executive newswire 7 belgrade

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June 2014 Stanton Chase Belgrade Executive Newswire 7 48th GLOBAL MEETING - STANTON CHASE INTERNATIONAL Pg. 2 TELENOR - A BANK OF FUTURE Mirjana Garapić Zakanyi, an Executive Board Member and the Finance and Risk Director Pg. 4 LITTLE SECRETS OF BIG BUSINESS Pg. 6 RETENTION OF LEADERS IN CHINA Pg. 9 LEADERSHIP POTENTIAL ASSESSMENT Pg. 11 CORPORATE VALUES Pg. 13 In this issue: EDITOR’S LETTER Miloš Tucaković Managing Director Stanton Chase Belgrade [email protected] Dear readers, The end of the first half of the year is coming closer and it gives us a chance for overview and revision of plans for the rest of the year. We sincerely hope that the business situation is better than in previous years and better than the rumours on the market suggest. Anyway, regrouping and persistence is what we are all left with and that’s why we shouldn’t surrender, but look forward. In our new issue we bring you, among other things, the overview of our latest research about corporate culture and company competencies. These indicators may be enough inspirational for you and give you new, fresh ideas. Several hundreds of Managers from the country and the region participated in the survey and the sample is representative enough, so that it can be considered as general opinion. We also wanted to inform you additionally about the situation on foreign markets and current events. Thank you for the positive comments and active support for our work. We are still open for all suggestions and proposals that help us improve our Newswire. Enjoy the reading!

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Page 1: Executive Newswire 7 Belgrade

June 2014 Stanton Chase Belgrade

Executive Newswire 7

48th GLOBAL MEETING -

STANTON CHASE

INTERNATIONAL

Pg. 2

TELENOR - A BANK OF

FUTURE

Mirjana Garapić Zakanyi, an

Executive Board Member and

the Finance and Risk Director

Pg. 4

LITTLE SECRETS OF BIG

BUSINESS

Pg. 6

RETENTION OF LEADERS IN

CHINA

Pg. 9

LEADERSHIP POTENTIAL

ASSESSMENT

Pg. 11

CORPORATE VALUES

Pg. 13

In this issue:

EDITOR’S LETTER

Miloš Tucaković

Managing Director

Stanton Chase Belgrade

[email protected]

Dear readers,

The end of the first half of the year is coming closer and

it gives us a chance for overview and revision of plans

for the rest of the year. We sincerely hope that the

business situation is better than in previous years and

better than the rumours on the market suggest. Anyway,

regrouping and persistence is what we are all left with

and that’s why we shouldn’t surrender, but look

forward.

In our new issue we bring you, among other things, the

overview of our latest research about corporate culture

and company competencies. These indicators may be

enough inspirational for you and give you new, fresh

ideas. Several hundreds of Managers from the country

and the region participated in the survey and the sample

is representative enough, so that it can be considered

as general opinion.

We also wanted to inform you additionally about the

situation on foreign markets and current events. Thank

you for the positive comments and active support for

our work. We are still open for all suggestions and

proposals that help us improve our Newswire.

Enjoy the reading!

Page 2: Executive Newswire 7 Belgrade

Executive Newswire

The Global meeting of STANTON CHASE INTERNATIONAL offices was held in the period

between 8th and 13th April. Lima was our phenomenal host and, as usual, along with common

business discussions, it was a great chance to exchange experiences from markets all over the

world, to meet the representatives of the Companies that especially stand out with their activities,

and also to make some important strategic decisions.

We also used the Conference to grant Stanton Chase International award for Diversity for the first

time. On the initiative of our colleague from Brussels Office, Karin Beker, we will grant this award in

every country Stanton Chase International Conference is held in, to a company that is recognized on

the market as diverse. The first laureate goes to LINDLEY Corporation and Mr. Johnny Lindley

Suárez as the Owner and General Manager. This Company was founded in 1910 and is especially

recognized by Inka Cola on the South American market. Lindley is the official partner of Coca Cola

Company since 1998. They have more than 3,500 employees and 35% of them are younger than

30. 9% of employees are women and this percentage is not negligible, given the complexity of their

work. Their social engagement is also well known outside Peru.

As far as the latest news in talents go, according to the Oxford Economics research in the next 5 to

10 years we can expect the following changes by markets:

48th GLOBAL MEETING - STANTON CHASE INTERNATIONAL

Miloš Tucaković, Managing Director, Stanton Chase International

Pg.2

Region Western Europe

North America

Devel-oped Asia

Eastern Europe

MENA Latin America

Emerging Asia Industry

Total change (%)

3.5% 6.1% 10.0% 10.0% 12.7% 13.0% 22.2%

Industrial

-0.5% -2.4% 11.4% 2.4% 28.7% 17.1% 37.7%

Emerging

26.1% 38.3% 8.4% 19.8% 6.3% 10.2% 13.3%

Heavy manufacturing

24.6% 1.7% 1.7% 33.2% 10.3% 17.8% 60.3%

Business services

-4.4% 0.3% 51.4% 6.8% 30.1% -0.6% 40.0%

Financial services

13.2% -8.1% 4.9% -9.9% 31.6% 48.6% 20.9%

Energy

-11.3% 22.7% 8.0% 8.7% 12.2% -11.9% 33.0%

Travel and transport

-9.3% -1.4% 36.5% 5.0% 14.1% 32.9% 32.6%

Life sciences

-4.1% 4.2% 8.2% 19.7% 8.6% 20.4% 16.6%

Page 3: Executive Newswire 7 Belgrade

Therefore, most effort in developing young

managers should be invested in heavy

manufacturing according to this research. It is

followed by emerging industries and life

sciences. As you can see, very versatile talents

will be needed on different markets, but where

should we direct our young managers is

certainly something we should think about. Also, these information are an important input for

defining the direction for young people and their formal education.

As far as Executive Search industry goes, 2013 has been a year of growth in comparison with the

last, there was 8.5% increase in turnover and it’s estimated that total income of this industry was

$10.5 million. What is interesting is that the number of projects has been reduced and in the same

time the average cost of an assignment increased by 6.2%. North America has the biggest turnover

in percentage with 44.8%, followed by Europe, Middle East and Africa with 31.5% participation. Asia

and Pacific participate with 17% and South America with 6.7%. This trend says that recovery of

world economy is more and more present and we hope that it will continue in this year too, and that

Serbia will follow it as well.

The latest news from Marketing is that from now on you can follow all Stanton Chase International

news from your phones through mobile applications for iOS, Android and Blackberry.

More information about Stanton Chase International are available on new page on Wikipedia.

Pg.3

Stanton Chase Belgrade

Page 4: Executive Newswire 7 Belgrade

Executive Newswire

Telenor is in the process of founding the first bank which will

offer entirely new mobile banking services in Serbia. We are talking

about this with Ms. Mirjana Garapić Zakanyi, an Executive Board

Member and the Finance and Risk Director in Telenor banka.

How would you briefly present Telenor as a company?

Telenor Serbia (www.telenor.rs) is a part of Telenor Group, one of

the world largest mobile operators, with 166 million subscribers in 13

markets. Telenor is the largest single investor in Serbia with initial

investment of 1.53 billion euro. With 3.1 million subscribers, Telenor

Serbia helps people to use all the advantages of modern

communications. The company has 119 shops in 84 cities and around 1000 employees, whereas

the Smart Network covers more than 80 percent of the population.

What is the activity plan in the coming period? When will you officially start to work with

clients?

Telenor banka will offer its services to the clients in the second part of the year. Until then we are

working on upgrading information systems which are the pillars of this type of banking. The bank is

developing the most modern technologies for securing banking services to its clients. Telenor is a

brand which offers quality and reliability. There is no space for imperfections regarding user

experience, so that in line with that a lot of energy and time is being invested in the testing phase in

order to offer a first-rate product to the market.

Which services will you offer first? Would it be necessary for the clients to possess a smart

phone?

We wish to offer an entirely new concept of banking and bring new and attractive banking services to

people in Serbia. Clients should meet all their banking needs through our application on mobile

phone or personal computer, or by contacting our Call Centre. By using the smart phone clients will

be able to feel the true advantages of mobile banking, but this is not a prerequisite for using our

bank. Bank applications could, of course, also be accessed via personal computer, as well as a

phone with a web browser.

TELENOR - A BANK OF FUTURE

Mirjana Garapić Zakanyi, an Executive Board Member and the Finance and Risk Director

Pg.4

Page 5: Executive Newswire 7 Belgrade

Are you going to have branches at all? Which channels will clients use to communicate with the

bank?

Our preferred communication channel with clients will be applications on mobile phone, personal

computer, or contacts to call center. Processes are adjusted in such a way that clients do not need to

visit branches when they want to obtain information, perform a transaction or modify something in their

account.

What is going to be the biggest competitive advantage of Telenor banka compared to classic

banks?

The biggest competitive advantage of Telenor banka will be user experience. Our services will be

innovative, of European standard and quality, user friendly and accessible at any moment and at any

place. Telenor entered banking in order to offer a new approach, a new way of operations by placing

users in the center and by designing services and processes in the manner that suits users best.

What do you think will be the greatest challenges that you will face (lack of trust, poor IT literacy,

client inertia to change their bank, etc.)?

We will work on educating citizens of Serbia, so that they could see all the advantages of mobile

banking and start running their finances on-line. That is the greatest challenge. 72% of people in Serbia

use Facebook, and only 9% run their finances online. Potential is huge.

Who is going to be the biggest competition to Telenor bank and in which way?

There are several different banking solutions in the Serbian market. One of our motives is exactly market

stimulation and development of sound competition, because we believe that launching innovations is one

of the key factors for the development of a society.

What are your plans for the next 5-6 years?

Our ambition is to become the first choice for users of mobile phones and online banking services.

Interviewed by Jasmina Milošević,

Principal Consultant, Stanton Chase Belgrade

Pg.5

Stanton Chase Belgrade

Page 6: Executive Newswire 7 Belgrade

Executive Newswire

Given the fact that a modern businessman spends

most of his time communicating with his environment, it is

not hard to guess that one of the most important factors of

success is his way of communication. Depending on whom

you are communicating with, knowledge of the customs,

history and culture of our interlocutor is always of great

significance in order to make communication as pleasant

and productive as it can be.

Business style that we build by certain dress code, presentation and placement of the information is

our business card and it is equally important to build this business style locally and internationally. If

you think that there are universal rules of conduct in business culture and that everyone respects

them, don’t be surprised if you come across different manners of your foreign co-workers.

That is why it’s useful to remind ourselves of some general rules of conduct that might help you in

communication with foreign business partners. Negotiations with elevated tone of your host, firm

handshake and interest in your private life don’t always indicate rudeness and lack of good business

manners. In Japan, the usual way of greeting is a deep bow, not a handshake, while in America and

Europe people shake hands when introducing. Americans will often call people by their first name in

communication, whether they got the permission to or not, but you mustn’t call your business

partners from Japan by their first name - that privilege is given only to their family members and

close friends. Japanese businessmen pay strict attention to hierarchy in their companies and while

exchanging business cards it is necessary to use both hands, it is also recommended to avoid pat

on the shoulder and similar, because Japanese have the aversion towards physical contact.

Although punctuality is much appreciated in business world there are exceptions - for Arabs to be

late for the meeting is not considered rude, especially if the guest is richer and more important than

the host and it is rude to make a remark on that subject. Also, keep in mind that business

conversation with Arabs is always preceded by small talk, where you should avoid questions about

personal life (family) and be prepared that negotiations last longer than ones with partners from the

West, and in that case it is important not to show impatience. If you are a host of the meeting, keep

in mind that Arab guests are not offered alcohol, because it can be seen as an insult. When it comes

to gifts, Japanese give them a lot of significance and they can even be considered obligatory, but

you must pay strict attention on the number and wrapping.

LITTLE SECRETS OF BIG BUSINESS

Maja Manojlović, Consultant, Stanton Chase International

Pg.6

Page 7: Executive Newswire 7 Belgrade

Gifts must be wrapped in paper of pastel colours, and if you are sending New Year presents and

cards never use red colour, because it is a colour used for notifications of funerals. Gifts that are

given in couples are considered lucky, while you should never give something that has four parts,

because four is also a word that means death. Gifts are not very important for Arabs, while

Americans are oversensitive regarding gifts so it is best to avoid them.

When meeting and talking to Europeans, it is

noticeable that differences in culture as well

as in business customs are not that

conspicuous as in nations mentioned above.

Germans expect exceptionally formal

behavior when it comes to business. First

name basis comes in question only if initiated

and women are addressed with Frau

regardless if they are married or not. A

business meeting out of the offices are not

practiced during negotiations, but only after

business part has been completed. The

Dutch are mainly accustomed to use several languages in business and their approach to business

is a bit more relaxed than German. When in contact with Scandinavians, formal behavior and

punctuality is of great importance. It is recommendable to avoid subjects such as salary, politics and

social status and if you want to make a joke, be careful about the subject. Italians and Spaniards

insist less on formality and punctuality in business. Family life is very important for them and it is

polite to ask about their family before opening business subjects. Sometimes you can enter disputes

while negotiating which is normal given their temperament. Turks will do business only with people

they trust - if you don’t make the impression of a confident person your business plan could fail

completely. By no means insist on deadlines and dates, it can ruin your cooperation - be patient. If

you see your co-workers from Turkey moving their head left - right know that it’s not a sign of

negation but of not understanding. It is inappropriate to wear short skirts and vibrant colors, and laid

back style also doesn’t leave a good impression. You should come to meetings at the agreed time

and keep in mind that shaking hands speaks a lot about you - the firmer the grip, the firmer is your

stand and morals in the eyes of your Turkish co-worker, while for your co-workers from Poland it is

not a good manner. Poles are a nation that appreciates punctuality, neatness and they give a great

importance to presentation, they will follow your every move and gesticulation. They respect

hierarchal structure in companies and they will always address you formally, so don’t think you didn’t

succeed to get through to them if, even after a few meetings, you didn’t switch to first name basis.

Respect their manners and respond the same way.

Pg.7

Stanton Chase Belgrade

Page 8: Executive Newswire 7 Belgrade

Executive Newswire

You will make friends most easily with your co-workers from Greece, they are spontaneous and

when you succeed to gain them as business partners you gain a friend as well. Greeks are loud and

noisy in debates, but that is not a sign of their rudeness, but passion they express in work. They will

always introduce a lower ranked co-worker with the superiors. If you are not sure how are they

ranked, it is best to address them as kyrie (mister) or kyiria (madam) with their last name. Don’t be

confused if while talking to them you hear ne, because it is a Greek word for yes. It is not bad if your

family emerges as the subject in a meeting, for co-workers from Greece and Turkey this kind of

information can be significant given the fact that patriarchal relations are very important to them.

Greeks are above all patriarchal so it should be your guideline in business planning. Many countries

encourage split working hours and they use the pause of almost two hours for lunch and rest and in

that period you shouldn’t schedule appointments. You should also keep holidays and days off in

mind before you embark on a journey.

Knowledge of economical, political and cultural history of the country of our business associates is

the reflection of our own personal culture. In the era of modern technologies, with little effort we can

learn a lot of useful facts that will help us build a good image. Besides that, we mustn’t forget the

significance of everyday communication with people from our business environment. Namely, there

is a very unpopular trend now in Serbia of not answering missed calls and e-mails. Is it work

overload or lack of time, unintentional oversight or simply negligence remains for us to guess...

Pg.8

Page 9: Executive Newswire 7 Belgrade

Multinational corporations (MNCs) face a multitude of

challenges in their effort to achieve and maintain a

leadership position in overseas markets. In the case of

China, an evolving, “next stage” market where overall

economic growth remains strong (about 7.5%) but is

leveling off, adopting a successful leadership retention

strategy has become the top priority.

The labour market in China today is fuelled by a number of factors, including: increased demand for

local managers, limited supply of qualified talent, rising compensation levels, a hyper-competitive

recruiting environment, and high turnover rates among top managers. Therefore, to remain

competitive in a dynamic arena such as Chinese market, MNCs must radically rethink their human

resources strategies and respond to these conditions with an innovative, multifaceted strategy for

acquiring and retaining the best local talent for senior-level management positions.

Old-school HR tactics, such as offering attractive compensation packages, remain important; but the

savvy MNCs are realizing that an emphasis on “softer,” less tangible aspects of employment, such

as corporate culture and career development, also are critical for capturing and keeping their highly

valuable, talented employees.

Shift towards localization

Over the past three decades, Stanton Chase International has seen staffing strategies among MNCs

in China shift away from the traditional, ethnocentric mindset, where parent-country nationals filled

all key management positions, toward an increasing emphasis on localization. A primary cause for

this shift may be the increase in the pool of available managers, as the number of Chinese college

graduates has risen over the past two decades and fewer than 10% of these grads possess the

managerial skill set required by most MNCs. Therefore, with a limited

supply of experienced managerial leaders, demand among MNCs has

reached an all-time high. Another factor contributing to the shift toward

localization may be the growing disparity between the cost of annual

salaries for foreign managers (between $350,000 - $500,000) and that

for local Chinese managers ($80,000 top).

Pg.9

Stanton Chase Belgrade

RETENTION OF LEADERS IN CHINA

Stanton Chase Insights

Page 10: Executive Newswire 7 Belgrade

Executive Newswire

Emerging Trends

Based on discussions with SCI partners and clients doing business in Asia, Stanton Chase has

identified 4 major trends that, considered together as a whole, will provide companies with the best

practices for formulating an effective leadership retention strategy:

Compensation & Training – A successful management recruitment and retention plan should

consist of several elements, in addition to financial incentives – culture, respect, and rewards (cash

and other benefits), in that order.

Culture & Style – company culture and management style — how it communicates to its employees

about future business plans or if it makes employees feel their work is meaningful; most-valued

aspects of corporate culture for managers in China included a clear vision of where the company is

going, the employee make-up of the company, its unique set of values that are lived up to by all, a

company-wide belief in fairness and promotion on merit and admired leadership.

Location & Brand – Chinese candidates tend to have a clear preference for well-known companies

and brands and in their perception, working for a famous company increases their market value and

career opportunities.

Values & Integrity – MNCs must also consider personal ethics when assessing candidates for

positions of senior leadership in China - almost as much as the leadership skills themselves.

A Western company’s chances for success when entering a foreign market is dependent on number

factors, including its HR management practices. But to remain competitive and a leader in an

evolving and maturing market like China, MNCs must incorporate a mix of solutions - from

competitive salaries and benefits, to skills and career development plans, to an understanding of

traditional Chinese values, to a progressive and forward thinking corporate culture - to ensure that

the most talented employees want to stay and to work productively.

Authors:

Ivo Hahn - Managing Director, China

Steve Watson - Former International Chairman

Mickey Matthews - Global Practice Leader, Industrial

Pg.10

Page 11: Executive Newswire 7 Belgrade

Business success of companies is determined by several key factors (research and

market analysis, corporate culture and company strategy, employees). Some of those factors have

always more or less, directly or indirectly affected the development of the company.

In recent years, corporate values and employee engagement are more and more in the focus and, in

line with this, special attention is directed towards employee development. The key stake holders of

companies therefore are increasingly turning to assessing the development potential of managers.

By assessment and targeted development of their professional and managerial / leadership skills,

companies influence safer business and realization of business strategies.

However, special attention is given to leadership potential assessment of middle and top managers

of the company. Priorities are defined in such a way that assessment methodology must be very

carefully chosen - “quick scan” of leadership potential should be avoided because it can lead to

subsequent failures in business and undesired consequences when it comes to cross functional

cooperation and leading/ engaging the rest of the employees.

These types of projects are increasingly being referred to as Talent Management projects

(Development Centers), i.e. Leadership Potential Assessment for further development.

Keeping this goal in mind, a large number of instruments for assessment of skills and abilities are

used.

However, questions that emerge here are – will the assessment be adequate and precise / thorough

enough and what should be done with the results?

Advance Response International uses Wilson Learning’s integrated leadership model (GROWTH

model) for the purpose of Talent Management and diagnostics of leadership development potential.

Four Management roles

Pg.11

Stanton Chase Belgrade

LEADERSHIP POTENTIAL ASSESSMENT

Dušan Jovanović, Consultant, Advance Response International

Page 12: Executive Newswire 7 Belgrade

Executive Newswire

Leadership Potential Assessment through GROWTH Model

GROWTH model defines to what extent the competencies important for each of the four

Management roles should be developed on every level of Management in the organization (first

line / middle / executive level).

Approach

During assessment, we use GROWTH model as a standard - it allows us to assess how well the

competencies for each of the four roles are currently developed and to diagnose the potential for

their further development.

During preparation of the project, we analyze the competencies of our Clients and we match them

with the competencies of the GROWTH model for each of the four Management roles.

Assessment instruments

In the leadership assessment projects, Advance Response International uses a large number of

different assessment instruments, some of them used online – business simulations (group,

one-to-one and individual assignments), personality tests, ability tests, 360° assessment.

Assessment results

Through the report after the assessment we give a summary of:

1. Current management abilities

Developed skills and abilities important for each of four Management roles

Development areas on the current management position

2. Potential for further development and career advancement

Identifying the potential for the development to other positions/ other levels of Management

Benefits for the Clients – What after the assessment:

1. Planning of best suited development programs (trainings, workshops, coaching, learning through

business assignments, distance development projects)

2. Career planning/ position succession

Speaking about Leadership Assessment, it is very important to underline that the whole process is

complex and that all observed behaviors are systematically and thoroughly analyzed by a group of

licensed assessors.

Based on our ten-year experience (with over 700 assessed managers – first line, middle and top

managers), our whole team can confirm with certainty that this Leadership Potential Assessment

methodology significantly contributes to prosperous business of the company.

Pg.12

Page 13: Executive Newswire 7 Belgrade

This year we have decided to conduct a Survey about the

development of corporate culture and competencies in domestic

and multinational companies. Why this subject? In today’s

constant struggle for market, both on global and local level, top

products, modern technology and safe sources of finance are a

good baseline. It certainly isn’t enough, because without people

these factors do not guarantee success. The idea behind this

Survey is that everyone should closely examine the statistics

and that all key people in the company should ask themselves if

they and their teams did everything possible so that corporate

culture and competencies are implemented. What can be done

differently so that their implementation becomes more practical?

How can this implementation become understandable to

everyone in the organization? And for those who do not yet

have defined corporate culture and competencies we would like

to give incentive to take this first step.

We hope that the results that follow will get you the insight in significance of corporate culture and

competencies.

Most of the participants in the Survey have more than 15 years of professional experience, 55% of

them and they occupy different positions within the companies. The participants mainly come from

Consumer Products (26%) sector and Industrial (17%), Financial (16%) and Professional Services

(16%) sectors follow with similar number of votes.

On the question what would they mark as key elements of the corporate culture of their Company,

51% of the participants have singled out the “open door” policy, 47% developed channels of internal

communication and 42% singled out significant investments in the development of employees (MBA

studies, trainings, professional development, etc.).

Pg.13

Stanton Chase Belgrade

CORPORATE VALUES

Jovana Lučanin, Researcher, Stanton Chase International

Page 14: Executive Newswire 7 Belgrade

Executive Newswire

Most of the participants would change in the corporate culture

the level of investing in the development of employees

(61.3%) and channels of internal communication (44.1%).

Some of the participant’s comments are: “There is nothing in

our corporate culture which is so bad that I would like to

change it, changes would be more focused on certain

individuals in the company.”, “Increase investing in

employees, refresh communication channels, renew team

spirit and celebrate success more.”, “More independence for employees. They have the freedom to

make decisions, but I feel that they don’t exercise that right often enough.”, “More honest

commitment and implementation of defined company values”.

In the companies where our participants work, the Management has a key role in the promotion of

the corporate culture, 76.2% of the participants agree. Also, 27.7% of the participants think that the

key role in the promotion of the corporate culture has the everyday promotion by the Management

on all levels (Walk the talk).

An encouraging fact is that only a small number of the companies don’t apply defined corporate

culture (6.9%), while over 50% of the companies applies it partially. The participants explain their

answers with: “Not everyone experience corporate culture in the same way and its implementation

unfortunately depends on the current mood of individuals...”, “Given that our company is small, every

individual is important as a representative of corporate culture.”, “Managers often don’t act

accordingly to the values, i.e. they don’t lead by example.”.

Participants have singled out insufficient engagement of the Management (44.3%), the gap between

personal and company values (31.9%), lack of interest among employees (26.8%) and the fact that

certain elements of the culture are not applicable on the local level (22.7%) as the main reasons of

insufficient implementation of corporate culture in the companies, though 78.6% of the participants

think that it is possible to modify the corporate culture in line with the demands of the local market in

their companies.

According to most of the participants (64.4%) the corporate culture in domestic companies should be

defined so all employees are engaged in that process. They can use multinational companies as a

model, but the elements of national culture should be considered.

Pg.14

Page 15: Executive Newswire 7 Belgrade

CBI (competency based interview) is recognized by most of the participants (60%) as the best tool to

assess if the candidate in the selection process would fit into the corporate culture. Assessment

centre (44%) and personality tests (43%) are also the tools to use during assessment. Some of the

comments the participants adduce are: “Assessment based on integration of results obtained with

different tools.”, “If they are of quality, standard HR procedures (interview, knowledge tests,

capability tests) are enough.”, “It’s also important that the corporate culture is clear and recognized

on the market, so the candidates are familiar with what they can expect in advance.”, “Open

conversation on general subjects.”.

Even though most of the participants (56.4%) agree that it is best to use both internal and external

approach in the selection process, while assessing how the candidate will fit into the corporate

culture, we can see that the opinions are divided: “If the HR sector exists in the company... external

agencies can’t know your corporate culture better than you.”, “Company HR knows the culture and

people best and can recognize people who would best fit in.”, “For higher level positions its

necessary to use the services of Executive Search companies. They can perceive every candidate

more objectively, and they can also reach candidates that for us unavailable.”, “Internal, because the

people from the company know cultural pattern best. External, because they are objective and can

recognize cultural patterns that exist, but are considered undesirable.”, “It is necessary that

candidates talk to managers and even employees with whom they are going to work with.”.

When it comes to competencies, in most companies (46.5%) professional (by positions)

competencies are defined. In 35.6% of the companies general (for all employees) competencies are

defined, in 22.8% leadership competencies and in 26.7% of the companies all three categories of

competencies are defined. The commendable fact is that only 4.9% of the companies don’t have

defined competencies.

Competencies are mostly applied during employment (71%) and annual performance appraisal

(62%). The areas where competencies are also applied are during promotion to other / higher

position (51%), talent management (48%), training (43%), making a decision on a termination of

employment (27%) and organization of teambuilding (11%).

As previously mentioned, company competencies are mostly used during interview while employing

new staff. In that area, competencies are mostly used during interview (91.9%), but also in

simulation exercises (25.3%) and tests of abilities and knowledge (38.4%).

Pg.15

Stanton Chase Belgrade

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Executive Newswire

In the companies where company competences are not defined the criteria used for

employment are recommendations (46.6%) and professional experience (46.6%). The

criteria used are also education (32.9%) and image on the market (15.9%).

As the most significant challenges in implementation of the competencies in everyday work,

most participants singled out their poor understanding (56.5%) and insufficient awareness of

the employees (55.4%). The participants also single out Lack of interest among

Management (29.3%) and Insufficient insisting of HQ on their implementation (17.4%).

We wish to thank everyone who took part in this Survey!

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Stanton Chase International

Belgrade Office

Blvd. Oslobodjenja 75

11000 Belgrade, Serbia

Phone: +381 11 3973 676