Large Corporate Transactions: How to staff up for success EMPLOYER ADVICE
April 2017
FINANCIAL SECTOR RECRUITMENT
Large Corporate Transactions: How to staff up for success Over the last two decades, the financial sector in Scotland has witnessed many large-scale corporate actions. Acquisitions, mergers, outsourcing, insourcing, transformational business wins – they have combined to fundamentally reshape companies and the way they do business. Mike Stirton Director Interim, Temp & Contract
With more high profile consolidation set for this year, the role of temporary and contract staff in large scale corporate projects is just as important as ever. In this article, we look at the different approaches used in resourcing major projects. We outline the pros and cons of each, and identify the important factors in ensuring a project is delivered successfully.
Three routes worth considering Whether taking on a transformative new client, outsourcing back office functions or embedding a new acquisition or merger, there are broadly three approaches to staffing: 1.
Utilise existing staff
2.
Move existing staff to full-time, dedicated project roles and backfill their business-as-usual positions
3.
Recruit a specialist contract team to manage the project
Let’s look at the advantages and disadvantages of each.
1. Utilise existing staff Advantages
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High engagement, high attention and high commitment. The people involved have a close and long-term interest in completing the project successfully
The project upskills your own employees
The people and expertise will remain in the company after the project is complete. Subject matter experts are available post implementation
At first glance, it is the cheapest option
Large Corporate Transactions: How to staff up for success
Disadvantages
Inherent danger of spreading your resources too thin. This can impact negatively on business-as-usual operations
Some or many of the people involved will be inexperienced in dealing with the intricacies and challenges of a largescale project
Both of the above can lead to demoralised staff and increased attrition rates
2. Move existing staff to full-time, dedicated project roles and backfill their business-as-usual positions Advantages
The same advantages gained from utilising your existing staff
However, option 2 incurs more expense, as business-asusual roles have to be filled
Disadvantages
Some or many of the people involved will be inexperienced in dealing with the intricacies and challenges of a largescale project
Business-as-usual operations could suffer through the recruitment of inexperienced professionals
After the excitement of the project, individuals may be reluctant to return to their business-as-usual roles
3. Recruit a specialist contract team to manage the project Advantages
You will be hiring people who have a track record in successful project delivery
In Scotland, you have a local pool of talent readily available who have deep experience of large corporate projects
Implementation times will be quicker, driven by professionals focused on delivery
Business-as-usual operations will remain relatively unimpaired
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Large Corporate Transactions: How to staff up for success
Project team will be more flexible geographically and in terms of working patterns
Clearer separation between the client (your company) and the supplier (the project team), and in turn better accountability
Disadvantages
Once the project is completed, it is likely that the skills and experience of the team leave the company
Arguably, it is the most expensive approach, although this is mitigated somewhat by the anticipated increase in delivery time
The best solution? In reality, the best approach tends to be a mix of all three: a blend of internal company expertise and external contractor experience.
INTERNAL BAU
PROJECT TEAM
EXTERNAL CONTRACTORS
This may involve business-as-usual staff moving to full-time project roles, but the numbers are much less than in option 2. This hybrid approach retains most of the advantages of options 1, 2 and 3, while mitigating many of the downsides. For example, with contractors working side-by-side with internal staff, key skills and experience inherent to the success of the project are retained within the company. This is usually through osmosis – a gradual assimilation of skills and experience – rather than formal training and development.
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Large Corporate Transactions: How to staff up for success
Hire in haste, repent at leisure Whether you opt for option 3 or the recommended hybrid approach, the main factor in success is not so much in choosing to use contractors but choosing your contractors wisely. Often, when projects have gone awry - over budget, delayed or abandoned – it is because companies have entered the contract market with quality rather than quality in mind. They have simply thrown bodies at the project. As a corporate, you will be spending a significant amount of money employing contractors. It is better to invest in one market-leading expert rather than two journeymen.
To govern is to choose Next time your company is faced with delivering a large-scale corporate transaction, whether it’s a merger, acquisition or transformational business win – think carefully about the various ways you can deploy and employ staff to deliver it successfully. Being mindful at the outset of the different approaches and their respective advantages and disadvantages can go a long way to anticipating and therefore avoiding many of the problems experienced by your predecessors. And if entering the contract market on a significant scale, choose quality over quantity. Mike Stirton Director Core-Asset Solutions t: 0131 718 4600 e: mike@core-asset.co.uk With over 15 years’ recruitment experience, Mike has worked at the heart of most large-scale corporate transactions across Scotland’s financial sector. He has provided temporary and contract professionals for many significant projects, including mergers, acquisitions, outsourcing, insourcing and transformative client wins.
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About Core-Asset Consulting We are an independent recruitment company dedicated to asset management, accounting & finance, asset servicing, legal and the wider financial services sector in Scotland. A specialist recruiter, our expertise extends across permanent, interim, temporary and contract positions, as well as preemployment vetting and on-boarding services. Working in close partnership with clients to tailor the most effective recruitment strategies, we have the resources to target exceptional candidates - at home or overseas - and match them to roles that encourage them to excel. To do so, we put people before profit, service before sales and ethics above all.
High expertise, engagement and value Initially we made our reputation within Scotland’s asset management sector. But the success of our model has allowed us to expand rapidly. We have developed into the wider financial services market, built an accounting and finance team, established an interim, temporary and contract division, launched a vetting and onboarding service, and expanded into the legal sector.
Helping your business grow Whether you’re wishing to fill a specific position, keen to find out about the latest market trends or just looking for advice, we’re here to help. For more information about the services we offer, please get in touch: +44 (0) 131 718 4600 edinburgh@core-asset.co.uk www.core-asset.co.uk
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CORE-ASSET CONSULTING 37 Melville Street Edinburgh EH3 7JF t: +44 (0)131 718 4600 w: core-asset.co.uk