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№ 3-4 (037-038), 2006
Summary
Theme of this issue: How to manage talented employees?
In recent research conducted by the McKinsey Company, 75% of the respondents (CEOs of major companies) stated that they were very concerned by the lack of talented people; in a poll carried out by Deloitte, the other world leader in the consulting business, 87% of the HR directors who replied named the retention of key talents in their organizations as their main priority… More and more frequently one hears talk of “War for Talent” in the labour market… More and more companies are introducing programs for “talent management”… So what is “talent management”: a new term for good old “personnel management” or a totally new approach to working with staff? And what indeed is “talent”?
These questions are the subject of the thematic section of our journal, and of a round-table discussion carried out in conjunction with the “City of Masters” Consulting Group (St. Petersburg).
Viktor Shchukin, President of the Association of Recruiters, General Director of “GALLA Consulting Group” (Moscow)
“HALLO! WE’RE LOOKING FOR TALENTED PEOPLE!”
The war for talented employees on the Russian market is becoming fiercer and fiercer. But what are talented employees? “Star” employees, characterized by their substantial potential contribution to the success of an organization and by a high current return? Or can talented people also include so-called “workhorses”, who provide the company with day-to-day stability? How many talented employees should there be in an organization, and in which groups of personnel should they primarily be concentrated? Does the presence of a large number of talented employees lead to better results? What role do personnel management departments currently play in the war for talented employees, and what should this role be in the future? The president of the largest national association of recruitment agencies provides the interim results of a major opinion poll conducted among executives and personnel managers of companies operating in Russia.
ROUND-TABLE DISCUSSION “TALENT AND AN ORGANIZATION: THE PROBLEMS OF INTERACTION”
The Questions for Discussion:
1. What is a talented employee? Is there any difference between a talented employee and a talented person? If so, what is it?
2. How are talent and success in business linked?
3. Do companies need talents? Why?
4. In what conditions do talents emerge, and in what conditions do they develop?
5. In what conditions does the return on talented employees increase?
6. What do talents cost a company?
7. Do talented employees have to be managed? Why?
8. What stimuli produce the greatest effect in talent management?
9. What difficulties are most frequently encountered in talent management?
10. What problems do talented employees create in an organization, and how can these be resolved?
Participants:
1. Tatiana Gavrilko, Personnel Director of the 21st Century Medical Centre
2. Natalia Georgieva, Head of the B2B Research Department of the KOMKON-SPb Company
3. Viktor Gorbunov, Trainer-Consultant at the “City of Masters” Consulting Group
4. Alexander Gromov, Organizational Consultant at the “City of Masters” Consulting Group
5. Yevgeniya Gromova, Director of the KOMKON-SPb Company
6. Tamila Zheleznyak, Development Director of the “City of Masters” Consulting Group
7. Vladimir Ivanov, General Director of the “Mountain Heights” chain of chemist’s shops
8. Tatiana Klemina, Deputy Editor-in-Chief of “Personnel-Mix” journal, Associate Professor in the Faculty of Management at St. Petersburg State University
9. Irina Lavrenchuk, Personnel Director of the “SVAROG” Company
10. Vera Minina, Editor-in-Chief of “Personnel-Mix” journal, Professor in the Faculty of Sociology at St. Petersburg State University
11. Maria Redkina, Associate Professor at the St. Petersburg Mechanical Engineering Institute
12. Yelena Soboleva, Personnel Director of the “Angstrem” Company
13. Ararat Tamasian, Psychologist-Psychoanalyst at the National Federation of Psychoanalysis
14. Meri Tarlova, Chair of the Board of Directors of the “Elit-Trans” Group of Companies
15. Sergey Ushan, Creative Director of the ZERO Company
Expert Opinion Review.
In animous opinion our experts, the managers need talent to manage talented employees.
Gregory Gleason, Professor of Political Science at the University of New Mexico
Bruce J. Perlman, Director of the School of Public Administration at the University of New Mexico (Albuquerque, USA)
AGENCY RELATIONS AND THE AGENCY PROBLEM IN GOVERNMENT ORGANIZATIONS
The celebrated German sociologist Max Weber’s model for an ideal bureaucracy states that such an organization functions more effectively. However the reality of life in government organizations, which by their very nature should approximate to the ideal bureaucracy, refute this: the behavior of the organizations and their members is far from efficient. What is the problem here? In the opinion of these well-known experts, this question can be answered with the assistance of contract theory, which has been successfully used for several decades to explain the problems of for-profit organizations. Looking at the relationship between manager and employee in a government organization like the relationship between agent and principal helps us to understand better the causes of existing problems, and to find the most effective ways of resolving them. Taking this into account, the task of the manager should be to maintain the agent’s interest in achieving the end purpose of the organization. Possible methods of achieving this are programs of staff participation in an organization’s administration and capital.
Grigory Tulchinsky, Doctor of Psychology, Professor at the St. Petersburg State University of Arts and Culture
SPONSORSHIP AND PHILANTHROPY: WHY ARE THEY NECESSARY TO BUSINESS?
“Big business in Russia is much more generous than in other countries”. That is the surprising conclusion made by this well-known specialist, based on statistics which show that major Russian companies spend approximately 400 times as much on charitable projects than Western companies of comparative size operating on the Russian market. He estimates that half of the amount is spent on social programs for employees and local communities, 30-40% on programs and projects indicated by local authorities, and the rest on helping people and structures that can be useful to them from a business point of view: educational institutions, for example. These are not only altruistic actions by the businessmen. A strong charitable profile brings numerous advantages: from improving their reputation to obtaining additional opportunities of promotion their products. So why has active philanthropy in Russia been restricted, up to now, to a few really large companies? In the author’s opinion, the main problems here are the ambiguity of public opinion, the lack of any real support from the government for charitable activity, and the predominance of personal motives in the choice of philanthropic projects.
“Joint Project” Section
Alexey Kuznetsov, General Director of company “Capital-Policy Soglasije”,
Tamara Mikhailova, Personnel Director of the “Corinthia Nevskij Palace Hotel”
FAMILY VALUES
The main question that concerns the manager of any hotel is how to create an atmosphere in which the customer will feel like a guest, not just a lodger. Travelers want to discover a new city or country, and their acquaintance with them usually begins by encountering people, their manners and customs. The simplest way to get to know a new location is to stay with a family. This means that, when organizing a hotel business, it is essential to attempt to make the relationships among the hotel’s staff similar to those in a family. One can provide the most comfortable conditions and train staff, but for a guest to want to return to a hotel he must sense the sincere disposition of the employees toward one another.
Vladimir Abchuk, Doctor of Technical Science, Professor in the Department of Social Management at the Herzen Russian State Pedagogical University (St. Petersburg), Honoured Scientist of Russia
THE MANAGER AS PROPHET. FORESIGHT IS AS NECESSARY AS AIR
The manager of an organization is not only a leader, not only the company’s face for the outside world, not only a distibutor of resources. Today a manager must above all be a prophet, capable of forecasting the future development both of the market in which his company operates and of the national and world economy. He now has a powerful scientific arsenal at his disposal, comprising both complex economic and mathematical methods (for example, methods of researching operations) and popular intuitive and empirical approaches, such as the method of analogies. A well-known specialist discusses the importance of foresight for a company’s survival and success, and more effective methods.
Interview with Doctor Jak Fitz-ents
“HUMAN CAPITAL IS A COMPANY’S MOST IMPORTANT ASSET”
The problem of measuring returns on investments in human capital is currently particularly topical, not only for Russian companies, but for foreign ones too. Doctor Jak Fitz-ents, one of America’s leading researchers of the management of human capital, visited Russia in February. His approach to the benchmarking and measuring of human capital was the subject of a conversation with the Assistant Chief Editor of “Personnel-Mix”, Elina Burganova.
Olga Rogozhkina, Head of Advertising at the “Starcom” Company — Satellite Security Systems (Moscow)
PERSONNEL FOR TELECOMMUNICATIONS COMPANIES. DEMAND IS GROWING ALONG WITH THE MARKET
The telecommunications market in Russia continues to grow steadily, but many experts believe that the reserves for a simple increase in the subscriber base are close to being exhausted. This means that the battle among the market’s leading players to attract new customers and retain current ones can only become more acute, which in turn will make the competition between them on the labour market more acute. What is happening today on the labour market for specialists in demand by telecommunications companies? Which staff are most in demand? What financial and non-financial conditions are employers offering them? What demands do they in turn make of their candidates? The author, one of the managers of a telecommunications company, offers her answers to these topical questions, based on research of the labour market.
Yuliya Golikova, PR Manager of the “Business and Personnel” Agency (Chelyabinsk)
RUSSIAN AND FOREIGN EMPLOYERS: A BATTLE OF EQUALS?
A few years ago, if a specialist was presented with a choice between a Russian employer and a foreign one, he would choose the foreign employer without a moment’s thought. Western companies were associated with high and stable salaries, attractive compensation packages in terms of value and content, clearly defined authority and confidence in the future. All Russian employers could offer was spontaneity of business development, constant “rush jobs”, “black” and “grey” salaries, and one could be sure only of the inconstancy of everything going on in the company. Has this situation changed, and if so, how much? One of the managers of a well-known recruitment agency endeavors to answer this question. In her opinion, many Russian employers are now capable of providing real competition for Western companies and have good chances of beating them in the “battle for talent”. What are the advantages of working for a Russian company? What demands do Russian employers currently make on their potential employees in comparison with Western companies? The author provides answers to these topical questions.
Yevgeniya Kuzminskaya, Development Director and Business Trainer of the “Business-Master CIS” Corporation (Moscow)
ON THE ROAD TO THE MANAGEMENT OF HUMAN CAPITAL. MORE ABOUT THE HR MANAGER OF THE THIRD MILLENNIUM
HR manager is now one of the most in-demand positions on the Russian labour market. The reaction to the high demand is a large number of programs for training and increasing the qualifications of HR managers — from one-day training sessions to MBA courses. However, in the opinion of the author, a well-known specialist, most of them have a purely academic character and are not at all systematic. The answer? To create training programs of a practical character, based on the experience of successful HR managers. This, in turn, also demands unified standards for the post of personnel manager, which currently do not exist in Russia. Personnel managers can include so-called “regulars”, who see their main task as being the regulation of office work, and so-called “specialists”, who are well versed in individual HR technologies, but are not capable of becoming business partners of the company. Modern business needs managers of human capital — that is the assertion of the author, who offers his portrait of such a manager.
Alexey Komarov, MBA (Higher School of Economics), General Director of “Avenue”, a Major Interregional Recruitment Network (Moscow)
A NEW BOSS: THERE WILL BE NO “SILENCE OF THE LAMBS”
When a manager comes to a new organization, he has to assert his authority and prove to his subordinates that he is a Professional with a capital “P”, able to take reliable, successful decisions and ready to “take a punch”. Half of newly appointed top managers do not see out their probationary period as a result of excessive ambition, an inability to understand the culture of the organizations and the rules that exist within that culture. When starting a new job, top managers must initially be prepared for increased interest in their personalities and their professional qualities. What reactions does a new manager encounter, as a rule, from his subordinates? What is the nature of these reactions? A well-known expert provides answers to these questions.
Valeriya Ievleva, Deputy Personnel Director for Assessment and Development for the “Volga-Dnepr” Group of Companies (Moscow)
AN INITIATION RITE. A SYSTEM APPROACH TO THE ASSIMILATION OF STAFF
The assimilation of new employees requires considerable organizational and financial expense on the part of the company — nobody would now argue about that. Neither would anyone argue with the fact that a competently devised assimilation program assists the more rapid transformation of the new arrival into an effective employee and a full member of the workforce. However, even careful attention to an assimilation program is no guarantee of success, if there is no mechanism for its introduction. What stages should be included in the process of devising and introducing an assimilation program? What should the result of each stage be? What normative documents is it necessary to draw up? The opinions of which interested parties should be taken into account, and in what way? Who is the “master of the assimilation process” and what responsibility does he bear? One of the HR managers of a major group of Russian companies shares her experience in the development and introduction of an effective assimilation program for new employees.
Yuliya Merkurieva, PhD in Sociology, Director of the Business Training Studio in the Higher Economic School at the St. Petersburg State University of Economics and Finance
WHO ROBBED WHOM? IS THERE NO APPEAL AGAINST THE SENTENCE…? (Continuation)
“Training does not provide the client company with proof that the new methods and technologies of employee training they are using are more effective in comparison with traditional approaches… Training is to blame if some employee training courses turn into entertainment events, from which employees retain pleasant memories, but no new knowledge and skills, or new attitudes to work or to the customer… Under the pressure of Training, Business sends all its employees on courses, without considering which of them really needs a particular course…”. The imaginary court examination between Business and Training, in which the latter is the accused, continues, and this well-known consultant trainer, appearing as counsel for the defense, continues persuasively to break down the evidence of guilt. Her conclusion is unambiguous: Business must be “sentenced” to working on organizational diagnoses for an indefinite period. Only a full organizational diagnosis can guarantee the effective staff training that is essential for Business.
Pavel Nikolayev, Director of the Department of Training Technologies and Coaching of a Recruitment Company and Trainer-Consultant with the AMT Consulting Group
“THE SONOFABITCH PARADOX”. EMOTIONAL INCOMPETENCE
Despite the enormous changes both in Russian business itself and in its external environment, many people continue to adhere to the opinion that only a “tough boss” can guarantee the effective management of a company and its success. They see the reason for this primarily in the special characteristics of the national culture and like to underline the correctness of the assertion with examples from history. What does such a “tough boss” (the “Sonofabitch” in the term used by D. Goulman, the author of well-known works on emotional intellect) actually imagine he is? By what signs can he be recognised? How can one explain the success of organizations that are headed by a “Sonofabitch” or where such managers are predominant, and how long-lasting is that success? A well-known representative of the recruitment business and consultant-trainer opens a conversation about the weak points of the “tough boss” and how he can be helped to stop being a “Sonofabitch”.
Edgar Linchevsky, PhD in Medicine, Associate Professor at the “VOENMEKH” Baltic State University (St. Petersburg)
“SHE CAN, BUT WE CAN’T?”. A SECOND SCENARIO (Continuation)
A female employee of a small organization is only a couple of years from retirement when she stops observing working discipline: she arrives late for work and comes back late from lunch. The manager mentions this to her, issues formal reprimands and withholds her bonuses, but none of this has any effect. There is no question of dismissal, as she has always performed her duties impeccably and has been indispensable in her job. Despairing of achieving the desired result, the manager starts turning a blind eye to her late arrivals. However, this causes bewilderment in the rest of the personnel. Some of them openly envy the “favorite”, then start following her example. Others discuss the woman’s behavior and that of her “followers”, and are exasperated by the inaction of management. Other problems also start causing friction in a workforce that has hitherto been entirely happy. What are the lessons to be learned from this story?
This article continues a new feature devoted to the problems of intraorganization communications, and you have the opportunity to put forward your own suggestions for solving them.
Karina Didenko, Trainer at “Nokia” (Moscow)
THE TRAINER’S DRESS CODE. EFFECTIVE NON-VERBAL COMMUNICATION
It is the custom to think that an effective trainer is above all a master of his craft, possessing advanced knowledge and training technologies, and a bright personality; with all these his success is virtually guaranteed. However, in the opinion of this author, a well-known trainer, these conditions, though essential, are not sufficient: the trainer’s external appearance is no less important. The style and colour of the trainer’s clothes and accessories, as well as his haircut, convey vital information to the audience of what the speaker imagines himself to be, while the trainer’s awareness of the psychological impact on course members of a particular style and colour arms him with an extra means of influence over them. For what audience would an austere combination of a black suit with a white shirt or blouse be appropriate? What colour of clothes should one choose in order that the audience immediately realizes that before them stands an innovator? Which fabrics are “emotionally attractive” and which are “emotionally repellent”? How can accessories help to attract and retain the audience’s attention to complex questions and subjects? This remote consultation by a well-known expert will help you make your training courses more effective.
Alexander Dregalo, PhD in Philosophy, Professor, Head of the Department of General and Functional Management at the Lomonosov Pomorsky State University (Archangelsk)
MOTIVATION CORRECTORS IN ORGANISATIONAL BEHAVIOUR
In this article the author proposes an original approach to the motivation of employees. In the “motivational field” manager and employee mutually influence each other to motivation. What are the motivators that govern their behavior? Science has suggested many concepts of motivation that have long been included in college and even school textbooks. The number of behavioral motivators (stimuli) discovered by theoreticians and practitioners is growing all the time, and their classification is being perfected. In practice, however, their use is far from perfect. One of the reasons for this, in the author’s opinion, is the excessive attention paid to the psychological and sociological aspects of motivation, to the detriment of the biological aspect.
Tatiana Aseyeva, Marketing Specialist at the ILIP Company (St. Petersburg)
Vadim Pavlovets, General Director of the “Umny Dom-BIO” Company (St. Petersburg)
STRESS IN YOUR OFFICE! METHODS OF FIGHTING IT
It is it possible to do away with stress in the workplace once and for all? Of course not, says world experience, corroborating this with statistics about the multibillion losses of business and of society as a whole from stress and its consequences. So is there no answer? In fact, an organization can do a great deal to reduce the negative consequences of stress in the workplace, both for the employee and for the organization itself. The most important thing is to realize where the sources of stress lie and to take appropriate measures. It may be that the advice given in this article by a well-known specialist will help you to alleviate this problem.
Maria Belova, PhD in Sociology, Assistant Professor in the Faculty of Sociology at St. Petersburg State University,
Boris Moshensky, General Director of “Maris Properties” (St. Petersburg)
THE HUMAN SIDE OF THE CONSULTING BUSINESS. LET’S SHARE OUR EXPERIENCE
“Running ahead of the market” is the key to success in the modern consulting business, and this in turn presents the personnel management of such companies with very difficult tasks. The consulting business is made up mainly of so-called professionals, highly-qualified employees who are experts in their field, are not able to work effectively under constant control, and attach greater importance to self-realization and self-development. How can an organization attract professionals such as these? How can a balance be struck between the interests of the company and those of the professional? It may be that the experience of a company that provides consulting services in the field of real estate and real estate development operations will also be useful for your company.
Apollinaria Bakhanova, PR Manager of the Renaissance Moscow Hotel, Marriott International Inc. (Moscow)
THE PECULIARITIES OF NATIONAL MOTIVATION. FROM THE EXPERIENCE OF HOTEL PERSONNEL MANAGEMENT
For hotel personnel, the openness of management is one of the most important factors in the development of their loyalty to their organization. That is the opinion of the author, one of the management team of a well-known hotel. It must be remembered, however, that the motivation of personnel in Russian hotels is still characterized by a whole range of special features established in the time of the command economy. How can an effective personnel management system be organized, which takes these special features into account, in particular the high popularity of equal remuneration? We may be able to benefit from the experience of the hotel business in such Western countries as the USA, France or Japan. The author’s reflections may help you find answers to these topical questions.
Editorial Review “RUSSIAN REALITY”
Continuing the subject touched on in Apollinaria Bakhanova’s article, we are publishing the opinions of the directors of regional hotels in the Amaks chain
Questions:
1. What personnel management problems do you most frequently encounter?
2. In your opinion, what is primarily necessary to do to solve these problems?
3. In resolving personnel management problems, do you use recommendations from books and business periodicals, or the experience of colleagues you meet at conferences and seminars?
Oleg Butenko, Personnel Director of the “Elaks” Company (Kiev, Ukraine)
WHY DO PERFORMANCE APPRAISAL SYSTEMS NOT WORK? (Conclusion)
“Performance appraisal, whatever form it may take, is conducive to more effective personnel management”. That phrase can be read in virtually every textbook on HR management. Services for developing and introducing attestation and appraisal procedures are very much in demand. Whole groups of staff in the personnel management departments of major companies work on the development of methods and forms of appraisal. More and more companies are introducing the now-fashionable “360 degrees appraisal”. But, in principle, is it possible to evaluate the work of employees and their contribution to the success of an organization more or less objectively? And is it not better to replace cumbersome formalized appraisal procedures with regular and constructive feedback? The personnel director of a major company concludes her discussion of the pointlessness of performance appraisal.
In the Information Section of the Journal
CONFERENCES AND EXHIBITIONS. Interesting events in the world of HR.
WHAT’S NEW AND INTERESTING? A press review, compiled by recruiters.
WHAT TO READ? An editorial review of new books.
THE AUTHORS AND EXPERTS IN THIS ISSUE. INDEX OF ORGANISATIONS.
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