Critical Success Factors: Make your Saudisation Programme work Professor William Scott-Jackson وسهلا اهلا

Research Survey of GCC Nationals and ex-pats In-depth interviews with over 40 major ‘best practice’ GCC organisations –Public and private –Locally owned, Western and Asian Action Workshop and focus group with 20 major GCC employers

Talent in the Middle East Infosys recruiting US graduates to study in India then work in Infosys back office in US. Tata outsourcing to back office in Mexico; Wipro to China, Saudi and US; Infosys to Poland and Thailand. Company in the US pays an Indian Vendor 7000 miles away to supply Mexican workers based 150 miles south of the US border (New York Times 29 th Sept) Underemployment, particularly among young men Women’s increasing success in workplace Skills shortages limiting companies’ ability to grow. (Gulf Talent 2007) UAE Investment firms facing influx of clients but a shortage of professionals to serve them. (Moss Adams 2007) “The Middle East is losing out in the global battle to produce and attract the world's most talented workers,” Global Talent Index 2007 Increasing challenge for GCC employers to attract what has been the main source of affordable talent, as gap narrows between Indian and Gulf packages. Nationalisation – particularly building strategic capabilities and leadership

Main conclusions: Best Practice Meeting quotas Maximising a strategic resource Recruitment Talent Management Placing nationals in ‘easy’ roles Identify strategic capabilities and plan Career Fairs etc Create ‘great place to work’ Start early (school) and with families Target Graduates And older, less qualified, women etc Focus on young adults Compete for nationals Collaborate by sector Government, Education, Society Get on with it! BEST PRACTICE NOT BEST PRACTICE!

Best Practice: Major conclusion “Talent Management” not quotas

Saudisation as Talent Management Talent Strategy & Planning Acquiring Talent Developing & Deploying Talent Summary and Key action areas Talent Management: Retaining Talent

Competing or complementary employment and Demographics Competing jobs are those that are equally suitable and desirable for nationals and ex-pats. Complementary roles are those which are specifically suitable or desirable to be filled by nationals rather than ex-pats OR specifically suitable or desirable to be filled by ex-pats rather than nationals Demographics – if the national plan produces a low % of nationals (as in the UAE) then most jobs can be complementary as we need to be extremely choosy about the jobs our scarce nationals do. If nationals are a high proportion then many jobs will be competing and we must ensure that nationals are well-equipped to compete. Mistake is to act as if jobs are competing when in fact they are complementary.

Demographics Nationals as small proportion of workforce Leadership roles Specialist roles (sector e.g. oil or function e.g. HR)

Demographics Nationals as small proportion of workforce Leadership roles Specialist roles (sector e.g. oil or function e.g. HR) Mostly talent management problem: Identity and develop strategic capabilities

Demographics Nationals as large proportion of workforce Leadership roles Specialist roles (sector e.g. oil or function e.g. HR)

Demographics Nationals as large proportion of workforce Leadership roles Specialist roles (sector e.g. oil or function e.g. HR) Mostly talent management problem But also employment, quotas and ex- pat restrictions

The competitive market High-Precision Strategic Nationalisation Resourced-based view of the firm Firm X Firm D Firm B Firm C Firm A The ‘X’ factor: A differentiating capability Valuable (in relation to the market) Rare Hard to imitate Hard to substitute Owned by you Firm X Competitive Advantage E.g. innovative capacity, ability to exploit knowledge Negotiating ability Openness to other cultures Gulf Arab mgmt style Religion/Culture Barney, J.B. and Clark, D.N. (2007) Resource-Based Theory: Creating and Sustaining Competitive Advantage. Oxford University Press, Oxford

Linking Strategic intent and capability measures Dubai Malls Group Global Bank Telecomms World leading expertise in Mall design and customer psychology Frontline staff that are friendlier and more helpful than anyone else’s Leading technical innovators, top international marketing expertise (retention) Rapid expansion through providing retailers with more ‘footfall’ High customer retention and recommendation through exceptional customer service ‘... extend its reach into new technologies, services and markets to create opportunities for our customers’ Organisation Strategic IntentDifferentiating capability The United Arab Emirates... that citizens are able to benefit from the country's increasing wealth Exceptional percentage of population as leaders – ‘ready to manage’

The process 1. Identify strategic intent (goals/imperatives) 2. Identify key people capabilities to achieve strategic intent 4. Identify key roles by strategic value 5. Programme to develop and measure key capabilities and key roles 6. Metrics to show investment and improvement over time - ROI 3. Identify drivers to maximise and differentiate each capability Senior Management workshop to engage, get the facts and create ownership Implementation Project In-depth research to identify unique drivers (e.g. of ‘friendliness’)

Developing and deploying talent Talent Strategy & Planning Acquiring Talent Developing & Deploying Talent Summary and Key action areas Talent Management: the threat and the opportunity Retaining Talent

The Development Process Organisation’s talent needs for the future Target role Role Profile Competencies qualifications experience know-how personal skills know-who values Gap to be closed through development Dialogue between organisation and individual, matching company needs and individual aspirations Individual’s aspirations for the future Individual Profile Competencies qualifications experience know-how personal skills know-who values Current role Talent strategy Identify and share aspirations Process for dialogue Assess/agree competencies Define requirements Process to plan and monitor progress

Scott-Jackson, W.B. Mayo, A. & Rushent, C (in prep) World-Class Learning and Development: the major success factors,

Methods of delivering learning: Impact on knowledge retention Method Retention Lecture 5% Reading 10% Audio Visual 20% Demonstration 30% Discussion Group 50% Practice by Doing 75% Teaching others 90% Jennings, C. (2007) Why ‘stand and deliver’ s never enough, Presentation to the IITT Conference June Most widely used method Least used Never used (except informally?)

Part 4: Retaining Talent Talent Strategy & Planning Acquiring Talent Developing & Deploying Talent Summary and Key action areas Talent Management: the threat and the opportunity Retaining Talent

Well done! We’ve cut staff turnover from 16% per year to only 10%! Modified from Harvard Business Review Oct 2007 Global Bank 2007 … We’ve kept 12% more of our worst people and lost 6% more of our best people!

Retention: A differentiating strategic capability Survey of 500 Global organisations 68% - retaining talent is ‘far more’ important than hiring Over 50% altered salaries, bonuses or stock options to try and retain talent Only 27% tried to provide employees with advancement opportunities Organizations continue to struggle with retention because they rely on salary increases and bonuses to prevent turnover. Why doesn’t this work? * Accenture: "The High Performance Workforce: Separating the Digital Economy's Winners from Losers”

Dimensions of Staff Turnover:  Involuntary -  organisation decides not to retain the staff member (or retain).  Voluntary -  individual decides to leave the organisation (or stay).  High Value or Low value capability  Short term and long term  Risk of quitting POINT: If someone of low value to the organisation is at high risk of leaving voluntarily - encourage and celebrate!

Some turnover is OK! Type A Inadequate selection for dismissal etc Type C Dismissal, etc Type B Retention Problem Type D Career development moves, management coaching etc Involuntary Voluntary Value to the organisation High Low

How to reduce turnover: The Quitting Process

Type B Turnover - When to attack Job Satisfaction Self-esteem Management Action quit or stay Probability of alternative/ attractive employment Thoughts of quitting Intention to search Intention to quit or stay Main factors Job offer at same/more money Perception of job market vs internal Stage

Plan/process to increase retention of the best people? Regular confidential ‘Insight’ survey/interview to identify high risk groups/individuals Managers agree individual and group actions Actions and monitor via survey Identify high value groups/individuals

Summary – Targeted Retention: resourcing at its best! Retention much more cost effective than replacement Retention must be targeted Aim to minimise involuntary quitting (low or high value) Take control/influence over voluntary staying and quitting Need information – segment the internal market –Who is valuable? –Who is at risk? –What they think –What they want Need deliberate highly targeted action - Marketing Demonstrable, significant savings possible!

Part 5: Meeting the Global challenge for Talent Acquiring Talent Talent Strategy & Planning Acquiring Talent Developing & Deploying Talent Summary and Key action areas Talent Management: the threat and the opportunity Retaining Talent

PANIC!! We need a new Group Finance Director Urgently!! Call Oxford Strategic Resourcing to find us one quick!! Modified from Harvard Business Review Oct 2007 Global conglomerate 2003 … Did he die suddenly? No – He retired … What about Abdullah in your Metals Division? … Who? Well … who do you really respect in the market? Duuurgh?

PANIC!! We need to find exploration engineers urgently!! Call OSC to find them!! Modified from Harvard Business Review Oct 2007 Oil Co 2007 … Is it a sudden requirement? No – HR said we’d have a problem 5 years ago … What about retraining your process engineers? … Who? Well … who do you know in the market? Duuurgh?

Strategic Talent Acquisition: Leading edge tactics? Know what you are looking for! –A strategy to define, build and retain the required capabilities Proactive continuous talent search –Search out the right people – don’t wait for them to come to you –Look continuously for key skills – don’t wait till you have vacancies Global Talent intelligence –Know where the best talent is and how to reach it – continuous research –Web based geographic database of universities, competitors, alternative employers etc –Tracked database of global potential national hires – traced from University through career and including searches, applications, etc Internal Talent Market –Line managers build and protect their own national talent –Internal search helps make sure it ends up in the best place –Is it better for one of your nationals to be poached by a competitor or a colleague?

Meeting the Global challenge for Talent Talent Strategy & Planning Acquiring Talent Developing & Deploying Talent Summary and key action areas Talent Management: the threat and the opportunity Retaining Talent

Talent Trading Co 2010 (Modified from Harvard Business Review Oct 2007) We know what strategic capabilities we need and are recruiting and developing nationals to meet those needs year on year We know our future resource flows and plan accordingly Nationals develop themselves using the best methods to build capabilities that are important to them, the organisation and the country Identify critical talent that must be retained We use monthly surveys to assess ‘propensity to leave’ Intervene at early stage of the leaving process Create Talent Intelligence web tool to allow external succession Continuous research for potential external national talent We actively search for national talent internally and externally

Thank you! William Scott-Jackson