Blog Archives

How Technical & Operations professionals in the Property & Construction industry are influencing the Australian economy.

Continuing our series of boardroom luncheon events with influential people in Technical & Operations, Slade Group recently hosted Kate Bailey, Associate Director – Head of Logistics and Retail Research at CBRE.

Focusing the conversation on how the Australian economy will perform in 2019 and beyond, we discussed the impact of e-commerce on the industrial property market, looked at how increasing vacancies and slowing retail sales impact the retail sector, and considered infrastructure challenges in the face of fast delivery.

Kate had some interesting statistics about how our online shopping habits have contributed to land fill. For example, I didn’t know that 30% of all goods sold online are returned, with a staggering 2billion kg in the US going to landfill waste annually. While many retailers no longer build their businesses with bricks and mortar, the space required for warehousing goods bought online is having a significant impact on urban planning. With parcel delivery now their major activity, services like Australia Post have had to completely change their business model. Yet it’s still often cheaper to purchase a book from Amazon, which is shipped from the other side of the world, than to buy the same item from local bookshop. Kate says 30% of customers will pay more just for faster delivery.

Kate highlighted that omni-channel shoppers, those who buy online as well as in physical retail stores, typically spend up to 30% more than traditional shoppers. Sneakerboy in Melbourne is an example of how an innovative business has successfully integrated the concept of omni-channel retail. Its Flinders Lane store has 96% floor space for maximum storefront efficiency – they only stock a single pair of shoes in each size. Customers try on the shoes then purchase via an iPad in store. The shoes are shipped directly to the customer from Hong Kong.

Convenience is becoming more and more a part of the building design of both commercial and residential buildings. We’re starting to see features like hot food vending machines for time poor (couldn’t-be-bothered-cooking) professionals on the go. Driverless cars, soon to be a reality, are further evidence of convenience led product development, but what will happen to the existing infrastructure?

We had a great chat around the table, with everyone from retail, construction, land development, engineering, architecture, interior design and those of us involved in the recruitment of these industry professionals, contributing to the discussion.

Continue the conversation by posting a comment on this blog or feel free to send through a question for me to refer on to Kate. If you would like to be a facilitator at one of our quarterly boardroom lunches please contact me directly, details below.

Tagged with: , , , ,
Posted in Technical & Operations, The world @work

Is your hiring process being managed by tortoises or hares?

There is a quote from Richard Pratt that has always stuck with me throughout my recruitment career: “Always hire the best person for the job, not the best available. If they’re available they’re not necessarily the best.”

One of the most costly decisions an organisation can make is hiring the wrong candidate. There have been numerous studies on the exact cost of hiring the wrong person. According to a survey by The Australian, a bad hire can cost a business 2.5 times the employee’s salary. No one can deny that it comes at a huge expense. Factors include hiring costs, wages and disruption costs, but no doubt the greatest expense attributed to a bad hire is the lost business opportunities and the effect this employee can have on a company’s brand. There is also the impact this employee can having on your existing workforce’s morale even long after they have left the business.

How often is it in business that we receive a phone call from a colleague or a customer who says they needed something yesterday? When we’re talking human capital for the property and construction sector, it’s often as a result of new business or a major project win, when there’s an urgency to hire someone to start working on the job right away.

What Pratt’s saying is that many of the best candidates are not looking for jobs; they are not applying for jobs because they are well looked after, and are too involved in their current work to be distracted by LinkedIn or other social networks, which may refer new opportunities. So if the best talent are firmly engaged in their current roles, performing at the top of their field with their current employers, why consider them as prospective candidates at all? You need the right approach, but it can take time.

The Melbourne construction industry is reaching boom time levels again. With the increased activity in the building sector comes a heightened demand for recruitment. So the temptation is to rush key hiring decisions, which can often result in poor decision-making in the recruitment process. In a buoyant market hiring the right executive is critical – it’s unlikely you’ll get a second chance to acquire key people from the same talent pool. Therefore, hiring decisions backed-up by a robust search and selection methodology, which allows time to properly evaluate all potential candidates and their suitably, will lead to better outcomes regardless of the urgency of the role.

Next time you think about racing to hire because you have a need, remember executive recruitment is not a hare sprint. Be the patient tortoise who plans for the journey ahead, does their due diligence, paces themselves through the search and selection process and knows when to pause to take a breath. It’s the way forward for effective senior appointments.

Tagged with: , , , , , , , , ,
Posted in Slade Executive, The world @work