Leadership Magazine: Human Captial

May's 2016 Contribution is available online here on page 74 and 75

Human Capital

“If you think it's expensive to hire a professional to do the job, wait until you hire an amateur,” are wise words from Red Adair, an American oil well fire fighter who was a notable innovator in the specialised and extremely hazardous profession of extinguishing and capping blazing, erupting oil well blowouts.

In the previous issues, we focussed on the impact that strategic intent and operational capability has on a corporate reputation. Human capital - investing in the right people to do the job - is another key building block to building a solid reputation. Investing in your workforce means you are investing in the quality of your output, the harmony within the workplace and ultimately - your reputation. Identifying the right calibre of people during the recruitment phase is directly aligned to the strategic intent of the organisation; knowing exactly where you are going with your business and who you need on your team to get you there. Getting this right at the onset will save you a lot of time, frustration and money in the future.

At Reputation Matters, we have implemented a rigorous recruitment process; because we are in the business of managing reputations, we need to be very particular about who we have on our team. The first step is to have really good strategic alliances in place that can feed the recruitment funnel. We have a great relationship with the University of Pretoria’s communication management department, and offer their top BCom Communication Management honours students internship opportunities with us. Any students who are interested in a position must go through the same recruitment process, starting with an online application form. There are a number of reasons for this. Firstly, it shows whether the person is serious about wanting the position; if they are, they complete the form in full. Secondly, it demonstrates their basic use of spelling and grammar, something which is vital when it comes to business communication and subsequent reputation management. I am often amazed by the number of applications we receive where the applicants refer to themselves as “i".

The next round involves a phone call to determine how the candidates handle themselves over the phone – if very well, the first face-to-face interview is setup. Should the interview go well, we check references and then do personality profiling to get an idea of how they will fit in with the rest of the team. In the final step, the candidate is given a case study to prepare and present to the team. This may seem like overkill, but getting the candidates to whittle themselves out has saved an enormous amount of time and ensured that we are able to pick the cream of the crop for different positions. Wouldn’t you want the best possible candidate to be looking after your reputation?

Once you have selected the ideal candidate, a thorough induction is necessary to help them get to grips with ‘how things are done around here’. Margaret Hirsch, dynamic business owner and founder of Hirsch’s Home Stores takes time out of her hectic schedule to meet and engage with all of their new recruits.  I was fortunate enough to sit in on one of these sessions and see Margaret in action. Margaret speaks candidly about the vision, core values and culture right from the outset, which instils a level of respect and understanding for the organisation and leaves very little room for misinterpretation and helps the candidate grasp exactly what the expectations are. This important step links back to strategic intent and operational governance, with the message and vision being reiterated right from the top.

It’s all good and well to have the right people appointed, but in order for the organisation to grow, it is equally important to invest in training and development. Peninsula Beverages Company (PenBev), the local bottlers and distributors of Coca-Cola products in the Northern and Western Cape, does this particularly well. PenBev has been nominated and recognised as a Top Employer for a number of years, no mean feat for a provincial operation when compared to the large multi-national conglomerates it competes against for this title. What drives their success?

Greg Lewis, managing director of PenBev shares that it’s a passion for people; those that they serve and the people on their teams. He believes that without this passion they would not see the successes that they do. He adds that it’s about fairness, accountability, continuous improvement and teamwork. By investing in your people – through training and development programmes, you are showing that you see value in your workforce and have faith that the relationship will be long and fruitful.

If you have an employee who is truly passionate about their work, you can be sure that they will be telling their friends and family how much they love their job and the company they work for. This passion and enthusiasm has a positive impact on the rest of the team as well. The same can be said of someone on the team that is not in the right position, and does not share the same keenness for the company. Both of these attitudes will in the long run impact how the organisation is seen and directly affect its reputation.

Building a reputation is therefore about getting the right team in place from the onset, ensuring that everyone is on the same page regarding the business goals and vision, and then investing in training and development to ensure the individuals, teams and company is always growing. Another appropriate quote to think about is from David Ogilvy, who once said: “If each of us hires people who are smaller than we are, we shall become a company of dwarfs. But if each of us hires people who are bigger than we are, we shall become a company of giants.”