56 roundtable ... continued from previous page
Blanford: “Some potential staff have unrealistic expectations of the IT sector. Not every IT company is Google or Facebook. We don’t all allow or can afford to give three duvet days a month.”
Annan felt professional services recruitment was slower, with less staff turnover producing fewer opportunities for youngsters to join. “It is probably frustrating for graduates to get traineeships, unless they are at the top.”
Get your ducks aligned for the recruitment pool
Today, the strategy is to keep the people you need to keep, and concentrate on internal upskilling and training, Waite said.
“Retention is key to the growth of any business no matter what level you are aiming to recruit,” Pemberton stated. “We made a strategic decision to align career plans to our business strategy, which acted as a talent magnet to bring people to us. It showed them our commitment to the future and how they could grow their career with us.”
Karim Sekkat
share schemes. “Rewards need to be matched to the person, sometimes it’s just immediate recognition required rather than rewards later down the line,” said Blanford.
Sekkat said incentives for some could be interesting, giving rewards for challenging workmanship standards or upskilling. “Share option schemes only thank people for the past, not the future.”
The emerging challenge in a changing world
Lomer spoke about the change in working practices, with less people meeting physically rather than virtually via cloud-based services. “Watch out for changes brought about by the Internet. People need to wake up. Anyone can sell these services, and we will see a big impact on the economy from developing world competitors.”
Alan Pemberton
Sekkat agreed business-aligned recruitment was essential for ambitious companies. “Whichever industry, you have to be clear about what you want, get all your ducks in line and then recruit in that pool.”
Blanford: “There are lots of IT people out there, but probably not enough of the right people. Our recruits tend to be here for either six months or 10 years. There is often quite a high early turnover of staff before you get the right team.”
Williams spoke about the growing use of retention incentives such as employee
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Sekkat urged SMEs to embrace the global market. “We are still learning about the different cultures, ways of working, negotiating, acceptance of different standards… You really have to open your mind up, and help your staff to tackle this learning curve.”
Elliott agreed that many SMEs do not look outward enough. “Some are quite conservative in their business growth plans. They need to open their minds and realise that the Internet can help them become bigger quicker through the global market.” But, it won’t just be British companies reaching outwards. “The emerging countries are too. We have a danger of being too complacent about the global market.”
Murray suggested that ‘UK plc’ had lost its international entrepreneurial spark in recent years. The Roundtable agreed that might be so, although
Philip Waite
Sekkat claimed the national psyche had changed as the Government, business, individuals, and the British economy became too highly leveraged. He compared the UK to the German economy, where business strategy is long-term, leveraging is low; to China with trillions of savings and a frugal economy.
Pemberton suggested people had become entrenched in “survival mode” since 2008. “Previously, many owner-managers had been working on an exit strategy, building to sell their businesses, perhaps within 10 years. Hence, they were highly leveraged, maximising income and profits in the short term. “But, that landscape is changing. People are now looking more to legacy and succession; towards the management buyout rather than a massive cheque at the business end. There has been a very discernible sea-change in the way owner-managers need to run their businesses. They’ll have to do more working on, as opposed to working in their business; have to be more business savvy about things such as finding funding. A growing up of many SME owners is required.”
Pemberton said middle-ranking SMEs were now increasingly looking at wider markets.
Sekkat: “Britain created an empire, and yet it is now very inward looking. I don’t know how that has happened.”
Elliott: “There is a sense that just because we are a British knowledge-based company, we will be OK. But, Indian and Chinese companies are no longer just low-cost manufacturers; they now have intellectual input as well. We will lose out if we don’t get things right soon.”
Investors too have no international boundaries. she remarked, and would simply seek the best investment options.
Williams: “Many owner-managers still aspire to that final payday. With a lack of acquisitive demand presently, the business owner needs to look at ways of increasing productivity and efficiency in the interim to remain competitive. I don’t think the economic conditions are allowing people to be complacent.”
Blanford: “If you know how to sell to ‘UK plc’, cranking that up and doing it better is normally a better risk than jumping on a trade mission to Brazil. Looking locally is important too, the global outlook doesn’t suit everyone. The global impact of the Internet is also limited by significant factors. You can do most things technically these days, but changing peoples’ attitudes and working practices can be difficult. If you do send or host services offshore you need to understand the legislative and regulatory environment of the host country which can be very different from the UK”
Roundtable messages to the Government
Williams: “Keep bringing Corporation Tax down.”
Blanford: “Encourage infrastructure development and investment within all businesses – help them take that first step to growth – maybe through tax incentives.’’
Sekkat: “Business and politics don’t mix – don’t be a player, be a referee. Tax us if you must, but invest in knowledge and education, so that we can grow.”
Lomer: “A support package should be created to facilitate the development of bona fide SMEs, so that good ideas don’t get killed off.”
Waite: “A more imaginative tax regime for small businesses. Empty property rate relief is needed. Paying tax on empty buildings doesn’t act as a driver to encourage occupation or redevelopment. And, planning regulation change is taking too long to implement.”
Elliott: “More long-term thinking in all areas of UK government. It’s all about the term of office. Things get put in place to get a quick win, and then just as some things get traction another government comes in.”
THE BUSINESS MAGAZINE – THAMES VALLEY – SEPTEMBER 2012
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