Inspiring people MARCH 2014 HRMarketUpdate Call London 020 3587 7070 Manchester 0161 416 6224 | Email global@mdhr.co.uk | Visit www.mdhr.co.uk INSPIRING PEOPLE | UK & Asia Pacific Market overview | BLOG OF THE MONTH MARKET OVERVIEW in high demand are being quickly managed through recruitment processes and often have multiple The end of 2013 and start of 2014 were offers to choose from. So it seems a mixed bag for job seekers. Whilst the our December 2013 prediction for general recruitment market is a lot sustained growth in talent acquisition more positive with movement expected is on track. We did see a sharp increase throughout the year, the statistics don’t in recruitment roles with nearly 20% necessarily reflect that. According to of new assignments taken on in Q1 the job site Indeed.com, the number of being resourcing related. The increase HR roles advertised in February 2014 in resourcing roles is certainly a positive was down 9% on February 2013, while indicator, with organisations putting January 2014 was down 5% on January the drivers in place for increased talent 2013. However February 2014 was up acquisition. Mid-level roles still seem 8% on January 2014 – which perhaps to be in high demand, especially in the correlates with a slow start after the £50,000 - £80,000 range. Christmas break. There has also been an increased The British Chamber of Commerce number of retained selection and reported last week that the Q1 2014 executive search assignments being Economic Forecast conveys increasing business optimism, with GDP expected to mandated. It suggests that many exceed its pre-recession peak in Q2 2014 organisations are looking for a greater level of certainty and robustness in – a quarter earlier than we predicted in December 2013. With numerous positive their recruitment as they identify that business growth and transformation reports coming from official bodies creating a more optimistic outlook, there is dependent upon key hires in areas such as talent and organisational is a sense that candidates do feel more development. comfortable looking for a new role thus creating demand in the market again. By Kerry Gird, Senior Consultant Candidates with skills and experience UK HR Recruitment MARKET UPDATE MOVERS AND SHAKERS Ross Maxwell Consultant - Manchester Having worked with Hays and MWA/ Randstad focusing on accounting and finance for around 5 years I took the opportunity for change and travelled for a year. On returning to the UK I wanted to challenge my skills and try something different. Working in managed services for 2 years allowed me to be heavily customer focused across a broad range of sectors. The time was right for me to return to recruitment and the culture at Macmillan Davies resonated with my own approach. Dean Elliott Senior Consultant - London After a year-long sabbatical I’ve returned to Macmillan Davies, initially joining in 2007. I specialise in delivering HR Interim assignments across all sectors in the UK, Europe and the Middle East. I have an extensive client portfolio which includes pharmaceuticals, FMCG and Energy. And all the while I’ve had a great time, thanks to the people I work with. To contact Ross or Dean please visit: www.mdhr.co.uk/our-people 34 Lime St, London EC3M 7AT | Call us on 020 3587 7070 Manchester Business Park, 3000 Aviator Way, Manchester M22 5TG | Call us on 0161 416 6224 www.mdhr.co.uk ASIA AND PACIFIC MARKET OVERVIEW Australia – The Next Step An Improving Sentiment 2014 got off to a slow start with many organisations encouraging (or mandating) staff take extended leave over Christmas/New Year. However as Q1 unfolds, we are seeing an upturn in the market with slightly more positive business sentiment. Key market indicators are generally improving, including retail sales and housing market clearance rates. The only exception being the unemployment rate, which hit a 10 year high in February of 6.0%. Productivity, performance and cost minimisation remain top of the agenda across most industry sectors as does an increased focus on customer centricity. Improved consumer confidence has no doubt helped create movement in the market generally, giving some candidates the confidence to change roles. The senior end of the market which was very stagnant last year, particularly for generalists, is now seeing some movement again across the board. This is largely driven by churn, though in some cases by restructuring but the talent pool remains highly competitive. Whilst we have seen an uplift in generalist roles, there continues to be strong demand for senior Change and Transformation practitioners, both for interim and permanent positions at the senior end. The mid-level market is typically being driven by clients looking to acquire true strategic business partners off the back of implementing new HR operating models and transitioning transactional HR functions to HR Shared Services and centres of excellence. This has directly impacted the junior level roles, as duplicate positions across business units are being rationalised and centralised. In Sydney, increased demand is evident across the market, where stronger sectors continue to be State Government (due to the continuing restructuring of departments and a focus on acquiring top talent), as well as professional services and telecommunications. In Melbourne the market remains highly competitive for senior talent and we have seen an uplift in senior generalist opportunities across a variety of industries. The intermediate and early career markets are also gaining some momentum. The Brisbane market, soft in 2013 following cost cutting measures by the more dominant resources, oil and gas sectors is starting to see some recovery with the State Government hiring again. There has been a greater call for specialists rather than generalists. by David Grant, Director (Sydney) For more information on The Next Step please visit www.thenextstep.com.au ASIA – PROFILE SEARCH AND SELECTION 2014 has so far been a busy year for us in Asia. The market unseasonably picked up in January – ahead of Chinese New Year in February – and we have seen a wide spectrum of roles come into the market. The junior and mid-level remains particularly buoyant across all industries and with bonuses being paid this month, we expect senior roles to come into the market soon. Learning & Development (plus Talent Management) is particularly hot at all levels and while the banks have started to hire again, Retail & Luxury Goods is especially busy with Insurance not far behind. Bonuses have for the most part paid 10-20% at the junior end and averaging 20-40% at the senior end. Some banks have reputedly paid zero to those still performing. Already we are seeing a shortage in Asia of best-practice talent. By the summer, and as the market continues to pick up, we predict that those who want to secure strategic HR professionals, will have no choice but to open their search to Europe, Australia and the US markets. JOB OF THE MONTH x 2 Hr Advisor £32,000 - £36,000 Manchester with UK travel Ref: 21727 Newly created role working for a global commercial property firm. Reporting to the Senior HR Manager and working closely with the senior management team, this is a broad generalist role covering ER, change management (including TUPE and redundancies), recruitment, employee benefits, HR systems, policies & procedures, union negotiations, training & development, employee performance reviews, people development, succession planning and performance management. The successful candidate will be a CIPD qualified or equivalent HR Advisor with proven experience of managing TUPE transfers and restructures. You will also possess strong negotiation and relationship building skills. Please contact Ross Maxwell on 0161 416 6228 or rmaxwell@mdhr.co.uk compensation & benefits director £80,000 - £130,000 West London Ref:21725 Recently acquired by AMC Networks, Chellomedia a leading international media business. The Compensation & Benefits Director role reports to the SVP HR and will be a pivotal position in helping the business into the next stage of its evolution. With an employee population spanning Europe and Latin America, you will manage and advise on individual company compensation and benefits schemes, as well as assisting in the development of the wider Total Reward strategy, ensuring its alignment to business strategy. Supported by a C&B analyst, you will need to be pragmatic and hands-on in your approach. The ideal candidate will have significant international C&B experience in a multinational blue chip with a strong commercial sector background, preferably media or technology. Please contact Brett Smitheram on 0203 587 7067 or bsmitheram@mdhr.co.uk by Amanda Clarke, Director For more information on Profile Asia, please visit www.profileasia.com 34 Lime St, London EC3M 7AT | Call us on 020 3587 7070 Manchester Business Park, 3000 Aviator Way, Manchester M22 5TG | Call us on 0161 416 6224 www.mdhr.co.uk BLOG OF THE MONTH UPCOMING EVENT Here’s what got the industry talking recently.... Engagement Party By Noreen Curtin, Associate Director A fully engaged workforce is motivated, driven and passionate in wanting to succeed, so what is the secret to successfully engaging your workforce? Employee Engagement is crucial in any organisation, particularly in a recession and a recovering economy. It has been reported in a recent white paper titled ‘Evaluating Employee Performance through Sponsorship’ that the UK has an employment deficit and that only 1/3 of employees are engaged. That means that essentially 20 million employees are not fully engaged in their work and therefore not contributing 100% to the productivity and therefore profitability of the organisations they work for. The taskforce, ‘Engaging for Success’ set up in 2011 to improve levels of employee engagement in the UK released a report highlighting that the UK ranked 9th out of 12 of the world’s largest economies for engagement. It is also estimated to be losing £20+ billion every year as a result. What is also shocking is that only 13% of employees globally are engaged at work. Being engaged isn’t just about being rewarded financially. The recession has developed a new breed of employee, one who has helped support and grow the organisation through a tough economy. These individuals can look beyond salary and genuinely want to be happy and motivated within their working environments. So which organisations succeed in Employee Engagement and why? Google has created an environment in which people can thrive, where individuals are given the opportunity to be creative and flourish. DHL demonstrate their appreciation through annual recognition awards and others look at honouring top performers and offering monetary rewards. At SAP, they promote open and honest communication. Smaller organisations without dedicated HR support need to look at what they can do to ensure they keep their employees engaged. For example, one to one meetings or ‘tea with the MD’ as I have experienced in the past, have always been positive where as an employee you have the opportunity of face time with senior leadership to express your thoughts and dare we say it, feelings about your work, managers, environment etc. CORPORATE SOCIAL RESPONSIBILITY Wednesday 30th April 2014 A BREAKFAST SEMINAR ON CSR INSIGHT AND INITATIVES We are delighted to welcome an expert panel for our Q2 HR breakfast seminar held in our London City office. Sharing their knowledge and experience, the panel of speakers includes: • • • Nicola Moss & Noa Burger from the City of London Corporation David Perry, Head of HR at Maitland working with the The Nelson Mandela Children’s Fund Emma Cockerton - previously at Scotiabank & NEST Pensions/PADA If you are interested in attending or want to know more please visit our website by clicking on the image below or contact Daniela Cabras on 0203 589 7065 or email dcabras@ mdhr.co.uk Spaces are limited. Unfortunately there is no real secret to successfully engaging your employees. Employee Engagement shouldn’t necessarily just fall to HR, everyone has to take some responsibility and understand the impact they can have as a leader in a business. So really there is no real secret to successfully engaging your employees. Employee engagement needs to be something embedded culturally in a business, where managers and leaders are able to identify the behaviours of a disengaged employee and be prepared and able to respond in the best possible way. For the full blog please click here. 34 Lime St, London EC3M 7AT | Call us on 020 3587 7070 Manchester Business Park, 3000 Aviator Way, Manchester M22 5TG | Call us on 0161 416 6224 www.mdhr.co.uk HR INSIGHT - LEARNING AGILITY Here we talk to Gene Johnson on how to go about using Learning Agility to objectively measure ‘potential’ and encourage dynamic leadership and decision making. PROFILE EXPERT CONTRIBUTOR: GENE JOHNSON Gene is an organisational psychologist with an expertise in talent and Leadership. He has worked in corporate HR and also lectured at the University of Auckland for 7 years and worked in consultancy for 8 years. His specialities include: Talent Management, Leadership Development, Organisational Development & Change Management, Learning & Development, Selection & Assessment, Employee Engagement and Diversity. We were delighted to host our Q1 HR Seminar in London on “Learning Agility” where Gene Johnson provided us with an insight on how to use Learning Agility to objectively measure ‘potential’ and encourage dynamic leadership and decision making. GENE’S TOP TIPS Learning-agile individuals practice disciplined personal development in five ways: Innovating: They are not afraid to challenge the status quo Performing: They remain calm in the face of difficulty Reflecting: They take time to reflect on their experiences Risking: They purposefully put themselves in challenging situations Defending: They are simply open to learning and resist the temptation to become defensive in the face of adversity Don’t use self-assessment when testing for Learning Agility: People with high LA tend to under sell themselves and people with low LA will oversell themselves Gene talked about Learning Agility (LA) being a relatively new concept but how it is now becoming more and more important in leadership and talent identification and development. To Gene, traditional learning is about IQ, grades and straightforward problem solving whereas agile learning requires quick thinking, initiative and the ability to admit strengths and weaknesses. When discussing LA, Gene began by exploring the well-recognized 9 box model which takes Performance AND potential into consideration, which makes more sense in determining High Potentials (HiPos). He backed this up with a quote from the Corporate Leadership Council in 2010 of “only 15% of high performers have high potential”. Gene discussed the different models that can be used. The Korn/Ferry Institute model measures 5 factors: mental agility, people agility, self-awareness, results agility and change agility. In identifying how can we measure this in the work place, Gene believed that we should not use self-assessment people with high LA tend to under sell themselves and people with low LA will oversell themselves. Gene also suggested that measuring LA should not be used as the sole tool to measure potential and it makes sense for it to be used in conjunction with other tools for talent or leadership identification and development. Gene and the group debated how to create situations in which people can flourish in? Gene believed that you needed to think carefully which model you should use in order to get the best results. Learning Agile would be a HiPos to begin with and LA cannot be tracked. However it can be developed and the more experience a person has the more LA would be visible. Make sure you select the right tool for your business: There are different models out there from companies such as Korn/Ferry (Choices Architect Model), PDRI (Learning Agility Simulation) and LAAI (Learning Agility Assessment Inventory) Gene and the group discussed why are we being agile in our learning when we’re not agile when we recruit? Organisations are becoming too risk adverse and are beginning to develop a blame culture. Excuses are being made for failure rather than learning from their mistakes and becoming accountable for their actions. It was also said that when employers are recruiting, they should stop concentrating on an individual’s drive and results and seek candidates from their same business sector. Make sure you select the right tool for your business: For example, give a person 9 months in a new job experience to yield substantive lessons and then equal amount of time to apply to these new challenges. So can LA be learned or is it innate? Gene’s answer – “it depends”. Gene highlights that businesses need to support and develop the Learning Agile. It’s not all about promoting our HiPos but stretching and challenging them. Finally, do not be adverse if someone wants to leave your organisation - if there’s no development for them, why make them stay? 34 Lime St, London EC3M 7AT | Call us on 020 3587 7070 Manchester Business Park, 3000 Aviator Way, Manchester M22 5TG | Call us on 0161 416 6224 www.mdhr.co.uk INSPIRING PEOPLE Q&A Here we talk to HR Professionals and find out what and who inspires them.... ANDREW DYOS Group HR Director - Quintessential Brands Who has inspired you and has this impacted on your career? I think if you really follow your own path in life you are bound to bump into people who inspire you on your way. I’ve worked closely both with and for, a number of great people who I would have no hesitation in linking up with again. I’ve been very lucky to work for the BT (UK) Group HR Director in the 1980’s, who had phenomenal vision and drive particularly when it came to the evolution of the HR function and investing in people. I worked for the O2 Group HR Director (around 1990) who had superb business acumen and stakeholder skills as well as the DSGi Group HR Director (in the new millennium) who could not only speak 6 languages and could truly relate, influence and operate in such a wide range of cultures in terms of nationality but also in terms of all areas of and backgrounds in society. In addition I worked with a CEO who had amazing commercial & financial competence but also a fantastic sense of humour and relaxed approach to life. If it’s true that you can grow a piece of yourself from those you’ve worked with, then I’ve been very lucky. Each of them gave me a stronger appetite to see more of the world, to go for more and to achieve more. What would you consider a ‘personal best’ for you? I loved the challenge of building credibility across various sectors in the UK, the USA, Canada and India which will always be a highlight of my working life. I’ve been lucky enough to work with some great people in so many places – some of whom really wanted to work in my team too (perhaps they didn’t work there long enough). And of course now a new personal best awaits after landing as Group HRD in a great European-based, independent, international spirits company the challenges of product knowledge & focus has never been so important! What do you see as the biggest challenge for HR for the next few years? (1) Moving on from generally being the only business function still far too generically referred to by two letters across industries and the globe. (2) Finding ways to enable the huge source of talent that seems to be entering or already within our profession to get ‘their stage’ and to get on. (3) Deciding whether Greenalls, OPIHR, Bloom or Berkeley Square is your favourite botanical gin! EMPLOYMENT LAW UPDATES Changes from 6 April 2014 onwards: Employment Tribunal Changes ACAS Early Conciliation: From 6 May 2014 prospective claimants will be required to contact ACAS either by submitting an early conciliation (EC) form online or by post or by telephoning ACAS who will then complete the EC form for the prospective claimant. For more details visit ACAS. Financial Penalties for Employers: In cases presented on or after 6 April 2014 tribunals will have the power to impose a financial penalty on employers who lose at a tribunal of 50% of any financial award made, with a minimum threshold of £100 and a maximum cap of £5,000. Click here for more information. Discrimination law changes Discrimination questionnaire: From 6 April 2014, employees who wish to bring discrimination claims against their employers will no longer be able to use the statutory discrimination questionnaire procedure. Click here for the latest ACAs guide on Asking and responding to questions of discrimination in the workplace: Flexible working Changes to the right to request flexible working have bee delayed until 30 June 2104. The Government originally proposed that the extension to the right to request flexible working would come into force on 6 April 2014. This has been delayed by the Children and Families Bill which received Royal Assent on 21 March 2014, with the new implementation date set as 30 June 2014. Please click here for the press release. Unfair Dismissal Compensation Cap As of the 6th April 2014, the new maximum compensatory award for unfair dismissal increases to £76,574 (from £74,200) matching rates of inflation. For the full schedule of increases please click here. 34 Lime St, London EC3M 7AT | Call us on 020 3587 7070 Manchester Business Park, 3000 Aviator Way, Manchester M22 5TG | Call us on 0161 416 6224 www.mdhr.co.uk