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TRANSCRIPT
ISSUE 4
A GLOBAL PERSPECTIVE: DIVERSITY AND INCLUSION
A WORD FROM THE CEO
BEST PRACTICE COMPENSATION BENCHMARKING
EXECUTIVE INTERVIEW:HR OBSERVATIONS IN AFRICA AND THE MIDDLE EAST
RETAINED OR CONTINGENT RECRUITMENT SERVICES?
Global HR Trends, Issues & Topics for HR Professionals in the Resources Industry.
www.globe24-7.com
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UPCOMING EVENTS 18
JULY 2019
ISSUE 4 GLOBE 24-7 NEWSLETTER
A Word From The CEO Lachlan Spicer
Welcome to Globe’s fourth
release of our HR Newsletter
specifically for Human Resource
professionals working in the global
mining industry.
With the half way mark of
2019 upon us, it’s easy to see that
the industry is ‘on the up’ on
the back of stronger commodity
prices (notably Iron Ore & Gold),
improved sentiment and large-scale
market consolidation (Newmont/
GoldCorp & Barrick/Randgold).
These factors have started to impact
many of us directly in HR with some
jurisdictions facing tightening labour
markets; pending skills shortages;
increased salary expectations; and
higher employee demands. It feels
like the pendulum has turned and
regions like Latin America, Africa
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and Australia are all under pressure.
It’s great to see positive change
but it tends to have a flow-on effect
that is often either neglected or not
considered for an often-forgotten
area of the industry: mining services
companies.
Small to medium mining
services organisations continually
ride the volatile and turbulent waves
of industry up & downs. When the
market booms, services companies
scramble; when it bottoms out, they
scramble again. Rarely is it ‘plain
sailing’.
I was reminded of this over
the past few months as we did an
assignment for a small but growing
Australian-based organisation who
have won new contracts and are
growing rapidly, but desperately
knew they needed ‘HR’ help and were
unsure where to start.
We sat down and suggested
a full HR audit and review before
developing a suite of custom HR
policies, procedures and processes
specific to their organisation. In
parallel we conducted a company-
wide employee health check to better
understand their cultural landscape
whilst recruiting a full-time local
HR Manager to support them in the
longer term.
This one assignment reminded
me that big or small, all companies
want to do HR the right way, but
often don’t know where to turn for
support. It is great to see the industry
improve and return to positivity but
if you’re not sure how you’re going to
handle the waves that surround you,
feel free to reach out. We’re always
happy to catch-up, provide a listening
ear and put a paddle in to help steer
you in the right direction.
Thank-you for subscribing to
Globe’s Newsletter - we appreciate
your continued commitment to us
and look forward to spending time
with you during the balance of
2019. Please be safe & productive in
everything you do. Enjoy the read!
Sincerely
Lachlan Spicer
Chief Executive Officer
“It’s great to see positive change in the industry but small to medium mining services organisations
continually ride the volatile and turbulent waves of industry up & downs”
5ISSUE 4 GLOBE 24-7 NEWSLETTER
No secret, the mining industry
and other extractive businesses
have been mostly led by male
professionals worldwide. Many
cultures set specific gender
expectations for males and
females, in relation to all aspects
of their lives. Understanding the
political and cultural landscape
of where a company operates is a
good starting point for changes.
But is it enough and how do
we make a positive impact and
progress from there?
Perceptions and Biases
Today still, the mining activity
is associated with tough physical
work, in highly demanding, remote
environments where individuals
are away from their families for
periods of time. In many locations,
this type of work conditions is
seen as inappropriate for women.
Add to this that for decades if not
centuries there have been myths
about female’s presence on a mine
site being related to accidents,
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bad luck, decrease in ore quality
and productivity, especially in
underground operations. Sounds
like something from the past? We
heard it recently during one of our
assignments.
Change is coming
Fortunately, the mining
sector worldwide seems to
be going through a cultural
transformation, following on
the steps of other industries. At
the very least, companies are
adopting or modifying some of
their policies and procedures.
According to an article presented
by the Development Partner
Institute at the DPI Advisory
Council “Inclusion and diversity are becoming a priority for the [mining] sector, in line with global evidence that high-performing organizations incorporate diverse teams and inclusive approaches in both their day-to-day operations and in long-term decision-making”. The moment for change
is now and it starts with everyone,
from top to bottom.
This is supported by an
article published in 2018 by
“Mining [dot] Com”: “Having a diverse workforce is no longer a differentiator. In today’s business environment, it is a minimum requirement when recruiting and retaining top talent. Recent global studies by the Peterson Institute for International Economics and by McKinsey & Company confirm there is a positive relationship between diversity and business performance and that diversity in leadership roles matters most. According to the McKinsey & Company study, companies in the top quartile for gender diversity on executive teams outperform on profitability and value creation”. The conclusion seems clear: as
women’s participation increases,
value creation and profitability
improve. According to the
authors, the mining industry has
made progress to improve gender
diversity. But much more is still
needed. Indeed, amongst the top
500 mining companies, only 7.9%
of board members are female and
the number of women in executive
management pipelines is falling
(PwC’s Mining for Talent 2015
report).
The movement might have
started, change might be coming
but not everywhere and certainly
not at the same rate.
The following chart shows
the percentage of female
representation in Executive
Committees and Boards
worldwide. For the Latin America’s
Region, the level of female
participation is particularly low
(only 8% and 5% respectively).
While Board’s composition is
crucial, it is only the visible part
of the iceberg. For the mining
industry, the challenge is to
increase female participation at all
levels, in all roles, in all locations.
How to do it is the question that
many of our clients ask.
Identifying Obstacles, Sharing
ideas and best practices
In the past 18 months, Globe
24-7 has hosted several Round
Table Events on the topic of
Diversity and Inclusion, allowing
us and our clients to compare
approaches and to learn from
the work performed by many,
including Globe 24-7 that has
worked on this topic in several
places around the world such
as: Canada, Australia, several
countries in Africa, Philippines,
Nicaragua, Colombia and
Peru. Understanding the
different cultural views of the
topic, identifying common as
well as unique obstacles and
organisational barriers that
mining companies face, reviewing
what is done by others, are crucial
steps towards creating solutions.
Another issue identified in
the report as presenting a large
performance gap is tracking the
A Global Perspective:Diversity and Inclusion It all starts with a dream...
Figure 1 (Source: McKinsey and Company)
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levels of workers’ wages against
living wage standards, or legal
minimum wage. While respecting
legal minimum wages is a
must that doesn’t require much
explanation, the concept of living
wages is still in its infancy, its
definition subject to much debate,
which might explain the low
performance noted in this area.
Focus on Latin America: Peru
and Colombia
PERU:
In Peru’s case, there has been
a common perception for the past
10 years that more women are
joining the industry. The reality
is in fact that there has been a
decrease from 6.4% on 2008 to
5.4% female participation rate
in 2018. In the words of Lita
Calenzani, a leader in the Peruvian
mining industry for over 30 years:
“Mining is a strategic industry for Peru, contributing around 10% of GDP and employing
nearly 200,000 people in 2017. Yet, the participation of women in the sector is limited and only reaches 5.4% of the total mining industry workforce according to the Ministry of Energy and Mines. Looking more closely at these figures, 49% of women are dedicated to administrative positions; 30% are in general operations; 17% work as plant personnel and only 4% hold management positions”.
Furthermore, the study
presented at the “The World Economic Forum, in its Global Gender Gap Report for 2017 that gathered data from 144 countries, reflects this worrying situation, stating that the gap between male and female workers will only disappear in 217 years time (so, in 2234). Peru ranks 128th out of 144 countries, so we would be talking of centuries before we see the elimination of the salary gap”.
Why is this happening?
For the participants to our
Round Table Event in Lima
which took place on the 5th of
June 2019 (Barrick, Brexia Gold-
Plata, Goldfields, Minsur, SNC
Lavalin, Vale Explorations, Volcan,
Austrade and Women in Mining
Peru), there are multiple variables
that significantly influence the slow
progress of female inclusion shown
in the statistics. The Peruvian belief
system stood out as an important
one. It was acknowledged that
Peru is generally a conservative
country, where the great majority
of the population has specific
conceptions about men and
women’s roles in society. Most
mining sites in Peru are in remote
areas at the highlands where
communities have limited access
to education and financial wealth.
There is a widespread miss-conception and limiting belief that:
1. Females typically can’t
work at the mine sites because
they are not “strong enough” or
ISSUE 4 GLOBE 24-7 NEWSLETTER
not perceived to be intellectually
capable to develop in non-
traditional roles;
2. The environmental
conditions and work systems
are too demanding and, in many
cases, not viable for mothers;
3. the perception that it is not
profitable to hire women because
of potential absences related to
pregnancy, maternity or even
dysmenorrhea.
W h i l e t h i s s e e m s
unsurmountable, the good news
is that many companies are in the
process of either auditing their
current situation or developing
and implementing change
management approaches. Over
the last couple of years, some of
them have been evaluating their
current context in order to adapt
their organisational culture and
environment to be more gender-
friendly, as well as identifying
alliance opportunities to promote
inclusion and diversity in their
influence zones or implementing
actions such as reviewing policies
and procedures, establishing
processes to guarantee equal
conditions to all, implementing
programs targeted at females in
non-traditional roles. However, it
was recognised that many of these
initiatives are isolated or not part
of an integrated approach and see
as an HR topic only.
Participants also highlighted
the many positive points they have
experienced. We would like to
share some of their observations,
such as the fact that some have
found “female employees are very responsible and committed to their jobs, they are punctual, organized and eager to learn. They show a positive attitude and
take care of their equipment, even more so when compared to some men.”
Other comments were “that for the most part females tend to be thoughtful and respectful of the safety rules”. Actually, “the index of accidents related to women are almost inexistent because they are very careful and aware of the risks they face during their duties. Even if they are experienced on a specific subject, they would take the needed preventions to avoid accidents”.
They also mentioned “females are clean and tidy with their uniforms and workplace. For example, it is easy to know if a man or a woman has been driving a truck because when a female gives the equipment back it’s always neat”.
While some of these
Figure 2: Women in Mining (Colombia)
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observations could be perceived as
reinforcing some ‘clichés’, they are
very important in the context of
Peru and the challenges companies
faced with the local culture and
the perception of women in the
mining industry.
Obviously, the ‘pipeline of
candidates’ problem was also
commented on - Promoting and
attracting female students to
technical careers is an important
piece of the puzzle. Some
companies with a long-term
approach, support activities or
programs at Universities and
Academies or even high schools
that promote diversity and
opportunities within the mining
industry. Now in Peru, over 85% of
students in Mining Engineering,
Metallurgy and Mechanics are
men. On the other hand, female
population is slowly increasing in
Geology, Civil and Environmental
engineering.
COLOMBIA:
Globe hosted the Gender
Diversity and Inclusion Round
Table Event that took place in
Medellin in May 2019 with the
participation of ACM (Colombian
Mining Association), Austrade
and the Australian Embassy,
Colombian Canadian Chamber
of Commerce, Cerrejón (Anglo
American Plc/BHP Group/
Glencore Plc), Minesa (Mubadala
Group), AngloGold Ashanti, Gold
Mining, Miraflores (Metminco),
Epiroc, Gran Colombia Gold,
South32, Fura Gems, Mineria
Texas de Colombia, Sandvik
Colombia, Liebherr Colombia,
Alfa Laval, Baker McKenzie.
Not only the challenges and
obstacles toward greater diversity
and inclusion were discussed,
but also the practical and tactical
approaches needed to combat the
status quo. Colombia has been
“up and coming” in the mining
industry and companies are
preoccupied with ensuring that
they do it right from the start.
A particularity of Colombia
is the Equipares Certification,
and it was discussed at length. It is
an initiative from the Colombian
Working Ministry together with
the Presidential High Advisory
team for Gender Balance (ACPM)
in conjunction with the United
Nations Development Program
(PNUD) that evaluates companies
and their gender equality
programs, with a focus on policies
and procedures. Approximately
30 companies across all sectors
have acquired this certification,
with only one from the mining
industry. Other mining companies
have started on that path but all
recognised that while necessary,
policies and procedures are only
the beginning.
Where do we go from here?
There is not one answer, as
each company and each situation
is quite unique. There are however
key steps to consider on a journey
to greater diversity and inclusion,
and as for all journeys, the first
step is often the decisive one.
1) Diagnose and understand
where the obstacles and challenges
are at the organisational and
individual levels. What are
the internal opportunities and
challenges (policies, programs
structures but also leadership,
company’s culture and decision-
making mechanisms) How is the
company perceived, experienced
and lived by its own employees on
this topic? What are the external
opportunities and challenges
(societal, cultural, legal, etc.)?
2) Educate and engage – with
your staff as “promoting inclusion often requires working within the system first, in order to change it” (Chico Tillmon, Executive
Director of YMCA Chicago’s
Youth Safety and Violence
Prevention Initiative) but also with
communities and other external
stakeholders. Consultation,
communication, awareness and
education are keys: “Education is a crucial pathway to inclusion and diversity” (Chico Tillmon).
3) Create a strategy and
design an action plan. Diversity
and in particular Inclusion, is not
simply a ‘number game’. Cultural
transformation requires time,
dedication, integrated approach,
measures and accountability but
also champions, sponsors, coaches
and the support from all levels
and areas of the business. And
empathy: “Empathy enables us to go beyond deeply-held cultural beliefs–such as the belief that women can’t be leaders or have families while working – and effect change. We must require people in business to have the confidence to engage empathetically. (…) Addressing that means creating room intentionally and empathetically for people so that diverse voices can be heard in ways that positively influence mines and their role in communities”
(Development Partner Institute).
4) Finally, it is worth
considering how technology is
advancing and how it might impact
on talent related decisions, such
as recruitment (automated first
selection, gender-neutral resumes)
and promotion (performance
management systems, online
training, etc.).
It all starts with a dream
“I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character…”
Dr. Martin Luther King, 1963
Juan David Viñas
Business Development Manager
LATAM Region,
(Bogota, Colombia)
Lucero De la Puente,
Business Development Manager
Peru,
(Lima, Peru)
Luis Valente
Manager, Global Business
Development
(Atlanta, USA)
Alain Pfammatter
Manager, Global HR Consulting
(Perth, Australia)
Figure 3: Women in Mining (Colombia)
11ISSUE 4 GLOBE 24-7 NEWSLETTER
Best Practice Compensation Benchmarking: Turning Cooperation into Collaboration
ISSUE 4 GLOBE 24-7 NEWSLETTER
Cooperation between competitors
within the same industry and market
is a good way of sharing ideas and
helping each other solve common
problems. In addition to the value
of improving productivity, it also
serves to help people develop strong
networks, often with long lasting
relationships being formed.
This cooperation can be
enhanced greatly with specialists
taking the level of sharing to a new
level by including data and practices
in disciplines such as compensation.
With compensation being a key
element of the employer proposition
for the resources sector and a critical
factor in the competition for talent,
benchmarking in a cooperative
fashion is a logical undertaking within
many countries around the world.
However, the cooperation
within a well-intentioned group of
compensation specialists is often
limited with the benchmarking
outcomes due to the lack of
time, resources, consistency and
openness. By applying best practice
compensation benchmarking
principles within a cooperative
group, the quality of result can be
improved significantly with the right
guidance and true collaboration.
Effective collaboration between
compensation specialists will have
the effect of ensuring that every
company has their benchmarking
needs met with relevant and logical
market intelligence. To make
this work best, the quality and
consistency of inputs is paramount,
which requires carefully crafted
guidelines and a keen attention to
detail, that takes time and effort.
Examples of best practice
collaboration producing excellent
results over a sustained period are
when the companies collaborate
to form an independent entity
administered by experts dedicated
to the benchmarking needs of
the group. The independence
guarantees confidentiality to bring
about openness and the dedicated
resources provides the focus on
serving the needs of the members.
An experienced independent
team can lead the collaborative group
to establish consistent standards,
gather precisely what is needed
and guide the process to ensure the
ultimate results are sound. Having
skilled experts guiding the process is
key to achieving true collaboration.
Globe 24-7’s HR Consulting
team of seasoned compensation
experts have a track record of
delivering practical benchmarking
solutions to the companies they
work with. They take the time
to understand the issues that are
unique within a market and provide
benchmarked compensation results
with clearly presented data, analysis
and insights.
by John Booth
Senior Consultant,
Renumeration and Benefits
(Australia)
Figure 4 -Cooperation vs Collaboration
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About FLSmidth
FLSmidth delivers sustainable productivity to the global mining and cement industries. As the market-leading supplier of engineering, equipment and service solutions, FLSmidth improves performance, increases productivity, drives down costs, and reduces the environmental impact of operations. Deon De Kock is FLSmidth President, Sub Saharan Africa and Middle East.
Paloma: Hi Deon thanks
for meeting us today, it’s much
appreciated –
I would like to start by
commenting on your impressive
career in the industry. It was a
year ago that you were appointed
as FlSmidth’s President for the
Sub Saharan Africa and Middle
East Region. What has been your
experience in this last year?
Deon: It’s a great privilege
working for FLSmidth. I appreciate
working for a company which I have
shared values with. It has been an
exciting journey thus far and I know
the way that the company is going
which makes it more interesting.
Our common goal is to serve the
customers better, through sustainable
productivity enhancement.
Paloma: Indaba Cape Town was
held in February of this year. What
would you say were your highlights
and experience at the conference?
Deon: It was a great networking
event. Indaba is always a highlight in
the calendar. For FLSmidth, it is the
opportunity to meet with our key
customers and potential customers
and to have productive dialogues
around industry challenges and
opportunities, across the flowsheet and
value chain. We have a strong focus
on innovation and digitalization and
recognise that working with customers
to address their needs directly is
crucial in getting the right solutions to
market in a timely manner. So Indaba
allows us to explore ways to co-create
new products and solutions together
with customers.
Mining in South Africa is going
through a tough environment, we
have some challenges such as power
supply issues and appropriate business
ethics. The message from President
Cyril Ramaphosa was clear, it was
good for us to hear what he had to say
as FLSmidth share these values and
has done it for a long time.
It was interesting to see the scale
of development in Central Africa
and again with copper and gold in
West Africa. Part of the region I cover
includes the Middle East where I also
see great future.
Indaba has a lot of junior and
mid-tier miners that find funding as
the biggest challenge. For instance,
coal is not attractive any more for
the rest of Africa. Although that’s not
relevant for the South African miners
as coal is very much needed in the
country. Indaba is a great place to
discuss these trends and challenges –
and to really connect.
Paloma: In your perception;
what challenges will face the mining
industry in Africa over the next few
years?
Deon: The biggest challenge I
believe will have in Africa and South
Africa will be water. To be sustainable,
water is a core principle. Water and
preservation of water in a responsible
manner is absolutely necessary and
this is a major focus for FLSmidth.
The second challenge would be
in the Human Resources area when
it comes to specialised skills, which
are not necessarily available. We are
facing a clear skills shortage and not
only at entry level but also resources
like technicians to even executive
management; companies will have to
compete to get the best professionals.Deon De KockFLSmidth President (Sub Saharan Africa & Middle East)
Executive Interview:HR Observations in the African and Middle Eastern Mining Industry
15ISSUE 4 GLOBE 24-7 NEWSLETTER
Paloma: What solutions are
being proposed from FLSmidth
to remedy the impending skill
shortage?
Deon: The company’s target is
to be sustainable. We do a lot of work
globally and locally in order to become
a more sustainable provider. We are
getting very involved in the different
areas including the community and
the way we look at engaging people
and also the way people look at us as
a company and mining as an industry.
Mining often has a negative
connotation and sometimes is
perceived as acting irresponsibly. Work
needs to be done in order to make and
show mining as a sustainable business:
one that looks at its carbon foot print
and after the environment. If this work
is done by the mining industry in
general, mining will become a more
attractive option for young people.
FLSmidth is also at the beginning
of its own journey to create a more
diverse workforce globally, which
includes hiring and retaining a more
age and race diverse workforce
and attracting female employees
to a traditionally male-dominated
industry.
If your values and the way you
operate is done in a way that empowers
employees, the company will look
more attractive. FLSmidth also targets
universities and schools and educates
people in mining in a sustainable way.
There is a big, shared responsibility for
people in the industry to show that
mining is a responsible industry – this
will make it more attractive for people
and help shore up the skill shortage.
Paloma: You mentioned the
work FLSmidth does in promoting
and attracting women to the
industry. What type of programs
does your organization participate
in?
Deon: When we talk diversity,
it obviously goes beyond gender but
certainly a major focus is on gender
inclusion. We are currently just at
the beginning of this initiative. As a
sign of things to come, we have just
appointed two women to our Group
Executive Management team; the
Heads of Group Human Resources
and Group Legal & Strategy.
So we are taking the first
concrete steps and there is a great
emphasis on how we can move
forward from senior management
including the CEO Thomas Schulz
and myself. We want to embrace
diversity in and of itself and because
we see the value in having a diverse
environment in the organisation.
We have a significant amount
of work ahead, but some early steps
include setting KPIs and to monitor
the levels of inclusion at all levels
in the company, from operators
to senior management. That’s not
something that we are leaving
by chance. In South Africa, we
have 38% women in management
positions. They are there very much
on merit, work ethic and what they
bring to FLSmidth. I want to make
clear that we hire and promote
people by merit and not because of
gender.
Paloma: We saw on the news
last month the buyout of Australia’s
IMP Automation Group. Where
do you see innovation to progress
forward within your own company
and what does the mining world
need in order to advance forward?
Deon: Innovation is part of
our fibre. As a leading solutions
provider, our goal is to provide
sustainable products, services and
solutions to the mining industry,
to ensure our customers enjoy
sustainable productivity. To achieve
this, innovation is key. Certainly,
digitalisation is a hot topic if we are
looking at how mining can reduce
the impact on the environment,
increase safety and reduce costs. This
will also increase efficiencies and,
as a result, increase productivity.
Digitalization is key in order to
achieve all these elements.
We made the decision three
years ago to appoint a Chief
Digitalization Officer so we
could use the connectivity of the
Internet together with real data and
digital methods to provide more
sustainable, connected and efficient
solutions to our customers. This
technology can be used in greenfield
projects but also in already operating
mines.
FLSmidth combines its
knowledge in products, projects
and services to leverage the digital
opportunity: we use our full
flowsheet knowledge to offer data-
driven process improvement and
combine our machine and service
knowledge to improve uptime
and extend service coverage of
our equipment. Our process
optimisation solutions have been
in the market for decades and
deliver tangible results. Based on
our existing automation offering,
we provide driver-less operations
for more and more production
processes.
The biggest impact from
digitalization for our customers will
come from operations management
(e.g. improving yield and throughput
and reducing production cost)
and equipment maintenance (e.g.
improving availability and reducing
maintenance cost).
Paloma: Thank you for your
time Deon, I appreciate the time in
your busy diary. Have a good day.
by Paloma Ortiz
Branch Manager EMEA,
United Kingdom
“Mining often has a negative connotation and sometimes is perceived as activing irresponsibly. Work needs to be
done in order to make and show mining as a sustainable business...”
“The company’s target is to be sustainable. We do a lot of work globally and locally in order to become a more
sustainable provider”
17ISSUE 4 GLOBE 24-7 NEWSLETTER
Let’s use a parallel in a common
decision-making process to help
explain the Contingent versus
Retainer models. Many of us are
not experts in buying cars, and
when faced with the challenge
of selecting the right vehicle
to purchase, there are several
variables that are important to
consider. Two cars may look very
similar from the exterior, but it is
not until you “open the hood” that
you unveil the drastic differences
between them; how it performs,
how it consumes fuel, how it feels
to drive and most important how
well it will suit your needs, are
some of the questions you should
be ready to ask yourself.
Retained or Contingency –
what’s the difference?
When you have made the
decision to hire, you may consider
using your network or teams
available to you to do what they
can in support of the recruitment
process, or you may realize that
you do not have the time or people
resources available to properly
work to fill a vacancy. At this point
some never-ending questions
surely haunt all hiring and HR
leaders:
1. Who to engage when
outsourcing recruitment processes?
and
2. Do they hire retained or
contingent services?
Let’s highlight the differences
and demystify some beliefs to help
you make the right choice.
Recruiting is a critical process
in the success of our business’s
survival and growth. Then, it is
worth estimating and reviewing
that will be required from you or
others involved in the process of
sourcing and identifying the right
candidate for your organization.
Let me say this again, the right
candidate. If the recruitment
process fails or if you do not make
the hire, upon looking back you
will have incurred staff costs, the
business will have to wait longer
to fully perform, credibility goes
down and that terrible feeling of
“this is taking forever” sinks in
deeper.
Evaluating each option
How should you choose the
company you will outsource your
needs to? How do you evaluate
them? Many companies decide
to go external because they have
little to no time to do it themselves.
Despite the many options out there,
often Hiring and HR leaders do
not even consider a retained based
solution because “why would you
pay up front when you can use
several contingency firms at once
that will rush against each other,
and you only pay the one if you
make a hire?”. This might sound
like a natural thought but one
worth looking into further.
In contingent recruitment
services, a consultant typically
works 50% of her/his time on how
to bring in the next client and 50%
(or less) on presenting the client
with candidates. This 360 recruiter
as we call it (sales and recruitment)
works against the clock to try and
beat the competition to introduce
candidates before anyone else
so he/she can earn a fee with the
minimum time spent on the search.
ISSUE 4 GLOBE 24-7 NEWSLETTER
Rushing to get you candidates! This
sounds great so far, doesn’t it? But
does this work, and if yes, to what
extent?
What you should expect when
choosing a Retained service
If you are considering paying
a commencement fee to a
recruitment consultant, I am
sure you will be evaluating them
thoroughly. Having put your
hand in your pocket for a service
not yet delivered, you want to feel
confident these consultants will
not only give you the results you
need but also provide some added
value. Where does this added value
come from? Retained services
typically focus the efforts of each
individual involved in the process,
for example the person in charge
of sales will focus on sales and the
person in charge of recruitment /
account management will focus on
that task. Why? Simply because
as a consultant, when someone is
paying you for a service, you want
to put the best person on the job in
front of them to satisfy your client,
gain credibility, present options,
and add value.
In a retained recruitment
model, in order to work quickly
and efficiently a team composed
as a minimum of a recruiter,
and account manager, and an
administration resource will be
put in place to ensure each person
can dig deep, turn every rock,
offer you insights of what the
competition is doing and how you
compare against them, and help
you hold your team accountable
to defined hiring time frames. A
retained consultancy will “project
manage” each search with several
incumbents at a time, ensuring
there is a timeline to stick to and
hold both parties accountable. This
takes focus…
Who can afford a rushed
process or no process at all?
Retainers protect your investment.
When a firm is retained, you have
their undivided attention, or so
should you. If you don’t have that
level of interaction, then you didn’t
vet them properly. If a competent
firm has the ability to truly screen
candidates out of the process rather
that screen them in, you will get a
better product.
If you pay upfront for a service,
your expectations go up and that
is a good thing, something we, at
Globe 24-7, we value. And think
about this again, if you do not pay
someone and only will review the
final result then you will likely not
be as invested in it and just wait for
candidates.
We’ve done both & we know
the benefits and challenges
The contingency model
should probably not be dismissed
altogether as there is a place for
every kind of services, and there
are many contingency search firms
that can perform at a very high level
in the right situations. However,
there is a better way to control costs
and timing, to receive added value,
develop talent, and ultimately find
a partner that can support you
beyond sourcing identifying a hire.
Retained search is more difficult, it
is more intense and it requires to
be available at all hours. Hence the
name 24-7! But we love it! I We feel
empowered by our clients to add
value in a positive way by deeply
understanding their challenges and
digging for creative ways to come
up with solutions, with them, as
part of their team. Contingency
search is transactional in nature,
and when you are dealing with
a commodity that is as limited,
variable and volatile as human
capital in the mining industry, give
retainers a chance. The total cost of
ownership is lower in the long run.
by Jaime Alvarez
General Manager,
Global Operations
17
Retained or Contingent Recruitment Services?That is the question...
19ISSUE 4 GLOBE 24-7 NEWSLETTER
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