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!

Best Practice: Major conclusion

“Talent Management” not

quotas

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

Thank you!

William [email protected]

+44 7785110910