Integrity with Global Talent Management

Integrity with Global Talent Management

The enormous cultural diversity in today's global economy makes evaluating, assessing, recruiting and managing talent a challenge - perhaps the challenge - for transnational companies. There are several key steps companies and their talent leaders can take to meet that challenge and build a global workforce that delivers high performance with high integrity.

First, contemporary corporations must explicitly establish high performance with high integrity as the foundational goal of the enterprise, recognizing that it should indeed be the goal of global capitalism.

High performance means strong, sustained economic growth based on superior products and services that provides durable benefits to shareholders and other stakeholders.

High integrity means:

a) Tenaciously adhering to the spirit and the letter of formal rules, both financial and legal.
b) Adopting voluntary global standards that bind a company and its employees to act in its enlightened self-interest.

Living the core values of honesty, candor fairness, reliability and trustworthiness, which infuse the creation and delivery of products and services, and guide internal and external relationships.

Combining high performance with high integrity must counter strong pressures to cut corners to make the numbers. It isn't just about avoiding evils and the potentially catastrophic impact of an integrity miss. It is also about creating strong, affirmative benefits for the company, the marketplace and the broader society. Such trust is needed to sustain corporations' enormous power and freedom - even under current regulation - to allocate capital, to hire and fire people, to drive productivity, to invest in new geographies and communities, and to innovate with new products or services.

This is not a frill or a nice-to-have. It is not the initiative of the month. The fusion of high performance with high integrity should be the foundation of an organization. This is especially so for companies seeking beachheads in difficult markets.

During my time at General Electric, whenever I was asked what I lost sleep over, my answer was always the same: emerging mistakes. For understandable reasons, multinationals have embraced the potential of significant new growth in the developing world, touting it at analysts' meetings and in public speeches. At the same time, they are quietly aware of the significant integrity minefields that threaten to impair performance and destroy margins: limited rule of law, endemic corruption, rampant conflicts of interest, erratic enforcement, money laundering, unscrupulous local competitors and hard-to-assess economic and political risk. To meet their dramatic growth projections, transnational companies must navigate treacherous shoals.

Second, corporations must adopt a uniform, high performance with high integrity global culture. Culture is the shared principles and practices that influence how people think and behave. The right culture is not punitive but affirmative. Such a culture only can exist when it flows from top leadership - when aspirations are matched by actions. Integrity principles and practices should be driven deep into business operations, without compromises for tough markets.

An important dimension of such a culture is the adoption of global ethical standards. "Globalization through localization" is one of the mantras of transnational companies. Localization, of course, includes adherence to the financial or legal rules of the specific national jurisdiction. GE's code of conduct, for example, begins: "Obey the applicable laws and regulations governing our business conduct worldwide."

But that's not always enough. In some cases, the answer to questions such as, "Is it according to GAPP?" or "Is it legal?" may not be adequate because formal rules don't address the broad problems facing a company. A corporation may find the best answer is to go beyond required duties and voluntarily impose a higher global ethical standard on itself and its employees.

An organized, systematic process is needed to decide whether to adopt such global standards. Once adopted, these standards should have uniform application and implementation across business units, product markets and geographies as formal financial and legal rules. Examples include ethical sourcing and building Greenfield plants in emerging markets to world, not local, standards.

Another important dimension is hiring "A" players in key leadership positions throughout the company and recognizing that driving performance with integrity into business operations requires resources. In most corporations, there is a constant struggle to find the right people and allocate adequate resources. Unless both happen, the merger of integrity and business processes isn't possible.

Hiring experts inside the corporation is vital and cost-effective for risk assessment and abatement. Inside experts know the company far better than any outsider, and they can act quickly. For example, Jack Welch encouraged me to hire outstanding experts in taxes and environmental programs, who had developed world-class expertise both in government service and private practice. Beyond minimizing and mitigating integrity risks, they also proved extremely valuable to the CEO in transactions and financial planning and in offensive and defensive public policy.

Questions about paying for the integrity infrastructure need to be faced candidly and systematically. There's no way around it: Funds must be found and spent to establish the fundamentals. Unless the CEO makes this a clear performance metric for business leaders, these costs inevitably get shoved to the bottom of the list.

This is a forward commitment, as well: When the company engages in the next round of "10 percent across-the-board cost-cuts," the CEO and other business leaders must fight the temptation to wield the ax in this sensitive area, and instead scrutinize the actual impact of reductions.

Third, performance with integrity education and training must come alive. It must be given the same commitment as training in business skills such as finance, marketing, sales and IT, and employees must be given a voice to raise integrity concerns.

The largest challenge: finding the people, message, method and evaluations that collectively constitute a culturally sensitive, yet globally effective set of communications in each market. Face-to-face sessions with employees unschooled in the company's global culture are essential; Web or paper training are second-best.

For example, GE Healthcare developed a short training case about the now famous but fictitious Mr. Vu, who faced multiple tough scenarios, such as hiring third-party consultants, approving travel and living expenses, dealing with customers' demands for bribes and the use of the GE mark.

Such learning by example isn't easy. Talent leaders will need knowledgeable trainers to develop trust and get the most out of illuminating discussions. GE often found it hard, given the exponential growth in Asian employees, to deliver live, in-context training. Too often, we had to settle for an interactive Web-based approach. This challenge is mirrored in the difficulty of finding multilingual, multicultural leaders who can help the corporation act with local sensitivity and global discipline in emerging markets, while also anticipating contingencies, diversifying operations and finding top talent.

One of the most powerful principles in creating a high performance with high integrity culture, and for ensuring accountability up and down the corporation, is to give every employee a voice. This means encouraging, and indeed requiring, the reporting of concerns about possible violations of financial, legal and ethical standards.

One channel for such voice is a company "ombuds" system that encourages employees to express their concerns, addresses those concerns promptly with professionalism and respect, makes failure to report itself an integrity violation and, of course, sanctions those who engage in retaliation. A vibrant, fair, trusted ombuds system not only detects issues early, before they can metastasize into huge problems, it also deters improper acts inside the company right from the start.

Another channel for employee voice is through the finance, HR and legal functions. These key staff members must reconcile dual, conflicting roles. They must be partners to business leaders and help accomplish performance goals. But they also are corporation guardians and must report legal, financial, ethical and reputation concerns to corporate staff leaders if they have problems raising and addressing them in their business units.

Finally, corporations must develop compensation regimes that do not just pay for performance, but pay for performance with integrity. We can measure integrity by looking at whether leaders have adopted the core performance with integrity principles, are implementing the key practices to achieve them, have created the affirmative culture - through employee surveys and 360 degree assessments - compare favorably to peer companies and have achieved annual performance with integrity goals and objectives. Similarly, the management development process should be aimed, in part, at training future leaders in the principles and practices of high performance with high integrity, especially in international markets.

[About the Author: Ben W. Heineman Jr. is senior fellow at Harvard's Kennedy School of Government and Harvard Law School and senior counsel to the law firm of WilmerHale. This article is adapted from his book, High Performance with High Integrity.]

Talent Acquisition: Quality of Hire and Passive Candidates Reign Supreme

Talent Acquisition: Quality of Hire and Passive Candidates Reign Supreme

The growing shortage of desired skills is compounded by an increasingly competitive global marketplace and an uncertain economy - all of which combine to force organizations to get more from the same, or less. It's critical that organizations find and lure best-fit talent and increase workforce productivity and retention. While each of these has pre- and post-hire implications, they also can be impacted by an organization's talent acquisition strategy. However, according to recent data from Aberdeen Group, the ability to identify and attract top talent continues to challenge most organizations.

The Shortage and Misalignment of Skills

Aberdeen Group's July benchmark report, "Talent Acquisition Strategies: Employer Branding and Quality of Hire Take Center Stage," revealed the two predominant factors driving talent acquisition at more than 80 percent of organizations surveyed revolves around the competition for skills, the limited supply of skills or both.

In addition to these external pressures, organizations face internal struggles when it comes to effective talent acquisition. Some 46 percent of all organizations - including 56 percent of those that achieved Aberdeen's best-in-class designation (top 20 percent) - cited workforce planning as their top challenge.

The second-highest ranked internal talent acquisition challenge facing best-in-class organizations focuses on the organization's ability to identify, recruit and validate better hires. In fact, 41 percent of best-in-class organizations cite quality of hire as an internal talent acquisition challenge, compared to only 23 percent that rank ability to reach ideal job candidates and time to fill job vacancies as key internal challenges. Laggard organizations (bottom 30 percent) place relatively equal weight on quality of hire, reaching ideal candidates and filling vacancies in a timely fashion.

Best-in-Class Talent Acquisition Strategies

To overcome the aforementioned macro pressures and internal organizational challenges, best-in-class organizations look longer term and focus on enhancing their employer brands, engaging and attracting passive candidates and targeting those who are best fit for their organizations and available job roles.

Best-in-class organizations distinguish themselves in talent acquisition through a mix of processes and technologies that force organizational collaboration, engage existing workers and target their collective efforts on what matters most to the organization. These work collectively to enable best-in-class organizations to achieve extraordinarily average year-over-year performance gains against the key performance indicators.

Key Differentiator: Recruiting Passive Candidates

Aberdeen's research shows talent acquisition in 2009 will be as much internal as it is external to the organization. But both must focus on heightening the organization's employer brand.

Internal strategies will focus on identifying and developing high-potential workers to fill anticipated higher-level vacancies. Best-in-class organizations place greater emphasis on career development, leadership training and flexible work environments to be more attractive to potential hires and more caring of existing staff. Some 68 percent of best-in-class organizations cite promoting career development and professional growth opportunities in recruiting campaigns as a top priority.

Progress against development plans for individuals designated high potential will be measured against the organization's needs to determine if, or when, the position must be filled externally.

External strategies will focus on finding and engaging talented professionals who are not actively seeking new employment. Passive job seekers are not easy to locate, but they represent an important part of a successful talent acquisition strategy. Aberdeen's research found 62 percent of best-in-class organizations are focused on creating or improving a data repository of desirable active and passive job candidates - versus only 46 percent and 35 percent of industry average (middle 50 percent) and laggard companies, respectively.

Whether internally or externally focused, an organization's talent acquisition strategy must create or validate candidates' and employees' perceptions of the organization as a great place to work. Fifty-three percent of best-in-class organizations focus on having corporate marketing and recruiting work together to improve employment branding. An additional 30 percent of best-in-class plan to have this collaboration in place during the next year. The importance of an internal talent acquisition strategy focused on making existing employees feel positive about the organization is highlighted by the following statistics:

a) Employee referrals are cited by all organizations - and 82 percent of best in class - as the top source to find desirable talent.

b) Some 74 percent of best-in-class organizations rank employee contacts and networks in their top three ways to recruit passive candidates, followed by attending conferences, industry events or tradeshows (60 percent) and visiting social networking sites (30 percent).

Best-in-class organizations are more aggressive at communicating job openings and job-role needs to current staff, and 79 percent are more likely to use the corporate Web to showcase the company's culture and opportunities.

Key Differentiator: Collaboration Between Recruiters and Hiring Managers

Collaboration between recruiters and hiring managers is critical to ensure they get the right candidates within an agreed-to time frame. This collaboration is in place at 89 percent of best-in-class organizations, resulting in a mutual understanding of expectations around the process, skills, attributes and attitudes in a desired candidate.


Aberdeen's research revealed a significant disconnect between human resources professionals and the hiring managers they serve. Non-HR managers are more likely than their HR counterparts to rank quality of hire as a critical success metric for talent acquisition. The same data also shows HR professionals are more likely than non-HR managers to rank time to hire as a critical success metric.

While HR and non-HR managers place relatively equal weight on the importance of overall hiring manager satisfaction, the difference in priority they place on quality of hire, quality of candidate and time to fill suggests a lack of understanding on what it takes to satisfy a hiring manager.

The importance of this collaboration is more pronounced when considering that organizations plan to increase hiring managers' involvement in the recruitment process. For example, 48 percent of best-in-class organizations get line managers involved in candidate follow-up calls, but some 75 percent plan to do so within the next year. Only 32 percent of best-in-class organizations train hiring managers on passive recruiting, but an additional 41 percent plan to do so during the next 12 months.

Key Differentiator: Measuring and Validating Quality of Hire

Seventy-four percent of best-in-class organizations said they have an "understanding of which applicant sources provide the best quality job candidates," compared to only 52 percent of lagged organizations.

When asked for the top four indicators their organizations uses to determine quality of hire, best-in-class organizations' responses focused on two areas: how quickly new employees got up to a desired level of competence and how long they lasted in their role during the first 12 months of employment.

To measure the quality of recent hires, organizations need to have processes in place to determine what level of performance the new employee should be at in three-month, six-month and nine-month time frames; to measure the candidate against those milestones; and to evaluate any performance gaps that need to be addressed. How well an organization can measure new hires job performance and use that information to improve the recruiting process plays a major role in a successful talent acquisition program.

Yet, according to Aberdeen's research, organizations ability to clearly articulate what quality of hire actually is still has a long way to go. Research revealed that quality of hire at most organizations is based largely on loose definitions. In fact, establishing "clearly defined metrics pertaining to quality of hire" is the most common plan related to talent acquisition that organizations will put in place in the next 12 months.

Recommendations

1. Gain clarity on skills gaps. Clearly define the common behaviors and skills of the organization's top performers or key contributors. Use this or the organization's core values as a general competency framework to identify skills gaps. This enables an organization to ascertain where gaps can be filled internally and which require more targeted recruiting efforts.

2. Seek feedback. New hires should be interviewed after the job offer to obtain feedback on the recruiting and hiring process. Make improvements as needed.

3. Define success metrics. Clearly defined metrics should be in place to measure the success of talent acquisition efforts. These metrics should be agreed on by HR and hiring managers and should address the organization's specific business issues.

4. Involve hiring managers. Hiring managers and recruiters need to be trained to use new technologies to find passive job candidates. Such workers can be a vital source of talent and expertise but have traditionally been invisible in recruiting efforts.

5. Focus on internal and external employer brand. The entire organization should work together to collectively brand the company a best place to work. Recruiting should be seen as an enterprise-wide function, not the role of human resources.

Ref: Kevin Martin
[About the Author: Kevin Martin is vice president and principal analyst of human capital management for Aberdeen Group.]

Key Steps to an effective recruitment process

.
Is there a need to recruit?

. The need for any recruitment activities should be evaluations in the context to the business overall resource requirements;

. This should include both short, mid and long term plans and requirements for your business and consider both likely resource level requirements (numbers of staff) and business skill requirements (capability of staff) in order to best decide first if recruitment is required at all, and if so what skills and experience you need to bring into the business.

Carefully defining the vacancy pays dividends
. Start with a description of the job - its responsibilities and deliverables;
. the necessary skills, experience and competencies required by the job holder to fulfill the required responsibilities;
. Plus the ideal qualities to be a successful contribution to the business.

Creating a talent pool by attracting the right candidates

. Think carefully about your internal sources of candidates: seek candidates from inside the business via internal job boards, succession plans etc; identify staff for whom it would be a sensible career development move;

. Think about the different sources of external sources of candidates: Advertise the vacancy (online or print); your internet career page; search generalist and specialist job boards; speak to the local job centre; encourage existing employees to make contacts for you; make contact with universities and colleges; use a recruitment agency or head hunter;

Focus on collecting all relevant information on candidates

Collect the information necessary to make a selection decision

. Applications form;
. CVs;
. Interview data (including behavioral interviews);
. psychometrics;
. references.

Create a short list and then arrange interviews and other selection processes

. Review applications and short list;
. your shortlist down to a small number for interview;
. Consider telephone interviews as an effective way to screen applicants;

Making the decision to appoint

. Consider relative importance of the different requirements before trying to evaluate the candidates so that you do not get caught up in the moment;
. When judging the importance of a shortfall in the candidate think about what can be learned as opposed to what comes more naturally or key competencies;
. Consider both the risks and the benefits of appointing a particular candidate;
. Make simple notes of your decisions in terms of why you selected and why you did not select � these will not only help you remember but can be useful for giving feedback;
. Agree terms and conditions of employment;
. Make the offer.

Giving feedback

This needs to be considered for three groups:

. successful candidates;
. unsuccessful internal candidates;
. unsuccessful external candidates.

Producing an induction plan

This is a critical step and should include both induction and early development needs. It can make the difference between a successful hire and an unsuccessful one.

. the new recruit quickly getting up to speed and making a valued contribution;
. reducing the disruption to the work of the other members of the team;
. ensuring a safe working environment;
. demonstration to the new recruit that they are valued;
. increasing your ability to keep the employee.

And finally, you need to review the recruitment process

. A review of the process itself should be undertaken - this will lead to process improvement and greater efficiency;
. A review of the hiring decision should also be undertaken - this will lead to greater recruitment effectiveness;
. The recruiters corner on HireScores.com gives some great feedback to employers on what to do and what not to do when recruiting..

Recruitment in China is trending downward

Recruitment in China is trending downward, admittedly at a very slow rate, but it is still the number one issue for HR departments.

We all have our own understanding of what hiring is but it might be instructive to look at what hiring is not.

A. Firstly, hiring is not the responsibility of the HR department. This is a line manager’s problem, and only they can truly assess candidate fit with the job and the company. HR is basically the government. It is there as the standard bearer for candidate quality, and to ensure compliance with hiring policies. HR can add value in terms of understanding the psychology and motivation of both candidates and line managers so that a better outcome is ensured. The final decision lies with the line manager.

B. Hiring is not even a good fit with HR itself in many ways. Hiring is outwardly focused and subjective, which is exactly the opposite of most HR functions like payroll, org charts, succession planning etc. Hiring is more akin to marketing or branding and it cannot be fulfilled with a box-filling or bureaucratic approach. At the same time, hiring is not just about ill-defined issues, like quality and engagement. Hiring can and should be measured.

C. Hiring is not about waiting. It is an intense function that requires constant vigilance. Take your eye off the ball for more than a few days and you will lose momentum. Change companies on a regular basis and you will never be a good Recruiter.

D. It’s a candidate's market in China now so hiring cannot be about finding candidates at the lowest possible overhead cost. In this market you can be hiring efficient, and save your pennies, but only at the cost of hiring effectiveness. You can’t have both efficiency and effectiveness. Telling your GM how you have saved RMBXXXXX on headhunter fees and recruiter salaries will only fly if your hiring requisitions are being filled on-time, in time.

E. It’s not even about staff salaries. Hiring people does not become that much easier when you increase the salary. It is true that in the short-term you get ‘bums on seats’, but the kind of people you get are the ones that will resign in a very short time, and then you are back to square one. Seeking people with the right fit ie. those with 80% of what you want, will take longer but the net benefits are greater. The 20% that they don’t have will allow you to offer them coaching and training, and this will keep them engaged for longer period of time.

F. Hiring is not a gate keeping exercise. It needs to be inclusive, not exclusive. Candidate fit is not about filling your office with people who all fit your culture exactly. Monolithic cultures tend to die because there are problems out there in the environment that they are not capable of seeing. Diversity is not just a useful politically correct (PC) concept. It’s a survival mechanism.

G. Hiring is not solvable using job portals. These sites are an excellent start, and worth the money, but they are just the minimum cost of entry. They offer you a huge database of professionals to choose from, but this database has been worked to death already, by your competitors.

H. The hiring process itself is not an opportunity to tell potential new staff how fantastic your company truly is. Your company is fantastic, of course, but so is everyone else’s. On the internet they say that no one knows you are a dog, and in China no one knows you are the World’s-Premier-Manufacturer-Of-Novelty-Items. No candidate cares to hear this spiel because it means you are speaking to yourself, and not to their needs.

I. Hiring is not a jigsaw that the candidate has to figure out by himself. It needs clear Job Descriptions with a linkage to KPIs that will be assessed on a half yearly basis. The new China Labor Law ensures that this is now imperative.

J. The job of Recruiter is not a path to HR Manager, unless you have a special arrangement where you can do work in other areas, or your company offers job rotation. This is unlikely as hiring is such a demanding position right now. Despite what you may have heard, hiring is something you need to settle into for the long-term. If you love it, stay, because other HR jobs will probably not satisfy.

In the end, hiring is not a game you can lose. If you lose this game you lose everything. At the same time you can let candidates go if they are not the right fit.

Winning the wrong people is more costly in the long term than losing them.

The Talent Acquisition Killer App

In the past, the candidate intake process consisted of collecting existing information (via applications and resumes), generating new information (via assessments and interviews) and confirming information (via reference and background checks). Each step of that process generated different documents (application forms and paper resumes, printed test scores and interview notes, and background reports). And this information was all centralized in that old standby, the paper file folder.

As the process evolved, the paper folder was replaced with a subdirectory on a computer’s hard disk. Paper applications were replaced by online forms, paper resumes by scanned images, printed test scores by database records, etc., yet each of these components still existed separately from one another. While some efficiencies were gained by “going paperless”, the move from paper documents in paper file folders to scanned images on a hard disk hardly represented a re-engineering of the hiring process.

The integration of online assessments and Internet-delivered applicant tracking systems (ATS) created the opportunity to transform, rather than simply automate, candidate screening and hiring. This is because an ATS system provides more than just a centralized database of candidate records. It provides candidates and recruiters with portals into a variety of data sources including application and resume data, job interests, references, etc. Recruiters can view this information by individual candidate or in aggregate, enabling recruiters to rank candidates before choosing whom to interview. Modern ATS systems can also manage all of the steps in the recruiting and hiring process, right through employee onboarding.

Assessment is one of the few talent acquisition tools employers can use to generate new, unique data about a candidate that is not available to every other employer. And when skills and behavioral testing is integrated into automated applicant tracking, applicant tracking moves from a tool for increasing efficiency and compliance, to a platform for strategic re-engineering of the hiring process.

To begin with, simple “knock out” assessments can be used to gate the entire process, removing candidates who would be disqualified due to inexperience, legal status or some other factor before anyone wastes any time on their application. When behavioral and skills assessments are integrated later in the ATS-driven application process, recruiters can consistently compare all candidates against a job-based set of standards. Resume formats and language can vary, interviews can be subjective, and reference checks can be generic. But assessment is the one element of the talent acquisition process that creates new information related to job fit in a consistent way, through testing instruments designed to be fair and free from bias or subjectivity.

In a single platform, modern applicant tracking systems can integrate assessments, background checks, requests for substance abuse screening, even a window into whether a company can obtain tax credits by hiring a particular candidate. These capabilities do not simply increase efficiency, they transform what were once discrete processes into the “Killer Application” of talent acquisition.