Global Recruiting

Do you like buzzwords like I like buzzwords? There is an interesting presentation on the most overused buzzwords of 2013 and the ones that dropped off the list since 2012.

So those are the overall leaders, but what about for the worldwide recruitment industry? What are the buzzwords that global recruiters overuse?

Here is my list of buzzwords overused by recruiters globally:

1. Outsourced
2. Insourced
3. Social Media
4. Mobile Recruiting
5. Free Webinar
6. Post
7. Search
8. Tweet
9. Millennial
10. Endorsed

Which words would you like to add to my blog? Oops, there’s another one… “Blog.”

As an executive search network, we try to stay current with what is changing in the global recruitment profession. During a recent research project, I came across an informative white paper by a group called ScoutRock (www.scoutrock.com). The title of the white paper is Changes in the Executive Search Industry.

One of several observations and projections this white paper identifies is a clear direction toward a greater focus on international experience, global labor mobility, global talent management, virtual global teams and cross-border business practices.

Here are some interesting numbers collected and discussed in the ScoutRock paper:

• 75% of senior executives expect to grow or enter international markets in the next 10 years.
• 54% expect management to be more international by the end of the decade.
• 92% of SHRM respondents expect to contend with global labor mobility issues.
• 85% forecast an increase in virtual global teams.

The impact of these trends and directions on the global recruitment profession is complicated. For larger, multinationals and Fortune 500 businesses, this means an increasing focus and dependence on internal global recruiters. Search assignments that may have gone to independent global recruiters may move in-house to best manage expectations and outcomes for large organizations with many global recruitment needs and a constant supply of position openings. Social networks and social recruiting have increased the ability for companies to build employment brands and a talent pipeline to match their needs. For smaller organizations and infrequent players in the global recruitment space, there will be perhaps a trend toward the use of boutique and niche firms either directly or through a search network relationship.

The quantity of executive searches engaging independent recruiters may decrease and those assignments reaching the independents will be complex and difficult. Employers will place value on things like:

• A global network of partners offering localized expertise
• Decreased cycle times
• Rapid access to global talent pools

The ScoutRock white paper is a good and interesting read for any recruiter working in a global recruitment space. A summary statement quoting from the paper:

“…to be successful, firms must develop capabilities and cultures of shared mindset, talent, collaboration, speed, accountability, learning, and leadership…”

Today’s post is courtesy of Joshua Ro with People Consulting Group in Seoul, Korea. People Consulting Group places senior executives in manufacturing, information technology, consumer products, banking and finance, telecommunications, logistics and distribution, professional services, entertainment, and fashion. Joshua serves as a member of the NPA Board of Directors.

I recently read an interesting article about increasing productivity where different qualities are needed in the workplace. The same traits can help build a high-performing recruitment team.

According to the article, it is human nature to hire someone who has abilities and skill sets similar to your own; however, it is believed that hiring someone totally opposite could increase the productivity. It described three different (and diversified) elements and areas that a productive team should possess such as different gender, different thinking styles and personalities (intro and extroversion).

The first point was that the best teams have both men and women. A survey done by Credit Suisse over 2,400 global companies recalls that any company with more than one female board of director has performed better than those without. Companies with diversified gender roles in leadership positions resulted in better performance and were well balanced.

Another survey in 2011 showed venture corporations with 5:5 gender ratio resulted in the highest performance compared to others, possibly through monitoring and checking upon each other’s performance. What does the gender balance look like on your recruitment team?

Secondly, you need introverts and extroverts in your team to create better performance. Those with the loudest voices aren’t necessarily the ones with the brilliant ideas. UCLA researchers came up with similar results. For 10 weeks, they put together a team of staffs containing a mixture of introverts and extroverts. As many anticipated in the beginning, extroverts, who voiced their ideas louder and more aggressively, seemed to gain respect by constantly inputting ideas. However, toward the 10^th week of the project, introverts earned higher respect and eventually the status of both was well balanced. How can you help the introverts on your recruitment team be heard?

Finally, you need one analytical thinker (maybe more) on your recruitment team. Many of us are familiar with open-minded business approaches like ‘brainstorming;’ however, some scientists suggested there should be at least one analytic thinker on the team. The Tepper School of Business researched that a team with at least one analytical thinker performed better in executing a given task than those without. Focusing more on small details in a process aroused creative conflict amongst teams with both ‘big picture’ and analytical thinkers.

If you are running a search firm and want to put a recruitment team together for a given task or even running your own firm with a small number of consultants and researchers, it isn’t necessarily a good idea to select only those who seem to have the same qualities as your own in terms of skill sets, experience, attitude or characteristics, etc. Diversify your choices to bring a broad spectrum of different thinkers to create better performance and provide opportunities for everyone to participate. Have them get involved to make contributions with well-deserved benefits. This will build a better performing recruitment team or firm of your own.

According to the latest edition of the Boyden Executive Outlook, companies are ready to hire. The improved outlook is due to better economic stability in developed markets along with increasing competition across multiple industries globally. Among the findings, grouped by sector, I found the following points particularly interesting:

Energy

There is a VERY limited candidate pool in the US for clients in the oil production arena. With Baby Boomers retiring in large numbers, there is a considerable lack of experienced managers to fill the pipeline. Leadership demands across Europe, the Middle East and Africa have remained strong as well.

Industrial

With the conclusion of the recent elections in Australia, hiring strengthened almost immediately and looks to improve even more throughout the fourth quarter. European companies are investing in regional development throughout Singapore and Southeast Asia. Executive recruiters can expect strong demand for CFOs, supply chain, business development, and sales professionals. Hiring is vigorous in India as well, particularly in manufacturing, mining and construction, finance, insurance, and real estate.

Healthcare

Growth in Central and Eastern Europe is outpacing Western Europe, particularly for experienced sales, marketing, and regulatory professionals. In the US, growth remains strong in both the biotechnology and pharmaceutical markets. Executive recruiters in the UK note that the healthcare sector is beginning to see room for expansion, particularly in the private sector.

Consumer/Retail

Growth projections are huge for e-commerce and mobile businesses and will continue into 2014. There is an emerging trend for technology and marketing roles to become intertwined; executive recruiters would do well to cultivate a pipeline of talent in this area. Expansion from South Africa into Africa will require professionals with deep understanding of the vastly diverse consumer base throughout Africa. High-level supply chain, manufacturing, and operations skills are also in demand. In Latin America, there is increased demand for chief operating officers, country managers, and regional VPs. China has seen a recent increase in senior-level roles in both the consumer goods and retail sectors.

Financial Services

Most of the financial services industry is forecasting growth into 2014 as companies seek to hire compliance, regulatory, and risk professionals. Salary increases in some areas have risen 35-40% recently as a direct result of the “talent war” in this space. A new free trade zone in Shanghai is expected to impact the financial services sector as well as the broader economy. Regional banks in the Middle East report plans to strengthen their senior management teams.

Human Resources

CEOs across all industry sectors are looking for experienced and highly strategic HR leaders to help transition large companies into flexible global businesses. HR professionals with global experience are particularly in demand to help manage the huge workforce changes that are predicted. Executive recruiters should be on the lookout for HR leaders who can help implement enterprise-wide technology shifts.

Technology

Technology is no longer just a cost-saving tool; it’s also a way to create a competitive market edge. IT professionals with strong ‘soft’ skills are becoming highly-sought, and are difficult to find. Enterprise sales is a strong sector in Singapore. Executive recruiters in Central and Eastern Europe should see an uptick in hiring of senior supply chain and logistics professionals among distribution companies.

The optimism that executive recruiters shared in the Boyden report aligns closely with a business barometer survey that NPA recently conducted among member firms. More than 86% of NPA members expect improved business conditions over the next 180 days. Is your recruitment firm ready to take advantage of the coming hiring boom?

The June 2013 Staffing Industry Review survey asked what the top priorities were in staffing firms. The top 3 were:

• 53%  – Grow Recruitment Revenue
• 40%  – Expand/Diversify Clients
• 35%  – Grow Recruitment Market Share

Since it seems to be all about sales, let’s take a look at how buyers became aware of suppliers. When buyers were asked how they typically heard about new suppliers/recruitment agencies, the survey showed that 74% of all introductions were a result of referrals. If you do not have a referral plan in place, evidence says that having a plan would help your international recruitment agency grow.

The second most common way buyers learned of new recruitment agencies was more surprising to me. Hold on, because your sales and marketing team may not like the results of this one. The “cold call” was cited by 63% of all buyers! The cold call…a salesperson called or dropped by. Today’s marketers and sales leaders may not see cold calling as a viable strategy. We all dream of “inbound marketing campaigns” that drive buyers to our door. Guess what? The evidence shows that the cold call still works.

The complete list looked like this:

1. Referral – 74%
2. Cold call – 63%
3. Conference – 44%
4. Published List – 27%
5. Through VMS – 25%
6. Internet Search – 24%
7. Email Ad/Newsletter – 20%

What is working for your recruitment business? If you run an international recruitment agency, I would like to hear your experience. Do the results detailed here match what happens in your international recruitment agency?

Today’s post is from Nerissa Reyes from AVANTI People Partnership International in Manila, Philippines. Nerissa is currently serving as secretary/treasurer of NPA’s board of directors and was previously a regional director for the recruitment network. She lives and works across several countries including Jakarta, Sydney and Manila. 

AVANTI People Partnership provides executive search and staffing for various multinational companies across functions. In the fast-growing “business process outsourcing” arena, AVANTI provides cross-border recruitment solutions on a global scale.

Recruitment can be a highly stressful business! I have been in the recruitment industry for 18 years now; I used to have severe back pain due to work pressure. The doctors have done surgery to ease the back pain; it was to no avail until I discovered the POWER OF YOGA…I would like to share my remedy for stress management.

These are the daily applications of yoga practice in dealing with recruitment challenges:

• Yoga creates FOCUS

Yoga teaches us to stay focused, keeps us balanced and centered. There are so many activities that need our attention daily; it is never-ending. But how do we prioritize? Yoga helps us work on the balancing act between business and personal matters.

In the recruitment business, we can work 24×7, especially with the global nature of business. Often, personal life suffers while trying to succeed in our business. When we practice regular yoga poses, we learn to balance and focus the body, mind and soul.

• Yoga breathing clears the MIND

Yoga breathing releases stress; it is liberating and relaxing since it emanates from the core of our physical body.

When faced with operations problems in the office, take a deep breath to release tension; the solution may come more easily. When working with clients who are unreasonable, don’t lose control; breathe deeply then continue with the negotiation.

• Yoga meditation is LISTENING

Yoga teaches us to stay calm and listen to the environment. Just keep still and soak in the present moment; the universe will flow through you and work itself out without pushing too hard.

Listen well to what the client is telling you and understand what will work for their culture before you react. Find out how you can help them. What is the candidate really telling you? What does he really want to do with his career? Listen and really understand his needs to determine if the role is right for him.

• Yoga teaches ACCEPTANCE

We learn to accept things that we cannot change. There is a master plan of the universe. What was previously perceived as a hopeless situation, seemed inconsequential and quite manageable in the greater scheme of things.

I have worked so hard on this account, why can’t I make a placement? It may not happen right NOW but in time. That same client eventually may hire several candidates in their own time; be patient enough to keep working on the account.

Following yoga practice, our recruitment activity is transformed from “just” a business, to a way of sharing life’s blessings. There are no short-cuts to developing long-term relationships with clients/candidates. We have to recognize that we are in a complicated world. Keep your FOCUS and continue to expand your niche in the global world, transcending cultures.

Namaste!

In many parts of the world it is budget season and businesses are planning for 2014. Do you know how budgeting will impact your recruitment agency in the year ahead?

I have long considered this a great time of year to understand what kind of support clients will require from a recruitment agency in the year ahead. If I want to know if a client is planning to bring all recruiting in-house or if they will have no needs until the back half of 2014, it is so much better to know now.

I am in search of some recruitment best practices. How can a recruitment agency use this time of year as an opportunity?

• What do you do differently this time of year when engaging a client?
• What are the best questions to ask to open a client’s mind to sharing more detail with you?
• Does anyone provide a historical summary of the business and positions filled in prior years?
• Have you ever provided market data on salary levels to hiring managers in preparation for a future year?
• Have you ever built a target list of positions to be filled and dates to be filled for a future year with a client?
• Do you have clients that have a people budget, growth budget, talent acquisition budget?
• What are your favorite cost savings ideas you suggest to clients as they enter the budget season?

So do you fear this time of year or do you embrace it as an opportunity? I hope this topics gets you thinking — please share your recruitment best practice!