Deal or No DealThe talent challenge in a post Brexit world

Foreword

In January 2017, we published a reportin collaboration with UHR on theTalent Challenge in a post-Brexit world.With the countdown to March 2019looming, we revisit this report and reflecton the challenges, universities face inlight of a deal or no deal Brexit.

In 2017 we asked what does Brexitmean for universities? We knew thatchange would follow for our societyand our economy including the freedomof movement into and out of the UK.What we didn’t know then was thatmore than 2,300 EU academics wouldresign from UK universities as a resultof Brexit (Independent, January 2018),with the number likely to have risenfurther in recent months. We speculatedthat applications to UK institutionsfrom EU students would be affectedby the referendum result, but a dipof 4.4% in 2017 was the stark reality.

The prospect of a no deal Brexit is nowa distinct possibility. Despite reassurancesfrom the government, we have toprepare for the worst. Without a deal,EU staff and students could be left inthe lurch, with visa applicationsskyrocketing. EU-funded researchand innovation schemes would cease,leaving ground breaking projectsin limbo. With many UK universitiespreparing to draft their strategicplans for 2020 and beyond, based onworld-class research and globalrecruitment strategies, Brexit putsa real spanner in the works. How willit affect international perception of theUK as a place to live, work and study?Are we still open for business?How ready will universities be to respondto changing markets and trends?Will they have the right leadershipin place to steer the course?

The insight gathered in this report,seems even more relevant nowas March 2019 draws closer. We hopethat as an influential voice withinyour own university you will recogniseand relate to what we’ve heard fromyour peers and that you find the questionsthis paper raises thought provoking.

It’s clear that the challenge of leadingand managing universities at a time ofunprecedented change in the UK willdemand more from our leaders than everbefore – almost certainly, it will demanda radical shift in behaviour and outlook,in addition to more conventionalassumptions about knowledge andexperience.

The extent of change needed remains tobe seen, but we know it will be significant.Universities need to prepare now - wehave already started to see the effects ofuncertainty on sector confidence.

At GatenbySanderson, our core businessis leadership – finding outstandingleaders and developing them for the future.Much of our business involves searchingfor senior academics and corporate leaders,in addition to Vice Chancellors andmembers of councils and wider boards.In order to achieve this, we rely on aseries of fairly well founded and largelyproven assumptions about what mostleaders today are likely to achieve intheir working lives, the skills they haveprobably developed and the way inwhich they work with others.

However, no two universities are thesame and no two leaders are identical.In the course of our work, especially inrecent years, we have observed a numberof trends common to all leadership rolesin the Higher Education sector that have adirect bearing on the priorities for seniorteams now but also moving into the future.

Introduction

There is a sense of

We need to be ableto see opportunitiesand run with them.

denial.

Many university leaders are alreadystarting to address increasingly complexbusiness and operational leadershipissues. And it is widely acknowledgedthat leadership jobs in the Sector arechanging. Our universities are alreadyreliant on a compact pool of provenleaders, with recognised capability andprofile, but recent evidence suggeststhat it is hard for rising talent to gainaccess to this pool. Why is this and whatshould be done about it?

The shadow of Brexit will disruptthe conventional and recognised modelof “good leadership” because it willfundamentally change the rules of thegame. Universities will need tounderstand where new pressures willarise and what will be required toturn Brexit into an unprecedentedopportunity for the Higher Educationsector.

The link between high-level strategicplanning and the identification of leadershiprequirements and capability will need to be stronger in a post-Brexit world.

At a time of declining funding andincreasing competition, it’s likely that our universities will need to become more agile and innovative to survive. 80% of respondents indicated that theiruniversity did not directly link futurestrategy with the capability required toimplement medium and long-term plans. HR should play a more influential role at the most senior levels of universityleadership as universities consider theleadership calibre required to deliverincreasingly demanding plans. This will include transformational change and new thinking.

Universities have accepted the significantimpact that Brexit – deal or no deal willhave on UK institutions, however, it is clearthat not enough is yet being done toanticipate, understand and prepare for thechallenges ahead. For instance, despiteexpectation of a major shift in futureleadership requirements, the majority ofrespondents told us that successionplanning was ineffective, that middlemanagers are struggling to progress tomore senior roles and that diversity –within universities and at Council – waslimited.

Longer term, all of this will place apremium on universities’ ability to attractthe specialist talent they need for coremanagerial roles from outside the UKHigher Education sector. In the meantime,there is work to do in developing existingcapability and in tightening performancemanagement to ensure universitiescan grow their own leaders.

Future proofing our universitieshas to start now

What you told us:three key messages

1

Our HR strategy is anexemplar in brevity! We need to develop theworkforce but thereis a real gap in workforceplanning.

The post Brexit world will valuecourageous leaders.

A striking message emerging from ourconversations is that universitiesconsider themselves to employ somehighly talented leaders in seniormanagement roles – this is quite clearlythe case in a wide range of organisations.However, there is a serious considerationas to whether or not that cohort willstill offer the skills and behavioursneeded to take universities through thepost-Brexit era. Attributes you highlightedas increasingly attractive include:being able to sell the vision;entrepreneurial and commercial flair(in particular, willingness to takecalculated risks), and a more collaborativeapproach. Some universities will beculturally better equipped to addressthese changes than others, depending ontheir current values, status and heritage.However, all universities traditionallydriven by academic excellence will needto review and most likely strengthenthe managerial capabilities of theiracademic staff. All of this will take a boldand courageous approach requiringdeparture with past practices.

Behaviours will become moreimportant than skills and experience.

Universities will require leaders whodemonstrate a distinctive set ofbehaviours associated with the task ofrunning complex organisations inunfamiliar conditions. As above, this mayinclude attributes such as increasedwillingness to challenge the status quo,and sharper commercial acumen.But such shifts often require culturaltransformation which may takemany years to achieve. Respondentswere sceptical about the Sector’soverall appetite for challenging traditionalthinking: whether or not this is thecase will, of course, be tested by Brexit.

2 3

We need individualswho are inspirationaland innovative.

1. VisionEffective leaders will inspire whole organisations by articulating vision in a compelling way

2. Analytical CapacityAbility to understand and interpretan increasingly complex landscapeand make clear short, medium and long-term decisions

3. InclusionStrong leaders will actively set out to listen to, and engage, others in the formulation of strategic and organisational plans

4. CourageIn a post-Brexit era, leaders will be forced to break with tradition inthe context of unprecedentedmarket conditions

What will it take it to be aneffective leader in a new era?

5. Commercial ConfidenceWith increased pressure on resourcesand a greater regulatory burden,leaders will need to consider thecommercial sustainability of theiruniversities more than ever before

6. Influence & Credibility ExternallyThe most effective leaders in Higher Education will be those whocarry broader reach and influencebeyond their own university

7. ResilienceEffective leaders will need personal tenacity, agility and pace to navigate the unknown

According to HR Directors, retentionrates are considered to be very high foruniversities; higher than other partsof the public sector.

This has the potential to block theintroduction of new skills and behavioursinto the organisation – both throughlack of opportunity and prevailing culture –and can slow down the pace of change.Given that almost 100% of respondentsclaimed such high retention rates, howquickly can we adapt to the post-Brexitworld?

With limited career advancementopportunities, how are leaders beingstretched and developed in their currentrole to ensure they can effectivelyrespond to the post –Brexit world?As an organisation, how confident areyou that you have an evidence-basedunderstanding of your leaders’ futurepotential and aspirations? Such insightcan open up alternative, non-traditionalcareer options for individuals and forthe organisation.

Our conversations with you indicatedsome substantial considerations for HRDirectors. While not all of these directlycorrespond with Brexit, they all have abearing on universities’ ability to deliverchange as a Sector.

Addressing the potential impacts of Brexit:taking action now

With limited careeradvancement opportunities,how are leaders beingstretched and developedin their current role toensure they can effectivelyrespond to the post– Brexit world?

Life post-Brexit will demand skillsand behaviours not traditionallyhome-grown within UK universities.

This means two things: first, universitieswill need to become more adept atsuccession planning, identifying anddeveloping the attributes they need forthe future; second, they need to becomemore attractive employers to talentfrom other sectors who may historicallyhave been deterred by a traditionalperception of the Sector.

This potentially has a massive implicationfor universities, not just from an HRperspective but also from a strategicpositioning and brand management pointof view. On a more practical note,simple changes such as ensuring effectiveinduction, understanding of the HEculture and support for those moving intoHigher Education for the first time willensure greater impact and retention ofkey senior staff. What is your universitydoing now to prepare for this shift?How are you going to attract candidatesto develop diversity and the skillset?

Nearly three quarters of those wetalked to told us about the immediateneed to strengthen the managementand leadership skills within theacademic community.

The more recent, intense focus onresearch output has led universitiesrecruiting key academics to prioritisestrong academic credentials overleadership capability and potential.We observe a strong preference forattracting and securing academictalent through academic routes andtraditional recruitment methods,with the effect that managementand leadership behaviours areoften disregarded and ultimatelyunderdeveloped. How will universitiesreview their academic recruitmentprocesses to attract and secure theexpertise and credibility they need,whilst also ensuring a more flexibleacademic staff? How will you managethe development of rising academictalent into strong leaders?

Sharing Practice: tips from your peers

The purpose of this exercise has largelybeen to collate and share examplesof practice from different universities.It is clear from our conversationsthat universities’ willingness and potentialto address Brexit now is, to an extent,linked to their brand (and self-perception),prevailing culture, and heritage and ethos.Consequently, everyone is at a differentstage of acceptance of the Brexit situationand their ability to respond to it andresolve any problems ultimately arisingfrom it. Those who have been givingthe issue more consideration were keento offer the following advice to peersconcerning finding the right skills forthe future challenge:

“Build a comprehensive leadershipprogramme. We use coachingand mentoring and have evenstarted designing assessmentcentres for middle managers totry and spot talent early on.”

“Approach recruitment with anopen mind. Post Brexit, universitieswill need to be prepared totake a gamble on less experiencedcandidates, and then supportthem to grow into roles.”

“It’s essential not to recruitin the image of current leadersor teams. In the upcomingnew era for universities, differentpersonalities and skills will beessential to help deliver change.”

“You need to understand what’sbeneath the surface of applicantsand their cultural fit. You needto appoint people to fit yourlonger-term strategy, whilst alsobeing agile, as leaders need tocomplement each other as partof a bigger leadership group.Attracting good quality peopleis hard work, they need to beexcited by a vision; it’s not allabout money and title.”

“Skills you can find; it’s muchmore about behaviours...”

“Be bold and fresh withrecruitment… be prepared to goout and look for the skills youneed in non-traditional places.”

“Maximise your brand andmake the most of social mediato attract the best people.”

“Have the courage to insistthat interpersonal skills arevital. This should be partof the recruitment process.”

Conclusion

In the words of one respondent:Whatever the next few months brings,a deal or no deal Brexit has createdunprecedented uncertainty for universitiesas it has for all other parts of thePublic Sector, and society at large.

In 2017 we concluded that the two-yearnegotiation period offered valuabletime and space for university leadershipto consider their current position,anticipate the change that may be mostrelevant to them, and put in placethe foundations for adaptation. Weno longer have the luxury of time.Universities need to act now in gettingto grips with the prospect of change.Whilst the onus cannot solely be on HRDirectors, this community now has anunprecedented opportunity to influencethe Sector’s response to many of theoperational challenges presented by Brexit.

We should worktogether for thebenefit of the sector.

But how well equipped are today’sHR professionals to persuade, influenceand adapt in order to ensure theirorganisation is positioned to overcomesuch game changing developments?To what extent will this community aloneneed to come together to review theoptions available if we are to keep ouruniversities at the cutting edgeof higher education internationally?

In drafting this short summary report,we have specifically captured theissues you have raised with us. But wehave two questions to ask you in return:do you feel equipped to rise to thechallenge of the post-Brexit world inyour university? What steps are youtaking professionally to ensure youcan challenge the status quo whereneeded, and play your part in protectingthe future success and sustainabilityof your university?

Acknowledgements

This report was devised in collaboration with UHR and we would like tothank them for their support and contribution. We would also like to thankthe following individuals for their invaluable insight, time and expertise:

Robert Allan,Director of Human Resources, Loughborough University

Margaret Ayres,Director of HR, Queen Mary, University of London

Christine Barr,Director of Human Resources, University of Glasgow

Jayne Billam,HR Director, Nottingham Trent University

Adam Bowles,Director of Human Resources, Manchester Metropolitan University

Andy Catterall,HR Director, Liverpool Hope University

Kath Clarke,Director of HR, Goldsmiths University, University of London

Sara Corcoran,Director of Human Resources, University Campus Suffolk

Simon Critchley,HR Adviser, University of Newcastle

Alison Cross,Director of HR, Oxford Brookes University

Clare Curran,Director of Human Resources, Durham University

Julian Duxfield,Director of HR, University of Oxford

Debbie England,Director of Human Resources and Organisational Development, University of the West of England

Kim Frost,University Secretary and Director of HR, University of London

Julie Griggs,Head of Talent Management and Recruitment,Manchester Metropolitan University

Sandra Heidinger,Chair of UHR

Naomi Holloway,Interim Director of HR, Birkbeck, University of London

Peter McCracken,Deputy Director of Human Resources, University of Nottingham

Alex Killick,Director of People, Glasgow Caledonian University

Zoe Lewandowski,Director of Human Resources, University of Edinburgh

Julie Lloyd,HR Director, Liverpool John Moores University

Mary Luckiram,Human Resources Director, City University, London

Jackie Njoroge,Director of Strategy, University of Salford

Naina Patel,Director of HR, University of the Arts London

Helen Scott,UHR Executive Officer, Universities Human Resources

Paula Tunbridge,Acting HR Director, University of York

Andrea Walters,Director of Human Resources, University of Sunderland

Tracy Wray,Director of HR & Communications, University of Sheffield

Gavin Wright,Director of Human Resources, University of Brighton

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