Know thyself and recruit more effectively
I have good news: The labor market is definitely on the upswing and has been now for probably the last year or so. But good news for employees is not necessarily good news for employers.
In Poland we see an even greater structural shortage of strong mid- and senior-level executives. Demand and business complexity is simply too high. Nevertheless, during the past few years, taking advantage of an economic slowdown as well as sectoral consolidation, many employers seem to have forgotten this. The feedback from job candidates is of arrogant and complacent employers who are not responsive to even the candidate's questions!
Now as the market kicks back to life, the power is shifting back to the employee. This time around, though, candidates are getting more sophisticated and demanding, which will be a major challenge for employers - especially if they are not prepared.
Furthermore, the labor market is becoming much more complex. Demands have risen, but the ability to use salary and advancement as tools to attract talent has decreased. Salary is becoming a difficult issue when recruiting from outside because talented senior executives are often already paid at European levels. And many of the most successful executives - especially CEOs - are unwilling to move because they see internal opportunities.
This makes human resource startegies like succession planning and structuring an executive search process more critical than ever.
If you are planning on employing senior or mission critical executives during the next year, be aware that there is certainly competition for them and remember that you will have to attract them as well. Here's some advice from the best practices of our clients:
Use a Transparent and Structured Search Process
The best companies know in advance how they will conduct a search. That sounds obvious, but a look at the WIG 20 shows that many of the companies do not even have search processes.
One of our clients - a WIG 20 organization - has created an exemplary process for board recruitment. All candidates for board positions have structured meetings with each of the fellow board members and the VP of Human Resources, not just the CEO. Once a final group of candidates is selected, they are presented to the supervisory board committee responsible for the appointment and compensation of the executive. This is a multi-stage process that assures a strong fit with the organization.
Include Internal Candidates in the Search Process
All too often the search process is only conducted after 'internal' candidates - meaning employees or those executives who are already known to the company - have been excluded. Alternatively there is no search process because only these candidates have been considered.
Especially in Poland, when considering outside executives who are known through 'personal' contacts, a search process is essential to assure that the candidate is a good fit for the organization. Furthermore, the market is getting substantially larger and it is no longer true that all the 'best' executives are easily known to an organization.
An example is a recent search we conducted in the area of Internet financial services delivery. None of the top tier executives who are specialists in the Internet distribution marketplace had been previously contacted by an executive search firm, despite a substantial amount of recruitment in this area.
Nepotism and the practice of hiring close friends is common in Poland. Yet nothing demotivates employees more, primarily because it is so connected to the way business was done in the past but also because it hinders communication with employees. Just imagine how difficult it is to deliver a message to a mid-level employee that he/she is not suitable for advancement, and that the manager hired a friend/personal contact instead.
Focus on Culture Fit
Competence is not enough. An executive must fit with the culture of an organization. Ray & Berndtson have a proprietary set of tools to measure culture fit, which can be described as the values and behaviors that motivate an executive as well as his or her style of management and personal approach.
I once interviewed a very senior executive who had joined his company six months prior. He had been through an exhaustive selection process with the aid of an executive search firm. Nevertheless, he never learned about the company's peculiar decision structure, despite having to prepare a case study, go through psychological tests and multiple interviews. Once he started, he realized that his style did not fit with the company. He had left a good position and was unfortunately on the market again.
Know Thyself is a well-known Greek maxim attributed to a number of philosophers. It is essential that you as an employer know your organization - even (or particularly) if you want to change the organization.
Motivate the Candidates
Don't forget, an interview is bi-directional. Be prepared. Just as a candidate gets one chance to present him/herself, the employer also gets one chance, in particular the boss.
Matthew Tebeau, the Managing Partner of Ray and Berndtson Poland and the Baltic States
In Poland we see an even greater structural shortage of strong mid- and senior-level executives. Demand and business complexity is simply too high. Nevertheless, during the past few years, taking advantage of an economic slowdown as well as sectoral consolidation, many employers seem to have forgotten this. The feedback from job candidates is of arrogant and complacent employers who are not responsive to even the candidate's questions!
Now as the market kicks back to life, the power is shifting back to the employee. This time around, though, candidates are getting more sophisticated and demanding, which will be a major challenge for employers - especially if they are not prepared.
Furthermore, the labor market is becoming much more complex. Demands have risen, but the ability to use salary and advancement as tools to attract talent has decreased. Salary is becoming a difficult issue when recruiting from outside because talented senior executives are often already paid at European levels. And many of the most successful executives - especially CEOs - are unwilling to move because they see internal opportunities.
This makes human resource startegies like succession planning and structuring an executive search process more critical than ever.
If you are planning on employing senior or mission critical executives during the next year, be aware that there is certainly competition for them and remember that you will have to attract them as well. Here's some advice from the best practices of our clients:
Use a Transparent and Structured Search Process
The best companies know in advance how they will conduct a search. That sounds obvious, but a look at the WIG 20 shows that many of the companies do not even have search processes.
One of our clients - a WIG 20 organization - has created an exemplary process for board recruitment. All candidates for board positions have structured meetings with each of the fellow board members and the VP of Human Resources, not just the CEO. Once a final group of candidates is selected, they are presented to the supervisory board committee responsible for the appointment and compensation of the executive. This is a multi-stage process that assures a strong fit with the organization.
Include Internal Candidates in the Search Process
All too often the search process is only conducted after 'internal' candidates - meaning employees or those executives who are already known to the company - have been excluded. Alternatively there is no search process because only these candidates have been considered.
Especially in Poland, when considering outside executives who are known through 'personal' contacts, a search process is essential to assure that the candidate is a good fit for the organization. Furthermore, the market is getting substantially larger and it is no longer true that all the 'best' executives are easily known to an organization.
An example is a recent search we conducted in the area of Internet financial services delivery. None of the top tier executives who are specialists in the Internet distribution marketplace had been previously contacted by an executive search firm, despite a substantial amount of recruitment in this area.
Nepotism and the practice of hiring close friends is common in Poland. Yet nothing demotivates employees more, primarily because it is so connected to the way business was done in the past but also because it hinders communication with employees. Just imagine how difficult it is to deliver a message to a mid-level employee that he/she is not suitable for advancement, and that the manager hired a friend/personal contact instead.
Focus on Culture Fit
Competence is not enough. An executive must fit with the culture of an organization. Ray & Berndtson have a proprietary set of tools to measure culture fit, which can be described as the values and behaviors that motivate an executive as well as his or her style of management and personal approach.
I once interviewed a very senior executive who had joined his company six months prior. He had been through an exhaustive selection process with the aid of an executive search firm. Nevertheless, he never learned about the company's peculiar decision structure, despite having to prepare a case study, go through psychological tests and multiple interviews. Once he started, he realized that his style did not fit with the company. He had left a good position and was unfortunately on the market again.
Know Thyself is a well-known Greek maxim attributed to a number of philosophers. It is essential that you as an employer know your organization - even (or particularly) if you want to change the organization.
Motivate the Candidates
Don't forget, an interview is bi-directional. Be prepared. Just as a candidate gets one chance to present him/herself, the employer also gets one chance, in particular the boss.
Matthew Tebeau, the Managing Partner of Ray and Berndtson Poland and the Baltic States
