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Internal candidates and executive assessment
5/05/2009

The Signium Comment

Employment figures

Commentators are quite correct when they say that an increase in employment across the board will only come after other signs of recovery from the current recession are evident - companies first need to measure (and feel with confidence) that a recovery is taking place. The present market conditions continue to displace many people as companies reduce their labour costs at all levels. As we move through the second quarter of 2009 and companies look to the post-recession period, we find current leaders and managers being assessed, both for their ability to perform in their existing jobs and for their longer-term suitability to lead with greater responsibilities.

Internal Candidates

The current market environment provides excellent conditions in which to assess key executives in organisations. From our Signium experience of over 30 years, we have found that during a downturn employers become more precise in their hiring specifications - business leaders and hiring managers recognise the critical value of high performing people and are less inclined to compromise in their hiring.

We also find that companies are giving greater consideration to internal candidates in both assessing their promotability as well as their developmental needs. Putting internal candidates into the recruitment mix, particularly in these times, gives an excellent opportunity for objectively assessing their suitability for promotion within the organisation.

Succession Planning and Assessment

More rigorous succession planning can now be undertaken as companies have a better knowledge of the executive’s performance in both “good” and “bad” markets. In today’s market companies are not willing to invest significant sums of money in untested, unproven, executives. This is a good time to test out those who are being “ear-marked” for development by giving them special projects. This may involve trying out the executive in a new position, particularly as time, management support and resourcing are available to mentor the executive and coach them when needed. Do you have a personal development plan?

Once identified and assessed these executives of the future need to be retained. When the economy opens up these will be the managers in demand. They will need to be kept focused and challenged, to be an integral part of the organisation and receive intrinsic recognition and achievement satisfaction.

Just as companies are looking for acquisition targets in which to invest, so too companies need to invest in their people. In this tight unsupportive market top management, including Boards, can be too focused on the day-to-day running of the company to attend to the resourcing for the future.

We would be pleased to meet with you for an exploratory discussion to understand the culture of your organisation and processes you use to develop and promote your managers.
Please contact Maurice or Stephen on 09 309 0886.

Recent executive appointments

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