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ireland’s executive talent market commentary 2012
Back to the Future –
The link between talent, performance and future organisational success



Employee Value Proposition -
Competing for Talent
-----------------------------

Navigating a Changed Reward
Landscape
-----------------------------

High Performance Leadership -
Is the Leader Performing?
-----------------------------

Shattering the Glass Ceiling




                                                                         hrm – the inside leadership series 2012
contents:


                                             01    introduction


                                             04    article one
                                                   Employee Value Proposition - Competing for Talent


                                             07    article two
                                                   Navigating a Changed Reward Landscape


                                             11    article three
                                                   High Performance Leadership - Is the Leader Performing?


                                             14    article four
                                                   Shattering the Glass Ceiling


                                             17    final note




                                             introduction

Before the global economic crisis we         Organisations will either adapt or cease to exist. Having been through

lived in a world of optimism and             periods of cost cutting, hiring freezes and budget constraints, the

ambition. We expected a future of            transformation challenge that businesses everywhere now face is getting

personal and economic growth, of             back to having a future. A transition that means building confidence and

security balanced with risk, of enterprise   developing the capacity to take on the challenges of new growth. Central

and development. Since the financial         to this is the issue of talent.

crisis in 2008, every generation in every    Despite the continued rise in unemployment in many countries,

developed country in the world has been      organisation leaders and their HR teams know that a lack of the right skills

impacted by the most difficult economic      and personal competencies is the biggest obstacle to organisational

period since the Great Depression. For       growth. With workforces generally aging fast and with little current

many if not most, the journey to             appetite for graduate recruitment, the competition for talent is rising in its

recovery is far from over.                   intensity. Talent management therefore, will be a core strategy for years to

                                             come for any competitive organisation.



                                                                                      hrm – the inside leadership series 2012
02    introduction




ireland’s executive talent market commentary 2012
Back to the Future –
The link between talent, performance and future organisational success




Our 2012 commentary Back to the Future, proposes that       Reward is naturally a key element of any talent
organisations of all shapes and sizes who wish to grow      management strategy and rarely far from the minds of
must get back to planning for a positive future. The        leaders and HR specialists in these economically
themes we reflect on here, relate to aspects of Talent      constrained times. We invited leading compensation
Management and in each case we have invited subject         consultant Pat Gurren of Gurren Compensation to share
experts to share their perspective.                         how global organisations are currently re-designing their
                                                            compensation systems to achieve a more effective reward
We begin with Graham Morris, HRM’s Managing Director        structure and the steps your company needs to take to
on the subject of Employee Value Proposition (EVP). This    maximise its value from this investment.
coincides with the release by HRM of the largest survey
ever conducted in Ireland on EVP. The research across ten   While attracting, retaining and developing talent all
professional categories and twenty industry segments        require their own talent strategies, the overall goal is high
looks at the challenges of managing other people’s          performance. We are delighted that one of the most
perception of your organisation as an employer and its      interesting strategy consultants we have met on this
impact on their decision whether or not to engage with      subject, agreed to share his thoughts. Brian MacNeice is a
you as a candidate or as an employee.                       partner at Kotinos, who draw their intellectual property




hrm – the inside leadership series 2012
introduction     03




on how to create a high performing organisation, directly    HRM’s core differentiator is the outstanding judgment we
from the source. Their research interviews span some of      bring to our clients, borne from our commitment to high
the most exciting organisations in the world, from the All   quality research. Our Research Team provides clients with
Blacks to NASA and draws on the type of performance          a range of services including executive research and talent
insights few of us ever get to see first hand.               mapping. In addition, they support our own research
                                                             agenda leading to the release of highly valued market
In looking to the potential for untapped talent within       reports throughout the year. “Showing a Lot of Promise –
organisations, we asked former journalist and broadcaster    What matters in your Employee Value Proposition”,
Orlaith Carmody to pen some thoughts on the barriers         released in February 2012 and available at www.hrm.ie is
that women all too often seem to face in their               an essential guide to the steps organisations can take in
organisations. A communications expert, TV producer,         order to achieve better quality talent pipelines and higher
media trainer and Non Executive Director at RTE, Orlaith     levels of employee engagement. We hope you enjoy and
works with female executives on how to overcome glass        find value in the content of our 2012 commentary. If you
ceiling obstacles and identifies a key step women can take   would like to know more about any of the contributing
to help realise their potential and drive the development    authors, get in touch through the address below.
of their own careers.
                                                             Michael O’Leary | Chief Executive
                                                             HRM Recruitment Group
                                                             michael.oleary@hrm.ie
                                                                                   hrm – the inside leadership series 2012
04    article one




commentary


It seems paradoxical that talent             Ireland’s employment landscape is
management should be such a critical         changing more rapidly and more
strategic issue for companies in Ireland     permanently than at any previous time
at a time when unemployment is               and with it the skills and experience
running at its current level. Yet the        demanded. As global markets become
competition to attract and retain            more competitive and more challenging
professional talent is as high today as      - acquiring, developing and retaining
experienced just before the peak of the      the skills necessary to achieve
boom. This may well be because,              organisation goals become central to
despite the high numbers of                  organisational strategy.
unemployed in Ireland, the Central
Statistics Office indicates that the         In the first of our articles Competing for
professional / technical / managerial        Talent, Graham Morris, Managing
group represents just 10% of the overall     Director at HRM Recruitment Group
Live Register. While this is no comfort to   talks about how Employee Value
anyone out of work, it explains why          Proposition can boost your Talent
supply in professional labour categories     Management Strategy. The article
is not as fluid as some might believe. To    discusses how to make your
this add current emigration levels, at or    organisation more attractive to passive,
around 60,000 to 70,000 people               discerning talent in the external labour
annually, of which the peak age range is     market and increase commitment from
between 25 to 44, an increasing              current employees.
majority of whom are Irish nationals
and the challenge becomes more
apparent.




hrm – the inside leadership series 2012
article one      05




       Employee Value Proposition -
          Competing for Talent




E
         mployee Value Proposition (EVP) in many ways,        of talent pools with organisation goals and values. For
         shapes your organisation’s overall Employer          existing employees retention levels are generally much
         Brand. Whether you apply strategic perspective or    higher, while performance and effort also improve. Many
         simply ignore the subject altogether, by design or   well known studies point to a clear correlation between
default your company has its own Employer Brand. EVP          levels of employee engagement and cost of sales. The
therefore, is how the external labour market characterises    Employee-Customer-Profit Chain developed by the US
your organisation, it feeds the decision making process for   department store chain and online retailer, Sears Roebuck
a candidate considering whether to apply or work for you.     in the late 90’s, links Employee Value to Customer Value to
For your current employees, EVP represents the value or       Shareholder Value. Engaged employees grow service
deal an employee receives as a consequence of being           experience and profit.
employed by you. This “value proposition” is not limited to
compensation elements of their relationship with your         We know employment relationships have both physical
company, but also includes many other factors, such as        and emotional elements. While the former includes
the quality of your managers, the stability and success of    “hard” aspects such as reward and working environment,
your organisation, the kudos that may be attached for an      emotional elements include the often more powerful
employee by working for your company, the career              “softer” characteristics of a workplace. For example, the
opportunities you provide and the work/life balance you       relationship with colleagues and the esteem in which a
create.                                                       person may be held by them, the satisfaction of a job well
                                                              done and knowing that the effort and contribution an
Competitive organisations who develop clear and               employee makes, actually matters, along with the belief in
implementable EVP strategies, report substantial tangible     being part of a bigger worthwhile mission. We spend as
returns from their EVP activity and investment. These         much if not more waking time with work colleagues as we
include; greater access to passive talent, better alignment   do with family and friends, so it is not hard to see how the




                                                                                    hrm – the inside leadership series 2012
06     article one


employee value proposition - competing for talent



psychological impact of our work can contribute to our          The HRM EVP Report “Showing A Lot of Promise – What
overall sense of well being.                                    matters in your Employee Value Proposition” covers all
                                                                aspects of employee proposition including ”Career
In the largest ever external survey on EVP to be conducted      Development”. The top influencers in this category are the
in Ireland, HRM undertook to evaluate what matters to           perception of your “Organisation’s Stability” and the
Irish professionals to the extent that it would attract         quality of your organisation’s provision of “Performance
them to, or keep them at any particular organisation. Over      Feedback”. Female respondents to the survey in particular
10,000 people participated in the survey, the full results of   regard this latter aspect as “Highly Important”.
which published in February 2012, outline the key
determinants that make up a strong EVP for any company.         As recruiters, one of the most frequent mistakes we see
A comprehensive analysis of the responses is detailed in        organisations make is mishandling the recruitment
the report including how ten different occupation types         process, often without even realising it. The top four
responded, how needs change up the career ladder and a          “Hiring Process” related factors that would significantly
gender based breakdown. On that last point and linked to        impact a professional candidate’s decision, whether or not
an article later in this report by Orlaith Carmody, of the      to accept a position with your organisation are:
five career levels (Director - Functional Head - Senior
Manager - Middle Manager - Specialist/Stand alone               1. The level of rapport between them and their likely new
professional) that respondents to the survey were given to         manager during the interview process.
describe their current position, males outnumbered              2. The level of interest shown at interview by the
females in percentage terms at the top three levels of             interviewers.
seniority by two to one. The ratio at the highest level         3. Timely communication throughout the recruitment
“Company Director” between male and female                         process.
respondents was almost four to one. Women only                  4. Being met by a relevant senior manager at the first
outnumbered male respondents at Middle Manager or                  meeting.
below.
                                                                As your organisation works to get back into the habit of
Developing an EVP strategy can be challenging as in effect      planning for a successful future - particularly if you are in
you are dealing with the management of perception,              the aftermath of headcount, compensation or operational
particularly in terms of the external labour market. Ask        cut backs - developing a sustainable EVP is essential. An
yourself how much today is known about your company?            effective EVP simply reduces costs, improves talent
What is being said about your organisation on the               pipelines and grows performance. As you seek to commit
internet and not just as a place of work? What do your          your employees to using their “discretionary” effort and
current employees say about your business when they get         align them to your high performance goals, creating an
home to their families at night, or meet friends for            overall “deal” that touches on all the elements of the
dinner? From our EVP survey report, we can tell you that        employment relationship makes total sense. In an article
the top five organisation characteristics or behaviours         later in this report, compensation consultant, Pat Gurren,
that professional candidates identify as influential on the     talks about steps you can take to create more value from
perception of your organisation as an employer are:             the pay aspects of your total rewards programme. The
                                                                contention made here is, that as your organisation seeks
1.   How your organisation shows respect for employees.         to emerge from the global economic crisis, the ability to
2.   Your organisation’s approach to ethics.                    attract and retain the right talent will be essential. This
3.   Your organisation’s approach to quality standards.         means understanding the total experience an employee
4.   Your organisation’s reputation with customers.             or prospective employee has with your organisation and
5.   The level of employee empowerment that is                  the value they place on each and every element of that
     encouraged.                                                experience.

With these in mind, go back and ask yourself again the
questions contained in the previous paragraph.
                                                                Graham Morris is Managing Director of HRM Recruitment

                                                                Group. For more information, visit www.hrm.ie

                                                                graham.morris@hrm.ie



hrm – the inside leadership series 2012
article two       07




                                              perfection
                                              Contingency & Retained Search, Contract &
                                              Interim Selection through 3 Practice Areas:
                                              professional services group
                                              science & technology group
                                              commercial & support group
                                              HRM Recruitment Group | p: (+353 1) 632 1800 | e: info@hrm.ie | www.hrm.ie




commentary


Graham Morris’ article on EVP makes it                    It is in this climate, that organisations must
clear that performance and engagement is                  find methods to attract, grow and retain
about so much more than just                              high performing talent. In reviewing their
compensation. Yet, Reward remains a                       Reward systems, many companies have
central component around which many HR                    learned that far from being at the heart of
strategies are based. These are challenging               driving their businesses, their “incentive”
times for Reward professionals. Attitudes to              pay barely related to individual output or
money changes dramatically in a recession.                organisation goals. Having been through
Those who risked capital to grow value in                 rounds of salary reductions, withdrawals of
good times, are deemed to have received                   benefits etc., companies now face the most
their “just desserts” if all comes tumbling               important change in their reward structure;
down around them. With less disposable                    making it count.
income available, employees often
                                                          Against this backdrop, with growing competition for the
question much more than just their rate of
                                                          best talent and a need to justify every cent, HR, Line and
pay. Society influences much of this shift.               Reward managers must address this challenge. In
Consider that the word “Bonus”, previously                Navigating a Changed Reward Landscape, Pat Gurren and

the key link word between performance                     Brid Cudmore, Reward Consultants at Gurren
                                                          Compensation, outline how to ensure the lessons of
and pay, now more associated with greed
                                                          previous years are learned and steps to take to ensure
and avarice.                                              your Reward system drives future organisational success.


                                                                                    hrm – the inside leadership series 2012
08    article two




                navigating a changed
                 reward landscape

T
          he economic environment over the last three        Signposts for successful navigation
          years has confronted organisations and HR
          professionals with reward challenges and           1. Stick with the knitting. The Total Rewards Model (see
          opportunities not experienced in over a               Figure 1) still holds. We start with this premise as the
generation. Organisations have dealt with these                 model that has both stood the test of time and
challenges or opportunities with varying degrees of             continues to have the virtue of common sense
success. Some have surprised themselves with what has           underpinning it. We know that come what may in the
been possible to accomplish either because of, or in spite      future, organisations will continue to need the ability
of, the economic environment. Here we seek to set out           to attract, motivate, retain and most importantly
some signposts for organisations or HR professionals on         engage their employees. The emphasis and application
how best to navigate the changed reward landscape.              of particular elements of the reward strategy may
These steps are drawn from our experience in the design         change over time due to environmental factors but
of compensation systems for many different                      fundamentally the model continues to apply.
organisations in Ireland and overseas, facing a wide
variety of compensation challenges and opportunities.




hrm – the inside leadership series 2012
article two      09




Figure 1: Adapted from WorldatWork’s Total Rewards Model


2. First things first. An organisation’s total reward            b. Demonstrate clear linkage between every reward
   strategy can only be effective if it is integrated with       programme implemented and how it fits with the
   and driven by the organisation’s business strategy,           organisation’s business strategy, organisational
   organisational culture and overall HR strategy. One           culture, HR strategy and overall reward philosophy.
   “blessing” of the economic turbulence over the last           Typically, successful organisations are merciless in
   three years is that a lot of the “fluff” in terms of          eliminating or not implementing in the first place,
   communicating and creating linkage between an                 programmes that do not fit overall business strategy.
   organisation’s business strategy, organisational culture      c. Focus on reward strategy in a holistic manner
   and HR strategy was eliminated as organisations               over the medium to long term. Reward professionals
   focused on survival. As the economic environment              must have a clear vision of the desired end state for
   stabilises and begins to improve, organisations should        the organisation’s total reward proposition. They
   resist the temptation to fall back into their old ways.       should manage consistently in a strategic manner to
   Organisations that retain the ability to crisply              achieve this end state. In the absence of this clear
   communicate and articulate both business strategy             vision, it is easy to lose direction over time.
   and organisation culture, will retain a competitive           d. Understand what employees value when it
   advantage as the foundation for both their HR and             comes to reward. Organisations who have
   Total Reward Strategy will be robust. For example, they       mechanisms (for example employee engagement or
   will have the ability to effectively link performance         organisation climate surveys) to establish how
   related pay programmes to business strategy.                  employees perceive various reward programmes are
                                                                 best positioned to design an integrated reward
3. It’s all about synergy. The individual elements of the        strategy. It is particularly important that when
   Total Rewards Strategy (See Figure 1) are relatively          employees are surveyed on how they value reward
   straightforward to design and implement within                programmes that they are forced to prioritise
   organisations. The real challenge for an organisation         their responses via forced ranking of preferences.
   lies in creating the synergy between all the elements
   (compensation, benefits, performance etc.) so that         4. Get the basics right. Reward professionals tend
   they work in harmony with one another. Creating this          to be relatively conservative in nature. There is good
   synergy is easier said than done. Sustaining this             reason for this which many organisations have learned
   synergy over the medium to long term in an ever               the hard way during the economic downturn. Many of
   changing environment (internal and external) is even          the elements of the Total Rewards Strategy are
   more difficult. Organisations who are the most                structural in nature i.e. they have cost and/or legal
   successful in sustaining the synergy required tend to         entitlement elements which once implemented are
   do the following;                                             extremely difficult to dismantle or remove from the
   a. Focus on designing a finite number of reward               total reward proposition. Furthermore as organisations
   programmes very well rather than designing an                 have also learned during the economic downturn, the
   infinite number of less relevant programmes. Reward           cost of providing reward programmes is not as
   professionals must continuously challenge and decline         responsive to economic cycles as they may wish. Going
   requests for new reward programmes that are either            forward organisations should take the following
   unnecessary or incompatible with the overall total            lessons into consideration when seeking to best
   rewards strategy or business strategy.                        manage the structural elements of their reward
                                                                 programmes;


                                                                                   hrm – the inside leadership series 2012
10    article two


navigating a changed reward landscape



   a. Know the numbers. Reward costs tend to represent          economic downturn organisations should ensure that
   a significant percentage of an organisation’s total          they communicate their reward strategy effectively. In
   operating costs. Organisations and reward                    particular as organisations make changes or decisions
   professionals must be on top of these numbers.               in relation to pay programmes, how these changes
   Companies need key metrics in place to monitor               will be applied and the impact upon employees must
   performance in this area; Total Reward Costs as a            be thought through and communicated thoroughly.
   percentage of Total Operating Cost, Total Reward Cost        Communication is central to capitalising on the
   per employee, Year on Year Changes in reward costs,          contribution that reward can play in enabling
   Variable Reward Cost as a percentage of Total Reward         organisations to drive high levels of employee
   Cost etc.                                                    engagement. For high levels of employee engagement,
   b. Clarify the fixed versus variable percentage of its       employees must perceive that their reward
   reward costs that best meets the business model of           programmes are fair both internally (relative to
   the organisation. The variable element should flex up        internal peers) and externally (equitable with the
   and down with the performance of the organisation.           external market rates). How effectively the
   While variable pay programmes like bonus/long term           organisation communicates its reward strategy is at
   incentive plans have been in place for decades, it is        least as important as the quantum of the rewards
   surprising that in most organisations today the              provided.
   variable pay element represents a very low percentage
   of the organisation’s total reward cost. In most cases    As with life, times of great challenge and adversity test
   this percentage can be measured in single digit           and teach us much more than times when all is going
   figures. There is a real opportunity for organisations    well. As we emerge from the economic downturn it will be
   who wish to have more pay contingent on the               tempting to put it behind us as soon as possible and get
   organisation’s performance to design this into the mix    back to undertaking what we perceive as more “positive”
   so that future pay costs will flex more with economic     initiatives. However, the challenge that reward
   conditions.                                               professionals face going forward is how to ensure that
   c. Manage the structural elements effectively -           these hard learned lessons are applied and maintained to
   salary ranges, merit matrices, job sizing/pricing         optimise the success of their organisations in the future.
   processes. Some organisations found to their cost
   during the economic downturn that their salary ranges     Pat Gurren is Principal Consultant and Brid Cudmore is a
   were no longer fit for purpose, range mid points were     Senior Reward Consultant at Gurren Compensation, an
   not properly aligned to target market position and
   employees had been allowed drift up within the salary     independent HR consultancy specialising in compensation
   ranges. The management of these “basics” is essential     and benefits. See www.gurren.ie for more information.
   to the structural integrity of total reward cost
   management over the medium to longer term.
5. Communication. One of the more interesting
   developments to emerge during the downturn is that
   in some organisations, employee engagement scores
   have increased considerably. At a first glance this may
   appear counterintuitive but on reflection it makes
   logical sense. In most cases this increase in employee
   engagement levels can be linked back to an increased
   level and improved effectiveness of communication
   within organisations as they grappled with surviving
   the challenges they faced. In the economic downturn
   many managers needed to put more emphasis on
   ensuring employees understood what was going on in
   their organisations and what performance levels were
   required of the employee. As we emerge from this
                                                                           facing changes?
                                                                   Interim & Contract Professionals from HRM



hrm – the inside leadership series 2012
article three    11


commentary



In a 2011 article global consulting firm McKinsey ask “Do you have
the right leaders for your growth strategies?” They investigate
whether there is a confirmed link between growth and specific
leadership traits by comparing their own data on organisation
growth performance, with a database of performance appraisals
belonging to international search firm Egon Zehnder. Ultimately, they
arrive at the conclusion that “leadership quality is critical to growth,
that most companies don’t have enough high-quality executives, and
that certain competencies are more important to some growth
strategies than to others.” It is for this reason that proportionately
speaking, the current volume of change at executive level in most
international recruitment markets is several times that of middle
management or lower.

We understand in general what traits a good leader must        In High Performance Leadership – Is the Leader

have, depending on the challenges they face. But defining      Performing? Brian MacNeice of Kotinos Partners talks

what great leaders actually do to create a high                about the results of his organisation’s research in to some

performance organisation is not always so easy. What are       truly remarkable organisations. MacNeice’s own career as

the elements and activities that a leader brings, that drive   a top management consultant with leading global firms,

an organisation to greatness?                                  along with his experience in sport as a Heineken Cup

                                                               Referee and an Irish Cricket Selector gives him first hand

                                                               experience of the essential dynamics that enable great

                                                               organisational success.




                                                                                     hrm – the inside leadership series 2012
12    article three




     High Performance Leadership –
        Is the Leader Performing?

O
              ver the last seven years we have been            1. People change when their circumstances change – as
              researching the world’s greatest performance        Darwin proved we are adaptive beings, shaped by our
              environments to help us develop a deep              environment and will react or adapt accordingly.
              insight into what drives better performance
from any group of people. The research has taken us all        2. Certain changes in circumstances will stimulate
over the world from sport (New Zealand All Blacks), the           improved performance in the population of people
arts (Julliard School of Music, New York), military (US Navy      impacted by those circumstances – this is a logical
Seals), science and technology (MIT and Harvard),                 conclusion from above. In other words if we are
business (Google) and many other examples of genuine              shaped by the environment around us and adapt
high performance. Each year our research continues and            accordingly surely there is a specific set of
our understanding deepens. We apply that thinking to our          circumstances that can be created that will lead to a
work with CEO’s, Leadership Teams and Executives to               reaction called improved performance.
deliver great outcomes for our clients.
                                                               3. Our role as leaders is to implement the specific
There is, however, a constant underlying premise that lies        circumstances that stimulate improved performance
at the core of our research and is of profound importance         in our population of people – if 1 and 2 are right then
to any executive with responsibility for managing                 the natural progression of this theory is that any
performance of people.                                            leader (CEO, Senior Executive, Manager, Team Leader,
                                                                  etc.) has a duty to ensure that they create the right
The premise comes in three parts:                                 conditions in their environment that will lead to
                                                                  improved performance from the people within.


hrm – the inside leadership series 2012
article three   13




If you are in a leadership role - executive, functional, or   Promoting Development Through Effective Feedback – they
line – then a key part of your role is creating and           create and foster a feedback rich culture.
managing a high performance environment for the
people under your responsibility. What our research has       Measuring What Matters Effectively – they isolate and
helped us understand is that as a leader if you are not       identify the measures that give an accurate picture of
creating the right conditions for delivering better           current performance in the areas that really matter and
performance from your people, then bottom line, you are       they ensure these measures are effective.
not doing your job!
                                                              Creating Performance Pressure – they create mechanisms
But how do you go about setting the right environment         to ensure that the performance pressure is strong within
for performance in any group of people? This continues to     the environment and there is no room for complacency.
be the unique focus of our research. We have found that
great organisations are made, not born. They are made on      Injecting Meaning – they develop a strong sense of
the back of a set of organisational capabilities that, over   purpose or meaning that drives people and this is
time, are built into the DNA of the organisation and that     reinforced through action not just words.
lie at the heart of its performance environment. We have
also found that these organisational capabilities can be      The core of every leadership role in any organisation is
developed by the leaders within the business to ensure        about creating and maintaining the right conditions for
that better performance is delivered and sustained over       people to deliver better performance. This is a
time.                                                         fundamental and is non-negotiable. The performance
                                                              pressure on every business today is greater than ever. As
Our research has shown that the same organisational           we have found, great organisations are made not born.
capabilities are common across virtually all of the high      What are you doing to make your organisation great?
performing institutions we have studied and more              After all it is your job ...
particularly they have been cultivated over time in a
deliberate way by the leaders of these institutions. We do    Brian MacNeice is a founder and Managing Director of
not explore each capability in depth here – that is the       Kotinos Partners Limited, a niche advisory firm working
focus of a series of articles that tackle each one
                                                              to help CEOs and their teams achieve sustained high
individually. However, the following is a summary of what
we have found.                                                performance. For more information, visit
                                                              www.kotinospartners.com.
Setting Unreasonable Ambition – the best institutions are
constantly setting and aiming for great challenges.

Being Strategic – they have a clear understanding of the
two or three things that matter more than anything else
in determining success.

Maintaining High Standards & Expectations – they set
ridiculously high standards in the areas that matter most
and are explicit about what represents acceptable and
more particularly unacceptable performance.

Being Decisive, Promoting Decisions – they build a culture
that allows, encourages and expects people to make
informed decisions and take responsibility at all levels
within the organisation.

                                                                            changing faces?
                                                                    Interim & Contract Professionals from HRM




                                                                                    hrm – the inside leadership series 2012
14    article four


commentary




The environment in which organisations have found
themselves over the last few years, has resulted in a
continuous need to drive to improve employee and
organisation performance. Necessity is the Mother of
real talent analysis and petty biases are begining to be
put aside. Yet while the level of female presence in
boardrooms and senior management teams is slowly
rising, statistics show females still lag behind their
male counterparts in achieving higher office.


In any organisation today, how much talent sits untapped,    In Shattering the Glass Ceiling, former journalist and
simply due to gender? How often does the very leadership     broadcaster Orlaith Carmody discusses some of the subtle
potential companies seek to secure their future, remain      communication elements that women need to adopt to
overlooked within, purely because it is female? Why do so    propel their own careers. As a Non-executive Director and
many Irish companies today have no females on their          leading media/communications consultant, Orlaith
board or in their CEO positions?                             Carmody argues, that organisational elements women
                                                             often dismiss as irrelevant, such as internal politics are key
While the basis for this has historically been regarded as   for them to embrace. And that there are many
being down to institutional bias, many commentators          opportunities available today for women to break through
now suggest that it is in fact women who need to adapt       to the highest levels, if they are prepared to invest
in order to thrive. The challenges are to understand, how    thought and time in developing a strategy.
frequently superior female people skills, can be developed
to achieve more productive relationships between
executives and help to work mutually through periods of
organisation conflict. That female executives, rather than
adopt the perceived stereotypical behaviours of their male
counterparts and risking the “ball breaker” tag, need to
balance their personal strengths more effectively with
organisation dynamics.




hrm – the inside leadership series 2012
article four     15




          Shattering the Glass Ceiling

I
    was once told that you should publicise your plan but         significant part, is our ability to relate, negotiate and
    keep your strategy secret, and it was good advice. A          manage relationships. If we want to demonstrate that we
    plan is a stated commitment to growing sales,                 can manage people down the line, we must be able to
    increasing turnover, expanding the customer base or           manage them up the line too.
making it to management level. Proudly stated, a plan
shows drive, ambition and the existence of goals, all of          Politics is not a dirty word – it is simply opening lines of
which imply career focus and direction and generally              communication with decision makers within the
impress the management team.                                      organisation. It is about building networks and finding
                                                                  ways to get your ideas aired in the right place, and to take
A strategy is a different thing entirely. It is more about the    credit for things you have achieved. It is about
moves you will make today, quietly and often unnoticed,           understanding where power comes from and how it can
in order that the plan will fall into place tomorrow. It is       be harnessed and used well.
about having a clear picture of the end of the road, and an
understanding of the twists and the turns that have to be         Some people describe it as a bit like running for office, at
negotiated in order to get there.                                 the office. That is, presenting your case in the best
                                                                  possible light to the best possible audience all of the time,
The problem is that women often mistakenly think that             not just when a job or promotion is coming up.
spending time on this sort of thing is playing politics, and
something that they don’t have the patience to dwell on.          And it is also about confidence, the confidence to know
Typically, women focus on doing a job really well, and            that we can employ skills we use in all kinds of real life
believe that this should speak for itself.                        situations every day, and apply them to the workplace. We
                                                                  expertly manage homes, parent-teacher relationships,
But when Mary, who is running her department like                 community projects, elderly parents and a whole range of
clockwork, is passed over for promotion and John, running         other commitments and we can easily do the same on the
the department next door – she would suggest not half as          job.
efficiently – gets the management job, Mary is left
wondering what on earth happened. Perhaps the answer              Unfortunately, despite all the advances made towards
is that no one knew how well her department was                   gender balance in the workplace, studies are still showing
running! While she had her head down attending to the             that women have less career confidence than their male
micro, John was putting less time into the day to day, and        counterparts. In a survey on the subject last year, only 50%
his extra available time into the macro – his strategy of         of women state that they have high career confidence
networking and making sure that everyone important                compared with 70% of men. And very interestingly, while
knew about all his achievements.                                  over 20% of men will ‘chance’ going for a job or promotion
                                                                  above their skillsets, only 14% of women will have a go.
Taking the John and Mary analogy further, in the tall
building with the slow lift John lurks in the foyer in the        There is no magic wand that will create confidence
morning until he sees the CEO about to get in, and hops in        overnight, or erase the ‘imposter syndrome’ that many
beside him for the ride up and the golden opportunity to          women report – a feeling that they got the current job or
tell him how well that project turned out. Mary is about          promotion by accident and they are bound to be found
to get into the lift beside the CEO one morning,                  out soon. But by starting to campaign for your career, and
completely by accident, but she pauses instead, checks            gathering ‘votes’ from people that matter, you will begin
something on her mobile phone, and catches the next lift          to feel a small surge of confidence that can be the
up instead. Why? Because she thinks she would have                platform for further development.
nothing to talk to him about - she doesn’t play golf, and
he hardly wants to hear how her kids are doing.                   By gathering ‘votes’ I mean working out the hidden lines
                                                                  of communication within an organisation, as opposed to
The change in mindset obviously needed here is that               the formal lines of communication, and finding a way in;
office politics is not an optional add-on to the job, it is the   developing a personal ‘brand’ within the organisation;
job. Skills and accomplishments are only part of what gets        building relationships with people who may mentor you,
us jobs in the first place. The other part, and a very            or eventually even actively campaign for your

                                                                                         hrm – the inside leadership series 2012
16    article four


shattering the glass ceiling



advancement; and creating visibility by taking on high
profile projects.

There are still only thirteen women CEOs at the head of
Fortune 500 companies in the US, but there has never
been a better time for women to make their mark.
Worldwide research is showing that companies with more
women in leadership roles are actually giving higher
returns. It seems that the more consensus building and
collaborative approach of women is coming into its own in
the current age, and the bottom line will always be a great
driver.

At home, a range of state board appointments advertised
since 2009 have had a gender quota which made it very
attractive for women to apply, and in the UK the Davies
review recommended that by 2015, 25% of the directors
of publicly quoted companies should be women.

This is a time of great opportunity for women: women
who believe they have a right to a place at the table –
management, boardroom or political. You have the
education, the skills and the experience. All you need now
is the mindset.


Orlaith Carmody is a Director of Mediatraining.ie and sits

on the Board of RTÉ. She runs a workshop for executive

women, Shattering the Glass Ceiling. Details at

www.mediatraining.ie




 Great Minds
 (think apart)

                                                              Contingency & Retained Search, Contract &
                                                              Interim Selection through 3 Practice Areas:

                                                              professional services group
                                                              science & technology group
                                                              commercial & support group


                                                              HRM Recruitment Group | p: (+353 1) 632 1800 | e: info@hrm.ie | www.hrm.ie




hrm – the inside leadership series 2012
final note       17


final note



Since our inception over twenty years ago, clients
have trusted HRM to deliver the very best talent
into critical Senior Executive and Middle
Management, Specialist and Senior Support
appointments.

We are a single-source for a wide range of talent
acquisition services including Contingency and
Retained Search, Contract and Interim Solutions,
Talent Mapping and Recruitment Outsourcing.

Today our client base ranges across industries,
from start-ups to global giants and is split
between Ireland, Western Europe and UK. Our
talent reach however is global. Our internal
research team and external research providers
build on our unique understanding of client
needs to deliver outstanding selection results.

HRM’s investment in technology, in training and
in selection tools means we can assess
candidates, not just for the immediate need, but
also for their likely future behaviour and stretch
potential. We seamlessly integrate process steps,
market research and outstanding judgement to
generate unique insights and solutions for our
clients.

HRM, an Irish Business with a European
Customer Base and a Global Talent Reach.




                      hrm – the inside leadership series 2012
HRM Recruitment Group,
47 Fitzwilliam Square, Dublin 2.


p: (+353 1) 632 1800
e: info@hrm.ie



www.hrm.ie

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Ireland's Executive Talent Management Commentary 2012 - Back to the Future

  • 1. ireland’s executive talent market commentary 2012 Back to the Future – The link between talent, performance and future organisational success Employee Value Proposition - Competing for Talent ----------------------------- Navigating a Changed Reward Landscape ----------------------------- High Performance Leadership - Is the Leader Performing? ----------------------------- Shattering the Glass Ceiling hrm – the inside leadership series 2012
  • 2.
  • 3. contents: 01 introduction 04 article one Employee Value Proposition - Competing for Talent 07 article two Navigating a Changed Reward Landscape 11 article three High Performance Leadership - Is the Leader Performing? 14 article four Shattering the Glass Ceiling 17 final note introduction Before the global economic crisis we Organisations will either adapt or cease to exist. Having been through lived in a world of optimism and periods of cost cutting, hiring freezes and budget constraints, the ambition. We expected a future of transformation challenge that businesses everywhere now face is getting personal and economic growth, of back to having a future. A transition that means building confidence and security balanced with risk, of enterprise developing the capacity to take on the challenges of new growth. Central and development. Since the financial to this is the issue of talent. crisis in 2008, every generation in every Despite the continued rise in unemployment in many countries, developed country in the world has been organisation leaders and their HR teams know that a lack of the right skills impacted by the most difficult economic and personal competencies is the biggest obstacle to organisational period since the Great Depression. For growth. With workforces generally aging fast and with little current many if not most, the journey to appetite for graduate recruitment, the competition for talent is rising in its recovery is far from over. intensity. Talent management therefore, will be a core strategy for years to come for any competitive organisation. hrm – the inside leadership series 2012
  • 4. 02 introduction ireland’s executive talent market commentary 2012 Back to the Future – The link between talent, performance and future organisational success Our 2012 commentary Back to the Future, proposes that Reward is naturally a key element of any talent organisations of all shapes and sizes who wish to grow management strategy and rarely far from the minds of must get back to planning for a positive future. The leaders and HR specialists in these economically themes we reflect on here, relate to aspects of Talent constrained times. We invited leading compensation Management and in each case we have invited subject consultant Pat Gurren of Gurren Compensation to share experts to share their perspective. how global organisations are currently re-designing their compensation systems to achieve a more effective reward We begin with Graham Morris, HRM’s Managing Director structure and the steps your company needs to take to on the subject of Employee Value Proposition (EVP). This maximise its value from this investment. coincides with the release by HRM of the largest survey ever conducted in Ireland on EVP. The research across ten While attracting, retaining and developing talent all professional categories and twenty industry segments require their own talent strategies, the overall goal is high looks at the challenges of managing other people’s performance. We are delighted that one of the most perception of your organisation as an employer and its interesting strategy consultants we have met on this impact on their decision whether or not to engage with subject, agreed to share his thoughts. Brian MacNeice is a you as a candidate or as an employee. partner at Kotinos, who draw their intellectual property hrm – the inside leadership series 2012
  • 5. introduction 03 on how to create a high performing organisation, directly HRM’s core differentiator is the outstanding judgment we from the source. Their research interviews span some of bring to our clients, borne from our commitment to high the most exciting organisations in the world, from the All quality research. Our Research Team provides clients with Blacks to NASA and draws on the type of performance a range of services including executive research and talent insights few of us ever get to see first hand. mapping. In addition, they support our own research agenda leading to the release of highly valued market In looking to the potential for untapped talent within reports throughout the year. “Showing a Lot of Promise – organisations, we asked former journalist and broadcaster What matters in your Employee Value Proposition”, Orlaith Carmody to pen some thoughts on the barriers released in February 2012 and available at www.hrm.ie is that women all too often seem to face in their an essential guide to the steps organisations can take in organisations. A communications expert, TV producer, order to achieve better quality talent pipelines and higher media trainer and Non Executive Director at RTE, Orlaith levels of employee engagement. We hope you enjoy and works with female executives on how to overcome glass find value in the content of our 2012 commentary. If you ceiling obstacles and identifies a key step women can take would like to know more about any of the contributing to help realise their potential and drive the development authors, get in touch through the address below. of their own careers. Michael O’Leary | Chief Executive HRM Recruitment Group michael.oleary@hrm.ie hrm – the inside leadership series 2012
  • 6. 04 article one commentary It seems paradoxical that talent Ireland’s employment landscape is management should be such a critical changing more rapidly and more strategic issue for companies in Ireland permanently than at any previous time at a time when unemployment is and with it the skills and experience running at its current level. Yet the demanded. As global markets become competition to attract and retain more competitive and more challenging professional talent is as high today as - acquiring, developing and retaining experienced just before the peak of the the skills necessary to achieve boom. This may well be because, organisation goals become central to despite the high numbers of organisational strategy. unemployed in Ireland, the Central Statistics Office indicates that the In the first of our articles Competing for professional / technical / managerial Talent, Graham Morris, Managing group represents just 10% of the overall Director at HRM Recruitment Group Live Register. While this is no comfort to talks about how Employee Value anyone out of work, it explains why Proposition can boost your Talent supply in professional labour categories Management Strategy. The article is not as fluid as some might believe. To discusses how to make your this add current emigration levels, at or organisation more attractive to passive, around 60,000 to 70,000 people discerning talent in the external labour annually, of which the peak age range is market and increase commitment from between 25 to 44, an increasing current employees. majority of whom are Irish nationals and the challenge becomes more apparent. hrm – the inside leadership series 2012
  • 7. article one 05 Employee Value Proposition - Competing for Talent E mployee Value Proposition (EVP) in many ways, of talent pools with organisation goals and values. For shapes your organisation’s overall Employer existing employees retention levels are generally much Brand. Whether you apply strategic perspective or higher, while performance and effort also improve. Many simply ignore the subject altogether, by design or well known studies point to a clear correlation between default your company has its own Employer Brand. EVP levels of employee engagement and cost of sales. The therefore, is how the external labour market characterises Employee-Customer-Profit Chain developed by the US your organisation, it feeds the decision making process for department store chain and online retailer, Sears Roebuck a candidate considering whether to apply or work for you. in the late 90’s, links Employee Value to Customer Value to For your current employees, EVP represents the value or Shareholder Value. Engaged employees grow service deal an employee receives as a consequence of being experience and profit. employed by you. This “value proposition” is not limited to compensation elements of their relationship with your We know employment relationships have both physical company, but also includes many other factors, such as and emotional elements. While the former includes the quality of your managers, the stability and success of “hard” aspects such as reward and working environment, your organisation, the kudos that may be attached for an emotional elements include the often more powerful employee by working for your company, the career “softer” characteristics of a workplace. For example, the opportunities you provide and the work/life balance you relationship with colleagues and the esteem in which a create. person may be held by them, the satisfaction of a job well done and knowing that the effort and contribution an Competitive organisations who develop clear and employee makes, actually matters, along with the belief in implementable EVP strategies, report substantial tangible being part of a bigger worthwhile mission. We spend as returns from their EVP activity and investment. These much if not more waking time with work colleagues as we include; greater access to passive talent, better alignment do with family and friends, so it is not hard to see how the hrm – the inside leadership series 2012
  • 8. 06 article one employee value proposition - competing for talent psychological impact of our work can contribute to our The HRM EVP Report “Showing A Lot of Promise – What overall sense of well being. matters in your Employee Value Proposition” covers all aspects of employee proposition including ”Career In the largest ever external survey on EVP to be conducted Development”. The top influencers in this category are the in Ireland, HRM undertook to evaluate what matters to perception of your “Organisation’s Stability” and the Irish professionals to the extent that it would attract quality of your organisation’s provision of “Performance them to, or keep them at any particular organisation. Over Feedback”. Female respondents to the survey in particular 10,000 people participated in the survey, the full results of regard this latter aspect as “Highly Important”. which published in February 2012, outline the key determinants that make up a strong EVP for any company. As recruiters, one of the most frequent mistakes we see A comprehensive analysis of the responses is detailed in organisations make is mishandling the recruitment the report including how ten different occupation types process, often without even realising it. The top four responded, how needs change up the career ladder and a “Hiring Process” related factors that would significantly gender based breakdown. On that last point and linked to impact a professional candidate’s decision, whether or not an article later in this report by Orlaith Carmody, of the to accept a position with your organisation are: five career levels (Director - Functional Head - Senior Manager - Middle Manager - Specialist/Stand alone 1. The level of rapport between them and their likely new professional) that respondents to the survey were given to manager during the interview process. describe their current position, males outnumbered 2. The level of interest shown at interview by the females in percentage terms at the top three levels of interviewers. seniority by two to one. The ratio at the highest level 3. Timely communication throughout the recruitment “Company Director” between male and female process. respondents was almost four to one. Women only 4. Being met by a relevant senior manager at the first outnumbered male respondents at Middle Manager or meeting. below. As your organisation works to get back into the habit of Developing an EVP strategy can be challenging as in effect planning for a successful future - particularly if you are in you are dealing with the management of perception, the aftermath of headcount, compensation or operational particularly in terms of the external labour market. Ask cut backs - developing a sustainable EVP is essential. An yourself how much today is known about your company? effective EVP simply reduces costs, improves talent What is being said about your organisation on the pipelines and grows performance. As you seek to commit internet and not just as a place of work? What do your your employees to using their “discretionary” effort and current employees say about your business when they get align them to your high performance goals, creating an home to their families at night, or meet friends for overall “deal” that touches on all the elements of the dinner? From our EVP survey report, we can tell you that employment relationship makes total sense. In an article the top five organisation characteristics or behaviours later in this report, compensation consultant, Pat Gurren, that professional candidates identify as influential on the talks about steps you can take to create more value from perception of your organisation as an employer are: the pay aspects of your total rewards programme. The contention made here is, that as your organisation seeks 1. How your organisation shows respect for employees. to emerge from the global economic crisis, the ability to 2. Your organisation’s approach to ethics. attract and retain the right talent will be essential. This 3. Your organisation’s approach to quality standards. means understanding the total experience an employee 4. Your organisation’s reputation with customers. or prospective employee has with your organisation and 5. The level of employee empowerment that is the value they place on each and every element of that encouraged. experience. With these in mind, go back and ask yourself again the questions contained in the previous paragraph. Graham Morris is Managing Director of HRM Recruitment Group. For more information, visit www.hrm.ie graham.morris@hrm.ie hrm – the inside leadership series 2012
  • 9. article two 07 perfection Contingency & Retained Search, Contract & Interim Selection through 3 Practice Areas: professional services group science & technology group commercial & support group HRM Recruitment Group | p: (+353 1) 632 1800 | e: info@hrm.ie | www.hrm.ie commentary Graham Morris’ article on EVP makes it It is in this climate, that organisations must clear that performance and engagement is find methods to attract, grow and retain about so much more than just high performing talent. In reviewing their compensation. Yet, Reward remains a Reward systems, many companies have central component around which many HR learned that far from being at the heart of strategies are based. These are challenging driving their businesses, their “incentive” times for Reward professionals. Attitudes to pay barely related to individual output or money changes dramatically in a recession. organisation goals. Having been through Those who risked capital to grow value in rounds of salary reductions, withdrawals of good times, are deemed to have received benefits etc., companies now face the most their “just desserts” if all comes tumbling important change in their reward structure; down around them. With less disposable making it count. income available, employees often Against this backdrop, with growing competition for the question much more than just their rate of best talent and a need to justify every cent, HR, Line and pay. Society influences much of this shift. Reward managers must address this challenge. In Consider that the word “Bonus”, previously Navigating a Changed Reward Landscape, Pat Gurren and the key link word between performance Brid Cudmore, Reward Consultants at Gurren Compensation, outline how to ensure the lessons of and pay, now more associated with greed previous years are learned and steps to take to ensure and avarice. your Reward system drives future organisational success. hrm – the inside leadership series 2012
  • 10. 08 article two navigating a changed reward landscape T he economic environment over the last three Signposts for successful navigation years has confronted organisations and HR professionals with reward challenges and 1. Stick with the knitting. The Total Rewards Model (see opportunities not experienced in over a Figure 1) still holds. We start with this premise as the generation. Organisations have dealt with these model that has both stood the test of time and challenges or opportunities with varying degrees of continues to have the virtue of common sense success. Some have surprised themselves with what has underpinning it. We know that come what may in the been possible to accomplish either because of, or in spite future, organisations will continue to need the ability of, the economic environment. Here we seek to set out to attract, motivate, retain and most importantly some signposts for organisations or HR professionals on engage their employees. The emphasis and application how best to navigate the changed reward landscape. of particular elements of the reward strategy may These steps are drawn from our experience in the design change over time due to environmental factors but of compensation systems for many different fundamentally the model continues to apply. organisations in Ireland and overseas, facing a wide variety of compensation challenges and opportunities. hrm – the inside leadership series 2012
  • 11. article two 09 Figure 1: Adapted from WorldatWork’s Total Rewards Model 2. First things first. An organisation’s total reward b. Demonstrate clear linkage between every reward strategy can only be effective if it is integrated with programme implemented and how it fits with the and driven by the organisation’s business strategy, organisation’s business strategy, organisational organisational culture and overall HR strategy. One culture, HR strategy and overall reward philosophy. “blessing” of the economic turbulence over the last Typically, successful organisations are merciless in three years is that a lot of the “fluff” in terms of eliminating or not implementing in the first place, communicating and creating linkage between an programmes that do not fit overall business strategy. organisation’s business strategy, organisational culture c. Focus on reward strategy in a holistic manner and HR strategy was eliminated as organisations over the medium to long term. Reward professionals focused on survival. As the economic environment must have a clear vision of the desired end state for stabilises and begins to improve, organisations should the organisation’s total reward proposition. They resist the temptation to fall back into their old ways. should manage consistently in a strategic manner to Organisations that retain the ability to crisply achieve this end state. In the absence of this clear communicate and articulate both business strategy vision, it is easy to lose direction over time. and organisation culture, will retain a competitive d. Understand what employees value when it advantage as the foundation for both their HR and comes to reward. Organisations who have Total Reward Strategy will be robust. For example, they mechanisms (for example employee engagement or will have the ability to effectively link performance organisation climate surveys) to establish how related pay programmes to business strategy. employees perceive various reward programmes are best positioned to design an integrated reward 3. It’s all about synergy. The individual elements of the strategy. It is particularly important that when Total Rewards Strategy (See Figure 1) are relatively employees are surveyed on how they value reward straightforward to design and implement within programmes that they are forced to prioritise organisations. The real challenge for an organisation their responses via forced ranking of preferences. lies in creating the synergy between all the elements (compensation, benefits, performance etc.) so that 4. Get the basics right. Reward professionals tend they work in harmony with one another. Creating this to be relatively conservative in nature. There is good synergy is easier said than done. Sustaining this reason for this which many organisations have learned synergy over the medium to long term in an ever the hard way during the economic downturn. Many of changing environment (internal and external) is even the elements of the Total Rewards Strategy are more difficult. Organisations who are the most structural in nature i.e. they have cost and/or legal successful in sustaining the synergy required tend to entitlement elements which once implemented are do the following; extremely difficult to dismantle or remove from the a. Focus on designing a finite number of reward total reward proposition. Furthermore as organisations programmes very well rather than designing an have also learned during the economic downturn, the infinite number of less relevant programmes. Reward cost of providing reward programmes is not as professionals must continuously challenge and decline responsive to economic cycles as they may wish. Going requests for new reward programmes that are either forward organisations should take the following unnecessary or incompatible with the overall total lessons into consideration when seeking to best rewards strategy or business strategy. manage the structural elements of their reward programmes; hrm – the inside leadership series 2012
  • 12. 10 article two navigating a changed reward landscape a. Know the numbers. Reward costs tend to represent economic downturn organisations should ensure that a significant percentage of an organisation’s total they communicate their reward strategy effectively. In operating costs. Organisations and reward particular as organisations make changes or decisions professionals must be on top of these numbers. in relation to pay programmes, how these changes Companies need key metrics in place to monitor will be applied and the impact upon employees must performance in this area; Total Reward Costs as a be thought through and communicated thoroughly. percentage of Total Operating Cost, Total Reward Cost Communication is central to capitalising on the per employee, Year on Year Changes in reward costs, contribution that reward can play in enabling Variable Reward Cost as a percentage of Total Reward organisations to drive high levels of employee Cost etc. engagement. For high levels of employee engagement, b. Clarify the fixed versus variable percentage of its employees must perceive that their reward reward costs that best meets the business model of programmes are fair both internally (relative to the organisation. The variable element should flex up internal peers) and externally (equitable with the and down with the performance of the organisation. external market rates). How effectively the While variable pay programmes like bonus/long term organisation communicates its reward strategy is at incentive plans have been in place for decades, it is least as important as the quantum of the rewards surprising that in most organisations today the provided. variable pay element represents a very low percentage of the organisation’s total reward cost. In most cases As with life, times of great challenge and adversity test this percentage can be measured in single digit and teach us much more than times when all is going figures. There is a real opportunity for organisations well. As we emerge from the economic downturn it will be who wish to have more pay contingent on the tempting to put it behind us as soon as possible and get organisation’s performance to design this into the mix back to undertaking what we perceive as more “positive” so that future pay costs will flex more with economic initiatives. However, the challenge that reward conditions. professionals face going forward is how to ensure that c. Manage the structural elements effectively - these hard learned lessons are applied and maintained to salary ranges, merit matrices, job sizing/pricing optimise the success of their organisations in the future. processes. Some organisations found to their cost during the economic downturn that their salary ranges Pat Gurren is Principal Consultant and Brid Cudmore is a were no longer fit for purpose, range mid points were Senior Reward Consultant at Gurren Compensation, an not properly aligned to target market position and employees had been allowed drift up within the salary independent HR consultancy specialising in compensation ranges. The management of these “basics” is essential and benefits. See www.gurren.ie for more information. to the structural integrity of total reward cost management over the medium to longer term. 5. Communication. One of the more interesting developments to emerge during the downturn is that in some organisations, employee engagement scores have increased considerably. At a first glance this may appear counterintuitive but on reflection it makes logical sense. In most cases this increase in employee engagement levels can be linked back to an increased level and improved effectiveness of communication within organisations as they grappled with surviving the challenges they faced. In the economic downturn many managers needed to put more emphasis on ensuring employees understood what was going on in their organisations and what performance levels were required of the employee. As we emerge from this facing changes? Interim & Contract Professionals from HRM hrm – the inside leadership series 2012
  • 13. article three 11 commentary In a 2011 article global consulting firm McKinsey ask “Do you have the right leaders for your growth strategies?” They investigate whether there is a confirmed link between growth and specific leadership traits by comparing their own data on organisation growth performance, with a database of performance appraisals belonging to international search firm Egon Zehnder. Ultimately, they arrive at the conclusion that “leadership quality is critical to growth, that most companies don’t have enough high-quality executives, and that certain competencies are more important to some growth strategies than to others.” It is for this reason that proportionately speaking, the current volume of change at executive level in most international recruitment markets is several times that of middle management or lower. We understand in general what traits a good leader must In High Performance Leadership – Is the Leader have, depending on the challenges they face. But defining Performing? Brian MacNeice of Kotinos Partners talks what great leaders actually do to create a high about the results of his organisation’s research in to some performance organisation is not always so easy. What are truly remarkable organisations. MacNeice’s own career as the elements and activities that a leader brings, that drive a top management consultant with leading global firms, an organisation to greatness? along with his experience in sport as a Heineken Cup Referee and an Irish Cricket Selector gives him first hand experience of the essential dynamics that enable great organisational success. hrm – the inside leadership series 2012
  • 14. 12 article three High Performance Leadership – Is the Leader Performing? O ver the last seven years we have been 1. People change when their circumstances change – as researching the world’s greatest performance Darwin proved we are adaptive beings, shaped by our environments to help us develop a deep environment and will react or adapt accordingly. insight into what drives better performance from any group of people. The research has taken us all 2. Certain changes in circumstances will stimulate over the world from sport (New Zealand All Blacks), the improved performance in the population of people arts (Julliard School of Music, New York), military (US Navy impacted by those circumstances – this is a logical Seals), science and technology (MIT and Harvard), conclusion from above. In other words if we are business (Google) and many other examples of genuine shaped by the environment around us and adapt high performance. Each year our research continues and accordingly surely there is a specific set of our understanding deepens. We apply that thinking to our circumstances that can be created that will lead to a work with CEO’s, Leadership Teams and Executives to reaction called improved performance. deliver great outcomes for our clients. 3. Our role as leaders is to implement the specific There is, however, a constant underlying premise that lies circumstances that stimulate improved performance at the core of our research and is of profound importance in our population of people – if 1 and 2 are right then to any executive with responsibility for managing the natural progression of this theory is that any performance of people. leader (CEO, Senior Executive, Manager, Team Leader, etc.) has a duty to ensure that they create the right The premise comes in three parts: conditions in their environment that will lead to improved performance from the people within. hrm – the inside leadership series 2012
  • 15. article three 13 If you are in a leadership role - executive, functional, or Promoting Development Through Effective Feedback – they line – then a key part of your role is creating and create and foster a feedback rich culture. managing a high performance environment for the people under your responsibility. What our research has Measuring What Matters Effectively – they isolate and helped us understand is that as a leader if you are not identify the measures that give an accurate picture of creating the right conditions for delivering better current performance in the areas that really matter and performance from your people, then bottom line, you are they ensure these measures are effective. not doing your job! Creating Performance Pressure – they create mechanisms But how do you go about setting the right environment to ensure that the performance pressure is strong within for performance in any group of people? This continues to the environment and there is no room for complacency. be the unique focus of our research. We have found that great organisations are made, not born. They are made on Injecting Meaning – they develop a strong sense of the back of a set of organisational capabilities that, over purpose or meaning that drives people and this is time, are built into the DNA of the organisation and that reinforced through action not just words. lie at the heart of its performance environment. We have also found that these organisational capabilities can be The core of every leadership role in any organisation is developed by the leaders within the business to ensure about creating and maintaining the right conditions for that better performance is delivered and sustained over people to deliver better performance. This is a time. fundamental and is non-negotiable. The performance pressure on every business today is greater than ever. As Our research has shown that the same organisational we have found, great organisations are made not born. capabilities are common across virtually all of the high What are you doing to make your organisation great? performing institutions we have studied and more After all it is your job ... particularly they have been cultivated over time in a deliberate way by the leaders of these institutions. We do Brian MacNeice is a founder and Managing Director of not explore each capability in depth here – that is the Kotinos Partners Limited, a niche advisory firm working focus of a series of articles that tackle each one to help CEOs and their teams achieve sustained high individually. However, the following is a summary of what we have found. performance. For more information, visit www.kotinospartners.com. Setting Unreasonable Ambition – the best institutions are constantly setting and aiming for great challenges. Being Strategic – they have a clear understanding of the two or three things that matter more than anything else in determining success. Maintaining High Standards & Expectations – they set ridiculously high standards in the areas that matter most and are explicit about what represents acceptable and more particularly unacceptable performance. Being Decisive, Promoting Decisions – they build a culture that allows, encourages and expects people to make informed decisions and take responsibility at all levels within the organisation. changing faces? Interim & Contract Professionals from HRM hrm – the inside leadership series 2012
  • 16. 14 article four commentary The environment in which organisations have found themselves over the last few years, has resulted in a continuous need to drive to improve employee and organisation performance. Necessity is the Mother of real talent analysis and petty biases are begining to be put aside. Yet while the level of female presence in boardrooms and senior management teams is slowly rising, statistics show females still lag behind their male counterparts in achieving higher office. In any organisation today, how much talent sits untapped, In Shattering the Glass Ceiling, former journalist and simply due to gender? How often does the very leadership broadcaster Orlaith Carmody discusses some of the subtle potential companies seek to secure their future, remain communication elements that women need to adopt to overlooked within, purely because it is female? Why do so propel their own careers. As a Non-executive Director and many Irish companies today have no females on their leading media/communications consultant, Orlaith board or in their CEO positions? Carmody argues, that organisational elements women often dismiss as irrelevant, such as internal politics are key While the basis for this has historically been regarded as for them to embrace. And that there are many being down to institutional bias, many commentators opportunities available today for women to break through now suggest that it is in fact women who need to adapt to the highest levels, if they are prepared to invest in order to thrive. The challenges are to understand, how thought and time in developing a strategy. frequently superior female people skills, can be developed to achieve more productive relationships between executives and help to work mutually through periods of organisation conflict. That female executives, rather than adopt the perceived stereotypical behaviours of their male counterparts and risking the “ball breaker” tag, need to balance their personal strengths more effectively with organisation dynamics. hrm – the inside leadership series 2012
  • 17. article four 15 Shattering the Glass Ceiling I was once told that you should publicise your plan but significant part, is our ability to relate, negotiate and keep your strategy secret, and it was good advice. A manage relationships. If we want to demonstrate that we plan is a stated commitment to growing sales, can manage people down the line, we must be able to increasing turnover, expanding the customer base or manage them up the line too. making it to management level. Proudly stated, a plan shows drive, ambition and the existence of goals, all of Politics is not a dirty word – it is simply opening lines of which imply career focus and direction and generally communication with decision makers within the impress the management team. organisation. It is about building networks and finding ways to get your ideas aired in the right place, and to take A strategy is a different thing entirely. It is more about the credit for things you have achieved. It is about moves you will make today, quietly and often unnoticed, understanding where power comes from and how it can in order that the plan will fall into place tomorrow. It is be harnessed and used well. about having a clear picture of the end of the road, and an understanding of the twists and the turns that have to be Some people describe it as a bit like running for office, at negotiated in order to get there. the office. That is, presenting your case in the best possible light to the best possible audience all of the time, The problem is that women often mistakenly think that not just when a job or promotion is coming up. spending time on this sort of thing is playing politics, and something that they don’t have the patience to dwell on. And it is also about confidence, the confidence to know Typically, women focus on doing a job really well, and that we can employ skills we use in all kinds of real life believe that this should speak for itself. situations every day, and apply them to the workplace. We expertly manage homes, parent-teacher relationships, But when Mary, who is running her department like community projects, elderly parents and a whole range of clockwork, is passed over for promotion and John, running other commitments and we can easily do the same on the the department next door – she would suggest not half as job. efficiently – gets the management job, Mary is left wondering what on earth happened. Perhaps the answer Unfortunately, despite all the advances made towards is that no one knew how well her department was gender balance in the workplace, studies are still showing running! While she had her head down attending to the that women have less career confidence than their male micro, John was putting less time into the day to day, and counterparts. In a survey on the subject last year, only 50% his extra available time into the macro – his strategy of of women state that they have high career confidence networking and making sure that everyone important compared with 70% of men. And very interestingly, while knew about all his achievements. over 20% of men will ‘chance’ going for a job or promotion above their skillsets, only 14% of women will have a go. Taking the John and Mary analogy further, in the tall building with the slow lift John lurks in the foyer in the There is no magic wand that will create confidence morning until he sees the CEO about to get in, and hops in overnight, or erase the ‘imposter syndrome’ that many beside him for the ride up and the golden opportunity to women report – a feeling that they got the current job or tell him how well that project turned out. Mary is about promotion by accident and they are bound to be found to get into the lift beside the CEO one morning, out soon. But by starting to campaign for your career, and completely by accident, but she pauses instead, checks gathering ‘votes’ from people that matter, you will begin something on her mobile phone, and catches the next lift to feel a small surge of confidence that can be the up instead. Why? Because she thinks she would have platform for further development. nothing to talk to him about - she doesn’t play golf, and he hardly wants to hear how her kids are doing. By gathering ‘votes’ I mean working out the hidden lines of communication within an organisation, as opposed to The change in mindset obviously needed here is that the formal lines of communication, and finding a way in; office politics is not an optional add-on to the job, it is the developing a personal ‘brand’ within the organisation; job. Skills and accomplishments are only part of what gets building relationships with people who may mentor you, us jobs in the first place. The other part, and a very or eventually even actively campaign for your hrm – the inside leadership series 2012
  • 18. 16 article four shattering the glass ceiling advancement; and creating visibility by taking on high profile projects. There are still only thirteen women CEOs at the head of Fortune 500 companies in the US, but there has never been a better time for women to make their mark. Worldwide research is showing that companies with more women in leadership roles are actually giving higher returns. It seems that the more consensus building and collaborative approach of women is coming into its own in the current age, and the bottom line will always be a great driver. At home, a range of state board appointments advertised since 2009 have had a gender quota which made it very attractive for women to apply, and in the UK the Davies review recommended that by 2015, 25% of the directors of publicly quoted companies should be women. This is a time of great opportunity for women: women who believe they have a right to a place at the table – management, boardroom or political. You have the education, the skills and the experience. All you need now is the mindset. Orlaith Carmody is a Director of Mediatraining.ie and sits on the Board of RTÉ. She runs a workshop for executive women, Shattering the Glass Ceiling. Details at www.mediatraining.ie Great Minds (think apart) Contingency & Retained Search, Contract & Interim Selection through 3 Practice Areas: professional services group science & technology group commercial & support group HRM Recruitment Group | p: (+353 1) 632 1800 | e: info@hrm.ie | www.hrm.ie hrm – the inside leadership series 2012
  • 19. final note 17 final note Since our inception over twenty years ago, clients have trusted HRM to deliver the very best talent into critical Senior Executive and Middle Management, Specialist and Senior Support appointments. We are a single-source for a wide range of talent acquisition services including Contingency and Retained Search, Contract and Interim Solutions, Talent Mapping and Recruitment Outsourcing. Today our client base ranges across industries, from start-ups to global giants and is split between Ireland, Western Europe and UK. Our talent reach however is global. Our internal research team and external research providers build on our unique understanding of client needs to deliver outstanding selection results. HRM’s investment in technology, in training and in selection tools means we can assess candidates, not just for the immediate need, but also for their likely future behaviour and stretch potential. We seamlessly integrate process steps, market research and outstanding judgement to generate unique insights and solutions for our clients. HRM, an Irish Business with a European Customer Base and a Global Talent Reach. hrm – the inside leadership series 2012
  • 20. HRM Recruitment Group, 47 Fitzwilliam Square, Dublin 2. p: (+353 1) 632 1800 e: info@hrm.ie www.hrm.ie