Critical Success Factors: Make your Saudisation Programme work
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Transcript of Critical Success Factors: Make your Saudisation Programme work
Critical Success Factors:Make your Saudisation
Programme work
Professor William Scott-Jackson0044 7785 [email protected]
وسهالاهال
Research
• Survey of GCC Nationals and ex-pats• In-depth interviews with over 40 major ‘best practice’ GCC
organisations– Public and private– Locally owned, Western and Asian
• Action Workshop and focus group with 20 major GCC employers
Talent in the Middle East
• Infosys recruiting US graduates to study in India then work in Infosys back office in US.
• Tata outsourcing to back office in Mexico; Wipro to China, Saudi and US; Infosys to Poland and Thailand.
• Company in the US pays an Indian Vendor 7000 miles away to supply Mexican workers based 150 miles south of the US border (New York Times 29th Sept)
Underemployment, particularly among
young men
Women’s increasing success in workplace
Skills shortages limiting companies’ ability to
grow . (Gulf Talent 2007)
UAE Investment firms facing influx of clients but a shortage of
professionals to serve them. (Moss Adams 2007)
“The Middle East is losing out in the global battle to produce and attract the world's most talented workers,” Global
Talent Index 2007
Increasing challenge for GCC employers to attract what has been
the main source of affordable talent, as gap narrows between
Indian and Gulf packages.
Nationalisation – particularly building strategic
capabilities and leadership
Main conclusions: Best Practice
Meeting quotasMaximising a strategic resource
RecruitmentTalent Management
Placing nationals in ‘easy’ rolesIdentify strategic capabilities and plan
Career Fairs etcCreate ‘great place to work’
Start early (school) and with families
Target GraduatesAnd older, less qualified, women etc
Focus on young adults
Compete for nationalsCollaborate by sector
Government, Education, SocietyGet on with it!
BEST PRACTICE NOT BEST PRACTICE!
Saudisation as Talent Management
Talent Strategy
& Planning
AcquiringTalent
Developing&
DeployingTalent
Summary and Key action areas
Talent Management:
Retaining
Talent
Competing or complementary employment
and DemographicsCompeting jobs are those that are equally suitable and desirable for nationals and ex-pats.
Complementary roles are those which are specifically suitable or desirable to be filled by nationals rather than ex-pats OR specifically suitable or desirable to be filled by ex-pats rather than nationals
Demographics – if the national plan produces a low % of nationals (as in the UAE) then most jobs can be complementary as we need to be extremely choosy about the jobs our scarce nationals do.
If nationals are a high proportion then many jobs will be competing and we must ensure that nationals are well-equipped to compete.
Mistake is to act as if jobs are competing when in fact they are complementary.
DemographicsNationals as small proportion
of workforce
Leadership roles
Specialist roles(sector e.g. oil or function e.g. HR)
DemographicsNationals as small proportion
of workforce
Leadership roles
Specialist roles(sector e.g. oil or function e.g. HR) Mostly talent
management problem: Identity and develop strategic capabilities
DemographicsNationals as large proportion of
workforce
Leadership roles
Specialist roles(sector e.g. oil or function e.g. HR)
DemographicsNationals as large proportion of
workforce
Leadership roles
Specialist roles(sector e.g. oil or function e.g. HR)
Mostly talent management problemBut also employment, quotas and ex-pat restrictions
The competitive market
High-Precision Strategic NationalisationResourced-based view of the firm
Firm X
Firm D
Firm B
Firm C
Firm A
The ‘X’ factor: A differentiating capability•Valuable (in relation to the market)•Rare•Hard to imitate•Hard to substitute•Owned by you
Firm XCompetitive Advantage
E.g. innovative capacity, ability to exploit knowledge Negotiating ability Openness to other cultures Gulf Arab mgmt style Religion/Culture
Barney, J.B. and Clark, D.N. (2007) Resource-Based Theory: Creating and Sustaining Competitive Advantage. Oxford University Press, Oxford
Linking Strategic intent and capability measures
DubaiMalls Group
Global Bank
Telecomms
World leading expertise in Mall design and customer
psychology
Frontline staff that are friendlier and more helpful
than anyone else’s
Leading technical innovators, top international marketing
expertise (retention)
Rapid expansion through providing retailers with
more ‘footfall’
High customer retention and recommendation through
exceptional customer service
‘... extend its reach into new technologies, services and
markets to create opportunities for our
customers’
Organisation Strategic Intent Differentiating capability
The United Arab Emirates
... that citizens are able to benefit from the country's
increasing wealth
Exceptional percentage of population as leaders –
‘ready to manage’
The process
1. Identify strategic intent (goals/imperatives)
2. Identify key people capabilities to achieve strategic intent
4. Identify key roles by strategic value
5. Programme to develop and measure key capabilities and key
roles6. Metrics to show investment and
improvement over time - ROI
3. Identify drivers to maximise and differentiate each capability
Senior Management workshop to
engage, get the facts and create
ownership
ImplementationProject
In-depth research to identify unique drivers (e.g. of ‘friendliness’)
Developing and deploying talent
Talent Strategy
& Planning
AcquiringTalent
Developing&
DeployingTalent
Summary and Key action areas
Talent Management:the threat and the opportunity
Retaining
Talent
The Development Process
Organisation’s talent
needs for the future
Target role
Role ProfileCompetenciesqualifications experience know-howpersonal skillsknow-who values
Gap to be closed through development
Dialogue between organisation and individual,matching company needs and individual
aspirationsIndividual’s aspirations
for the future
Individual ProfileCompetenciesqualifications experience know-howpersonal skillsknow-whovalues
Current role
Talent strategy
Identify and share
aspirations
Process for dialogue
Assess/agree competencies
Define requirements
Process to plan and monitor progress
Methods of training delivery
0 5 10 15 20 25 30 35 40 45 50
Blogs - corporateand personal
case studies/action learning/consulting
Academic courses
Guest speaker - knowledge confereces
traditional classroom - open courses
On-the-job - one-to-one
Mentoring
e-learning (self-driven)
classroom - bespoke
% of respondents
Scott-Jackson, W.B. Mayo, A. & Rushent, C (in prep) World-Class Learning and Development: the major success factors,
Methods of delivering learning: Impact on knowledge retention
Method Retention• Lecture 5%• Reading 10%• Audio Visual 20%• Demonstration 30%• Discussion Group 50%• Practice by Doing 75%• Teaching others 90%
Jennings, C. (2007) Why ‘stand and deliver’ s never enough, Presentation to the IITT Conference June 2007.
Most widely used
method
Least used
Never used (except informally?)
Part 4: Retaining Talent
Talent Strategy
& Planning
AcquiringTalent
Developing&
DeployingTalent
Summary and Key action areas
Talent Management:the threat and the opportunity
Retaining
Talent
Well done! We’ve cut staff turnover from 16% per year to only 10%!
Modified from Harvard Business Review Oct 2007
Global Bank 2007
… We’ve kept 12% more of our worst people and lost 6% more of our best
people!
Retention: A differentiating strategic capability
Survey of 500 Global organisations
• 68% - retaining talent is ‘far more’ important than hiring
• Over 50% altered salaries, bonuses or stock options to try and retain
talent
• Only 27% tried to provide employees with advancement opportunities
Organizations continue to struggle with retention because they rely on
salary increases and bonuses to prevent turnover.
• Why doesn’t this work?
* Accenture: "The High Performance Workforce:Separating the Digital Economy's Winners from Losers”
Dimensions of Staff Turnover:
Involuntary - organisation decides not to retain the staff member (or
retain). Voluntary -
individual decides to leave the organisation (or stay). High Value or Low value capability
Short term and long term Risk of quitting
POINT: If someone of low value to the organisation is at high risk of leaving voluntarily - encourage and celebrate!
Some turnover is OK!
Type A
Inadequate selection
for dismissal
etc
Type C
Dismissal, etc
Type B
Retention Problem
Type D
Career development
moves, management coaching etc
Involuntary Voluntary
Value to the organisation
High
Low
How to reduce turnover:The Quitting Process
JobSatisfaction
Organisational
Reward/recognitionQuality of supervision
Work and socialstimulation
Conditions of workand environment
Personal
Personality (e.g. Self esteem +ve) Congruence of job with interests (-ve)
Status/seniority (-ve)General satisfaction with life (+ve)
External
Unemployment ratesEconomic situation
Scarcity of/demand for skillsGeography
Demographics
Thoughtsof quitting
Intentionto search
Intention toquit or stay
Actionquit or
stay
Probability ofachieving
alternative/attractiveemployment
Thoughtsof quitting
Organisational Commitment
Pull (e.g. Search Consultants)
PUSH
PULL
Type B Turnover - When to attack
Job SatisfactionSelf-esteemManagement
Action quitor stay
Probability ofalternative/attractive
employment
Thoughtsof quitting
Intention tosearch
Intention toquit or stay
Main factors
Job offer atsame/more
money
Perception ofjob market vs
internal
Stage
Plan/process to increase retention of the best people?
Regular confidential ‘Insight’ survey/interview to identify high risk groups/individuals
Managers agree individual and group actions
Actions and monitor via survey
Identify high value groups/individuals
Summary – Targeted Retention: resourcing at its best!
• Retention much more cost effective than replacement• Retention must be targeted• Aim to minimise involuntary quitting (low or high value)• Take control/influence over voluntary staying and quitting• Need information – segment the internal market
– Who is valuable?– Who is at risk?– What they think– What they want
• Need deliberate highly targeted action - Marketing• Demonstrable, significant savings possible!
Part 5: Meeting the Global challenge for Talent
Acquiring Talent
Talent Strategy
& Planning
AcquiringTalent
Developing&
DeployingTalent
Summary and Key action areas
Talent Management:the threat and the opportunity
Retaining
Talent
PANIC!!We need a new Group Finance
Director Urgently!!Call Oxford Strategic
Resourcing to find us one quick!!
Modified from Harvard Business Review Oct 2007
Global conglomerate 2003
… Did he die suddenly?
No – He retired
… What about Abdullah in your Metals Division?
… Who?
Well … who do you really respect in
the market?
Duuurgh?
PANIC!!We need to find exploration
engineers urgently!!Call OSC to find them!!
Modified from Harvard Business Review Oct 2007
Oil Co 2007
… Is it a sudden
requirement?
No – HR said we’d have a
problem 5 years ago
… What about retraining your
process engineers?
… Who?
Well … who do you know in the
market?
Duuurgh?
Strategic Talent Acquisition:Leading edge tactics?
• Know what you are looking for! – A strategy to define, build and retain the required capabilities
• Proactive continuous talent search– Search out the right people – don’t wait for them to come to you– Look continuously for key skills – don’t wait till you have vacancies
• Global Talent intelligence– Know where the best talent is and how to reach it – continuous research– Web based geographic database of universities, competitors, alternative
employers etc– Tracked database of global potential national hires – traced from University
through career and including searches, applications, etc• Internal Talent Market
– Line managers build and protect their own national talent– Internal search helps make sure it ends up in the best place– Is it better for one of your nationals to be poached by a competitor or a
colleague?
Meeting the Global challenge for Talent
Talent Strategy
& Planning
AcquiringTalent
Developing&
DeployingTalent
Summary and key action areas
Talent Management:the threat and the opportunity
Retaining
Talent
Talent Trading Co 2010
(Modified from Harvard Business Review Oct 2007)
We know what strategic capabilities we need and are recruiting and developing nationals to meet those needs year on yearWe know our future resource flows and plan accordinglyNationals develop themselves using the best methods to build capabilities that are important to them, the organisation and the countryIdentify critical talent that must be retainedWe use monthly surveys to assess ‘propensity to leave’Intervene at early stage of the leaving processCreate Talent Intelligence web tool to allow external successionContinuous research for potential external national talentWe actively search for national talent internally and externally