Here’s the latest from Tom Peters. He is frustrated with HR, particularly with standard evaluation forms. 

What do you use in your organisation?

Three months ago we embarked on a study to better understand the behaviour of executives in Australia. The results from the study, involving 1332 executives across Australia, can be downloaded here.

The study offered many insights but also raised new questions; many of the findings merit further exploration. In the coming days, I will explore in greater detail many of the topics covered in the report. Without doubt this report is a first step in a journey of discovery. For now, it is my hope that the findings will trigger discussion within organisations on how they recruit, engage and manage executive talent.

Let me know what you think.    

Listed below are a few of the findings from the report.

1. Job Search Channels: While a wide range of channels are used to find jobs, a majority 23.2% of executives credited recruitment firms for delivering their last job. Who you know matters; 22.3% found their new job through personal contacts and networking. Referrals worked for 20% and cold calling delivered jobs to 1.1%.
2. Love-Hate Relationship With Recruiters: Illustrating the ubiquity of recruitment firms in the Australian employment market, a majority 64% of executives have found a job at least once in their career using their service. However, 33% have negative opinions, and only 18.66% considered recruitment firms to be effective.
3. Online Channels: Job boards delivered new jobs to 11.6% of executives. The three-way nexus between executives, recruiters and job boards is unlikely to change; a large 67% intended to use job boards in the next twelve months. Employers’ websites delivered new jobs to 3.2% of executives.
4. Social Networks & Media: Online social networks are relatively new with only a small 0.8% using the medium to successfully find a job. 35% plan to use social networks to look for a job; 28% were still sitting on the fence, while 37% planned to bypass.
5. Job Search Triggers: The majority (30%) started a job search because of financial considerations, while career(23%) and lifestyle (19%) considerations were also important triggers to start a job search.
6. Show Me The Money: A majority 87% thought pay should be increased every year. Only a small minority (7%) were willing to wait up to two years. A pay rise of 6-10% with a current employer was considered fair by 54% of executives. In contrast, 71% would expect pay rises of 11% or more from new employers.
7. What Causes Pay Rise: Pay rise is intricately related to performance. A majority 53% received a pay hike as a result of performance; 20% by changing employers. Male executives tend to be rewarded more for performance, while females are more likely to get their pay rise by changing employers or jobs.
8. Importance of Remuneration: Salary influences motivation of an executive and dictates how opinion and decisions on employers are made; 68% of executives believed remuneration package is a strong motivator in doing a job effectively. The majority (79%) thought remuneration packages are an important factor in choosing a future employer.
9. Happy with Employer, But Vigilant: In general executives were satisfied (55%) with their current employer, yet there is little loyalty; 77% of executives were ready to leave their current employer if a new and better opportunity comes along, a much higher number than the 24% who are not satisfied with employers.
10. Expectation from Employers: Reality of work life often contrasted with executives’ views of an ideal employer. Work-life balance is valued by a majority 27%, but when it comes to actually changing jobs only 19% makes a move on lifestyle and work-life considerations; financial (30%) and career concerns (23%) take precedence.
11. Short Work Tenure: Executives in Australia, on average, have worked for eight different employers since joining the workforce. Tenure with an employer is generally short. A majority 72% of executives have been working with their current employer for less than five years. Only 18.5% have work tenures between 5-10 years with their current employer.
12. Correlation Between Education & Remuneration: A correlation exists between education level attained and salary levels of executives. A majority 67% of those who earn $500,000 and above have a Master’s degree while only 34% of those who earn less than $100,000 have similar qualifications.
13. Location & Mobility: A majority 48% were willing to relocate overseas, while 30% will consider the option if an opportunity arises. Similar sentiments were displayed for relocating locally. A significant 14% of executives started job searches solely on location considerations.
14. Brand Me: Executives accept responsibility for their own career trajectory. The vast majority (90%) thought it important to promote and develop their personal brand instead of the employer’s. This desire is more pronounced amongst those in full-time roles (83%) than contractors (14%).
15. Confidence: The majority of executives (60%) were confident they can find a job within three months. Only 6% were not confident of finding a job. Given that the recruitment lifecycle for executives is longer than other job groups, it highlights the confidence executives enjoy.

I am deeply indebted to our sponsors – Peerlo, Australian Institute of Management (AIM QLD/NT); Graduate College of Management, Southern Cross University; and Dutton Direct, – without whose support this study would not exist.

It’s a well documented fact that male employees tend to earn better than their female counterparts. Why this anomaly still happens in 21st century workplaces is a  mystery.

Some interesting results on male and female pay disparity is emerging from the recent study we did on high-income executives in Australia. Interestingly, male executives tend to get their pay rise as a result of their performance, while female executives are more likely to get a raise if they change employers or move around departments.

When asked ‘what triggers your pay rise’ (see chart) more men tend to get their raise from activities (such as performance review and promotion) which, generally speaking, involves a modicum of self-promotion and confrontation. Arguably, changing employers, through which 24% of female executives got a raise compared to 19% for male, is less confrontational than asking for a pay rise.

Are women executives less demanding when it comes to asking for a pay rise? Why are more men getting a pay rise as a result of performance review? Does the disparity in how male and female executives get their pay rise contributes to disparity in the amount earned? If so, why?

I will be dissecting more of the subject in Melbourne. Come along.

What makes a good employer? According to Hewitt – keep your promises.

Details here. 

A new research claimed newspapers, combined with their online websites, are more reputable and effective in influencing the views of consumers than other media channels. The report is a fascinating look at how people consume their news and interact with newspapers (figure 1). It paints a rather glowing picture of the Australian newspaper industry at a time when the sector is struggling for relevance in most developed economies.

So, is print classifieds making a comeback? Not really, but it is not completely dead either.

It’s a well documented (ppt presentation) fact that the Australian newspaper industry is not scarred as much as the medium is in other developed economies. In fact, according to CAESA, total print revenue in Australia grew by 1% in 2008 whereas it dropped by 12% in the US. Currently, the industry is worth around $ 3.7 billion (see chart).

Spending on classified advertising has dropped in 2009, registering around $1.25 billion in revenue. I am told by Newspaper Works that on a rough estimate employment advertising makes up around 30-33% of the classifieds market. So, even in the worst of times employment classifieds still generate around $400 million (exact figures not available publicly).

Tens of thousands of jobs are advertised online each week. In December 183,700 new jobs were added online (Also see SEI Index). In comparison, newspapers registered 9,645 jobs in January 2010. There is no doubt that online thumps print in volume of ads, however more money is spent on newspapers ads than on online job boards (See interesting Q&A with Paul Bassat).

Nevertheless, it is important to note that, even in the depths of the recession, newspapers continues to be rather resilient. The two indexes measuring print ads – ANZ index and DEWR –  recorded healthy numbers of job ads. In 2005-06, ANZ reports, on average 20,450 print ads were advertised weekly. In June 2009 it reached its lowest number of 8,111 jobs. Still, these are pretty significant numbers for an industry whose obituary has been written multiple times. It is highly unlikely  newspapers will relive their heydays again, but they aren’t actually losing further grounds either.

Besides, it appears that many employers/recruiters continue to find value with print (Otherwise, it would be hard to justify ROI in light of the cheaper alternative offered by job boards). The Source of Talent Report ranked newspapers as the seventh most successful channel to recruit talent. One thing is for sure, even though employment classifieds has fundamentally shifted to online channels, print is not dying just yet.

Still, considering the rapid changes in how information is distributed and consumed, it’s hard to be bullish on print. Indeed, it maybe true that people trust newspapers, but the big question is whether this sentiment will have any positive bearing on the fortunes of the employment classifieds section. I see no evidence, in the report, which points to job seekers preferring print ads to online jobs ads. The likely scenario is that the print industry will continue to find new ways to do well, but it is unlikely there will be much contribution to the revenue from the classifieds section. Tellingly enough, already 70% of a newspaper’s revenue in Australia comes from non-classified sources.

Commendably, against all odds, newspaper operators are fighting back and putting up their case as best as they can (see video). The ‘Newspaper Works’ is an impressive initiative of the newspaper industry to have a common voice and fight for relevance in a rapidly changing landscape. Will we see a similar alliance/association of job board operators to speak in unison? Especially, given that they themselves are rattled by alternative forms of engagement with job seekers.