A/E/C Recruitment ~ An Executive Search Perspectivev

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As an introduction, can you briefly describe your experience as an executive search consultant specializing in the Architecture|Engineering|Construction [A/E/C] industry? H: I’ve been in the executive search business since 1978, always specializing exclusively within the A/E/C and real estate sectors, and I’ve worked with various types of firms. Because I’ve been working within these industries for so long, I’ve had the opportunity to develop an extensive and strong network of contacts. I’ve represented many organizations for numerous searches through the years, and because I’ve worked so closely with some clients, they have become personal friends. D: I have been a search consultant for almost 17 years with Helbling, and during that time, I’ve represented construction and engineering firms, real estate developers, property managers, and specialty contractors. A/E/C recruitment has been portrayed as being ‘reactive’ versus ‘proactive’ in the past. What is your perspective and have organizations become more strategic in their recruitment? H: Recruitment and talent management have certainly improved overall. Larger firms are much more aware of the importance of developing talent pipelines and succession plans. However, this is not always easy to address because, while good leaders realize the need for these concepts, at the same time, they also need to be conservative in increasing overhead. So there is a constant struggle of balancing the need to create a depth of talent with the state of the industry, the competitiveness, and shrinking profit margins. Companies and leadership are forced to be fiscally responsible. D: Recruitment should always be strategic. Unfortunately, many organizations are still reactive in their talent acquisition. Working with our long-term clients, it’s easier to communicate the need for them to be proactive in hiring talent. Because we’ve been working with some of them for decades and they know we understand the market and talent pool, they trust our perspective. With social media and web sites like LinkedIn and others, companies have more access to the talent that exists but hiring people is often not what they do best. They are focused on their industries and don’t quite know how to figure out who’s the right person, how to recruit them, and how to attract them. And the realization of having talent pipelines and succession plans is still very much needed. What are the more significant recruitment challenges? H: Low- to mid-level technical talent is attainable. The challenge is in finding and attracting professionals who have the ability to lead and manage. There are several reasons for this. One is the A/E/C industry, as a whole, has not been progressive in attracting, training, and developing talent. Another reason is that Generation X has a population of 44 to 46 million people versus 80 million baby boomers. Lastly, the tech industry has been excellent in attracting engineering talent away from the A/E/C sector. Factor all of those together and add in several major economic meltdowns and you can see the tremendous strain being put on organizations in trying to replace current leadership and create succession plans. D: Most companies are challenged with their recruitment. They can generally fill low- to mid-level roles on their own much easier than they could years ago but on higher-level positions, they need assistance. The next wave of leadership is a concern with baby boomers retiring at a rapid rate. Those who are in their late 40s and early to mid-50s are the successors and, statistically speaking, there are a limited number of individuals within this age group. REAL ESTATE ENGINEERING FACILITIES A|E|C Recruitment ~ An Executive Search Perspective RETAINED EXECUTIVE SEARCH CONSTRUCTION Tom Helbling President Marc Datz Senior Managing Consultant

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Interview with President Tom Helbling, and Senior Managing Consultant Marc Datz, in which they discuss their experiences as executive search consultants within the A/E/C sector. Questions address their perspectives of recruitment, their clients' needs, current talent pool, and what upper-tier candidates seek in new opportunities.

Transcript of A/E/C Recruitment ~ An Executive Search Perspectivev

Page 1: A/E/C Recruitment ~ An Executive Search Perspectivev

As an introduction, can you briefly describe your experience as an executive search consultant specializing in the Architecture|Engineering|Construction [A/E/C] industry?

H: I’ve been in the executive search business since 1978, always specializing exclusively within the A/E/C and real estate sectors, and I’ve worked with various types of firms. Because I’ve been working within these industries for so long, I’ve had the opportunity to develop an extensive and strong network of contacts. I’ve represented many organizations for numerous searches through the years, and because I’ve worked so closely with some clients, they have become personal friends.

D: I have been a search consultant for almost 17 years with Helbling, and during that time, I’ve represented construction and engineering firms, real estate developers, property managers, and specialty contractors.

A/E/C recruitment has been portrayed as being ‘reactive’ versus ‘proactive’ in the past. What is your perspective and have organizations become more strategic in their recruitment?

H: Recruitment and talent management have certainly improved overall. Larger firms are much more aware of the importance of developing talent pipelines and succession plans. However, this is not always easy to address because, while good leaders realize the need for these concepts, at the same time, they also need to be conservative in increasing overhead. So there is a constant struggle of balancing the need to create a depth of talent with the state of the industry, the competitiveness, and shrinking profit margins. Companies and leadership are forced to be fiscally responsible.

D: Recruitment should always be strategic. Unfortunately, many organizations are still reactive in their talent acquisition. Working with our long-term clients, it’s easier to communicate the need for them to be proactive in hiring talent. Because we’ve been

working with some of them for decades and they know we understand the market and talent pool, they trust our perspective.

With social media and web sites like LinkedIn and others, companies have more access to the talent that exists but hiring

people is often not what they do best. They are focused on their industries and don’t quite know how to figure out who’s the right person, how to recruit them, and how to attract them. And the realization of having talent pipelines and succession plans is still very much needed.

What are the more significant recruitment challenges?

H: Low- to mid-level technical talent is attainable. The challenge is in finding and attracting professionals who have the ability to lead and manage. There

are several reasons for this. One is the A/E/C industry, as a whole, has not been progressive in attracting, training, and developing talent. Another reason is that Generation X has a population of 44 to 46 million people versus 80 million baby boomers. Lastly, the tech industry has been excellent in attracting engineering talent away from the A/E/C sector. Factor all of those together and add in several major economic meltdowns and you can see the tremendous strain being put on organizations in trying to replace current leadership and create succession plans.

D: Most companies are challenged with their recruitment. They can generally fill low- to mid-level roles on their own much easier than they could years ago but on higher-level positions, they need assistance. The next wave of leadership is a concern with baby boomers retiring at a rapid rate. Those who are in their late 40s and early to mid-50s are the successors and, statistically speaking, there are a limited number of individuals within this age group.

REAL ESTATE ENGINEERINGFACILITIES

A|E|C Recruitment ~ An Executive Search Perspective

R E T A I N E D E X E C U T I V E S E A R C H

CONSTRUCTION

Tom HelblingPresident

Marc DatzSenior Managing

Consultant

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A|E|C Recruitment ~ An Executive Search Perspective Autumn 2014 Navigator

Can you elaborate on your statement that the A/E/C industry has not been good at hiring talent?

H: Overall, organizations can be challenged with the type of person they may actually need. This is coupled with the fact that they may not understand the talent pool and what is attainable within their structure and compensation range.

D: These companies design or build buildings or develop properties. Recruitment is an indirect component of what they do and it isn’t their specialty. While they have HR departments who can do it on certain levels, they are challenged by senior-level hires because of the sophistication that is needed. They either can’t recruit for those roles or they make the wrong hire. They don’t understand the full range of talent that exists and how to access it, especially passive talent that is not actively looking for new opportunities.

And, there are times when companies, our clients, aren’t sure of the kind of person they want. Until they start interviewing people and seeing who is out there, they don’t really know. They don’t know what a good fit looks like until they walk through the door.

Firms also need to realize that it’s a two-way street. When they are interviewing candidates, especially those at a higher level, those candidates are interviewing them as well. Therefore, it’s not just about determining a candidate’s qualifications and abilities. It’s talking to them about why the company and the role are the right fit for their career. It’s also important to have the appropriate people involved in the interview process who can convey the right information.

In today’s world, it’s important to have open communication during a recruitment process. Because we have so many ways to communicate, it’s critical to reach out by phone, text, or email to maintain a candidate’s interest and the momentum of the recruitment process.

What does executive search offer that traditional recruitment methods do not?

D: When you look at the talent pool, there is an upper 10% who are really good at what they do and bring tremendous value. There’s another 20% who may not be at the top end, but who are above average and bring their own value, and they may be second in command to those who lead the industry. And then

you have another 70% who are passable and can fill a role, and you need those types within companies. But, they’re not the group who are going to make a difference to put you ahead of your competitors. As a search firm, we have earned our reputation by finding that upper 30%, often the upper 10%, and attracting them.

Traditional recruitment methods are not going to result in finding professionals who are extremely talented, happy in their jobs, and well taken care of by their employers. These professionals are harder to find, they’re not always known, and it’s not always easy to get them to listen to you, much less get them to the table. That’s the value that we provide.

As much as companies think they know their competitors and the professionals within them, they usually don’t and/or they only know who their direct competition is. Typically, they are unaware of competitors that are one level outside of their direct ones - those companies that provide a service that is

tangential to what they do and who may have talent that is applicable.

H: Additionally, there are roles in which ‘non-traditional’ candidates can be considered. These are professionals who may be in parallel industries to that of our client. By looking at these professionals, you can expand the talent pool and these candidates can bring fresh, energized thinking, and a new perspective into an organization. Over the years, the A/E/C realm has become much more open to these types of candidates.

How have client expectations changed regarding executive search?

H: Clients are much more informed about the benefit of a good search partner who understands the talent pool. They understand how difficult it is to find the talent that is critical to their organizations. They know the amount of thought and strategy that goes into identifying, attracting, and securing strong professionals.

There are technical aspects of candidates and then there are softer intrinsic skills that ultimately determine the success of the placement and the impact they have within a client’s management team. Clients are very much aware of the benefit that brings and in many cases, you are not able to attract that talent by conventional means. It is our responsibility to identify

Traditional recruitment methods are not going to result in finding professionals who are extremely talented, happy in their jobs, and

well taken care of by their employers. These professionals are harder to find, they’re not always known, and it’s not always easy to

get them to listen to you, much less get them to the table. That’s the

value that we provide.

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A|E|C Recruitment ~ An Executive Search Perspective Autumn 2014 Navigator

professionals who can bring a new dimension to our clients and who can create an environment that affects change for the advancement of profitability.

In this market, our placement fees are seldom questioned because we identify and secure talent that solves a problem and/or creates opportunities in various ways. I like to think our fees are considered an investment versus overhead costs.

D: Companies have higher expectations in terms of information we provide; they want more details, especially on resumes. Our company typically provides summary pages in addition to resumes that cover candidates’ motivations, family issues, houses, compensation, education, strengths, and weaknesses, and our clients have come to expect this information.

Clients are sharper in how they assess people. They want to make sure prospective candidates can do what they say they can do, and have done what they say they’ve done.

We seem to do more in terms of developing position descriptions and determining ideal candidate qualifications than we used to. Roles have become less boilerplate and organizations want people to do more. Senior-level roles have more facets to them so it’s important to consider all objectives to create an accurate position description with responsibilities and qualifications.

Compensation can also be an issue. While we respect the fact that our clients have parameters, we need to make sure they will allow us to succeed. Sometimes parameters need to be adjusted for us to have the ability to attract and secure the right individual. When we explain that, clients appreciate our candidness.

How would you compare the level of difficulty in completing searches?

H: Each and every search has its own level of complexities and idiosyncrasies, which as an organization, we thrive on. We look at each search on its own individual merits and establish a customized strategy and game plan. We discuss with our clients how we expect to approach an assignment, what resources will be used, the sources we expect candidates to come from, and how we will attract the right individuals. Our

clients are actively engaged in every step of the process and everything is transparent.

This constant collaboration is critical and, along with clear and concise communication, determines the success of our assignments. When I started in this business, there were many times when we simply filled a void. Today, we attract senior leaders who impact our clients’ organizations and our team

takes pride in accomplishing that mission every day.

D: Through the years, we have matured as a firm and the majority of our searches are now for senior-level executives. And that kind of talent is harder to find and secure. We are also dealing with a higher level in our client organizations and often, there are multiple voices and opinions who are involved in the decisions. There are particular quirks and politics within every client, which can always make searches complex. Senior level roles are more critical and they carry a higher level of risk for the client if the new hire isn’t successful.

When you speak to prospective candidates, are most passive or active, and what are they seeking in new opportunities?

H: Passive candidates are looking for professional opportunities that offer growth and can satisfy their personal goals, ambitions, and often family considerations. They are attracted to roles or assignments that provide challenges that their current organization may not be able to provide.

The interest in a new opportunity can vary dramatically from one candidate to another so it’s important to develop strong relationships to clearly understand their respective motivations. The process matures when you assess how that aligns with a client’s corporate culture, role, and goals.

D: Most professionals we talk to are passive because we research an array of talent in the marketplace. Most of them don’t have resumes on the street and online. There’s always a group that are actively open, but that’s the minority.

Candidates are typically looking for better opportunities to leverage their capabilities. They may feel stifled and want to make more of an impact. Dollars and cents is always a given but it’s not a main issue and it shouldn’t be. Sometimes it’s

We look at each search on its own

individual merits and establish a

customized strategy and game plan.

We discuss with our clients how we

expect to approach an assignment,

what resources will be used, the

sources we expect candidates to come

from, and how we will attract the right

individuals. Our clients are actively

engaged in every step of the process

and everything is transparent.

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A|E|C Recruitment ~ An Executive Search Perspective Autumn 2014 Navigator

Helbling & Associates is a retained executive search firm specializing exclusively in the construction, facilities management, real estate, and engineering industries. Located just north of Pittsburgh,

Pennsylvania, we represent domestic and Canadian organizations.

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about the cultural fit if they don’t feel their vision is shared with their colleagues. People want to be in a place where they are simpatico with the people they work with.

What is it like to be an executive search consultant?

H: We take our profession very personally. We have been extremely fortunate to work with phenomenal organizations and institutions over the years and to be entrusted as a partner to identify and attract executives who impact our clients and friends, and that is emotionally and professionally fulfilling. Having an internal team that strives for daily perfection and dedicates their time and personal commitment, as I do, to always doing the right thing and always reaching for excellence is very satisfying.

D: You are dealing with diverse people so it is always interesting. There are constantly changing goals, interests, and motivations on both the client side and the candidate side, and it’s important to prepare for and anticipate issues; plan ahead; and foster open and prompt communication among all parties.

We have to make sure the client is clear about what they want, realistic about the talent pool to draw from, and committed to a logical, organized, and communicative search process. They are trusting us with their business and we take it very seriously.

On the other hand, we have candidates who trust us with their careers so we also need to make sure opportunities are beneficial to their careers, long-term goals, and family situations.

Why do you like doing what you do?

H: This is a profession in which you have to push for results. Our business is similar to sports in that you have to have a competitive spirit, you have to want to win, and you have to make it happen. You have to have respect for clients and candidates and you have to have open communication and lay everything on the table. My team and I thrive on challenges and we want to be the best we can be. We want to do the assignments that other firms may shy away from. We want those assignments that are critical to clients and we want to take ownership and support them with their initiatives. We have the opportunity to make significant differences in our client organizations so they can sleep better at night. That is a responsibility that we live by day in and day out.

D: It is enjoyable and gratifying to help people progress in their careers, better actualize their talents and abilities, and create a better life and future for themselves and their families. It is also rewarding to partner with our clients in hiring talented people and enhancing their firms’ capabilities to succeed and grow. We have a great team of people within our firm and we all get along well and work in a collaborative, positive way. Our company continues to grow and build a strong base of clients that we are proud to represent.

Gentlemen, thank you for your time in offering your insight of A/E/C recruitment.

Written by Sami L. Barry, Strategic Market Development with Helbling & Associates.