The region has attracted sub-standard talent and this is a long-term liability

Mentoring

By David Thatcher

When a souq mentality evolves within the hiring paradigm, then it seems inevitable that business will attract talent that is sub-standard. Unfortunately, this feeds the local and regional markets creating an installed management pool, a pool for future employment, that is often below minimum standards for the role and importantly, incapable of sustaining long-term growth for the business. Under today’s increasingly competitive business climate and the region’s positioning as a power base, this hardly augers well for the future.

We recently explored the fact that for many people, the multiple frustrations felt as they attempt to develop their careers is greatly affected by the corrosive nature of the commodity approach to hiring staff. Companies that treat the human component of their business as a commodity, are creating an inherent weakness within the structure.

This weakness not only manifests itself as demotivated and despondent staff who are expected to make difficult decisions that drive and often position businesses competing under increasingly difficult and complex business conditions, but also, it can put the company at risk.

If one of the main effects of embracing WTO is to remove barriers to international firms enabling them to play within regional markets, then talent will be one of the major keys to business success. We have already seen ample evidence of the removal of monopolistic jurisdictions and the drive towards mergers and other alliances in response to the need to re-model business form.

It seems irrational that many regional organisations still believe that a reduction in pay per employee is a cost efficiency measure that will enable the company to become more competitive and therefore, compete effectively.

When you demotivate talent, you lose it. Once gone, how on earth do you attract it back to the region under a prevailing climate of increasing personal cash-flow burden and illusive career opportunity?

Seeking out suitable employment across the region is very difficult and this was noted in the past where we pointed out that careers are contingent upon market forces yet, are driven by personal circumstances. Career path planning is becoming increasingly difficult to execute and to manage. The combination of factors faced by the individual continues to increase as the region undergoes considerable transformation and these issues often go unnoticed during the hiring process.

The hiring company needs to attract the right calibre talent and must create an environment that supports career growth. One of the major causes of discontent is the erosion of packages being offered, including the working conditions and environment within which people are expected to perform . Often, disparate hiring practice attracts sub-standard talent often appointing people beyond their ability. This translates into an unpleasant and unprofessional business arena where growth is frequently impeded because of professional ineptitude. Dissatisfied managers frequently leave.

Sadly, good quality managers who came here with high hopes have found that their expectations cannot be fulfilled and have left the Middle East. When you consider the many difficulties faced such as: package erosion, a continuing increase in the cost of living, uncertain career prospects, a career environment that often does not support growth, intra-regional rivalry often creating barriers to movement, lack of legislative protection for the individual and domestic barriers that prevent transfers, this is hardly going to come as a surprise to anyone!

Careers within the Middle East must deal with multiple phenomena: regional growth and the turbulence and instability within the markets, the “whirlpool” effect, alignment with protocols such as WTO, difficulties associated with assessing the value of “human capital”, the nature of company form and its influence on career satisfaction, company attitude to job titles and the impact this may have on job enrichment, avoiding being “shaped” by some job agencies and the difficulties associated with the hiring process, changes in technology and the demands placed on today’s managers, incorrect business model causing bad hiring decisions, and in addition the impact of external pressure resulting in companies establishing hiring barriers and a weakening US Dollar.

If this region is going to be successful in securing the right talent, talent necessary to drive the many initiatives and complex business alliances over the next decade, then the Middle East has to be seen as a natural path through which one would traverse.

People who come here have hopes, they have career needs and their expectations need to be fulfilled. But of vital importance, businesses must be capable of hiring the right talent if they are serious about surviving. If you treat people as a commodity and make incorrect hiring choices, then you create an inherent weakness within the business, you devalue one of the major business assets that is vital to success.

It seems there is truth in the old adage “low price – pay twice”?

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Based in Dubai, David Thatcher, (CareerPartners@ameinfo.com) is the principal of career management and mentoring specialists Career Partners in the Middle East.