Executive’s lack in Germany?

The study „personnel recruitment of executives“ of the institute of present research shows that in the Human Resources departments of the enterprises unequivocal deficits exist in the candidates application process. In spite of high costs, personnel departments succeed on average only adequate suitable applicants in responding and in identification. Despite different opinions in the market, a sufficient number of certified executives is available in the market. The human resource departments can break the qualitative growth of the enterprises and the effect can lead to a negative image of the enterprise.  Approaches with recruitment consultancies indicating a clearly raised quality and in spite of fees of 30-38% of the annual target salary the initial costs amortize in most cases in less than 4 months.

“Big Three” of the tested enterprises: Place 1 for the Berenberg Bank (whole mark 2.4), place 2 for Sal. Oppenheim (mark 2.5) and place 3 for the Hypovereinsbank (2,7). The last rank books a big Consultancy Company with the overall mark of 4.1.

The recruitment approach of the following enterprises (short form and in alphabetical order) was examined:

  • Accenture, Bearing Point, Berenberg Bank, Booz Allen Hamilton, Boston Consulting Group, Cap Gemini, Commerzbank, Dresdner Bank, Hamburg Sparkasse, Horváth & Partner, HSH Nordbank, Hypovereinsbank, McKinsey, Postbank, Roland Berger, Sal. Oppenheim, Steria Mummert, UBS (D), ZEB. The results show that banks are performing better (average mark: 2.9) than e.g. consulting companies (3.5). All remaining enterprises of different verticals lie in the recruitment assessment in fair/pass to insufficient area, nearly 10% in the unsatisfactory area!
  • A lot of work for the HRM experts. The much propagated and apparently most important resource “human being” is in disorder at many enterprises strongly, therefore, the procurement marketing on the part of the HR department has big growth potential.
  • „The application process carried out in Germany can promote wandering over the executives in the neighboring foreign countries“, warns one of the test persons who remain anonymous. „Enterprises must know that the image of the enterprise can become negative by the human resource departments.“

A starting point for the appearing study “recruitment of executives” of the institute of present research were among other things the questions: “Is executive management able to contact executives for their enterprise? To inspire? Finally, to actually identify them during the application process? Do the images of the applicants and Recruiter match? Does the applicant find the enterprise fitting to him in which he can optimally introduce himself and thus the growth in the enterprise?“

The investigation was stimulated by the widespread opinion that in Germany an executive’s lack rules and the personnel departments would have to spend rising sums to the personnel recruitment.

For this other perspective on the application process 2.852 experts and executives from different branches were asked to put up a ranking of the most interesting branches. The area of Consulting Sector arose for the first position and for the second position the Banking and Finance Business from this ranking. The random check enclosed 400 applications in two different branches as well as 400 answered questionnaires which came sophisticated into the assessment of the whole result. A sufficient and significant test for the derivation of a trend was guaranteed therefore.

In order to guarantee comparability and assessment dimensions an application process has been developed with human resource experts, psychologists, executives and test persons that represented the typical ideal.

„We will inform the involved enterprises that they were a part of our investigation. They then can contact us if requested in order to allow them to inform themselves about their human resource marketing.“ so the project lead. “The complete ranking is not published, so that confidentiality remains guaranteed. First-placed and last-placed receive in each case an honoring.”

Markus Ernsten, Managing Director with Shark Executive Search can confirm the results of the study out of his daily work with his team of advisers. “Unfortunately… the empiric values of the study are still valid for most enterprises, and regardless of branches and disciplines… with more rising tendency! There is a considerable need to catch up in the German and perhaps European Recruiting competence…. the problems are self made: Very often there is a spread between those who are hiring (Executive Management) and those executing the hiring process (HR department). On the one hand side most Executives are aware of the importance of hiring the best candidates and praying it consistently. However, if it comes to set up the process properly it often comes to the point that the impact is going to dilute because at that time the Executive has handed over the task to the HR department completely” says Ernsten. “The point is that an Executive has a different view, expectation and perception than the colleagues in the HR departments. Also the HR department has different views, expectations and perceptions than the Executive Search Consultant. Hence, we’re recognizing a break in the process often and this is just one reason for long hiring processes, candidates hired not really fitting the job requirements etc.” And this is where Ernsten noticed a lot of risk potential: “If a hiring process is not properly defined then it doesn’t matter whether a candidate is dissatisfied because he was rejected or he was just waiting for information, feedback and next steps: The image of an enterprise is taking damage and the lesser is the potential for getting in touch with high potential and high calibers!”

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