No in-country experience, no job.

Three points nearly all the 3pl  companies are totally rigid on when hiring SC solutions / Contract Logistics BD people.

  1. Solid track record of performance selling SC / CL solutions in a 3pl
  2. Deep knowledge of specific end user industry verticals
  3. Current or previous in-country / local market experience

Sales people.jpg

In my view the first two are a no brainer but after close to ten years in the Middle East supporting 3pls I struggle to understand why companies won’t give talented people with an excellent track record in other countries a chance in a new country or region, and especially in countries where there are many expats (as expats we all got a chance to start in a new country without previous market experience).

I will use the UAE as an example because I am based here. A young talented SC solutions / Contract Logistics BDM is looking to make a move to the UAE from (for example) Europe or South Africa. He’s/she’s prepared to take a hit on the salary for a chance to learn the market, he/she understands they must, and is also totally willing to literally hit the pavement and knock on doors to build contacts, client base, pipeline and market knowledge from day one. He/she has an excellent track record of past performance, knows their stuff when it comes to understanding firstly their own companies logistical capability then is able to  identify clients they could realistically support, can analyse a clients logistics set up, and design and implement solutions. Basically they can win new business, yet because he/she hasn’t worked in UAE before no one is even prepared to meet them.

What seems to happen here in UAE far too often is that many 3pl companies, who are pretty much all looking to hire good SC CL solutions sales people, just want to know which clients the person can bring in order to quickly fill the latest new build warehouse, and usually expect results in 3 months… if this was related to transactional freight sales I kind of understand the 3 month expectation, but what’s the relevance of this in contract logistics where the sales process could be anything from 2-3 years or more in order to win a major contract.

In the logistics sector in the Middle East we clearly have a major shortage of good SC CL solutions selling people in most countries especially within the 30-40’s age range which means an even bigger problem is looming. Is it time to take a risk by hiring someone who has the industry experience but without the market knowledge if its clear they adequately tick the other two boxes?

What do you think is more important? (Feel free to add others in the comments).

  1. Solid track record of performance selling SC / CL solutions
  2. Deep knowledge of specific end user industry verticals
  3. Current or previous in-country / local market experience

A good leader see’s things in people that others don’t, a good leader is prepared to take educated risks when making hiring decisions and is prepared to stand by those decisions.



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Procuring people. What’s the cost of getting it wrong?

Whether it’s for a start-up and this is employee number one or if there is a requirement for employing vast numbers of people an organization will always have direct costs relating to hiring and will decide whether to pay for advertising, marketing, career portal, external recruitment services or headhunting fees, assessment tests, visa’s etc etc.

The choice is there for an organization to spend as much or as little on these direct costs as they wish… but how little is too little?

It’s practically impossible to get it exactly right when hiring a person (or people) but investing time and money in developing sufficient process and procedures will increase the chance of hiring the best people in terms of cultural fit as well as ability and experience.

Finding a good balance between the cost of hiring the right people versus the cost of getting it wrong isn’t easy but when you take the time to really consider the hidden costs of making a hiring mistake then investing more time and money up front becomes a very worthwhile and necessary investment.

Hidden cost factors of a bad hiring decision;

  • Time spent hiring a replacement
  • Reduced morale of other team members
  • Disruption to clients
  • Investment in on the job training (internal and external)
  • Time taken from exit of previous hire to the replacement person reaching minimum standards to perform the job
  • Loss of confidential information
  • Damage to company brand
  • Additional work load for other employees

The list goes on and many are interlinked, but the actual cost of an employee leaving is not easily quantified as there are just so many additional factors to be considered, for example a key employee with a very specific skillset will have a greater impact when leaving an organization than that of someone in a role which is easily replicated. Smaller businesses will also be more affected by one person leaving than larger businesses.

I guess the best advice is don’t cut corners and always think about what could be the cost of getting it wrong.

Consider the hidden costs...

Beware of the hidden costs.

How does your organization calculate the cost of replacing an experienced employee?

I look forward to reading your comments.

Process makes perfect.

The recruitment process is often an area of frustration for hiring managers, external recruiters and prospective employees alike, its particularly frustrating for potential employees searching for new jobs.

People who were initially very excited about a new job opportunity can quickly become disillusioned if the steps to getting the job are too complicated, too slow or not clearly defined with definite time frames and regular communication through each stage in the process.

process

First impressions count!

For employers it’s important to consider the candidates experience from the first time they make contact.

Will they have a good impression of the company throughout the process?

If an applicant has a bad experience when applying to work for an organization its potentially damaging to the brand itself (more about that in my previous post… “The People’s Value Chain”).

Word travels fast!

Even if an applicant is unsuccessful in their application it doesn’t have to be a negative experience, the key is that they are given proper feedback with regular communication throughout the process.

If organizations want to attract and retain top talent then its essential to get people engaged and keep them engaged from day one.

I am sure every employer can recall a time when they have failed to hire an outstanding candidate who they really wanted on board so the big question should be why ?  and what can be done to stop this happening again…


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