Reinforcements – OPT, “yah you know me!”

I had a good question about practices and how companies or organizations can reject outside talented leadership or make them successful.

First off, retention is everything. Like the best sports teams in history have shown us, they are built through the draft, early. So, what about trades? OPT – Other People’s Talent. Unless it’s LeBron or Brady, it is a 60/40 proposition. 40% of all executives with prior success will fail and move on in two years. It is the same in sports, especially head coaches.

I found the 2 things needed to occur to beat the odds.

Number one is the candidate or new hire needs to be self-aware of their new environment. Company culture will chew up and spit out top talent in a short period. I call it the Critical Factors of the Organization (CFO). Success is not measured by disruption but by adapting and understanding what they hired you to do. You have to get to work on that first and foremost. It is not readily visible or easy to grasp. It is sometimes hidden in politics and paradigms built into the culture. Fail at this and you will fail in your functional talents.

Second is the company’s ability and your chain of command’s ability to communicate what the priorities are relevant to your role and set up real, solid and understood expectations. There needs to be an introductory to your team (all together) and with a moderator to really understand how it has functioned in the past. The more a newly hired leader guesses or uses past experience on “how things work around here,” the more a talented executive will make choices that are detrimental to their ability to lead.

Sudden change and so called “change agents” end up with an organization that can’t function due to confused expectations and processes. It is like a revolt. People only do what they are told…no confident ambiguity. You never tell a Seal Team what to do. You give them the objective and they design the mission.

The ability to adapt and adopt needs to happen first. You can be the smartest person in the room, but you will fail (in terms of achieving what others expect of you) or you’ll leave if you cannot apply what you know.

Hopefully that answers your question.

I think we have great advisory and consulting services that helps break the ice on both sides of the hiring equation at DHR. Please refer to the DHR Global web pages for “Leadership Consulting.” https://www.dhrglobal.com/capability/leadership-consulting/

One more thing from the “Talent War”

The talent deficit is here, and it started at the turn of the new millennium. Why? Why call it a war? Because it is part of a great competition and to lose is to fall back globally and the shortage is widening. The concept of the “war for talent” remains more relevant today than it ever was, although its focus has evolved over time.

Our industry, the purpose of this blog, is to make us aware that in order to compete, we need to win the talent war. We have to attract, retain and promote. We also have to train and build talent early in their careers. Training is so important at this stage. Classrooms teach you how to think. Training teaches you how to work.

Leadership is also fleeting at the moment. Long gone are the men that bear the names of the companies in the A&D industry. You know them. I have coined a phrase. We need “owner leaders.” Business is what you do. It is simple, really. The complexities are in size and scope of large EMD (Engineering, Manufacturing and Development) companies. Lead it like your family built it and it is your legacy.

Let’s explore how talent holds up one more time:

1. Productivity and Talent Importance:
   • Superior talent continues to be a critical factor in organizational success. High performers are significantly more productive than average ones, with studies showing that they can be up to 400% more productive.
   • In complex roles, such as management or research and development, top talent can be an astounding 800% more productive.
   • Steve Jobs famously advised, “Go after the cream of the cream. A small team of A+ players can run circles around a giant team of B and C players.”
2. Scarcity of Great Talent:
   • The term “war for talent” was coined in 1997 and popularized by a book in 2001. It refers to the fierce competition to attract and retain employees, especially as baby boomers retire from the workforce.
   • While the Great Recession temporarily shifted the focus to a “war for jobs,” the scarcity of great talent remains a challenge.
3. Current Landscape:
   • Automation, digital transformation, and changing skill requirements have expanded the scope of missing skills. The war for talent now extends beyond executives to various roles.
   • Last year, 69% of companies reported talent shortages, the highest number in a decade.
   • Companies need to build strategic talent pipelines, forecast hiring trends, and remain open to new work models.
4. Tech Industry Perspective:
   • In the tech industry, the competition for talent remains intense. Companies seek tech talent, and analyzing job demand data provides insights into this ongoing battle.

In summary, the war for talent persists, and organizations must continue to prioritize attracting, retaining, and developing top talent to thrive in today’s competitive landscape. The aerospace and defense industry has to build leadership talent at all levels either internally or externally.

Is 70 the new 50: Retaining wisdom and experience

The idea that 70-year-olds are the new 50 is gaining traction, especially in the context of talent shortages. It makes sense. The loss of the talent that got us here is hard to replace in companies and R&D organizations because they have discipline. Innovation is the key but standing firm on quality and engineering is all about discipline. Does this apply to the defense industry? Let’s explore why this perspective makes sense:

1. Demographic Shifts:
The global population is aging, and people are living longer. By 2035, the number of individuals over the age of 65 will outnumber children for the first time in U.S. As a result, the retirement age is no longer a fixed milestone. Many older adults are healthier, more active, and eager to continue contributing to society.
2. Talent Shortages:
The world faces a significant talent shortage. Predictions suggest that by 2030, the global talent shortage could reach 85.2 million people, costing up to $8.5 trillion in lost economic opportunity. Critical areas like healthcare, technology, and skilled trades are particularly affected. Organizations need to tap into all available talent pools to address this shortage.
3. Experience and Wisdom:
Older workers bring decades of experience, institutional knowledge, and wisdom. They’ve weathered economic cycles, industry changes, and organizational shifts. Their insights can help companies navigate challenges, innovate, and make informed decisions.
4. Adaptability and Lifelong Learning:
Contrary to stereotypes, older adults are adaptable and eager to learn. They embrace technology, attend workshops, and stay informed. Lifelong learning is essential for staying relevant, and older workers recognize this.
5. Phased Retirement:
Companies can implement phased retirement programs, allowing older employees to gradually reduce their hours or transition to part-time work. This approach retains valuable talent while allowing individuals to enjoy a more flexible lifestyle.
6. Non-Ageist Recruiting:
Organizations should actively recruit older workers. Avoid age bias during hiring processes. Focus on skills, experience, and cultural fit rather than age.
7. Mentorship Programs:
Pairing older employees with younger colleagues creates a knowledge-sharing ecosystem.
Mentorship benefits both parties and contributes to a positive work environment.
8. Grandparental Leave:
Recognize the importance of family. Offering grandparental leave allows older workers to spend time with their families. It fosters loyalty and well-being.

In summary, embracing the idea that 70 is the new 50 acknowledges the value of older workers. Companies that tap into this talent pool will not only address shortages but also benefit from diverse perspectives and collective wisdom.

Talent Shortage in the Aerospace & Defense Industry

Introduction

Everything revolves around having the right people. A well-trained workforce and managers resident to your business in the defense industry hubs are essential. The defense industry plays a critical role in our national security, innovation, and technological advancements. However, it faces significant challenges related to talent acquisition and retention.

Here are some key points regarding the talent shortage in the defense sector:

1. Ongoing Struggle: Despite efforts to attract and retain skilled professionals, the defense industry continues to grapple with workforce shortages.
2. Specific Skills Gap: The shortage is particularly acute for workers with skills in engineering and “strong digital capabilities,” including data analytics and automation¹.
3. Academic Disconnect: Academia often struggles to keep pace with the industry’s evolving needs. Workforce planning timelines don’t always align with contract periods, hindering curriculum updates at universities and trade schools¹.
4. Aging Workforce: The defense industry faces an aging workforce that needs replenishment. Bridging the gap between academia and industry is crucial¹.

Long-Term Solutions

To address the talent shortage sustainably, the defense industry must consider long-term solutions:

1. Early-Career Programs: Forward-thinking companies are targeting less traditionally qualified candidates, including recent secondary school graduates. These early-career programs aim to cultivate future talent by providing training, mentorship, and hands-on experience¹.
2. Apprenticeships: Companies like Lockheed Martin have established apprenticeship programs in collaboration with educational institutions. These programs create a sustainable pipeline of highly skilled talent for future operations¹.

What are the consequences?

The consequences of a short fall in the U.S. in all industrial and engineering fields of manufacturing and development companies specific to national defense and technology are eminently apparent.

Here are some key consequences:

1. Operational Readiness: A lack of skilled personnel can lead to delays in project completion, affecting the industry’s ability to meet urgent demands for defense capabilities¹.
2. Increased Turnover: The defense industry has seen an overall turnover rise to 7.1 percent, which is more than a 2 percent increase since 2020. This indicates a growing challenge in retaining skilled workers¹.
3. Financial Impact: Talent shortages can result in higher spending on temporary fixes, such as external recruiting firms and trainers, which increases operational costs².
4. Morale and Workload: There’s a potential drop in morale among current employees who must work harder to meet mission requirements, leading to increased stress and potential burnout².
5. Innovation Stagnation: With fewer skilled workers, especially in areas requiring strong digital capabilities, the pace of innovation and technological advancement may slow down¹.
6. Supply Chain Disruptions: Labor shortages can lead to disruptions in the supply chain, making it difficult to maintain steady production and delivery schedules³.
7. Training and Development: The industry may need to invest more in training less skilled workers, which can be time-consuming and costly³.
8. Global Competitiveness: The inability to attract and retain talent can affect a country’s competitive edge in the global defense market⁴.

Conclusion

The defense and technology industries face talent shortages, but innovative approaches, early-career programs, and collaboration with educational institutions can help bridge the gap. As we navigate the evolving landscape, investing in talent development remains crucial for sustained growth and innovation in these vital sectors. In the next article, I will focus on the investments, internal and external, to the organization, that will curve the risk and the development of next generation leadership.

Did you notice we did not talk about the weaknesses of “remote work?” That is another story for a different thought…”What is work?”

Footnotes:

1nationaldefensemagazine.org 

2bcg.com

3defensenews.com

4www.deloitte.com

5mckinsey.com

The “war for talent” is ongoing and it isn’t close to over. Check your strategy.

The “War for Talent’ was a study published by McKinsey and Company in the late 90’s. It has been modified and updated regularly, but it did predict a talent shortage today given the “baby-boomer” and X gen retirements and the declining technical, engineering and science majors coming from domestic universities.

Companies need to stay as close to the marketplace (business intelligence) as they can so that they can fill critical leadership roles in the organization in a timely manner. The solution is to build talent pipelines and research the various sources of talent. This is a labor-intensive endeavor. Social media has helped.  It has not, to this date, presented a “soup-to-nuts” solution. There are too many variables that must be vetted by a real person with discretion toward your company’s needs.

Without getting into the micro details of a strategy there are some additional pieces to the old ideas in the McKinsey study. Winning the “war for talent” requires a multifaceted approach in these times. Here are strategies that companies can employ to attract and retain top talent:

1. Employer Branding and Reputation:
   • Craft a compelling employer brand: Clearly communicate your company’s mission, values, and culture. Highlight what makes your organization unique.
   • Leverage employee testimonials: Share stories of current employees to showcase a positive work environment and growth opportunities.

2. Recruitment and Sourcing:
   • Proactive sourcing: Don’t wait for candidates to apply; actively seek out potential talent through networking, referrals, and social media.
   • Talent pipelines: Build relationships with potential candidates even before job openings arise.
   • Diverse channels: Use various platforms (job boards, LinkedIn, industry-specific sites) to reach a wider audience.

3. Compensation and Benefits:
   • Competitive salaries: Benchmark your compensation against industry standards.
   • Flexible benefits: Offer personalized benefits like remote work options, wellness programs, and professional development allowances.
   • Equity and stock options: Consider long-term incentives to retain talent.

4. Professional Development and Learning:
   • Invest in training: Provide opportunities for skill development, certifications, and workshops.
   • Mentorship and coaching: Pair experienced employees with newer ones to foster growth.
   • Clear career paths: Outline advancement opportunities within the organization.

5. Work-Life Balance and Well-Being:
   • Flexible work arrangements: Allow remote work, flexible hours, or compressed workweeks.
   • Promote well-being: Encourage physical health, mental wellness, and work-life harmony.

6. Inclusive Culture and Diversity:
   • Diversity initiatives: Create an inclusive environment that values different perspectives.
   • Unconscious bias training: Educate employees to recognize and mitigate biases.
   • Equal opportunities: Ensure fair treatment regardless of gender, ethnicity, or background.

7. Recognition and Appreciation:
   • Regular feedback: Provide constructive feedback and recognize achievements.
   • Employee recognition programs: Celebrate milestones and outstanding performance.

8. Retention Strategies:
   • Exit interviews: Understand why employees leave and address any issues.
   • Internal mobility: Encourage movement across teams or departments.
   • Continuous engagement: Regularly assess employee satisfaction and engagement.

Remember, winning the war for talent is an ongoing effort which includes new concerns. Companies that prioritize their people, foster growth, and create a positive work environment will be better positioned to attract and retain exceptional talent.

Current and Future Challenges in the U.S. Defense Industry

The defense industry faces several challenges as it navigates the complex landscape of global security and technological advancements. Here are some key challenges:

1. Talent Shortage: The aerospace and defense (A&D) industry is grappling with workforce challenges due to rising demand and changing workforce expectations. Factors such as increasing salary levels, employee mobility, and a competitive job market contribute to this talent shortage¹.
2. Supply Chain Complexity: Global supply chains in the defense industry are becoming more intricate, leading to issues like supply chain disruptions, longer lead times, and sub-tier supplier fragility. A&D companies need to address these complexities to ensure a resilient supply chain¹.
3. Digital Transformation: Embracing digital technologies is crucial for growth and efficiency. A&D companies can unlock opportunities by adopting emerging technologies, improving logistics, and creating new revenue streams. Digitalization can enhance supply chain resilience, attract new talent, and accelerate product development¹.
4. New Product Introduction: Evolving customer preferences and sustainability concerns drive the need for innovative products. A&D companies must stay agile and responsive to market demands while ensuring product quality and safety¹.
5. Defense and Commercial Spending: Balancing defense and commercial spending is essential. Industry spending drives growth and innovation, but companies must allocate resources effectively to meet both military and civilian needs¹.

Additionally, the National Defense Industrial Strategy identifies ten systemic challenges facing the defense industrial base:

• Underutilization of multi-use technologies
• Inadequate workforce
• Insufficient domestic production
• Non-competitive practices
• Long lead times
• Fragility of sub-tier suppliers
• Lack of Department of Defense (DOD) market share
• Procurement instability
• Funding uncertainty
• Limited knowledge of ally/partner requirements².

These challenges require strategic planning, collaboration, and continuous adaptation to ensure the defense industry remains resilient and effective in safeguarding national security.

Electronic Warfare Market’s CAGR of 12.5% Propels Growth to $19.4 Billion by 2028

Are you Salty?

Are You Salty?

Imagine sitting down to Thanksgiving dinner, eyeing the steaming stuffing, taking a huge bite, only to discover it hadn’t been seasoned. 

Bland spirituality and unseasoned food have something in common: Few of us like them. They lack flavor. 

I made a pot of soup recently. It tasted bland, but I couldn’t figure out how to give it more zip. Then, my son sauntered into the kitchen for a sample. 
 

“It needs more salt,” he said. 

I contemplated his words, added a couple of pinches, and tried the broth. He was right. 

Salt made the difference.

As Christians, we flavor our world with the truth and love of Jesus Christ. The Bible calls us the “salt of the earth.” As such, we make a difference. 

We are the seasoning of Christ, bringing His love-truth to relationships, situations, and circumstances. We champion hope for eternity, the message of reconciliation to God. We sprinkle forgiveness and truth daily.

One granule of salt seems small, and it is. But just as the soup’s flavor changed because of a few small morsels, the world around us advances for the better when we season it with the love of Jesus.

But what happens if we lose our zest for Christ because of trials or grow tired of loving difficult people as Jesus taught us? What if we lose our “saltiness”? Does one quieted voice make a difference? According to Scripture, it does. 
 

This holiday season, if you’re battling weariness or questioning whether to continue to serve, be encouraged to press on. If you’re discouraged or comfortable with life’s flow, remember Jesus died for each of us to offer the hope of heaven. 

So go ahead, be the salt of the earth, bring glory to God, and watch others enjoy the goodness of Jesus Christ, too. 

You are salty.

Christmas Holiday Wishes

Executive Compensation: Don’t hesitate, negotiate.

It is a sad thing to see.  A most promising candidate presented by me who we anticipate will be getting an offer for a position which she is well qualified, doesn’t get hired.  There are many reasons why this happens.  Here is one example:

Situation:  The candidate has completed three interviews (made numerous flights, rearranged schedules but made it happen).  It is for a P/L leader of a company that needs her leadership experience, style and skill.  She is anticipating other work opportunities to materialize (she is interviewing) in the upcoming weeks but she told me that this was the company for her.  The future of my client’s organization is bright, but they lack level-headed business leadership. The hiring manager makes it perfectly clear in the interview process that this is a hands-on role and that the new leader will be running fast, almost a turn around. He needs her.

The hiring manager (very busy), entrusts his newly hired HR person, asks her to call the candidate and get her compensation requirements.  I am completely unaware that this conversation is taking place. In my candidate presentation process her compensation history and expectations were clearly spelled out to the hiring manager. Additionally, I let my clients know that I offer my assistance and experience in presenting the offer.  HR calls her. In the meantime, the candidate has received an offer from the competing company. The number is high and it is relayed to the hiring manager via the HR partner. I am told that they are disappointed that I had not anticipated this and that her compensation was too high. REALLY! My client gets cold feet and then blames me! Or, did the other company just push the envelope and try to buy her…I spend over 2 hours on the phone with my candidate.

After this, I offer several suggestions to the HR person. One, we must formulate our own offer. If we don’t the candidate will be forced to take the other offer. I say we should offer our proposed executive package to the candidate because this initiates a negotiation (N word is foreign to allot of corporate types). I say, forget about the competing offer, just let our offer stand on its own. There are performance-based incentives (great candidates love performance-based compensation). The bottom line is, if you don’t make an offer, there is no basis for her to respond. I hope that you (reader) are seeing this correctly. I can’t make an offer without the client approving the tactic. Therefore, she accepted the other offer.

Result: A total communication breakdown occurred. I was never sure what the HR partner was saying to the hiring manager, but nothing happened, and an offer was withheld.

Lessons that should have been learned:

1. COMMUNICATE: Keep the EXECUTIVE SEARCH CONSULTANT involved to the end of the process.
2. COMMUNICATE: Use the EXECUTIVE SEARCH CONSULTANT as the intermediary in the closing process (company and candidate). Get the hiring manger in the game.
3. COMMUNICATE: If you are a candidate or an HR leader, always ask the EXECUTIVE SEARCH CONSULTANT. Call them, email them and text them with any news or need for information.

The finale: I went back to my candidate. I helped her to craft an email directly to the hiring manger that pulled them together for a one-on-one call (got them talking). Yes, I had the candidate go around the HR Partner…not me, the candidate. The finality of it was that the offer was made (per the expectations) and she rescinded the other deal.

You didn’t think I would let this die, did you?