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3

ATTRACTING TALENT

T he increased importance of talent makes it crucial that organ- izations have the right talent. Th e staffi ng pro cess begins with the recruiting pro cess; it needs to be structured and operated in a

way that attracts talent that is aligned with the organ ization’s strategy and to do so in a way that prepares recruits to be eff ective employees. Accomplishing this requires integrated recruitment, se lection, and onboarding pro cesses that are targeted to attract, retain, and motivate individuals who can execute the business strategy.

Th e most impor tant step in the pro cess of building a talent manage- ment system that is able to attract and retain the right talent is the orga- nizational branding. Based on their reputation, visibility, and the condition of the labor market, organ izations need to create a brand and a recruiting pro cess that attracts and retains the talent that will enable them to be eff ective.

T H E S T R AT E G Y- D R I V E N B R A N D

Th e branding and recruiting pro cess of an organ ization should be driven by and supportive of its business strategy. Th erefore, developing an employer brand that attracts the right individuals should be an impor tant consideration in an organ ization’s business strategy. Th e business strategy will be a failure if it does not lead to the attraction of talent that can execute it. A key test of any business strategy should be whether it leads to and is supportive of an employer brand that will attract and retain the talent that is needed.

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C o p y r i g h t 2 0 1 7 . B e r r e t t - K o e h l e r P u b l i s h e r s .

A l l r i g h t s r e s e r v e d . M a y n o t b e r e p r o d u c e d i n a n y f o r m w i t h o u t p e r m i s s i o n f r o m t h e p u b l i s h e r , e x c e p t f a i r u s e s p e r m i t t e d u n d e r U . S . o r a p p l i c a b l e c o p y r i g h t l a w .

EBSCO Publishing : eBook Academic Collection (EBSCOhost) - printed on 5/10/2020 12:01 AM via TRIDENT UNIVERSITY AN: 1457718 ; Lawler, Edward E..; Reinventing Talent Management : Principles and Practices for the New World of Work Account: s3642728.main.ehost

Attracting Talent 33

Instead of talent attraction being considered aft er the fact, it must be part of the strategy development discussion. Strategy creators should ask, can we recruit and retain the right talent given this business strat- egy? Obviously if it calls for bad working conditions, low wages, or per- for mance and skill levels that cannot be achieved, it should not become the business strategy. If it calls for the organ ization to operate in ways that negatively impact the environment or society, it may not be able to attract the “right” talent, particularly if the right talent is young and well educated.

Organ izations need to consider what the best employment relation- ship is in which the work can be done. It may be a full- time job, or it may be an in de pen dent contractor or gig relationship. What ever it is, the employer brand needs to refl ect that relationship to attract the right talent and give potential employees an accurate picture of what is ex- pected of them and what working for the organ ization will be like.

All too oft en organ izations make the mistake of assuming that to at- tract the right applicants they should do every thing that they can to pres ent to the labor market and job applicants a positive image of what it is like to work for them. Th is is an understandable but foolish strat- egy. Th ere is a great deal of research that shows that organ izations that recruit talent with an inaccurate employer brand tend to have dissatis- fi ed employees and extremely high turnover rates; as a result, they end up incurring extra costs due to their high turnover rates, and they do not attract individuals who will perform successfully in the environment that exists in the organ ization because they block the self- selection pro cess of individuals from operating eff ectively. As a result, individuals take jobs that do not fi t their preferences and skills and organ izations fail to attract those individuals that do fi t. Th is leads to a strong recom- mendation: develop a realistic employer brand.

What does “realistic” mean? It means clearly pointing out what the pluses and minuses are of working for the organ ization and being sure that individuals are aware of what their work life will be like if they join. It is better to have people sign up for the “real deal” than to have them sign up for a false one. Having them sign up for a false deal will be much more costly in the long term and will create a situation that is more dys- functional than losing potential job candidates because they do not like the deal that is off ered. If there are not enough satisfactory applicants

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34 Reinventing Talent Management

when the real deal is used, then an organ ization needs to look at why it cannot off er an attractive real deal, and that may mean it needs to re- think its strategy and how it operates.

K E Y B R A N D I N G P O I N T S

What should an organ ization’s employer brand cover? Clearly it needs to say much more than “Th is is a great place to work.” It needs to be clear that the organ ization’s business needs are an impor tant determi- nant of what work will be like. If the organ ization needs to be a tech- nology leader, that needs to be made clear; if it needs to focus on customer ser vice, that should be clear. It also needs to say how and how much it intends to take into account the trends that have been men- tioned in chapters  1 and 2. It needs to address the type of leadership and management that individuals can expect, and it needs to focus on the goals of the organ ization and how that organ ization will relate to the society in which it operates. And yes, it also needs to deal with the rewards that employees can expect and what they will be responsible for. As will be discussed in chapter 6, it is critical that the rewards of- fered attract and motivate the talent that an organ ization needs.

Given the rate of change that exists, it is very impor tant that the brand address the agility issue and what change means in terms of changes in the work to be done, employment stability, training and de- velopment, and long- term employment opportunities. To make things even more complicated, it may need to get into the issue of segmenta- tion and diff erentiation and how this relates to fairness and equity. At the very least, it needs to make a commitment to individuals with re- spect to what they can count on in terms of continued employment and fair treatment. Overall, the key purpose of an employer brand should be to give individuals a realistic and comprehensive preview of what it is like to work for the organ ization.

Historically, many organ izations have done a good job of developing an employer brand. Old favorites include AT&T, ExxonMobil, General Electric, IBM, 3M, and Sears, among many others. From the 1950s through the 1990s, via their ads, be hav ior, and pre sen ta tions by their executives, these corporations gave people a good idea of what it was like to work for them. In many re spects they had it easy in the sense that

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Attracting Talent 35

they had what was essentially a relatively simple and straightforward proposition with re spect to what employees could expect in terms of job security, the work to be performed, long- term employment, fair treat- ment, leadership style, and corporate purpose.

It is much more diffi cult today for organ izations to develop an accu- rate and easy- to- communicate employer brand. Th e complexities of the business environment they face and their value propositions require more complex messages. Th ey need to send messages that suggest that working for them is not all positive, and they may have to send multiple messages because the need for segmentation and agility has led to them having multiple deals. Th ey may have to say that how talent is treated in areas including job security and working conditions depends on what kind of work that talent does in the organ ization and include the mes- sage that they cannot make promises with re spect to long- term employ- ment and the future.

Currently there are a number of organ izations that off er realistic strategy- driven employment deals that are very diff er ent from the tra- ditional ones. Perhaps the best example is Netfl ix, which makes an ex- traordinary eff ort to pres ent a realistic employment deal; its website extensively explains the advantages and disadvantages of working for the com pany. Some of the positives are above- market pay and an organ- ization that has enormous opportunities for individuals to make money, use their skills, and do in ter est ing work. Th e negatives are that employ- ment stability is low to non ex is tent and that unless talent performs at a high level, it will no longer be employed by the com pany but will get a “generous severance package.”

Amazon is another com pany that has developed an eff ective— though for some, off - putting— employer brand. It promises a job with a grow- ing organ ization, good pay, and opportunities for growth. It also stresses that it is a high- pressure environment and that individuals are expected to work hard and will have their per for mance closely monitored.

Many technology fi rms work extremely hard to develop unique em- ployer brands. Google (now part of Alphabet) has done this very well. It receives constant attention in the press for the extras it off ers its employ- ees, including transportation, meals, gyms, and a 24/7 work environ- ment. In return, Google expects individuals to be very committed and at times obsessed with working for the com pany. Not surprisingly, the

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36 Reinventing Talent Management

Google brand tends to attract younger talent and individuals who want their world to revolve around their work and information technology. Th is fi ts Google’s business model and has produced a committed work- force.

It is diffi cult, if not impossible, to overstate the importance of organ- izations eff ectively communicating to potential talent their manage- ment approaches. Working in a traditional hierarchical bureaucratic organ ization is very diff er ent from working in an agile, high- involvement organ ization. Th us, it is impor tant that organ izations develop employer brands that refl ect how they are managed and not just what they sell or how well they pay.

Other employer brands that are eff ective include those of the publish- ing com pany Berrett- Koehler, Patagonia, and Starbucks. Th ey have re- cruited staff on the basis of being socially responsible organ izations that treat their employees well and off er them extensive growth opportuni- ties. For example, Starbucks has a program that supports its baristas getting a college education and pays salaries that are well above the minimum wage in most of the states in which it operates. It also focuses on recycling and the com pany’s environmental impact. Th is represents a good fi t with re spect to the generation of individuals that Starbucks wants to attract, and it has produced a turnover rate lower than that of many of the com pany’s competitors.

Patagonia and Berrett- Koehler have built their employer brands on the basis of their being benefi t corporations. Th is form of incorporation allows organ izations to behave in ways that are socially responsible and not focused only on fi nancial per for mance. It is an enticing brand, one that gives the potential employer a competitive advantage in attracting individuals who are concerned about a com pany’s social and environ- mental per for mance.

Once the “right” brand has been developed it is critical that organ- izations communicate that brand eff ectively to potential hires and mon- itor how eff ectively they are communicating it. Th ey also need to have pro cesses that deal with cases in which individuals make a bad job choice because either they do not understand what it will be like work- ing for the organ ization or do not know how they will react to working for it even though they understand the brand. Th e online clothing mer- chant Zappos has dealt with this by off ering new employees a bonus if

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Attracting Talent 37

aft er a few months of employment they do not feel they are a good fi t and want to leave.

T H E R I G H T B R A N D

Th ere is no employer brand that is the right one for every organ ization. Choosing the right brand needs to be driven by an organ ization’s business strategy and the type of employees it needs to implement that strategy. It may be a business strategy that calls for a relatively homoge- neous group of employees; in that case the right brand could be a rela- tively simple one used to attract every one. Or it may be more complex because it requires a broad range of employees with re spect to age, de- mographics, national location, type of employment relationship, and so on. An eff ective employer brand is realistic and supports the business strategy of the organ ization; it should be driven by the strategy and, once developed, it should change when the strategy changes.

Th e key skills that an organ ization needs should be a clear driver of the organ ization’s employer brand and recruiting pro cess. Th e brand needs to be developed so that it describes a work environment that will attract and retain individuals with the key skills that are needed to diff erentiate the organ ization’s per for mance from that of its competi- tors. It may be based on social, managerial, or technical skills or a com- bination of them.

Th e skills that are needed may, for example, be more pres ent among younger employees. When this is true, the brand needs to refl ect the existence of the kind of work situations that attract younger employees. Many technology fi rms are good examples of building brands and re- cruiting pro cesses that attract the type of talent that is key to making a per for mance diff erence in their industry. Th ey have carefully built employer brands that are attractive to young information technology engineers.

Th e technology fi rms in Silicon Valley emphasize during the recruit- ing pro cess the type of physical and social environments that are pres- ent in the organ izations. Th ey also talk about the fl exibility, learning opportunities, and freedom that individuals have as well as the “life maintenance” support that employees get so they can live a lifestyle that involves high levels of commitment to their technical work. For example,

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38 Reinventing Talent Management

these fi rms provide ser vices that reduce employees’ need to go to the dry cleaners, to cook, to wash their cars, or to perform a plethora of other standard duties that are part of being husbands, wives, homeowners, and parents but may distract them from their work. As an extra benefi t, some organ izations help pay off student loans.

Employer brands have always been segmented and should continue to be. Th e employer brand for executives has always been diff er ent from that of hourly employees. Yet this type of hierarchically driven diff er- entiation of brands is not necessarily the best solution for the future. Yes, there should be segmentation, but it should be based on many of  the factors that have already been discussed as key determinants of  how talent management should be determined. Th e nature of the work, the culture and management style of the organ ization, and how talent management should operate in the future should determine the segmentation.

Segmentation should be partly based on the kind of skills and talent that an organ ization needs. Organ izations need a brand that attracts the kind of technical and management skills that it needs. In the case of some organ izations (e.g., those marketing consumer products and ser vices), it may mean developing a brand that refl ects a commitment to inclusion and supports diversity of many kinds. Th ere may also need to be signifi cant diff erences in an organ ization’s brand that are based on geography and type of business. This is particularly likely for multinational fi rms and for organ izations that are in more than one business.

Th e most challenging thing about building an eff ective employer brand is getting the right balance between a general brand and a brand that is specifi c to the employment relationship that exists for a par tic u- lar job. Th e brand needs to refl ect what the business strategy of the organ ization is, taking into account the geography in which it operates, what is expected of individual talent, and key local conditions.

To the extent pos si ble, an organ ization’s employer brand should be based on data that show what an organ ization’s good performers see as the key positive and negative factors about working for it. Th is is a good place to start, because it is likely to lead to a realistic preview and attract high- performance talent that is similar to that already in the organ- ization. Th e analy sis of what good performers value and see as positive

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Attracting Talent 39

needs to be constantly updated to refl ect the changing nature of the work and the organ ization. It also needs to refl ect the specifi c situation an organ ization is recruiting talent for.

Th e result of a strategic segmentation analy sis is oft en a corporate brand that is made up of a few key general points that are used on a corporation- wide basis. It is complemented by a number of segment targeted items that are used in recruiting par tic u lar types of talent to the organ ization.

It is worth once again stressing that what ever the brand is, it should be a realistic one. As noted earlier, bringing individuals to an organ- ization based on an unrealistic picture of what their work life will be like is a sure path to failure: it can lead to high turnover rates, poor per- for mance, and a negative corporate culture.

Fi nally, companies can and should monitor the attitudes and reac- tions of their new employees, job applicants, and potential job appli- cants through the systematic use of surveys. Th is will help to ensure that the interview and recruiting approaches used realistically portray what work will be like and that it is attractive to the right individuals. Such surveys do not need to use advanced information technology and big data, but those factors can make the pro cess easier. Th ere are fi rms that do surveys and publish the results (e.g., best places to work). Clearly such fi rms should be monitored, and organ izations should also do their own surveys of the applicant pools that they are inter- ested in to be sure that they have the type of attraction and recruiting pro cess that they need to appeal to the right talent.

S O C I A L M E D I A

Th e growth of social media has created a new way for organ izations to take their brand to the labor market and to determine how it is seen. Historically, employer brands have largely become vis i ble to the world through print and broadcast media, advertising, business news stories, and interpersonal interaction with employees, customers, and others who have dealt with the organ ization. Th e growth of so- cial media and the Internet has provided another source of informa- tion for individuals who want to fi nd out about fi rms. It also can help organ izations attract the right kind of applicants from articles on a

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40 Reinventing Talent Management

com pany’s website to postings by employees, customers, former em- ployees, and job applicants on Facebook, Twitter, and other social media sites.

Organ izations cannot control what is said about them on all of the platforms that exist. Th ey can, however, control their websites and some, such as Netfl ix, do a great job of presenting what they off er and expect from employees on their websites. Increasingly, organ izations are creating social media recruiting teams in their human resources departments that, among other things, have targeted interactions with potential job candidates and job applicants.

What organ izations cannot manage directly is what goes on in the many chat rooms and social media outlets that allow employees to post reactions to the organ ization’s actions, policies, and per for mance. What they can do in the case of these outlets, however, is monitor what is be- ing said about them as a place to work. Th ey can take this into account in determining how they recruit and hire, how they treat their employ- ees, the kind of workplace they provide in the future, their internal and external communications, and how they deal with their employees and job candidates. Th ey also can respond to what is being said on social media by posting corrections, information, and opinions that provide a realistic view of the organ ization. For comparison purposes, organ- izations should note what social media says about their competitors and analyze the posts to see how they diff er from what is said about them.

A move organ izations can make in the interest of positive attraction is to off er their existing employees fi nancial incentives to identify and recruit strong job candidates. Th is can help infl uence employees to por- tray the organ ization in a positive light to their friends and on social media platforms. Th is, in turn, should increase the applicant pool and improve its quality. It is particularly likely to be successful if rewards are based on hiring success.

Just as organ izations can control what is on their websites, they can also control what they post on many other sites, such as Glassdoor, LinkedIn, and Monster, which provide job searches and can help with recruiting. Organ izations can also develop their own apps that provide job information about openings and answer questions. Given how much use is made of smartphones, this is a potentially power ful way to pro- vide a realistic work preview.

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Attracting Talent 41

AT T R A C T I N G N O N E M P L O Y E E TA L E N T

One of the major changes in the business environment is the increasing use by organ izations of nonemployee talent. As mentioned earlier, a multitude of employee relationships exist today between people doing the work of an organ ization and the organ ization itself. What has al- ways been common in entertainment, construction, and seasonal em- ployment situations has spread to many other types of work. Ongoing “not full- time” work arrangements vary from part- time and temporary employees to individuals who do work for an organ ization through ar- rangements managed by vendors, temporary agencies, and freelance talent websites such as TaskRabbit, Tongal, and Upwork.

Particularly worth noting are websites where individuals are listed and can be contracted on a short- term, project- by- project basis. Talent can be contracted for multiple short- term proj ects or one- off activities. Some “talent supplier” organ izations run contests, and let the customer organ ization select winners to do proj ect work in areas including adver- tising and soft ware development.

A signifi cant amount of the work of some organ izations is increas- ingly being done by nonemployees who sign up for gigs in today’s information technology– based economy. Th e work they do is not trivial; much of it is major work in advertising, soft ware production, and fi nancial analy sis, and it is oft en work for which organ izations want to attract the best talent available. For example, when an organ ization posts a position or proj ect on Topcoder or Upwork, it wants to get the best tal- ent available. To recruit the best applicants, it needs to develop a realis- tic and attractive employer brand and a deal for individuals who are competing to do the work the organ ization is off ering.

Organ izations need to develop a brand when it comes to how they treat contractors, freelancers, and crowdsourced talent because these groups oft en have multiple employment opportunities to choose from. Organ izations that want to hire them should have a formal statement as to how such workers will be treated, and they should monitor social media networks to fi nd out how they are talked about by individuals who have applied to work for them and those who have worked for them in the past. Th ese organ izations also need to work closely with vendor organ izations and websites to be sure that they are getting good access to the best talent that is available.

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42 Reinventing Talent Management

Fi nally, it is impor tant to do a careful and continuous analy sis of the quality of talent that is available through diff er ent employment arrange- ments ranging from contractors to full- time talent. It may well be that the right kind of employees for certain kinds of work are not full- time ones; they may instead be available through Manpower, Upwork, or other staffi ng organ izations, so attraction eff orts should also be directed there. Whether this is the best approach is likely to vary tremendously from one type of work to another and from one organ ization to another; it can best be determined by an analy sis of the quality of the work done by individuals from the vari ous approaches and sources for accessing talent. Th e key is to determine where the best talent is and how it can be attracted. Th e answer may vary over time and is likely to depend on the skills sought.

C O N C L U S I O N

Th e relevance of talent attraction to the changing nature of work, work- ers, and organ izations is presented in table 3.1, which shows the talent management attraction practices that fi t the six talent management princi ples outlined in chapter 2.

With re spect to a strategy- driven approach, it is particularly impor- tant that the talent attraction pro cess identify the key talent groups needed for the organ ization to be eff ective and that it be targeted at those groups. Potential employees need to receive a clear message about the strengths and weaknesses of the organ ization, with a par tic u lar fo- cus on how and why its talent plays a critical role in its success and how employees will be treated if they join.

A strategy- driven approach relates closely to the second key princi- ple, which is that talent management should focus on skills and com- petencies. Th e pro cess needs to be based on attracting individuals with critical skills. Not all skills are necessarily recruited with equal rigor and focus; the recruiting message needs to be fi ne- tuned or segmented to target talent whose skills and knowledge are particularly impor tant given the strategy.

With re spect to talent management being per for mance based, the key issue is to make it clear that per for mance is rewarded and that it is particularly advantageous to be a high performer doing work that makes

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Attracting Talent 43

a diff erence. Perhaps the best way to do this in recruiting is to empha- size that many rewards are tied to per for mance and to emphasize how much the best performers are recognized and valued by the organ- ization. It may be desirable to make the case that the organ ization is already populated with high performers since that can also be an impor- tant part of the attraction message.

Agility needs to be directly built into the attraction pro cess; it is very impor tant that the pro cess emphasize the rate of change that will take place in the organ ization, and the amount and kind of job security and stability that will exist as a result. An organ ization that anticipates changing and adapting should make this clear in its talent recruiting and should explain what it will do to help if in fact it cannot continue to employ certain individuals. In short, this is a clear case where a strong realistic statement about job stability and long- term employment should be a critical part of the attraction pro cess.

It is very impor tant that the attraction and recruiting pro cess be seg- mented. Th is is the only way that it can attract a diverse, skills- based workforce. Individuals with diff er ent skills typically need diff er ent at- traction messages and pro cesses. Th ese diff erences should be carefully built into the messages that are used, and the organ ization should be sensitive to the importance of skill and workforce diversity. It should also determine where messages appear and how they are distributed.

Fi nally, it is critical that an evidence- based approach be used to es- tablish, monitor, and change the attraction messages and pro cesses that are used. Th is should include careful analy sis of who is attracted as well

Table 3.1 Attracting the right talent

Strategy driven Target brand and recruiting pro cess to attract key talent

Skills based Fine- tune attraction based on key skills

Per for mance focused

Clear message about the importance of per for mance and how it is rewarded

Agile Clear contract with re spect to continued employment and need to change; use gig talent

Segmented Multiple recruiting messages and approaches based on skills and strategy

Evidence based Analyze who is attracted, why they are, and compare this to their per for mance and retention

Copyright © Edward E. Lawler III and Center for Eff ective Organ izations at USC.

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44 Reinventing Talent Management

as the turnover rates for diff er ent types of employees. It is also impor- tant to study the reaction of employees once they join the organ ization as regards to whether they feel they received a realistic preview of the work situation and to analyze how eff ective diff er ent media are in attracting the right talent.

It is clear that the attraction pro cess can and should be guided by the talent management princi ples that were emphasized in chapter 2. Th is represents a signifi cant change in how most organ izations think about attraction. It is very impor tant that it be done to attract and retain the kind of talent that is needed for organ izations to be eff ective in the future.

Developing the right employer brand and attracting the right talent should not be left to chance; it should be undertaken carefully, and its eff ectiveness needs to be monitored. Developing a brand should be a very impor tant focus because of its impact on the quality of the talent an organ ization attracts and the relationships that an organ ization de- velops with its talent. A combination of increasing workforce diversity, the need for orga nizational agility, and the increasing importance of human capital make it ever more impor tant that the right talent be re- cruited. Th e availability of social media, big data, and analytic approaches makes it pos si ble for organ izations to understand what type of talent brand they have and need, and what they must do to attract the right talent.

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