Global standards to attract retain and nurture professions in the MENA region

Lesley Traverso BA (Hons) MA UNSW – Managing Partner, International - D W Simpson.

Lesley entered in the insurance industry in the UK in the early 1980s and started her career in
Life Insurance Sales before making a career change into Actuarial recruitment and Executive
Search in 1993. Established in 1989, DW Simpson is the largest specialist global recruitment
business focusing on the actuarial profession with representation in the US, Australia, Asia,
India, Europe and the UK. Lesley has written papers and presented at International
conferences and is currently undertaking research on the development of the global actuarial
profession in conjunction with the University of New South Wales, Australia.

The acute need for experienced individuals in the insurance market in the MENA region is well
known to all. Many articles in the media have highlighted this issue; one reporting results from a
recent survey (see Fig.1):

So what can we do about it? I have spent the 25 years in the insurance sector, the past 15
years recruiting in a consistently candidate short market, in both developed and developing
insurance markets. Although it is too simplistic to transfer one country’s experience to another,
it is interesting to consider the parallels.

What do we mean by “talent management”? This describes the integration of people within the
organisation and how, as a key asset, they are “managed” to achieve the corporate strategic
goals.
Fig.2:

Figure 2 illustrates the essence of the talent management process. I will focus here on four key
areas:

• What are the specific drivers of the talent shortage in this region and how do they
influence the candidate pool?
• Where can you find candidates and how to attract them?
• Attracting talent – where will it come from? How important is employer branding?
• How do you develop leadership talent in this market?

1. Drivers and influences on the insurance talent pool in the MENA region

The trajectory followed by markets that are rapidly developing from, for example, a previously
closed market, often show similar features. Insurance companies enter in quick succession,
each trying to gain a strategic advantage by attracting the best in the market. Those individuals
in short supply realise that they are able to move jobs to gain extra money quite easily and an
economic supply/demand/price spiral follows. However, unlike the usual outcome, i.e. supply
increases to fulfil demand and prices stabilise, when we are analysing human resources, this is
not necessarily the situation. Employers suffer when new recruits don’t turn up for work
because they have ‘auctioned’ themselves elsewhere or they are forced to pay over the market
rate to secure vital staff. Employees suffer as they lose personal reputation and ultimately are
seen as money hungry ‘job hoppers’.
As these other newer economies are growing and wages rising, it also deters people who would
otherwise be attracted to move overseas to consider the MENA region, as they are able to
secure a good role and salary in their home country. The booming economy in the Middle East
and shortage of housing has led to a huge increase in living costs. For those without a housing
allowance as part of their package, these rising costs negate much of the favourable tax regime
that prompted the move in the first place. For employers, incorporating this increased in cost
into their budget calculations causes enormous strain on their ability to recruit new staff.

Compensation levels in the region have traditionally been based on each organisation’s
“capacity to pay” rather than market benchmarking. If you did want to benchmark – where do
you get accurate data in a rapidly changing market? Additionally, performance pay as a
percentage of total reward remains relatively low. Creating business advantage via human
resources is dependent upon developing an holistic rewards strategy, which includes
compensation but also Benefits and career development. How to structure this type of rewards
package is more difficult for multi-national firms who have to consider local compensation
practices, some of which may be uncomfortable when viewed from a global perspective.

2. Where do you find candidates and how do you attract them?

In a candidate short market, there are two solutions. Train those already there, or bring in
experience from overseas. From a long term economic development perspective, the
establishment of training colleges and courses is vital. However, this takes time. Training and
qualifications are necessary but so is on the job experience, and for that you need experienced
practitioners to act as mentors and leaders.

The ability of companies to attract people to the region is becoming more difficult.
Organisations have to concentrate on providing a “pull”, if the “push” is no longer there.
Alternatively, they consider different geographic locations to obtain talent from which a “push”
still exists.

Before an organisation embarks upon a campaign to attract key talent, it needs to fully
understand precisely what is required. Assessment of what strategic problem or initiative the
person is going to resolve, is a vital first step. For example some key goals could be:

1. Add revenue, sell more effectively

2. Achieve efficiencies, reduce costs, manage more effectively
3. Comply with legislation, thereby preventing punishment
4. Manage risks and reduce potential for losses

You can then move onto designing a job description and considering where the person may
come from, geographically and organisationally.

Why would the ideal person want to come to your organisation? What can you offer that others
can’t? Good people always look at more than one option. You need to sell your organisation
better than your competition does. What impression will you give them? This is not about
glossy brochures, it starts at the beginning of the recruitment process and choice of
methodology, through to the day they commence working.
3. Attracting talent – where will it come from? How important is employer branding?

In a recent global study1 of MBA students, 20 percent of students in the worlds MBA schools
said they were interested in working in the MENA region compared to 57 percent who said they
were not interested. European students were more interested than those from other locations.

Fig 3

As you can see from Figure 4, generous employers are very attractive, but money isn’t the be all
and end all. The future winners in the corporate world will be those who are quickest to
recognise this and take action to enhance and protect their reputation. When next considering a
new marketing campaign contemplate how it is going to influence your future employees as well
as your future customers.

                                                            
1
 Survey conducted by Penn, Schoen and Berland Associates for Hill & Knowlton 
Fig 4

4. How do you develop leadership talent in this market?

There are many differences of opinion as to the best way to do this but the approach must be
akin to the organisation’s corporate culture and objectives.

Fig.5
The above table (Fig.5) shows some key “best practice” ideas. It is important to emphasise that
this list is not a panacea. Careful re-defining of proven ideas developed in one region to fit the
culture and style of another is the key to effectiveness.

Finding solutions to the challenges the Middle East faces in attracting and retaining talent, are
key to its continued development and prosperity. Some solutions could be:

• Firms can partner early with Universities to help design and provide training and
education programmes
• Strengthen internal training
• Look at less obvious countries as a hunting ground for talent
• Provide stretching job assignments and increasing level of responsibility, earlier in
careers
• Develop multi-lateral, multi-locational training opportunities
• Provide opportunities for senior talent to help mentor trainees on a contract basis
• Create Accelerated Management Programmes
• Think creatively about how to find a solution to candidate shortages
• Foster a culture of, and develop, a “global talent pool”
• Take a long term view
• Treat every interview like a prospective business partnership meeting
• Leave every door open

If you are interested to discuss and debate these ideas in more detail, why not come along to
the 2nd MENA CEO summit to be held 2nd to 4th June in Dubai where Lesley will be presenting
an expanded version of this paper.