer?

The answer – it depends.

The question is not designed to be a trap.  If our target salary is $150,000 and you make $250,000, we will switch to a networking conversation.  You may want to start negotiating, but taking a $100,000 decrease is not typically a goal with our candidates.  Let’s be honest and move the conversation to a different area.  If you make around our target number/range (plus or minus), we have room for discussion.  If we find that all the candidates that are qualified are over our target range, that information is important to our clients.  They have in the past raised the range.  (The converse is true as well – if all qualified candidates are below the range, our clients have adjusted the range as well.)

One final thought – we can’t move forward without the information.

While popular literature as well as career counselor advice relating to this question tells you to do your best to NOT answer directly, we can’t present a candidate to a client without this simple information.  Our clients expect it; we risk having a process end in disaster.  Candidates aren’t likely to be happy either.

Our best advice – answer the question and work to create a dialogue.  Tell us about what you seek, the range you are finding in the marketplace (and where you are getting your information), and what excites you about the conversation we are having.  No easy answer, but one that you will want to think about BEFORE we get on the phone.

Talent shortages are cited as a key business challenge by more than 50% of business leaders

Bersin & Associates, a leading talent management research and services firm, reported this in an article they published last year.  In a more recent piece referenced in a March/April 2012 TCHRA (Twin Cities Human Resources Association) publication, Bersin & Associates made a strong business case for talent management.  They reported about companies that chose to be strategic in their talent practices.  Their found the following key benefits:

1. They generate more than twice the revenue per employee.
2. They experience 40% lower turnover rates.
3. They achieve 38% higher levels of employee engagement.

Why do companies fail to keep their best talent?

A recent article in Forbes listed 10 reasons large companies fail to keep their best talent.  Here are just a few of the top findings:

• Big company bureaucracy - the number one fact leading to disenchanted employees.
• No discussion around career development - while most employees do not know what they will be doing in 5 years, most employees want to have a discussion about it – and in the context of their current employer.
• Top talent likes other top talent – exit interviews often find people leaving their companies because they were turned off by the lack of performance management they see when there are obvious employee performance issues that have not been addressed.
• Lack of open-mindedness – companies hire talented people because of the skills/new approached they bring, but then expect them to behave within narrow company norms.

Bersin & Associates suggests some actions companies will need to take to address what they labeled War for Talent 2.0.  These actions address both retention and recruiting priorities:

• Build deep skills quickly
• Actively establish relationships with prospective employees
• Implement integrated talent management programs
• Work to create a vibrant, highly empowered work environment

One of the conclusions that can be drawn from the Bersin studies and the Forbes article is that smart organizations will be the leaders that get out in front of these issues – the various findings AND their related solutions.

The retained/executive search industry (and my firm as a micro-representative of the greater industry) is considered a leading economic indicator.  We can usually sense, by level and type of activity, what is happening in the economy.  In preparing for last week’s presentation, I was able to pull from multiple data sources and the trend line is positive (not without its lumps, but overall – it is in a positive direction).  Here are some of the data ‘pieces’:

• Manpower came out with its annual information regarding worker satisfaction.  In 2010, it was reported that employee satisfaction had hit a new low.  That number was ‘surpassed’ with another new low for 2011.  And the 2012 numbers were not looking good.  The majority of employees said that their job is unrewarding and saps their energy.  That predicts movement – current employees are more likely to take a call from a search firm.  They are tired – and open to seeing what a new employer might offer.
• Bersin & Associates (an HR consulting company) reported last year that talent shortages have been cited as a key business challenge by more than 50% of business leaders.  They went on to say that cost reductions are no longer the first thought.  Leaders are focused on innovation, skill development and rebuilding the business.

Conference Board and Thomson Reuters/University of Michigan Surveys

Both of these organizations are known for their monthly surveys – reporting on varying economic indicators and consumer feelings.  Taken in total, the direction is generally positive (I think the words “lumpy, but up” best describe the direction of our economy).

• The Conference Board Leading Economic Index® (LEI) for the U.S. increased 0.4% in January.  According to the economists at the Conference Board, this fourth consecutive gain in the LEI points to somewhat positive economic conditions in early 2012.
• The Conference Board Consumer Confidence Index® (CCI), which had increased in December, retreated in January.
• During the January 2012 reporting period, the Thomson Reuters/University of Michigan index of consumer sentiment rose more than forecast to its highest level in almost a year.
• The Conference Board Employment Trend Index® (ETI) increased 0.73% in January.  It is up 5.9% from the same month one year ago.

Anecdotal Information

The tone of the calls we receive have changed as well.  Taken in total, the conversations are much more strategic/long-term in orientation.  Companies are thinking in terms of upgrading talent when an opening presents itself.  In addition, the companies are more frequently using the terms succession planning and retirement planning.  These are not terms we have heard since 2007/08.

Hard or soft science?

It’s hard to tell.  The trend lines seem to be going slowly upward.  We will continue to look at/report on the indicators.  We will also slowly start looking into what other people consider to be leading economic indicators – corrugated box production, shipping containers arriving in U.S. ports and airline business seats sold.  While not traditionally the items looked at by the Conference Board, they do tell an interesting story.  Stay tuned!

1. The Senior Market – any business associated with seniors is growing.  According to the Census Bureau, 13.5% of the U.S. population is already 65 or older.  That will grow to 16.2% by 2020.
2. Green Power – regardless of politics, saving the planet (using less energy/creating less waste) is here to stay.
3. Discount Retail/Consignment Shops – the Dollar Store and Family Dollar are setting records; so are resale/consignment shops.
4. Local Business – demand is growing for locally grown and made products.  People want to invest in their community – and this is an easy way to do it.
5. Education – huge numbers of people are going back to school.  One term for it – “up-skilling”!
6. Parental Outsourcing – these are things we as parents will gladly pay for rather than do ourselves either because of time, safety or expertise.  Areas of growth include driving schools, test preparation, sports coaching and college selection.  (You have to love the term!)
7. Health and Wellness – simply put, we want to live longer.  Looking good, feeling great, being healthy and fighting aging show no signs of a slowdown.
8. Home Renovation/Design – we may not be able to afford a move to a new/larger home, but we are growing tired of not improving what we have.  And there is a sub-category of growth – senior-house retrofitting (helping seniors stay in their current homes by making the house livable on one floor).
9. Social Media for Small Businesses – all small business owners know that they need social media; few have the time to figure it out.  A consultant with the expertise and an a la carte menu will be in high demand.
10. Pets – we may skimp on ourselves, but not our pets.  Spending over the past few years has topped $40 billion (more that the GDP of 60+ countries).

One final fun trend piece to watch (literally) . . . . . J. Walter Thompson is one of the world’s best known marketing/communications brands.  They put out a piece on the top 10 trends we need to watch this year.  Check it out at http://www.youtube.com/watch?v=9MyizJ6KMWI&feature=player_embedded.

Welcome to 2012+!

The HR person responds:  Well that won’t take long!

Sad, but all too true – and these past weeks have given me reason to (at least partially) agree.  I am an HR person by background and still consider myself to be in that broadly-defined field.  HR as a function should strive to be a business partner; that said, they should also make sure certain tenets are followed.  I have found myself responding as an HR person to a few items – and then I started worrying about the search field.

We should know better!

Two different HR leaders . . . . . two different stories . . . . .

1)   An HR leader was asked directly by a respected search consultant (in the Twin Cities) for the year they graduated high school.  (The HR leader was shocked but politely answered the question.  We can argue the merits of that later.)  I give up . . . . . under what circumstance is that pertinent information?  How would one use it?  I can think of only one reason for asking the question.  You can determine the candidate’s age within one year.  Is the search person discriminating?  Were they asked to discriminate?  (NOTE – the search person is an extension of the employer – and I know [or at least hope] that no employer would ‘directly’ ask.)

There’s more . . . . . .

2)   It was suggested by a search consultant (in the Twin Cities) that an HR person (a different person than referenced above) change the date that their employment ended.  It’s January 2012.  The HR person’s employment ended in December of 2011.  The search person said to use 2012 as the date on the resume.  The search person’s concern was that using 2011 could imply that employment ended as early as January of 2011 – a full year ago.  Using 2012 keeps the timeframe more recent in the reader’s mind.  (I know there are other ways this situation can be handled.)

What is our obligation to our client (the employer)?  What is our obligation to our profession?

As I have reported in the past, SHRM (Society for Human Resource Management) has a Code of Ethics.  This is its core principal:

• HR professionals are expected to exhibit individual leadership as a role model for maintaining the highest standards of ethical conduct.

Not too specific – but we are paid to make decisions, not simply follow a recipe.  SHRM continues with Guidelines (among other things).  The first of these guidelines left me a bit uncertain:

• Be ethical; act ethically in every professional interaction.

Search professionals – we can and should be held to a high standard.  Employers – ask questions of your search firm and assure we are meeting your standards!  The Ethics in the Search Field discussion should NOT be a short one – or the punchline to a joke.

1. Companies are starting to invest in their business again.
2. Organizations are beginning to take actions to ‘fix’ managers that are not performing well.
3. Succession Planning and Retirement Planning are becoming more common topics.

The article suggests actions to consider.

Actually – the article suggests 15 potential actions to consider.  I am a list person so this article was especially appealing.  That said, you can find the full list by following the above link to the article.  There are a few items that I found especially noteworthy – and worthy of repeating here.

• Reward great people management – people will do what they are incented to do.  Performance management should be ongoing conversations, not the once-per-year dreaded conversation that managers and employees put off.  Make developing, leading and promoting great employees part of the management scorecard.  Reward managers who put their best people up for developmental assignments rather than hoarding them.  Again, people will do what you incent them to do.
• Identify and fix bad managers - while recent studies show that engagement is highly impacted by the confidence employees have in their company’s senior management, a bad manager (who employees deal with daily) will take a toll.  Organizations know who these people are.  Take action.
• You need to prepare for a leadership gap – this relates to some of the themes referenced at the start of this post.  The economy is slowly improving; the predictions of pending turnover are growing.  And we finally have demographics to think about – people are using the ‘R’ word (retirement) openly in conversations.  Companies cannot wait any longer.  The need for robust succession planning is staring companies in the face.
• Update your retention approach – we focus way too much on recruiting and way too little on retention.  Retention programs have been shelved due to the recent economic trends.  It is time to take them from the shelf and make them part of our daily mantra.  What if we re-recruited our current employees?  Interestingly, that would make recruiting that much easier.

My favorite of the 15 is the least expensive!

• Improve non-monetary motivation – according to most studies and as reported in the ERE.net article, a significant portion of employee motivation comes from (1) recognition, (2) praise and (3) feedback.  These items are low or no-cost.  Managers do need to be trained to do these things properly and sincerely.  (And providing training to employees is motivational as well – you are investing in them.)

It’s a new year – the time for action is now!

Labor Market and Career Planning Trends (from America’s 50 Fastest Growing Jobs – 1994)

I started reading through the information – part of a larger presentation on trends for the 1990′s.  I then pulled up a list from earlier this year (August 2011), JIST Publishing‘s list of labor market trends and their impact on your career (JIST stands for Job Information Seeking and Training).  The overlap – staggering!

• Education Pays: most good jobs require more/continuing education.  Degrees from years ago are all but obsolete.  It is the continuing education that becomes critical.
• Knowledge of computers and other technologies is increasingly important: all of our areas of expertise can be discussed in terms of technology.  It is no longer necessary to say you are good with the Microsoft Office Suite of products.  Being up-to-date in technology of all sorts is simply critical – and often assumed.
• Career Planning is more important than ever: Laurence Shatkin states, “Most people spend more time watching TV in a week than they spend on career planning during an entire year.”  We will all change jobs and careers many times – we should be prepared.

There were other trends as well.

The pundits from 1994 were ahead of their time – or they were stating long-standing rules/predictions.  Most of their other trends and comments focused on what would be AND still are growth areas:

• The service economy is becoming increasingly important.
• Jobs will increase in health care (due to the need for eldercare/home health care).
• Small businesses will become increasingly important.
• Retail trade positions will increase quickly (remember – the Mall of America opened in 1992).

May 2012 be a year to focus on some of the trends/your own development.

Wishing you and yours only the best for 2012 and beyond!