Episode Transcript
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0:00
Hello and welcome to Sticky from the
0:13
Inside, the employee engagement podcast
0:15
that looks at how to build stickier
0:18
competition-smashing consistently
0:20
successful organizations from the inside
0:22
out. I'm your host, Andy Goram, and I'm
0:25
on a mission to help more businesses turn the lights on behind the eyes of their
0:29
employees, light the fires within them, and create tons more success for everyone.
0:39
This podcast is for all those who believe
0:42
that's something worth going after and
0:44
would like a little help and guidance in achieving that. Each episode we dive into
0:48
the topics that can help create what I
0:50
call stickier businesses. The sort of
0:53
businesses where people thrive and love to
0:56
work, and where more customers stay with
0:58
you and recommend you to others because
1:01
they love what you do and why you do it.
1:04
So if you want to take the tricky out of
1:06
being sticky, listen on. Okay, in a world
1:12
where the only constant is change, the
1:14
workplace is no exception. From the
1:17
seismic shifts in remote working to the
1:19
growing emphasis on work life balance, the
1:21
landscape of employment continues to
1:23
evolve right before our very eyes. And
1:26
with these changes come significant
1:28
challenges in both recruiting top talent
1:30
and, crucially, retaining them. I've
1:33
recently sat on an international panel of
1:36
employer branding experts to try and
1:39
answer the question, recruitment or
1:42
retention? Which, to be frank, was a
1:44
deliberately broad and ambiguous question,
1:47
but elicited such a diverse range of
1:50
opinion and insight depending on where in
1:52
the world you were based, it's clear we're
1:55
not all facing the same issues. But the
1:58
common threads throughout the discussion were that things are changing and a focus
2:02
on understanding where your business is
2:05
headed, what culture is needed to get there, and how you recruit, retain and
2:09
grow. Your people all need to be joined
2:12
up. Now. Today we're delving into a
2:16
fascinating angle of this evolving question of balancing recruitment and
2:20
retention. I'm joined by Darius Matuziak
2:23
from Macildowie, a firm that's not just
2:25
observed these changes, but has actively
2:28
rebranded in response to them. That's
2:30
right, they transition from being solely a
2:33
recruitment firm to a recruitment and
2:36
retention company, addressing head on the
2:38
challenges businesses face in this new
2:40
era. Now, what does this shift mean? Why
2:44
do it now? How does a company renowned for
2:48
recruitment pivot to emphasize retention
2:51
as well? Is this what's going to fix what
2:54
many have referred to as a broken
2:56
industry? And most importantly, what could
2:58
we learn from their journey that applies
3:01
to businesses and employees alike? These
3:04
are just a few of the tantalizing
3:07
questions we'll be exploring. So whether
3:09
you're a business leader, an HR
3:11
professional, or just someone passionate about the culture and dynamics of the
3:16
workplace, this is an episode I don't think you'll want to miss. So stay tuned
3:20
as we unravel the secrets to successful
3:22
recruitment and retention in today's
3:24
rapidly changing work environment. Welcome
3:26
to the show, Darius. Andy, thanks for
3:29
having me. It's a privilege to be part of the conversation and I love the work that
3:33
you do. Oh, bless you. That's very kind of you. Well, I'm fascinated with what you
3:39
and McEldawe have been doing, and I want
3:43
to find out more. But before you let me
3:45
kind of crawl all over that and you tell
3:47
us what's what, do me a favor, my friend.
3:50
Just give us a little bit of information about who you are, what your background
3:53
is. And actually what would be really interesting is why is this topic that
3:57
we're going to talk about today so important to you? Okay, cool. So, fast
4:02
approaching 14 years with Mackle Dowie.
4:05
Joined the business as a finance recruiter
4:08
where I operated a desk across
4:10
Northamptonshire and Milton Keynes for around about 18 months and then moved over
4:15
to build our HR markets. It was something
4:19
that was very new to the business at the time. So this is back in 2011, twelve ish.
4:25
And I was fortunate enough to be able to
4:27
work with some fantastic organizations
4:29
where I developed relationships. That meant we were able to build kind of a
4:34
consistent stream of revenue that afforded me the opportunity to build a team. I was
4:40
then in a position where I was able to
4:42
manage that team officially, then manage
4:45
the whole division. And then I was given a
4:50
chance to actually become a director of a
4:53
couple of different divisions. That went
4:55
well. So the extra division that I took on
4:58
there was sales and marketing, and then it
5:01
would have been about five or six years
5:04
ago, I was able to step up again and be
5:08
the managing director for the south
5:10
offering of Mackle Derby. So all of our
5:13
offerings, all of our divisions, should I say, across the south, geographic. And
5:16
then about just over a year ago, I moved
5:20
over to become MD of our partnerships
5:23
offering. So our partnerships offering is
5:26
essentially everything that sits outside
5:29
of the recruitment side of the business.
5:32
So we help businesses from a retention
5:35
perspective. And that's done really through three key streams. The first being
5:39
that we help them to actually build and
5:43
change and develop their cultures. The
5:45
second being that once you've got a great
5:48
culture and set of behaviors and sense of
5:50
purpose, you want to articulate it. So we
5:52
help define what the EVP looks like for
5:55
those businesses, creating all of the
5:58
assets and the marketing material. And
6:01
then you've got to go out to market and promote your brand. And the final stream
6:06
that we help our customers with is
6:08
employer branding. So I think the second
6:10
part of your question was, why is this
6:13
topic so important to me? I think it's
6:16
important to me for many reasons, and most of it is actually born out of the time
6:19
that I've spent working in HR recruitment,
6:22
learning about organizations and the
6:24
importance of getting behaviors and
6:27
purpose and culture. Right. And
6:30
predominantly, I think it's born out of the fact that so many organizations
6:33
struggle with it. There's very much a
6:38
mindset around if a business wants to make
6:41
investment and it's a piece of machinery,
6:43
and they can see that that machinery will spit back a return within three years. The
6:49
CFO has got no issue signing that off. But when it comes to something that is a
6:52
little bit more organic and soft and
6:55
fluffy and arguably at times not as
6:58
measurable, although I really would push
7:01
back on that thought process these days,
7:05
that it becomes harder for businesses to
7:07
buy in, shall we say, to that level of
7:11
investment and really focus on having a
7:13
people first culture. But I think
7:15
predominantly, if you can do that, your
7:17
organization will be more successful. Businesses run on people, customers stay
7:22
loyal because of the people that they deal with, and profits grow as a result of that
7:26
loyalty. So for me, it is born out of
7:30
helping our customers be the best version that they can be and having an engaged and
7:35
happy workforce that produces results not
7:37
only for the business, but for their customer base. Yeah, I mean, I just think
7:41
it's fascinating because traditionally,
7:44
solely recruitment focused as a business,
7:48
and then the three pieces of building a
7:51
culture, defining an EVP and then
7:54
promoting that on an employer brand basis,
7:58
they're big things, they're big topics.
8:01
And to pivot from that recruitment piece
8:06
to recruitment and retention, I just think
8:08
is fascinating. And hopefully we will get
8:10
into some of the nuts and bolts about that
8:13
as we go on with the conversation, I just
8:15
want to cover off maybe a bit of the
8:19
context here, which may explain some of
8:22
the reasons why the company changed and
8:25
where your focus is now put. I mean, I
8:28
wasn't incredibly polite at the start when
8:30
I talk about the recruitment industry
8:33
being broken. Now, look, some of that
8:36
comes from my own experience, but I don't think I'm alone in sort of saying those
8:40
words. But where do you think? Well,
8:44
firstly, ask the right question. Is that
8:47
fair? Where do you think it comes from? If
8:49
it is, or why do you think it's not fair?
8:52
If it isn't fair, explain a bit of that
8:54
for me. Darius. Wow, that's a big
8:57
question. So is the recruitment industry
9:00
broken? I think it's more broken than it
9:04
has been previously, but I don't
9:07
necessarily think it's ever been unbroken.
9:10
And I think there are reasons for that,
9:13
because when you think about why a company
9:16
might need to keep going to market, very
9:19
often it stems from the relationship the
9:23
individual might have with the line manager, and therefore that's why they
9:26
leave. It might stem from a lack of belief
9:29
in the leadership team. Do they trust
9:32
them? Do they get a sense of direction?
9:35
And is that direction inspiring? Are they
9:38
in a position where they feel that they
9:41
have got a visibility of where their
9:44
career is going, when it's going to get to
9:47
where they want it to get to, and what the key milestones are for them to hit, to be
9:52
able to keep moving forwards within the
9:55
organization. And very often,
9:57
unfortunately, the answer to those questions are falling on the negative side
10:01
of things. So is recruitment broken? I
10:06
think it's largely broken because the
10:09
relationship between the employee and the
10:12
employer is lacking an element of equity,
10:18
if you like, for some of the reasons that
10:21
I've mentioned. And I think what we've seen happen in the run up to Covid and
10:26
then be accelerated after that. Is this
10:31
real emphasis on people wanting to work
10:33
for businesses where they can align with
10:37
the purpose of the organization, or they
10:41
feel that there is a cultural empathy
10:43
towards what the values are of that
10:45
business and how people do business
10:48
together within the company, how they
10:52
communicate, how they give feedback, how
10:55
they disagree on things as well. And
11:00
therefore, I think as a result of us being
11:03
in a position as recruiters, where an
11:06
organization might come to us and say, we
11:08
need somebody now, they're on a month's notice, they've got two weeks holiday to
11:13
use, we've got to get a bum on a seat. I
11:15
think the argument for recruitment being
11:17
broken comes because it becomes such a
11:20
reactive exercise. So I think the big thing is that businesses really could be
11:25
investing more effectively in essentially
11:27
workforce planning, talent planning and so on and so forth. And unfortunately,
11:33
business needs very often become higher on
11:37
the list, shall we say, of the agenda, I.
11:40
E. Urgent and important. And that kind of
11:44
talent planning generally sits underneath that as important, but never gets to the
11:48
top of the list. So we're in a position
11:52
very often as recruiters where things have
11:55
got to move quickly, there's a panic.
11:59
Potentially the compromise might have to
12:03
happen with regard to either behaviors or
12:06
skills. And generally, I think you can
12:10
then get into the psychology side of
12:12
things with regard to line managers being
12:15
loaded with bias, particularly ones
12:20
whereby people like to recruit in their own mold. Right. And I think all of these
12:24
things have an effect. So there's no
12:26
silver bullet answer to your question.
12:28
Okay. I mean, I think it's really interesting, a few things that you sort of
12:31
said there. I think the planning issue.
12:33
Yeah, I can understand the planning piece
12:36
causing then a, I guess, concentrated
12:40
effort to fill a vacancy, which may lead
12:42
to the bit that I think people experience,
12:45
and which is why it's fascinating, I think, with the switch or the pivot that
12:49
you've got here is that maybe that pace is
12:53
driving a lack of personal human
12:56
connection in that recruitment cycle.
12:59
Maybe it feels like you're being fed into a machine, and out you come the other
13:03
side, unless you're in some sort of high level executive search where there's a
13:06
different number of people being looked at, and yet the things that you talk about
13:11
and the pivot that you're making into the
13:13
retention side of the business and the
13:15
language that you've used so far today has
13:17
been very much about connection and people
13:21
and behavior and certainty. All these kind
13:24
of great things I'm a massive advocate
13:26
for. And I think this is the thing that's
13:30
really piqued my interest in what you guys
13:33
are doing in blending something that
13:36
perhaps, to some has felt a little
13:39
impersonal to the other side of, I guess,
13:42
the more personal agenda at work about,
13:45
well, what does it really take to retain
13:48
talent? And that hits on a lot of the notes that you've already talked about,
13:51
and I'm sure we'll hit on more as we
13:55
prepare to think about what the cause for
13:58
the rebranding was and where the focus
14:01
sort of came from and what that looks like
14:03
today. When you look at the changing
14:08
dynamics of the sort of labor pool, if you
14:10
like, or the dynamics of the workplace in
14:14
general, Daris, from someone who's actually in it trying to help people find
14:18
the right place to work, and now trying to
14:20
find ways to help businesses properly
14:23
engage with their people and have an
14:25
assemblance of an authentic employer brand. What are those changes? What are
14:30
the difficulties and hurdles that businesses are really facing, from your
14:34
perspective? So I think one of the big
14:37
things that we hear consistently from a
14:41
whole range of organizations, regardless
14:43
of size or sector, is difficulty in
14:47
actually keeping engaged the sub two year
14:51
cohort. So in a very generalized sense,
14:55
these might be the people that are classed as Gen Z. And when you actually look at
15:00
their belief systems, what's important to
15:03
them? How do they view the world? What's
15:06
the relationship that they have with an
15:08
employer? It differs hugely from those
15:11
that are in leadership roles. So perhaps
15:14
your Gen X's and certainly your baby
15:17
boomers. I guess on one side of the fence
15:20
in those leadership roles, you've got a
15:23
cohort that have been used to a command and control style. And then in the Gen Z
15:29
pool, you've got this desire to be
15:32
coached. You've got this need for
15:34
autonomy. You've got a view of. Because
15:39
they're so technologically proficient,
15:42
what on earth is this nine to five
15:44
concept? Why do I need to travel to an
15:46
office? I could do this from anywhere at
15:49
any time, within reason. Obviously, it
15:53
doesn't stand for every organization. So I
15:56
think what we're talking about here maybe
15:59
is kind of a lack of understanding between
16:01
these two generations of those that run the business and those that have got
16:08
informational power and over time will
16:11
obviously become more influential within
16:13
the organization. I think a pretty big
16:17
thing. Sorry, you're going to say something? No, I'm just sitting here. I
16:23
ran only last week, a generational cohort
16:26
theory kind of workshop with people. And I
16:29
think it's really interesting what you say, and this is becoming quite a thing, I
16:33
think, for some businesses to try and understand the relationships. Whether or
16:38
not you're fully bought into the theory of
16:40
generational cohort theory, it cannot
16:43
apply to everybody in those cohorts, but it gives some indications. I think the
16:48
real thing is using it as another lens to
16:50
see people as individuals. But having said
16:53
that, I thought what was very interesting about what you said and what the guys were
16:57
saying, and there was a lot of Gen Z's in
17:00
this session alongside a mix of other
17:04
generations, was this sort of paradox
17:06
within Gen Z of wanting to be driven by
17:11
purpose, connected by values, but also
17:15
recognizing, I'm not here forever, and
17:17
actually, this is just giving me some cash right now. And, I mean, this was a
17:21
hospitality sector conversation at the
17:23
time, so there's some biases within that.
17:26
But there does seem to be this sort of
17:28
paradox that's fascinating. I wonder about
17:31
other things that are generally in the
17:34
ether, right? Yeah, I mean, there are some
17:37
big plays, in my opinion, that are going
17:39
on. Obviously, there's AI, and that's the
17:44
hot topic on everybody's lips at the moment. But I think the key consideration
17:50
that we need to give to AI, particularly
17:52
on the backdrop of some of what we've just spoken about with regard to Gen Z's
17:56
working preferences, is that as this gains
17:59
momentum and becomes more embedded in
18:02
everyday operations, the thought process
18:06
is that by 2026, AI will save an average
18:11
of two days per week for every employee.
18:14
Now that doesn't mean to say that we're going to be dropping to three day weeks,
18:17
but it does mean to say that the focus of
18:21
what people do will shift. So I think the
18:25
likelihood of the administrative side of
18:27
the job will remaining is going to be
18:32
somewhat minimal. AI will be able to sweep
18:35
up a lot of that lower level, kind of
18:42
repetitive task types, types of work. So
18:46
you've got that piece at play potentially
18:49
running parallel to that. You've got more
18:54
momentum, I would suppose, around the four day week. I was going to ask you about
18:58
that because I wanted to know whether that
19:01
was real or not, because you can never
19:05
tell with the headlines around these things. There are times when four day week
19:09
seems like it's going to be inevitable.
19:11
There's guys who've been doing it for years. There's people I've had on the
19:14
podcast who have only ever done a four day
19:17
week, and it works brilliantly for them.
19:20
But is it one of those things that's a headline grabber, but is it really
19:23
graining traction? So what do you see on
19:26
the inside? I would say it's still at
19:28
concept stage, largely, but the adoption
19:31
rate is increasing in momentum all the
19:35
time. Can I say hand on heart that we've
19:38
seen it with a lot of our customer base?
19:41
No, not yet. Are they asking questions
19:44
about it? Yes. Is it the majority? No. Is
19:46
it the minority? But is it growing?
19:49
Absolutely. And just to put some meat on
19:52
the bones around the four day week piece,
19:55
I've had the privilege of meeting with the
19:58
CEO of the four day week global chap
20:01
called Dale Wellehan. Fascinating guy. And
20:05
in the conversation that I had with him on my own podcast, he gave some pretty big
20:10
insights to me that started to convince me
20:13
that this is going to go somewhere. And
20:16
what he spoke about was, you've obviously
20:18
got the carbon targets that need to be hit
20:21
in the future, and the government are
20:23
showing a real interest in the four day
20:26
week with a view to that. Plus flexible
20:29
working being a way of helping us achieve
20:32
the numbers that we need to hit. He then
20:35
talked about, if you actually look at the
20:38
spending data across different times of
20:41
the year, people spend the most in local
20:45
economies, and therefore local economies do their best over the summer periods,
20:50
when people are on school holidays, out of
20:52
work, going on trips, et cetera. And
20:57
obviously, if I'm in the office five days
20:59
a week, I've got my Amazon Prime, I can
21:02
order things that way. Might be able to buy a bit off eBay, but none of that is
21:06
putting money back into the local economy.
21:09
Whereas if I've got a day off and I walk to the park, I might stop and get a paper,
21:12
I may pick up a coffee, a loaf of bread, so on and so, so forth. And you've got
21:16
this piece there around helping the
21:19
smaller organizations get back on their feet, post Covid, get the money
21:23
circulating and so on and so forth. And
21:26
then the third piece that he spoke to me
21:28
about was taking a view on the healthcare
21:31
system. And when you look at the strain
21:33
that that healthcare system is experiencing at the moment, many of the
21:38
reasons that patients are in hospital are
21:40
born out of lifestyle choices that are
21:43
made as a result of being burned out,
21:47
stressed, overworked, et cetera. And when
21:52
you look at the studies of those companies
21:55
that have been involved in the four day
21:57
week and what that's done for the well being of their employees, you can see the
22:04
potential weight that would be taken off
22:06
the healthcare system if it became a
22:11
thing. So for me, hearing those three big
22:16
things, coupled with the savings that AI
22:19
are going to make on the working week, I
22:22
don't know when it's going to happen, but
22:24
we've gone from a seven day week to a six day week to a five day week. I don't see
22:28
any reason why we don't go to four to
22:30
three, et cetera. But whether it's in my working life or not, I have no idea. It's
22:34
fascinating, isn't it? I mean, there's a
22:37
big context of change, and the things
22:39
you've just talked about are symptomatic of that, and which is why it still feels a
22:42
bit messy and there generally feels like
22:46
still a lack of confidence in business to
22:48
make definitive decisions on some of these
22:51
things going forward and 2030, we've still
22:54
got that skills and people gap globally.
22:57
That's coming with the shift of boomers and what have you. So, my goodness me,
23:01
what a context we've got. So I think this
23:04
plays to. I'd love to think it plays to my
23:08
passion around. Look, this is why the
23:10
importance of culture and retention is
23:13
incredibly important, because if a labor
23:16
pool is shrinking, if business context and
23:19
landscape is changing, it's going to be
23:23
harder to recruit, I think, going forward.
23:26
Right. And certainly recruit for specific
23:28
talent that you want, with the skills that
23:32
you need, which is wherefore. Growth,
23:34
development, retention, I think, become even more important, which is why I'm
23:37
fascinated with the move that you guys have made. And also, I can't lie, Darius,
23:43
and maybe we've got a kindred spirit here with a marketing background, but it's
23:46
hitting another button of mine. So as well as all the cultural buttons, it's hitting
23:50
my brand button right, which I'm
23:52
fascinated by. So this rebranding decision
23:56
to go from solely recruitment to openly
23:59
saying recruitment and retention, where's
24:02
it come from? Why make the shift? So for
24:07
us, this is a trend that preceded the
24:12
pandemic where EVP and employer brands
24:16
were becoming more important and more
24:18
prominent. And during the pandemic, if I
24:24
get really specific with this, it will paint the picture. In March 2020, we got
24:29
sent home in April 2020, our business
24:33
generates circa 100 jobs per week. We had,
24:37
I think it was eight jobs on in the whole
24:39
of April. So there's nothing like that
24:43
kind of situation to shape the mind, to
24:46
force innovation and to really create a
24:50
sense of urgency. So I would like to think
24:55
that whilst we'd had informal
24:58
conversations, idea generation sessions,
25:02
this was always in the pipeline. We very
25:06
often, and please take this in the right way, have the conversation. Thank God for
25:10
Covid, because it forced us to move more
25:13
quickly. So why did we actually do it?
25:16
Well, when you think about what an
25:18
organization needs to improve, if you can
25:23
hold or hire and hold and develop great
25:27
people, ultimately you'll be in a position
25:30
where you can charge the customer more because you've got more expertise in your
25:34
workforce, you should be able to gain
25:37
greater levels of loyalty from your
25:40
customers, which obviously result in
25:42
repeat business. Increased, spend extra
25:45
market share. Clearly your retention
25:50
levels will improve because people feel
25:53
that they have got momentum and a sense of
25:55
direction with where they are staying. And
25:58
ultimately, if we're going to talk to the
26:01
cfos of the world out there, the bottom line is going to look more pretty. So our
26:08
utopian vision, if you like, is that we want to help our customers to achieve
26:13
those things. If you look at it through
26:15
the lens of ourselves, selfishly, what we
26:18
want is for our customers to recognize us
26:21
as the go to most trusted talent partner
26:24
in the market. A company that are
26:28
ingrained in their people strategy and
26:33
business strategy conversations, a company
26:36
that really understand the purpose,
26:38
behaviors and cultures, and a company that
26:40
have got foresight as to where and how
26:43
they're likely to need to recruit so that we can give a better level of service. The
26:48
counterintuitive piece with all of this, I guess, is that it's better for us for
26:55
businesses to hold people and grow than it
26:57
is for them to keep needing to recruit.
26:59
Because the likelihood is we'll be recruiting more often for those companies
27:03
that are growing. I mean, that is
27:05
interesting, isn't it because in some
27:08
assemblance of history you could look back
27:11
at this and go, this is what we should
27:13
have always been focused on. Or wow, are
27:18
we changing the bias of where revenue
27:21
comes from for the business going forward?
27:24
There's a strategic decision here about
27:26
where the balance is. I mean, interestingly enough, where is the balance
27:31
with clients right now between recruitment
27:33
and retention activity. In terms of where
27:38
the focus is? The HR focus is definitely
27:42
around retention right now with regard to
27:46
what's keeping them awake at night. They
27:50
are seriously worried, as I said earlier, about the sub two year cohort. They
27:55
recognize that they've got a whole host of
27:57
people that are towards the latter stages of their career that are potentially
28:01
looking at and going to take early retirement and hit retirement age and.
28:05
Leave a skill gap behind them and. Leave a skill gap behind. And we've all seen the
28:09
data around the lack of 16 to 24 year olds
28:12
that are coming into the workforce. So
28:15
retention is kind of a real strategic play
28:17
for businesses right now. But the reality
28:21
is that on a day to day basis, it's still
28:24
really bloody hard to recruit people. You
28:27
only have to look at the longer term
28:29
graphs of vacancies to see that we are
28:33
still well above pre Covid levels of the
28:35
number of job openings out there. And
28:38
obviously unemployment is still really
28:41
low. So that, coupled with technological
28:46
developments and therefore the creation of
28:48
skills gaps means that this is a bit of a
28:53
diplomatic answer. But actually I think the two things are real kind of front and
28:58
center when it comes to what's keeping HR teams awake at night. So when we compute
29:06
this mix of there's still been plenty of
29:10
acres, maybe not at the boost peak that we
29:12
had before. The story that it's harder to
29:16
recruit people for roles, and the fact
29:19
that we're saying, listen, recruitment is really, really important because there's
29:23
going to be less people to recruit, it's
29:26
almost counterintuitive. It's suggesting
29:30
to me at least, that we've got people in
29:34
jobs just present just hanging on, not
29:36
necessarily doing what they want, not necessarily committed to an organization.
29:40
So maybe we haven't got the right focuses.
29:43
If recruitment is tough and retention is
29:47
key, but we've got people in jobs and we
29:50
were finding it hard to recruit. That just
29:53
doesn't compute to me. It doesn't make
29:55
sense. How do you make sense of it? So
29:58
here's my view. What a lot of businesses
30:03
find themselves in the situation of is
30:07
before COVID they started to become aware
30:11
of and buy into the importance of the
30:14
creation of an EVP, they recognize that
30:20
values sit at the center of that. And
30:24
therefore the values that were created
30:26
were created in a completely different
30:28
context to what we find ourselves in now.
30:32
So what we're seeing is a lot of organizations are running across sorry,
30:36
running with an old set of values in a new
30:41
context. As a result, you've got this
30:45
disillusionment of what this business
30:47
talks about. Doesn't speak to my heart and
30:50
mind. And therefore you've got some of
30:53
this narrative potentially around quiet quitting. I think that you were to there,
30:56
which is come in and do the minimal on the
30:59
job. I think on the other side of it, on the recruitment side of the fence, because
31:04
of what we've just spoken about with regard to the volume of vacancies out
31:08
there, you've still got a really strong
31:12
play from the candidate versus the
31:16
organization, I. E. The candidate has got
31:19
options to look at. And one thing that
31:22
we've not touched on so far is this RTO
31:26
narrative, the return to office piece,
31:29
which I think there's a difference between
31:32
what we're seeing in the news and what
31:34
we're seeing as a recruiter firsthand. And
31:37
I'd say. I'd describe it as follows. The
31:40
news has oversimplified things. When I read the headlines and articles, to me it
31:46
implies 95% of businesses are back in the
31:50
office five days a week when I speak to
31:55
customers. And when we speak to customers as a wider business, we're obviously
32:00
getting questions about that because most
32:03
people's source of news is the news
32:05
channels. What are other businesses doing?
32:08
How's it working? But if I had to put an
32:11
anecdotal percentage on the number of
32:14
organizations that have shifted the
32:16
needle, I'd say it's probably somewhere
32:18
between 15 and 20, maybe 25 at the most.
32:22
And the shifting of the needle looks
32:24
different for everybody. For some
32:27
businesses it might be we were fully remote. We're now asking people to come in
32:30
for meetings. For others it might be we
32:33
were two days in the office, we're now
32:35
asking people to do a third. And for the
32:38
rest, it's somewhere in between or
32:41
something that resembles the two examples that I've said. So with that in mind,
32:47
you've got a pool of talent that is having
32:50
the conversation with themselves of I
32:52
proved for three years that I can be as
32:55
effective and as efficient, working from
32:58
home, working from a coffee shop, having
33:02
autonomy. And now you're saying to me I've
33:05
got to spend 40 minutes driving to the
33:08
office to come in and sit on teams calls
33:11
for most of the day and then drive home.
33:13
So I'm going to lose. Call it between an
33:16
hour and a half and 2 hours a day. I'm going to be spending money on petrol that
33:20
I didn't spend for three years. I might
33:23
have to pay for parking. I'm only coming
33:25
in and sitting in meeting rooms anyway for
33:28
periods of the day because most of the stuff is now on teams. Oh, and by the way,
33:33
my mortgage has gone up 400 quid a month,
33:36
my car lease is about to expire, and what
33:38
used to get me a car for, I don't know,
33:41
let's make it up 400 pounds a month will
33:43
now cost me 650. Oh, my food bill's gone
33:45
up 20%. So I think the play here is that
33:51
people are aware of that and they're
33:53
picking and choosing wisely based on the
33:57
culture that they see and the reality of
34:02
the volume of autonomy that they may or
34:04
may not have within a role. Yeah, I mean,
34:06
it sounds to me like we've got this
34:09
retention being because in the main, we're
34:12
losing people through a lack of relevant
34:16
purpose, value, connection, maybe growth.
34:19
I'm sure salary will be in there because
34:22
businesses are constrained at the moment
34:25
because a lot are still, I think, in survival mode. And then from a recruitment
34:30
perspective, it sounds like it is in the
34:32
candidates favor, which is why businesses
34:35
find it hard. But flexibility is more
34:38
important than ever because people have made big changes in the last few years to
34:41
their lives. Yeah. Flexibility is right up
34:43
there with pay. I think the one thing that I've maybe not mentioned here, and it is
34:48
on the subject of pay, is that we all
34:51
anticipated the great resignation back in
34:54
2021 because we'd seen it happen overseas.
34:57
And what we saw most of our customers do
35:00
is dish out pay rises to try and stave off
35:04
the risk of losing their top talent. And
35:08
you've obviously now got a situation where
35:10
you've had 21 and 22, which were the
35:14
wonder years for most organizations. You
35:17
could not make money regardless of what
35:19
sector you were in. And in 23 businesses.
35:23
Well, 23. 24 businesses set their budgets
35:26
for growth, obviously. Inflationary
35:30
pressures, recalibration of the economy,
35:32
et cetera, has meant that many
35:35
organizations are behind on their budgeted
35:37
revenue, but they've increased the cost
35:40
basis. So you've got this view from
35:44
businesses to their employees, of, we paid
35:47
you more, where's our return? We're
35:49
getting pressure from our shareholders.
35:52
You haven't stepped up in terms of delivery, but we've given you more money.
35:56
And I think maybe some of that's what's driving this return to office conversation
36:01
as well. Well, I think this will rage on
36:03
and continue, I'm sure, until we find our
36:08
way forward. If I can just pull us back to
36:11
the changes that you've seen internally.
36:13
Right. With a focus on retention. So
36:17
what's that really meant for the business
36:20
focus? And what do you see as the benefits
36:24
for McEldawe going forwards, but also for
36:26
clients? Yeah. So the kind of key
36:31
differences from our consultant population
36:33
that we've seen are a differentiation
36:37
versus our competitors because
36:40
unfortunately, the recruitment industry is
36:44
quite one dimensional in the way that it
36:47
generates revenue. And the conversation that you very often hear internal
36:52
recruiters being on the end of is, have you got any jobs? Have you got any jobs?
36:54
Have you got any jobs? Have you got any jobs? Crikey. You're the 15th person to
36:58
call me today asking that. So the
37:02
differentiation piece being that we're able to have more strategic, high level,
37:05
business focused conversations that aren't
37:08
just, can I take something from you?
37:11
There's more value in there. There's more
37:14
of an information share around what we're
37:17
seeing in the market, what other organizations are doing. I suppose the key
37:21
being in the job title recruitment
37:24
consultant. We're being more consultative.
37:27
Yeah. So I think that's a key part of it.
37:29
The benefit to the customer is that the
37:34
relationships are deepening and the level of empathy is growing and therefore the
37:41
trust is being enhanced, which allows
37:45
conversations to happen which are a little bit more future focused with regard to
37:50
which jobs might need to be talent
37:52
pipeline for and when and what type of
37:55
people could be suitable for them. So
37:58
there's more of, I would say, a proactive
38:01
approach that we're able to give to our
38:04
customers, which essentially alleviates
38:07
that level of stress of, and I alluded to
38:10
it earlier, somebody handing in the notice
38:13
with a month's notice and maybe having one
38:17
to two weeks holiday to use. They're almost gone out of the business straight
38:20
away in that scenario. And it becomes panic stations. Absolutely. Now you're
38:26
sort of like, I guess, deepening your
38:28
relationship with clients and you're
38:30
having a look and in many cases trying to
38:33
help them with retention efforts. Have you
38:35
have a sense of how many companies are
38:39
really on focus with the retention thing
38:41
and doing things effectively and how many
38:44
are kind of like, oh, my goodness, we need
38:46
to focus on retention. What do we do?
38:48
What's the split that you're seeing? Wow. Good question. What I would say is you
38:54
tend to find that those with deeper levels
38:57
of resources are further ahead and those
39:02
with deeper levels of resources tend to be
39:05
the bigger players in the market, blue
39:08
chips, plcs, large organizations, and that
39:13
obviously creates a ripple effect because
39:15
they are seen as best practice. So those
39:17
businesses that are small and medium in terms of their enterprise size will very
39:23
often model the way that they're working
39:26
on those bigger businesses, but have to do it on a shoestring budget. So if I was to
39:31
put a percentage on it, I would probably
39:33
say that you're looking at about 5% of the
39:36
market doing this brilliantly and about
39:41
15% starting to do something with it. And
39:44
the rest are in that position of going,
39:47
we've got to do something about retention. Where do we start with this? What does our
39:51
focus need to be? What are the questions we need to answer and how do we go about
39:57
ensuring that we're improving the situation? Well, in some respects that's
40:04
good that people are focusing on it and
40:06
now starting hopefully to make some
40:09
headway. It's a shame that it's taken an
40:13
environment like we're living in now to kind of, I guess, bring it into more
40:17
focus. And before I sort of try and pull
40:20
all this together, what's it felt like
40:24
inside McEldawey then for you and the rest
40:28
of the guys there, Darius, in having made
40:31
this switch from being the one focus to a
40:35
much wider focus now, what's it actually
40:38
done? How has it changed? Mcel Dowie do
40:42
you know what, and this is a soft and
40:44
fluffy answer, but I think it's become
40:46
more fun and enjoyable and it's created
40:49
more of a learning experience for
40:53
certainly those that are at the beginning of their career. With Mackle Dowie, I was
40:57
always of the view when I started out that I would learn most of what I needed to
41:01
learn through my customer base. And I
41:05
think this shift is only going to enhance
41:08
that and improve the capability of our
41:11
people. So fun is the word that springs to
41:16
mind. A bit of diversity always adds a bit
41:19
of fun. Now then, my friend, we get to the
41:22
bit in the show called sticky notes,
41:25
right, where I'm asking you to sort of like summarize some of the things that
41:29
we've talked about today. So if we hone it
41:31
in and I ask you to put three little bits
41:34
of advice that you could fit on three
41:36
sticky notes that you would give to anyone
41:41
looking at dealing with the current recruitment and retention challenges, what
41:45
bits of advice would you leave for them?
41:48
We haven't touched on this in our
41:50
conversations so far, so throw a slight
41:53
curveball out there, but I think
41:56
organizations need to start asking their
41:58
people, how they feel, what's concerning
42:01
them, what's important to them, what do
42:04
they care about. And they need to start
42:07
doing something with those results. Part
42:11
of that piece that we touched on with baby
42:13
boomers and Gen Z is this lack of
42:16
understanding, lack of communication, command and control style. And I think
42:22
that will go some way to building levels
42:25
of engagement and trust. But the key thing
42:27
is, and I mentioned it, you have to do
42:29
something with the results. So that would
42:31
be a great starting point for me. I think
42:35
secondly, you've got to be in a position
42:37
where you've got alignment with your
42:39
leadership team, and I think businesses
42:42
should be doing work on that. And as part
42:46
of that piece of work, they need to start
42:48
looking at what their new world vision,
42:52
mission, values, purpose and behaviors
42:56
look like and start articulating that both
43:00
internally and externally. And I think that's the one big thing that's very often
43:03
missing when it comes to the EVP. People
43:07
think it's all about going out into the market and they forget about repeat,
43:11
repeat, repeat on the messaging to those
43:14
that work with the business. So I think
43:17
that's a real critical part as well. And
43:20
the third piece is really to understand
43:26
that from the perspective of when you go
43:29
out into the market to recruiter role, you
43:33
are still in a very competitive landscape
43:36
where the candidate has got and is looking
43:39
at other options. And this isn't the
43:43
apprentice, where you're going to sit down and grill them and decide whether you want
43:48
them. I'd argue it's more like a first
43:51
date where you've got to have an open and
43:54
honest conversation and you've got to look for commonality, shared vision, an
44:00
appropriate set of differences to decide
44:02
whether there's a sense of a working relationship there before you start to get
44:06
into that kind of skills and capability
44:09
analysis. So I think they'd probably be my
44:11
three things. I love that. Well, I love
44:14
all of them. I particularly like sticky two because that's good for me selfishly,
44:19
because that's some of the best work that
44:22
I get to do. And I think that whole
44:27
shaping that background for an EVP can be
44:30
easily overlooked. We get into all the
44:32
packages and salaries and everything else,
44:35
but if we don't know who we are, where we're going, why people should stay with
44:39
us, and we're really strong at
44:41
communicating those things throughout the organization. I think you itch yourself
44:46
into a whole load of hot mess as a result,
44:49
and that's why we're losing people lack of
44:51
connection. So thank you for those three. My friend. If people want to check out a
44:55
bit more about Mackledowie, where should they go? The website mackledowy.com. My
45:01
LinkedIn profile. I'm on LinkedIn. I'm
45:04
there every day. I also run a podcast
45:07
called the Happy Workplace Project, which is all about sharing insights into how
45:12
organizations are creating great cultures and the lessons that they've learned as
45:16
leaders along the way. So they would be
45:19
the three areas that you can find out more. I would say brilliant. I will put
45:23
all of that stuff in the show notes, my friend. Darius, thanks so much for coming
45:27
on, mate. I mean, I'm really genuinely
45:30
interested in how the company has kind of
45:33
made this move and what it's doing. Well,
45:35
I suspect we'll see more following the suit. I don't know. We will see. But
45:38
thanks so much for coming on. And thank you for having me. I've really enjoyed the
45:42
conversation and keep up the good work.
45:44
The podcast is fantastic. Oh, bless you. I
45:47
appreciate that, my friend. Well, you take care. Cheers, Andy. Cheers. Okay,
45:52
everyone, that was Darius Matuziak from
45:56
Mackledawe. If you'd like to find out a bit more about him or any of the things
45:59
we've talked about today, please go ahead and check out the show notes. So that
46:07
concludes today's episode. I hope you've
46:10
enjoyed it, found it interesting, and
46:12
heard something maybe that will help you
46:15
become a stickier, more successful
46:17
business from the inside going forward. If
46:20
you have, please like, comment and
46:23
subscribe. It really helps. I'm Andy
46:26
Goreham, and you've been listening to the sticky from the Inside podcast. Until next
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