Recruitment trends will change dramatically after the economic downturn ends as companies adopt a more scientific approach to human resources planning, say experts.

"Organisations are likely to assess their current hiring needs as opposed to the past practice of hiring for future needs," Dr Abubakr Suliman, Head of Human Resource Management at the British University in Dubai, told Emirates Business.

"Companies nowadays are focusing on a more rational and scientific approach by re-evaluating their current exact requirements rather than engaging in casual hiring. Now, more than ever, organisations will hire based on real needs and continue to apply this principle to their future recruitment processes."

Sandra Schwarzer, Director, Insead Career Services, said companies would adopt a more cautious approach, adding: "While many still need to hire for specific roles, candidate requirements will tend to become more specific and often an applicant will have to tick all the boxes to get an offer.

"Many HR departments are currently assessing business needs, which is not an easy thing to do in this economic climate. During the last downturn, many companies completely halted recruitment. While this made sense from a short-term perspective it led to talent gaps as soon as the economy picked up.

"Right now, HR departments should start looking at the talent pipeline. If their companies expect to see a big retirement wave in five years they need to start recruiting and building up the next generation of leaders.

"It takes some time for people to not only become fully operational but to gain the trust of managers and teams. I would also recommend keeping an open mind in regard to the profiles of the people you recruit – career-changers can offer companies a new perspective and different set of skills.

"While initially they will need a bit more guidance on the industry or products they often bring a lot of motivation and drive. At Insead, 80 per cent of our MBAs have a career change upon graduation and are very successful with their new companies."

Tomas McGarvey, Corporate Commercial Recruitment Specialist at Pathway Legal Middle East, believes there is an increased need for generalists in the current economy.

"When Dubai and the region were booming, the demand for talent outweighed the ability to satisfy that demand," he said. "The solution? Bring in people from across the globe to satisfy the needs of a rapid-growth economy.

"Now that we are faced with more testing times and a global recession, it is only natural that trends change. It is no longer viable for HR managers to add to the head count without fully justifying the value added. There is an increased need for generalists in the current economy – individuals who can cover more than one aspect of a role, therefore alleviating the need to hire two people.

"HR directors need to make sure that those they recruit come on board for the long term. They need to see that an individual has ties to the region and is not just here for a quick buck."

Another key trend that is expected to emerge is a focus on the ability of candidates to cope with uncertain times as lessons are learnt from the current downturn.

"Companies will have to become selective and more proactive in assessing future needs," said Panos Manolopoulos, Managing Partner for the Middle East at Stanton Chase. "They will not be speculative and companies will be thinking about possible pitfalls, recession and risks."

And Schwarzer said adaptability and flexibility would be key qualities.

"Drive and passion about the product, industry and company will be required," he added. "Decision-making, cross-cultural awareness and an ability to operate globally are vital. At Insead, the current MBA class is made up of 76 nationalities and none is dominant. MBA students experience cross-cultural management in their daily group interaction. They learn how to work with and understand people from diverse backgrounds, which prepares them for successful careers as business is truly global today."

Manolopoulos added: "Employers will be looking for quality rather than quantity. In the past, companies were just looking to fill in the gaps. That will not be the case in future as there will be fewer gaps."

McGarvey said: "It is imperative that the candidate can do the job required. Added to this, HR directors need to look beyond the obvious. What can the individual bring to the role and to the company that is currently missing or that no other individual can bring?

"Recruiting individuals possessing a greater spectrum of skills and talent will strengthen a business's core and keep recruitment costs to a minimum. It is more important now than ever to assess an individual's commitment to the company they will be joining. What do they know about the company? Why do they want to join? At this time it is important that motivation stretches beyond remuneration. This should be allied with the regional value they can add – what contacts do they have and what clientele will they attract?"

Dr Suliman said: "If we look at the current recession, employers are opting to hire candidates who can handle more than one task and hold a broad area of specialisations rather than narrow and tailored backgrounds – that means there is a need for employees who can do four or five tasks at the same time."

Companies should always try to hire qualified and motivated people and invest in their development to ensure that they are building up the internal talent pool, said Schwarzer.

"Even if you hire large numbers to ensure your organisation grows you need to make sure that your new employees fit into the corporate culture and you need to train them adequately to ensure the quality of service," she added.

"Many organisations start with an induction period of several weeks during which they run training and team-building events, breakfast and lunchtime talks and use a 'buddy system' where they assign another team member to guide the newcomer through the organisational structure."

There is now a greater preference for hiring people from the region, according to Ihab Hashwa, Regional Operations Manager of CareerJunction Middle East. And he disagreed with McGarvey's view that there was now greater need for generalists, saying there was more demand for industry specialists than before.

"Organisations in the Middle East are now focusing on region-based candidates," he said. "Moreover, as everywhere else the focus is no longer on hiring the second best. Now it's an employers' market so organisations are looking for people who are specialists in their respective fields.

"Previously organisations regarded a specific industry focus as one of the 'preferable' skills because talent was not easy to find, but now with the abundance of available candidates, they are looking only for those who specialise in their respective industries."

And the emphasis on quality will continue even post-recession – the focus on "best quality joins" will be more important than "more joins".

"Companies are now taking time in making sound hiring decisions and are searching for the cream of the crop," added Hashwa. "And quality over quantity will surely stay."

Dr Suliman said: "Once the recession is over, organisations will continue to hire quality people who can handle the needs and requirements of the job. In the past, companies that did not have current needs would hire candidates who could be good employees for future positions. This practice led to overstaffing – and as the market turned the result was mass redundancies."

Manolopoulos, on the other hand, believes that certain HR practices that have long been neglected will be revived once the dust settles.

"After the recession, more companies will be putting candidates on probation," he said. "This was always in place but was never put into practice. Employees will be looking more carefully at the performance of recruits.

"And companies will not be that flexible when negotiating about pay, as they used to be, as there are now strict budgets from finance departments."

Companies and HR managers should focus on certain matters now to avoid pitfalls once the crisis passes over.

"Even before we actually come out of these crisis, companies need to carefully consider succession planning and retention policies. Turnover will increase after companies ride out the economic problems and employees who at the moment are stuck because of lack of options start to leave. Companies also need to hire the right people for the right positions. Don't take on a person to fill a position who is more qualified than is required. Do not under-value your people and keep their morale high. Make sure they know they are secure."

Hashwa agreed with Manolopoulos, saying: "In post-recession, the most important considerations for HR managers will be the training and development of their talent and employee retention.

"As we go forward the finance, construction and real estate sectors are expected to see the biggest changes in recruitment practices in Dubai."

Manolopoulos said: "Financial institutions will never again see the hiring levels they were used to. They will also be assessing their hiring criteria and applying strong key performance indicators. The hiring process will also take longer."

And Dr Suliman added: "Since the start of the global downturn, construction and finance have seen the biggest changes in recruitment due to the tightening in the lending sector, which has led to delays and cancellations of projects."

 

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