Catalyst Strategic Consultants - What is Doug Bouey thinking about these days?

A Sellers' Market

January 30, 2001

The holiday time gives us a timeout (unless you're in retail or doing closings or in health care or...). We can take stock before diving into the run of business that takes us to Spring. I talk to folks about moving away from the transactional to the relational. You can't fruitfully take stock of your business unless you move away from the day-to-day deals. These are so important, consume us so, that it's tough to get far enough away from the grindstone to see the patterns of what we do or the direction they seem to be headed.

One thing is clear these days: the battle is changing: we're back to fighting for hearts and minds. Not to win people over to our ideals - so important to boomers in our formative years - but to win them to our enterprises. Talent: so critical these days and the prospects are becoming quite discriminating. And no longer is it adequate to woo them with money. Even waving good money, there are chronic short supplies in several categories of people. Beyond those categories, it's getting tough anyway. All the predictions in Boom, Bust and Echo are coming true. The boomers are moving on - Freedom 55 - and, facing increasing demand for help with decreasing supply of young trained or apt people, the gap is starting to be felt.

It's a sellers' market. Once that first bit of work experience is obtained, these consumers can afford to be picky. There are lots of opportunities and the good ones have choice. Companies offering only market salaries and reasonable benefits are having trouble. The folks want other things - a company that is dynamic, that knows where it's going and what its edge is, an outfit that offers growth and training opportunities for its associates. Higher end companies are starting to offer formal mentoring, in-house training sessions, clear and real undertakings to move younger folks along a developmental track. These people don't buy the "loyalty" thing, they have taken William Bridges' "Building You and Co." as their bible and they regard themselves as a company of one, (my friend Walt Sutton's title) even though they're working for someone else.

It's a good thing that training is desired, because, despite the shortage, not all of them have the depth of basic skill we've come to expect. Dealing with this reality at hourly paid levels has long been with our friends in southern California. To utlilise diverse populations, companies have had to offer literacy help, basic business concepts / etiquette and extended supervisory training for those coordinating these new recruits. As we exhaust usual pools, we'll have to put more oomph into our recruiting, orientation and preparation for business. Businesses - -all businesses--are just going to have to put more effort into this. And that doesn't even speak to attitude and aptitude.

Lower level clerking jobs are now becoming a huge problem to staff. It's unusual to see fast food or convenience outlets without a "help wanted" sign. Real compromises are having to be made. Often minimum wage folks just don't care. These jobs are widely available. "If I screw up, so what? There are 20 more jobs like this down the street." Finding folks who give a damn is going to be tough at these levels. That difficulty threatens the viability of some businesses.

How to address the talent deficit? First, it isn't just an issue of cash. Upping the bucks helps but these people are looking for the intangibles. They want to belong to something that is making a bigger difference than just lining the owners' pocket. We talk about shareholder value, but if that shareholder is not me, why should I stand up and salute? Give me a reason that I can relate to! This will not come from myopically focused short-term leaders. These new employees want to belong to something they can be proud of, something going somewhere, somewhere that is savvy and smart, where there are others of their kin they can be with, learn from and create with. In business parlance, they are looking for a culture - one that is up, smart, participative, engaging. They want a dynamic work experience and attractive, like-minded people to have it with. They can't stand being talked down to, told to wait, given empty promises. And they don't have to take it. They have options. And even when the work is repetitive, potentially conflictual these folks want to make it fun. Look at Westjet. The grim need not apply!

Now we're beginning to tie culture in to capability. If a company's culture does not take talent and amplify it, give it profile and let it grapple with the real interesting issues - really let its people dance and appreciate them for it - they'll vote with their feet. If they're involved, grown professionally, well treated, prepared and expected to grow as fast as they can (and compensated in terms they respect), they'll love it. They won't hesitate to let others know. It builds on itself. If companies cannot attract, mobilize and retain top talent, they can't perform at the top of their class. Those outfits just won't have the horses. Increasingly demanding customers will lose patience and go elsewhere. So the culture becomes the core competitive advantage of more and more firms - and it doesn't matter much what industry we're talking or how big the entrant is.

Look at Nortel in Calgary. Doubling their size in 2 years and staffing their new huge facility with relative ease. Why? "You really want to be at Nortel - that's where the action is!" With that sort of rep, they don't need a colossal recruiting effort (even though they have one). The internal experience of working there takes care of the lion's share of the task. People tell others - "There's real challenge here, they really let you in on the exciting stuff, it's a hot place to work."

Isn't that interesting? I'm not saying these candidates are looking for a country club. Although young people are no longer prepared to make endless sacrifice on the promise of something someday, they want to work hard. It's just that they need something meaningful (to them!) to be working on. They want to belong to a tribe of people they like and respect. They want to be working for a leading company on top of the game. They do not accept the politically incorrect or exploitative enterprise. These folks are the most tolerant and accepting of diversity yet. Except for one class. Redneck walruses fulminating about lost causes in the halls - these people will either confront them or leave them behind. No modern business wanting to make themselves attractive as a place for careers can afford them.

And that's what's happening. The real market is the market for talent. Companies are having to make themselves pretty. And what these people are looking for is good for business. It's hard work to create it, it requires solid planning and new skills on the part of leaders. But building an appealing culture in a relevant company is where the tale is told out. And it's not just about new hires. The existing, long term staff are reassessing their position too. They want to know where the company is going and where they fit in. There has never been such attention to succession issues as now that the boomers are turning over. Mid-career folks are looking at their last big run in the job world. Should they stay with the horse they rode in on? Or should they look elsewhere, to better prospects, where the chance of a big score in satisfaction and money are greater. Their freedom is greater, their risk of a miss lower, their reward for a right move potentially huge. No longer can companies sit on their staffing. You must assume every one of your people is being headhunted right now. The competition has too much to gain.

Is your entity ill-focused? Are you not dealing with divisive conflict? Are you on top of trends or dismissing and not planning for them? Or are you complacent and old fashioned? Watch out. Your core staff, the people you rely on to produce the goods, day in and day out, could melt away in a flash. They're assessing their leadership more critically than ever. If they see lapses and inattention, self satisfaction, they're making up their minds and moving on, quickly. Don't think it can't happen.

The tables have turned. Like I said, it's a sellers' market. The employee/associate now is having a good look at what's on offer: the money, the advancement, the opportunity, the surroundings. The earnest merchants offering these choices to them? The Presidents, the leaders, the managers of entities like yours. If you are offering the ripe and interesting fruit, you're the winner. For now.

Good luck in the New Year

Doug Bouey

P.S. Agree/ disagree/ have other perspectives? Send us an email. If you came to our reception or not, see the pix!