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ISSUE 4

A GLOBAL PERSPECTIVE: DIVERSITY AND INCLUSION

A WORD FROM THE CEO

BEST PRACTICE COMPENSATION BENCHMARKING

EXECUTIVE INTERVIEW:HR OBSERVATIONS IN AFRICA AND THE MIDDLE EAST

RETAINED OR CONTINGENT RECRUITMENT SERVICES?

Global HR Trends, Issues & Topics for HR Professionals in the Resources Industry.

www.globe24-7.com

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UPCOMING EVENTS 18

JULY 2019

http://www.globe24-7.com

ISSUE 4 GLOBE 24-7 NEWSLETTER

A Word From The CEO Lachlan Spicer

Welcome to Globe’s fourth

release of our HR Newsletter

specifically for Human Resource

professionals working in the global

mining industry.

With the half way mark of

2019 upon us, it’s easy to see that

the industry is ‘on the up’ on

the back of stronger commodity

prices (notably Iron Ore & Gold),

improved sentiment and large-scale

market consolidation (Newmont/

GoldCorp & Barrick/Randgold).

These factors have started to impact

many of us directly in HR with some

jurisdictions facing tightening labour

markets; pending skills shortages;

increased salary expectations; and

higher employee demands. It feels

like the pendulum has turned and

regions like Latin America, Africa

ISSUE 4 GLOBE 24-7 NEWSLETTER 3

and Australia are all under pressure.

It’s great to see positive change

but it tends to have a flow-on effect

that is often either neglected or not

considered for an often-forgotten

area of the industry: mining services

companies.

Small to medium mining

services organisations continually

ride the volatile and turbulent waves

of industry up & downs. When the

market booms, services companies

scramble; when it bottoms out, they

scramble again. Rarely is it ‘plain

sailing’.

I was reminded of this over

the past few months as we did an

assignment for a small but growing

Australian-based organisation who

have won new contracts and are

growing rapidly, but desperately

knew they needed ‘HR’ help and were

unsure where to start.

We sat down and suggested

a full HR audit and review before

developing a suite of custom HR

policies, procedures and processes

specific to their organisation. In

parallel we conducted a company-

wide employee health check to better

understand their cultural landscape

whilst recruiting a full-time local

HR Manager to support them in the

longer term.

This one assignment reminded

me that big or small, all companies

want to do HR the right way, but

often don’t know where to turn for

support. It is great to see the industry

improve and return to positivity but

if you’re not sure how you’re going to

handle the waves that surround you,

feel free to reach out. We’re always

happy to catch-up, provide a listening

ear and put a paddle in to help steer

you in the right direction.

Thank-you for subscribing to

Globe’s Newsletter - we appreciate

your continued commitment to us

and look forward to spending time

with you during the balance of

2019. Please be safe & productive in

everything you do. Enjoy the read!

Sincerely

Lachlan Spicer

Chief Executive Officer

“It’s great to see positive change in the industry but small to medium mining services organisations

continually ride the volatile and turbulent waves of industry up & downs”

5ISSUE 4 GLOBE 24-7 NEWSLETTER

No secret, the mining industry

and other extractive businesses

have been mostly led by male

professionals worldwide. Many

cultures set specific gender

expectations for males and

females, in relation to all aspects

of their lives. Understanding the

political and cultural landscape

of where a company operates is a

good starting point for changes.

But is it enough and how do

we make a positive impact and

progress from there?

Perceptions and Biases

Today still, the mining activity

is associated with tough physical

work, in highly demanding, remote

environments where individuals

are away from their families for

periods of time. In many locations,

this type of work conditions is

seen as inappropriate for women.

Add to this that for decades if not

centuries there have been myths

about female’s presence on a mine

site being related to accidents,


bad luck, decrease in ore quality

and productivity, especially in

underground operations. Sounds

like something from the past? We

heard it recently during one of our

assignments.

Change is coming

Fortunately, the mining

sector worldwide seems to

be going through a cultural

transformation, following on

the steps of other industries. At

the very least, companies are

adopting or modifying some of

their policies and procedures.

According to an article presented

by the Development Partner

Institute at the DPI Advisory

Council “Inclusion and diversity are becoming a priority for the [mining] sector, in line with global evidence that high-performing organizations incorporate diverse teams and inclusive approaches in both their day-to-day operations and in long-term decision-making”. The moment for change

is now and it starts with everyone,

from top to bottom.

This is supported by an

article published in 2018 by

“Mining [dot] Com”: “Having a diverse workforce is no longer a differentiator. In today’s business environment, it is a minimum requirement when recruiting and retaining top talent. Recent global studies by the Peterson Institute for International Economics and by McKinsey & Company confirm there is a positive relationship between diversity and business performance and that diversity in leadership roles matters most. According to the McKinsey & Company study, companies in the top quartile for gender diversity on executive teams outperform on profitability and value creation”. The conclusion seems clear: as

women’s participation increases,

value creation and profitability

improve. According to the

authors, the mining industry has

made progress to improve gender

diversity. But much more is still

needed. Indeed, amongst the top

500 mining companies, only 7.9%

of board members are female and

the number of women in executive

management pipelines is falling

(PwC’s Mining for Talent 2015

report).

The movement might have

started, change might be coming

but not everywhere and certainly

not at the same rate.

The following chart shows

the percentage of female

representation in Executive

Committees and Boards

worldwide. For the Latin America’s

Region, the level of female

participation is particularly low

(only 8% and 5% respectively).

While Board’s composition is

crucial, it is only the visible part

of the iceberg. For the mining

industry, the challenge is to

increase female participation at all

levels, in all roles, in all locations.

How to do it is the question that

many of our clients ask.

Identifying Obstacles, Sharing

ideas and best practices

In the past 18 months, Globe

24-7 has hosted several Round

Table Events on the topic of

Diversity and Inclusion, allowing

us and our clients to compare

approaches and to learn from

the work performed by many,

including Globe 24-7 that has

worked on this topic in several

places around the world such

as: Canada, Australia, several

countries in Africa, Philippines,

Nicaragua, Colombia and

Peru. Understanding the

different cultural views of the

topic, identifying common as

well as unique obstacles and

organisational barriers that

mining companies face, reviewing

what is done by others, are crucial

steps towards creating solutions.

Another issue identified in

the report as presenting a large

performance gap is tracking the

A Global Perspective:Diversity and Inclusion It all starts with a dream...

Figure 1 (Source: McKinsey and Company)

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levels of workers’ wages against

living wage standards, or legal

minimum wage. While respecting

legal minimum wages is a

must that doesn’t require much

explanation, the concept of living

wages is still in its infancy, its

definition subject to much debate,

which might explain the low

performance noted in this area.

Focus on Latin America: Peru

and Colombia

PERU:

In Peru’s case, there has been

a common perception for the past

10 years that more women are

joining the industry. The reality

is in fact that there has been a

decrease from 6.4% on 2008 to

5.4% female participation rate

in 2018. In the words of Lita

Calenzani, a leader in the Peruvian

mining industry for over 30 years:

“Mining is a strategic industry for Peru, contributing around 10% of GDP and employing

nearly 200,000 people in 2017. Yet, the participation of women in the sector is limited and only reaches 5.4% of the total mining industry workforce according to the Ministry of Energy and Mines. Looking more closely at these figures, 49% of women are dedicated to administrative positions; 30% are in general operations; 17% work as plant personnel and only 4% hold management positions”.

Furthermore, the study

presented at the “The World Economic Forum, in its Global Gender Gap Report for 2017 that gathered data from 144 countries, reflects this worrying situation, stating that the gap between male and female workers will only disappear in 217 years time (so, in 2234). Peru ranks 128th out of 144 countries, so we would be talking of centuries before we see the elimination of the salary gap”.

Why is this happening?

For the participants to our

Round Table Event in Lima

which took place on the 5th of

June 2019 (Barrick, Brexia Gold-

Plata, Goldfields, Minsur, SNC

Lavalin, Vale Explorations, Volcan,

Austrade and Women in Mining

Peru), there are multiple variables

that significantly influence the slow

progress of female inclusion shown

in the statistics. The Peruvian belief

system stood out as an important

one. It was acknowledged that

Peru is generally a conservative

country, where the great majority

of the population has specific

conceptions about men and

women’s roles in society. Most

mining sites in Peru are in remote

areas at the highlands where

communities have limited access

to education and financial wealth.

There is a widespread miss-conception and limiting belief that:

1. Females typically can’t

work at the mine sites because

they are not “strong enough” or


not perceived to be intellectually

capable to develop in non-

traditional roles;

2. The environmental

conditions and work systems

are too demanding and, in many

cases, not viable for mothers;

3. the perception that it is not

profitable to hire women because

of potential absences related to

pregnancy, maternity or even

dysmenorrhea.

W h i l e t h i s s e e m s

unsurmountable, the good news

is that many companies are in the

process of either auditing their

current situation or developing

and implementing change

management approaches. Over

the last couple of years, some of

them have been evaluating their

current context in order to adapt

their organisational culture and

environment to be more gender-

friendly, as well as identifying

alliance opportunities to promote

inclusion and diversity in their

influence zones or implementing

actions such as reviewing policies

and procedures, establishing

processes to guarantee equal

conditions to all, implementing

programs targeted at females in

non-traditional roles. However, it

was recognised that many of these

initiatives are isolated or not part

of an integrated approach and see

as an HR topic only.

Participants also highlighted

the many positive points they have

experienced. We would like to

share some of their observations,

such as the fact that some have

found “female employees are very responsible and committed to their jobs, they are punctual, organized and eager to learn. They show a positive attitude and

take care of their equipment, even more so when compared to some men.”

Other comments were “that for the most part females tend to be thoughtful and respectful of the safety rules”. Actually, “the index of accidents related to women are almost inexistent because they are very careful and aware of the risks they face during their duties. Even if they are experienced on a specific subject, they would take the needed preventions to avoid accidents”.

They also mentioned “females are clean and tidy with their uniforms and workplace. For example, it is easy to know if a man or a woman has been driving a truck because when a female gives the equipment back it’s always neat”.

While some of these

Figure 2: Women in Mining (Colombia)

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observations could be perceived as

reinforcing some ‘clichés’, they are

very important in the context of

Peru and the challenges companies

faced with the local culture and

the perception of women in the

mining industry.

Obviously, the ‘pipeline of

candidates’ problem was also

commented on - Promoting and

attracting female students to

technical careers is an important

piece of the puzzle. Some

companies with a long-term

approach, support activities or

programs at Universities and

Academies or even high schools

that promote diversity and

opportunities within the mining

industry. Now in Peru, over 85% of

students in Mining Engineering,

Metallurgy and Mechanics are

men. On the other hand, female

population is slowly increasing in

Geology, Civil and Environmental

engineering.

COLOMBIA:

Globe hosted the Gender

Diversity and Inclusion Round

Table Event that took place in

Medellin in May 2019 with the

participation of ACM (Colombian

Mining Association), Austrade

and the Australian Embassy,

Colombian Canadian Chamber

of Commerce, Cerrejón (Anglo

American Plc/BHP Group/

Glencore Plc), Minesa (Mubadala

Group), AngloGold Ashanti, Gold

Mining, Miraflores (Metminco),

Epiroc, Gran Colombia Gold,

South32, Fura Gems, Mineria

Texas de Colombia, Sandvik

Colombia, Liebherr Colombia,

Alfa Laval, Baker McKenzie.

Not only the challenges and

obstacles toward greater diversity

and inclusion were discussed,

but also the practical and tactical

approaches needed to combat the

status quo. Colombia has been

“up and coming” in the mining

industry and companies are

preoccupied with ensuring that

they do it right from the start.

A particularity of Colombia

is the Equipares Certification,

and it was discussed at length. It is

an initiative from the Colombian

Working Ministry together with

the Presidential High Advisory

team for Gender Balance (ACPM)

in conjunction with the United

Nations Development Program

(PNUD) that evaluates companies

and their gender equality

programs, with a focus on policies

and procedures. Approximately

30 companies across all sectors

have acquired this certification,

with only one from the mining

industry. Other mining companies

have started on that path but all

recognised that while necessary,

policies and procedures are only

the beginning.

Where do we go from here?

There is not one answer, as

each company and each situation

is quite unique. There are however

key steps to consider on a journey

to greater diversity and inclusion,

and as for all journeys, the first

step is often the decisive one.

1) Diagnose and understand

where the obstacles and challenges

are at the organisational and

individual levels. What are

the internal opportunities and

challenges (policies, programs

structures but also leadership,

company’s culture and decision-

making mechanisms) How is the

company perceived, experienced

and lived by its own employees on

this topic? What are the external

opportunities and challenges

(societal, cultural, legal, etc.)?

2) Educate and engage – with

your staff as “promoting inclusion often requires working within the system first, in order to change it” (Chico Tillmon, Executive

Director of YMCA Chicago’s

Youth Safety and Violence

Prevention Initiative) but also with

communities and other external

stakeholders. Consultation,

communication, awareness and

education are keys: “Education is a crucial pathway to inclusion and diversity” (Chico Tillmon).

3) Create a strategy and

design an action plan. Diversity

and in particular Inclusion, is not

simply a ‘number game’. Cultural

transformation requires time,

dedication, integrated approach,

measures and accountability but

also champions, sponsors, coaches

and the support from all levels

and areas of the business. And

empathy: “Empathy enables us to go beyond deeply-held cultural beliefs–such as the belief that women can’t be leaders or have families while working – and effect change. We must require people in business to have the confidence to engage empathetically. (…) Addressing that means creating room intentionally and empathetically for people so that diverse voices can be heard in ways that positively influence mines and their role in communities”

(Development Partner Institute).

4) Finally, it is worth

considering how technology is

advancing and how it might impact

on talent related decisions, such

as recruitment (automated first

selection, gender-neutral resumes)

and promotion (performance

management systems, online

training, etc.).

It all starts with a dream

“I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character…”

Dr. Martin Luther King, 1963

Juan David Viñas

Business Development Manager

LATAM Region,

(Bogota, Colombia)

Lucero De la Puente,

Business Development Manager

Peru,

(Lima, Peru)

Luis Valente

Manager, Global Business

Development

(Atlanta, USA)

Alain Pfammatter

Manager, Global HR Consulting

(Perth, Australia)

Figure 3: Women in Mining (Colombia)


Best Practice Compensation Benchmarking: Turning Cooperation into Collaboration


Cooperation between competitors

within the same industry and market

is a good way of sharing ideas and

helping each other solve common

problems. In addition to the value

of improving productivity, it also

serves to help people develop strong

networks, often with long lasting

relationships being formed.

This cooperation can be

enhanced greatly with specialists

taking the level of sharing to a new

level by including data and practices

in disciplines such as compensation.

With compensation being a key

element of the employer proposition

for the resources sector and a critical

factor in the competition for talent,

benchmarking in a cooperative

fashion is a logical undertaking within

many countries around the world.

However, the cooperation

within a well-intentioned group of

compensation specialists is often

limited with the benchmarking

outcomes due to the lack of

time, resources, consistency and

openness. By applying best practice

compensation benchmarking

principles within a cooperative

group, the quality of result can be

improved significantly with the right

guidance and true collaboration.

Effective collaboration between

compensation specialists will have

the effect of ensuring that every

company has their benchmarking

needs met with relevant and logical

market intelligence. To make

this work best, the quality and

consistency of inputs is paramount,

which requires carefully crafted

guidelines and a keen attention to

detail, that takes time and effort.

Examples of best practice

collaboration producing excellent

results over a sustained period are

when the companies collaborate

to form an independent entity

administered by experts dedicated

to the benchmarking needs of

the group. The independence

guarantees confidentiality to bring

about openness and the dedicated

resources provides the focus on

serving the needs of the members.

An experienced independent

team can lead the collaborative group

to establish consistent standards,

gather precisely what is needed

and guide the process to ensure the

ultimate results are sound. Having

skilled experts guiding the process is

key to achieving true collaboration.

Globe 24-7’s HR Consulting

team of seasoned compensation

experts have a track record of

delivering practical benchmarking

solutions to the companies they

work with. They take the time

to understand the issues that are

unique within a market and provide

benchmarked compensation results

with clearly presented data, analysis

and insights.

by John Booth

Senior Consultant,

Renumeration and Benefits

(Australia)

Figure 4 -Cooperation vs Collaboration


About FLSmidth

FLSmidth delivers sustainable productivity to the global mining and cement industries. As the market-leading supplier of engineering, equipment and service solutions, FLSmidth improves performance, increases productivity, drives down costs, and reduces the environmental impact of operations. Deon De Kock is FLSmidth President, Sub Saharan Africa and Middle East.

Paloma: Hi Deon thanks

for meeting us today, it’s much

appreciated –

I would like to start by

commenting on your impressive

career in the industry. It was a

year ago that you were appointed

as FlSmidth’s President for the

Sub Saharan Africa and Middle

East Region. What has been your

experience in this last year?

Deon: It’s a great privilege

working for FLSmidth. I appreciate

working for a company which I have

shared values with. It has been an

exciting journey thus far and I know

the way that the company is going

which makes it more interesting.

Our common goal is to serve the

customers better, through sustainable

productivity enhancement.

Paloma: Indaba Cape Town was

held in February of this year. What

would you say were your highlights

and experience at the conference?

Deon: It was a great networking

event. Indaba is always a highlight in

the calendar. For FLSmidth, it is the

opportunity to meet with our key

customers and potential customers

and to have productive dialogues

around industry challenges and

opportunities, across the flowsheet and

value chain. We have a strong focus

on innovation and digitalization and

recognise that working with customers

to address their needs directly is

crucial in getting the right solutions to

market in a timely manner. So Indaba

allows us to explore ways to co-create

new products and solutions together

with customers.

Mining in South Africa is going

through a tough environment, we

have some challenges such as power

supply issues and appropriate business

ethics. The message from President

Cyril Ramaphosa was clear, it was

good for us to hear what he had to say

as FLSmidth share these values and

has done it for a long time.

It was interesting to see the scale

of development in Central Africa

and again with copper and gold in

West Africa. Part of the region I cover

includes the Middle East where I also

see great future.

Indaba has a lot of junior and

mid-tier miners that find funding as

the biggest challenge. For instance,

coal is not attractive any more for

the rest of Africa. Although that’s not

relevant for the South African miners

as coal is very much needed in the

country. Indaba is a great place to

discuss these trends and challenges –

and to really connect.

Paloma: In your perception;

what challenges will face the mining

industry in Africa over the next few

years?

Deon: The biggest challenge I

believe will have in Africa and South

Africa will be water. To be sustainable,

water is a core principle. Water and

preservation of water in a responsible

manner is absolutely necessary and

this is a major focus for FLSmidth.

The second challenge would be

in the Human Resources area when

it comes to specialised skills, which

are not necessarily available. We are

facing a clear skills shortage and not

only at entry level but also resources

like technicians to even executive

management; companies will have to

compete to get the best professionals.Deon De KockFLSmidth President (Sub Saharan Africa & Middle East)

Executive Interview:HR Observations in the African and Middle Eastern Mining Industry


Paloma: What solutions are

being proposed from FLSmidth

to remedy the impending skill

shortage?

Deon: The company’s target is

to be sustainable. We do a lot of work

globally and locally in order to become

a more sustainable provider. We are

getting very involved in the different

areas including the community and

the way we look at engaging people

and also the way people look at us as

a company and mining as an industry.

Mining often has a negative

connotation and sometimes is

perceived as acting irresponsibly. Work

needs to be done in order to make and

show mining as a sustainable business:

one that looks at its carbon foot print

and after the environment. If this work

is done by the mining industry in

general, mining will become a more

attractive option for young people.

FLSmidth is also at the beginning

of its own journey to create a more

diverse workforce globally, which

includes hiring and retaining a more

age and race diverse workforce

and attracting female employees

to a traditionally male-dominated

industry.

If your values and the way you

operate is done in a way that empowers

employees, the company will look

more attractive. FLSmidth also targets

universities and schools and educates

people in mining in a sustainable way.

There is a big, shared responsibility for

people in the industry to show that

mining is a responsible industry – this

will make it more attractive for people

and help shore up the skill shortage.

Paloma: You mentioned the

work FLSmidth does in promoting

and attracting women to the

industry. What type of programs

does your organization participate

in?

Deon: When we talk diversity,

it obviously goes beyond gender but

certainly a major focus is on gender

inclusion. We are currently just at

the beginning of this initiative. As a

sign of things to come, we have just

appointed two women to our Group

Executive Management team; the

Heads of Group Human Resources

and Group Legal & Strategy.

So we are taking the first

concrete steps and there is a great

emphasis on how we can move

forward from senior management

including the CEO Thomas Schulz

and myself. We want to embrace

diversity in and of itself and because

we see the value in having a diverse

environment in the organisation.

We have a significant amount

of work ahead, but some early steps

include setting KPIs and to monitor

the levels of inclusion at all levels

in the company, from operators

to senior management. That’s not

something that we are leaving

by chance. In South Africa, we

have 38% women in management

positions. They are there very much

on merit, work ethic and what they

bring to FLSmidth. I want to make

clear that we hire and promote

people by merit and not because of

gender.

Paloma: We saw on the news

last month the buyout of Australia’s

IMP Automation Group. Where

do you see innovation to progress

forward within your own company

and what does the mining world

need in order to advance forward?

Deon: Innovation is part of

our fibre. As a leading solutions

provider, our goal is to provide

sustainable products, services and

solutions to the mining industry,

to ensure our customers enjoy

sustainable productivity. To achieve

this, innovation is key. Certainly,

digitalisation is a hot topic if we are

looking at how mining can reduce

the impact on the environment,

increase safety and reduce costs. This

will also increase efficiencies and,

as a result, increase productivity.

Digitalization is key in order to

achieve all these elements.

We made the decision three

years ago to appoint a Chief

Digitalization Officer so we

could use the connectivity of the

Internet together with real data and

digital methods to provide more

sustainable, connected and efficient

solutions to our customers. This

technology can be used in greenfield

projects but also in already operating

mines.

FLSmidth combines its

knowledge in products, projects

and services to leverage the digital

opportunity: we use our full

flowsheet knowledge to offer data-

driven process improvement and

combine our machine and service

knowledge to improve uptime

and extend service coverage of

our equipment. Our process

optimisation solutions have been

in the market for decades and

deliver tangible results. Based on

our existing automation offering,

we provide driver-less operations

for more and more production

processes.

The biggest impact from

digitalization for our customers will

come from operations management

(e.g. improving yield and throughput

and reducing production cost)

and equipment maintenance (e.g.

improving availability and reducing

maintenance cost).

Paloma: Thank you for your

time Deon, I appreciate the time in

your busy diary. Have a good day.

by Paloma Ortiz

Branch Manager EMEA,

United Kingdom

“Mining often has a negative connotation and sometimes is perceived as activing irresponsibly. Work needs to be

done in order to make and show mining as a sustainable business...”

“The company’s target is to be sustainable. We do a lot of work globally and locally in order to become a more

sustainable provider”


Let’s use a parallel in a common

decision-making process to help

explain the Contingent versus

Retainer models. Many of us are

not experts in buying cars, and

when faced with the challenge

of selecting the right vehicle

to purchase, there are several

variables that are important to

consider. Two cars may look very

similar from the exterior, but it is

not until you “open the hood” that

you unveil the drastic differences

between them; how it performs,

how it consumes fuel, how it feels

to drive and most important how

well it will suit your needs, are

some of the questions you should

be ready to ask yourself.

Retained or Contingency –

what’s the difference?

When you have made the

decision to hire, you may consider

using your network or teams

available to you to do what they

can in support of the recruitment

process, or you may realize that

you do not have the time or people

resources available to properly

work to fill a vacancy. At this point

some never-ending questions

surely haunt all hiring and HR

leaders:

1. Who to engage when

outsourcing recruitment processes?

and

2. Do they hire retained or

contingent services?

Let’s highlight the differences

and demystify some beliefs to help

you make the right choice.

Recruiting is a critical process

in the success of our business’s

survival and growth. Then, it is

worth estimating and reviewing

that will be required from you or

others involved in the process of

sourcing and identifying the right

candidate for your organization.

Let me say this again, the right

candidate. If the recruitment

process fails or if you do not make

the hire, upon looking back you

will have incurred staff costs, the

business will have to wait longer

to fully perform, credibility goes

down and that terrible feeling of

“this is taking forever” sinks in

deeper.

Evaluating each option

How should you choose the

company you will outsource your

needs to? How do you evaluate

them? Many companies decide

to go external because they have

little to no time to do it themselves.

Despite the many options out there,

often Hiring and HR leaders do

not even consider a retained based

solution because “why would you

pay up front when you can use

several contingency firms at once

that will rush against each other,

and you only pay the one if you

make a hire?”. This might sound

like a natural thought but one

worth looking into further.

In contingent recruitment

services, a consultant typically

works 50% of her/his time on how

to bring in the next client and 50%

(or less) on presenting the client

with candidates. This 360 recruiter

as we call it (sales and recruitment)

works against the clock to try and

beat the competition to introduce

candidates before anyone else

so he/she can earn a fee with the

minimum time spent on the search.


Rushing to get you candidates! This

sounds great so far, doesn’t it? But

does this work, and if yes, to what

extent?

What you should expect when

choosing a Retained service

If you are considering paying

a commencement fee to a

recruitment consultant, I am

sure you will be evaluating them

thoroughly. Having put your

hand in your pocket for a service

not yet delivered, you want to feel

confident these consultants will

not only give you the results you

need but also provide some added

value. Where does this added value

come from? Retained services

typically focus the efforts of each

individual involved in the process,

for example the person in charge

of sales will focus on sales and the

person in charge of recruitment /

account management will focus on

that task. Why? Simply because

as a consultant, when someone is

paying you for a service, you want

to put the best person on the job in

front of them to satisfy your client,

gain credibility, present options,

and add value.

In a retained recruitment

model, in order to work quickly

and efficiently a team composed

as a minimum of a recruiter,

and account manager, and an

administration resource will be

put in place to ensure each person

can dig deep, turn every rock,

offer you insights of what the

competition is doing and how you

compare against them, and help

you hold your team accountable

to defined hiring time frames. A

retained consultancy will “project

manage” each search with several

incumbents at a time, ensuring

there is a timeline to stick to and

hold both parties accountable. This

takes focus…

Who can afford a rushed

process or no process at all?

Retainers protect your investment.

When a firm is retained, you have

their undivided attention, or so

should you. If you don’t have that

level of interaction, then you didn’t

vet them properly. If a competent

firm has the ability to truly screen

candidates out of the process rather

that screen them in, you will get a

better product.

If you pay upfront for a service,

your expectations go up and that

is a good thing, something we, at

Globe 24-7, we value. And think

about this again, if you do not pay

someone and only will review the

final result then you will likely not

be as invested in it and just wait for

candidates.

We’ve done both & we know

the benefits and challenges

The contingency model

should probably not be dismissed

altogether as there is a place for

every kind of services, and there

are many contingency search firms

that can perform at a very high level

in the right situations. However,

there is a better way to control costs

and timing, to receive added value,

develop talent, and ultimately find

a partner that can support you

beyond sourcing identifying a hire.

Retained search is more difficult, it

is more intense and it requires to

be available at all hours. Hence the

name 24-7! But we love it! I We feel

empowered by our clients to add

value in a positive way by deeply

understanding their challenges and

digging for creative ways to come

up with solutions, with them, as

part of their team. Contingency

search is transactional in nature,

and when you are dealing with

a commodity that is as limited,

variable and volatile as human

capital in the mining industry, give

retainers a chance. The total cost of

ownership is lower in the long run.

by Jaime Alvarez

General Manager,

Global Operations

17

Retained or Contingent Recruitment Services?That is the question...


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