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Skills shortages

Controversy over SA hiring decisions

Mon, 20 Apr 2009 11:25

When was the last time we all had a good look at how efficient we are at hiring and retaining our management and specialist skills in South Africa?

We all complain about skills shortages, but have you reflected on what you, as the employer, may be doing to exacerbate this situation? Are skills shortages the problem or are South African employers merely inefficient in their hiring practices?

Leonie Pentz, Director of AIMS International South Africa, an international headhunting organisation says, "We have heard from many South African executives (that they) are working internationally because of the ineffective hiring decisions they experienced here at home.

"This includes previously disadvantaged managers. A senior executive disclosed to us in an email recently that he was interviewed for a high level financial role in South Africa, and the company’s internal Recruiter interviewing him was asking him about basic accounting principles.

"Clearly the person was inexperienced in recruiting at this level, as they should have been testing leadership competencies instead. This is just one example of how ineffective hiring processes can influence an executive candidate’s decisions."

This presents corporate South Africa with a challenge in understanding what employers are doing wrong when it comes to attracting and retaining talent.

According to Deven Govender, a South African employment equity mining executive who is working abroad, and Güera Romo, a Senior Revenue Assurance Consultant, there are substantial reasons for our failure to secure executive talent in Corporate South Africa.

These reasons include:
• Insufficient development prospects for senior management
• HR focusing on IQ vs. EQ
• The focus of executives is not merely to secure a job, but view their career as an extension of their daily lives
• No commitment from employers to succession planning
• The negative image of executive coaching in SA
• Employers are not willing to provide EE (employment equity) executives with sufficient challenges
• Rigid HR policies unsuitable to Generation X and Y executives
• HR/Recruiters do not understand complex roles
• Employers work ineffectively with their headhunters
• Decision makers are not allocating sufficient time for executive candidates in the hiring process

Considering these negative opinions from executive talent regarding hiring inefficiencies, is South Africa being given a second chance?

Martine Schaffer, Managing Director of Homecoming Revolution, says, “There is definitely going to be an increase in in-flow and a decrease in out-flow of talent, as it is not as easy to work internationally.

"This presents an opportunity to South Africa to retain our talent and it is very important how corporates present themselves."

Pentz questioned whether South African employers are ready for an influx of homecoming talent.

According to Pentz, "There are many hiring inefficiencies that hinder the effectiveness of headhunters in securing and placing executive talent."

These include:
• Lack of a thorough brief from the client or misunderstanding of the intricacies surrounding the role by HR
• On-boarding (coaching) process often non-existent, even when Management is aware of a ‘problem’ department
• Senior HR at bigger companies piling vital talent attraction functions onto inexperienced HR Officers’ shoulders
• Lack of influence and control from HR to Line Management
• Limited access to decision-makers
• Rigid vendor policies

Pentz provided some insight as to how employers can improve their hiring strategies.

“Companies can change their focus from being process-driven to talent-driven. You could possibly have a senior HR person doing executive interviews, but an HR Officer may not be sufficiently skilled. There needs to be trained HR people who do high level interviews for senior management effectively.

"In the USA there is a term ‘the people turn up for you’, which means they roll out the red carpet. They are on time, they offer you coffee, they make sure the interview venue is ready; they do a presentation on the company and its vision and ultimately are properly prepared.

"Often line managers are much better at this than HR. Choose staff that are true ambassadors and ‘live’ the company values to meet with headhunted talent.

"There are appalling examples of headhunted candidates where they wait half an hour for the interview, because the employer was not prepared for them. This is really unacceptable at this level, in fact at all hiring levels.

"The imperative in hiring senior talent is for decision-makers to be involved in the process. There should not be HR gatekeepers at this level, however, HR is a vital part of a successful hire and should influence and control the process according to a best-practice hiring strategy.

"Decision-makers need to deal directly with the headhunter, making time to take their calls. Where we have interviewed a suitable person and the decision maker is hands-on and sufficiently interested to listen to our feedback and manages the process speedily, they see positive results.

"Organisations that have too many layers of red tape in screening these types of calls miss the opportunities.

"Employers must understand that headhunted candidates for opportunities in Africa, for example, all have other offers in the pipeline… they really do. Yours isn’t the only opportunity they are looking at.

"Even in the current economic climate, in emerging markets there are key skills that are even more in demand now. For instance, business development (strong sales and marketing people) to ensure deals are made and relationships managed and your top finance (risk and compliance) candidates.” Pentz concluded.

The following factors should really be considered to make the hiring process more efficient:

• Timelines – do not keep high potential talent waiting unnecessarily!
• Efficient management of the process by HR
• Sharing crucial information around the role with your headhunter
• Informative pre-interview process selling the opportunity to prospective candidates
• Good offer - there are companies that fail at this critical stage by offering the minimum
• Be open, honest and have integrity – your Interviewee today can be your Interviewer tomorrow!

Ultimately what impact is our complacency, regarding these real issues, having on our ability to retain and attract executive talent? Perhaps now is the time that employers should re-evaluate how things are being done to make sure that their organisation shines sufficiently bright to attract and retain the brightest executive stars.

Should you wish to view interviews concluded in more detail, please visit AIMS International South Africa and click “Top Executive Interviews”.