The question
I work for a large retailer. We do a lot of work with
outsourcing suppliers and consultancies. A consistent problem is
that these suppliers tend to poach our brightest staff. Their
pockets are deeper than ours. How do we retain our best people and
also keep our suppliers sweet?
Include non-poaching clauses in the
contract
Roger Rawlinson, Director of consultancy, NCC Group
When dealing with a supplier, the interface can be considered at
a contractual and a relationship level.
A supplier wants to sell you something. Regardless of how the
deal is presented, there is a customer who pays for the supply of
goods and services. For this to take place, there needs to be a
relationship that enables the two organisations to work
together.
A healthy relationship means that both organisations
communicate, co-operate and understand each others' needs.
Suppliers poaching key staff suggests that the relationships are
not particularly good. This is an area that you need to review and
work on. Meet with your suppliers and share your concerns, let them
know that you will be considering alternative options.
If a relationship breaks down, then the contract comes into
play. The contract is a legal agreement detailing commitments of
the supplier and customer. When negotiating a contract you need to
add non-poaching clauses. The supplier may resist this, but you
should be negotiating contracts during the procurement phase, when
the deal is still competitive, and you are the customer setting out
the terms to the supplier community.
Ideally, a contract should not need to be invoked, but when a
relationship breaks down it is your lifeline. Time and effort spent
negotiating the contact is a sound investment for times of
trouble.
Ensure staff understand the benefits of staying
put
Peter Leadbetter, director, business advisory services,
Ernst & Young
The need to retain critical talent is an ongoing challenge
across the retail sector, as indeed it is across most vibrant
commercial organisations operating within an organic market. The
reality is that outsourcing suppliers will understandably seek to
use their deep pockets to entice suitable staff from whatever
source, including their clients.
For the host company, there is a need to have in operation a
robust talent management process that has an underpinning clarity
and honest pragmatism around why their staff should stay with them.
In essence, the exam question is: why should I stay here and not
accept the offer to move to the outsourcing supplier, their culture
and their opportunities?
The answer has to lie in a proposition that outlines the
longer-term developmental opportunities, the pull of the user
company's culture and, finally, the incentives. In my experience,
younger staff especially are looking to develop their skills,
experience and ultimate marketability, rather than moving for cash
incentives alone. Organisations need to operate an internal public
relations campaign that defines and reminds staff what they are
getting out of staying, with a longer-term perspective. Leaders of
the host company play a critical role in this area.
At the point where an outsourcing arrangement appears on the
horizon, particular efforts designed to address the potential
impact proactively, rather than reacting to aggressive actions, are
needed. If you value your staff, make sure they understand why and
what is in it for them.
Suppliers should be keeping you sweet
Chris Potts, director, Dominic Barrow
I understand that you want to keep a positive working
relationship with your key suppliers, but I am not sure that you
should be aiming to "keep them sweet" if they are poaching your
staff. You are, after all, the customer in the relationship, and it
is the supplier that should be bending over backwards to keep you
sweet (unless you have become too dependent on them).
Where there is any risk that a supplier might poach your people,
your company lawyers should address this in your contract with them
- defining what "poaching" means and stipulating what the
consequences will be if it occurs. Equally, you should explore with
your lawyers and HR people the scope for including a provision in
your contracts of employment that would help any key employee who
is thinking about moving to a supplier to make the best decision,
without stipulating unfair terms of employment.
There is an ongoing skills shortage in the IT market, therefore
the higher-skilled people are in demand and will attract a higher
price. Beyond making sure that you have your contractual
foundations in place, take a look at how you manage and reward
performance, so that you can more afford to pay your best people
their market price.
Also, explore the impact of the working environment, company
strategies, management style and job roles on people's feelings
about working for your company. Competing for people is not always
just about money.
IT industry's staff churn comes full circle
Ollie Ross director of research, The Corporate IT
Forum
Do not take it personally. This is not about you, your sector,
or the way you work. And it is not just about money. It is about
new challenges, new skills and new opportunities - and it is all
part of the IT industry's constant churn.
Eventually it comes full circle, and your brightest ex-staff
come back into the corporate user-marketplace upskilled and with a
better understanding of how the supply industry works and what it
has to offer. In the meantime, bear in mind that the clichés of
providing a healthy work/life balance and positive company culture
are sometimes actually true.