Brett Minchington of Employer Brand International says referrals help companies cut staffing costs. Courtesy Employer Brand International
Brett Minchington of Employer Brand International says referrals help companies cut staffing costs. Courtesy Employer Brand International
Brett Minchington of Employer Brand International says referrals help companies cut staffing costs. Courtesy Employer Brand International
Brett Minchington of Employer Brand International says referrals help companies cut staffing costs. Courtesy Employer Brand International

In the search for talent, branding is seen as key


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Brett Minchington argues that employers should see themselves as brands when hiring. The chief executive of Employer Brand International, a research and advisory firm, shares tips with recruiters ahead of a planned visit to Hult International Business School in Dubai this month.

Q Why compare employers to brands?

Brand management can be traced back to the early 1920s, from when Procter & Gamble said "we need a different strategy for each of our products." Traditionally, they put all the products under one banner. What happens in organisations [today], whether it makes sense or not, you tend to have a market that has corporate branding and consumer branding initiatives. Human resources is responsible for employer branding initiatives.

Where should employers start their search to find the right talent for their company?

They need to identify what their distinctive assets are as an employer. What are people identifying the organisation for? When we look at Google, they're renowned for employee benefits and their physical working environment. If we look at an unknown brand, they need to identify what their distinctive assets are; that's usually done internally with employees and externally [by] communicating with their target audience.

How do employers do this internally?

Look at your existing workforce. Where have they come from? Strategically, they're saying "where do we need to find engineers from?" They need to do some market research to understand, one, where those types of roles are in different parts of the world, or locally,and, two, what are those people looking for in an employment experience?

What should human resources focus their interview on, once they have shortlisted a candidate?

If a company has a good sourcing strategy, they know the quality of people coming in for interviews. The whole interview is really about understanding cultural fit for the process. Some companies do quirky things. For me, I think you do have a minimum of two interviews for anything above a middle-management role. If it's a high-volume or retail role, group interviews are good. Some [candidates] have been through six to eight rounds over six months, and … that strategy doesn't work.

Some people come across as great candidates during interviews but flop on the job. How do recruiters avoid this scenario?

The candidates have to be able to provide feedback [to indicate] if the role fits. [Recruiters] make decisions quickly on how they feel; have a structured process around the performance of this new hire, and that is probably going to provide some good indication.

Any tips on cutting costs for finding talent?

Companies have to get more connected. Some companies are very good at that. They get 60 to 70 per cent of their hires through referrals. The amount of money they're saving through that process [is considerable]; that requires a strategy.

* Neil Parmar

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Joe Root (captain), Moeen Ali, James Anderson, Jonny Bairstow (wicketkeeper), Stuart Broad, Jos Buttler, Alastair Cook, Sam Curran, Keaton Jennings, Dawid Malan, Jamie Porter, Adil Rashid, Ben Stokes.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”