Recruiting Engineering Talent: Strategies for SEIIC

Introduction: The Recruiting Challenge at SEIIC

For many companies, core jobs involve the performance of highly specialized tasks. For Savannah Engineering, Inspection and Insurance Company (SEIIC), there is a particular need for highly trained engineers and technical personnel. These employees must possess either a high level of formal training — usually in engineering — substantial industry experience, or both. Because of the high degree of specialization in the field, finding these employees is a highly competitive endeavor. The industry is growing, and SEIIC wishes to grow along with it, which requires not only retaining current employees but actively recruiting more. SEIIC therefore needs a recruitment strategy that will allow it to meet its talent needs on an ongoing basis.

Building a Competitive Total Compensation Package

There are a number of ways companies can attract and retain engineering and technical talent. One fundamental challenge is that engineers require a certain level of formal education as a baseline — it is impossible to simply hire a smart person off the street and train them in engineering fundamentals. Candidates must already possess this background. As a result, the pool of potential employees is constrained, and in many markets demand may outstrip supply. The first step, therefore, is to build a competitive package, since a candidate is unlikely to seriously consider a company that does not offer competitive compensation from the outset.

Employees today, especially younger ones, approach their employment holistically — seeking pay, benefits, working conditions, and opportunity. If anything, pay and benefits are the easiest elements for a company to provide. As Herzberg's two-factor theory would suggest, compensation functions as a hygiene factor: it must be competitive within the local marketplace for a candidate to even consider a company, but it will not, by itself, make the company genuinely attractive. Engineers, in particular, are generally confident that they can earn a decent living from their work. The more meaningful issues are the motivating factors — achievement, recognition, the work itself, responsibility, and opportunity for advancement and growth (Knight & Westbrook, 1999).

This dynamic is especially pronounced when there is a labor shortage. While it is important that SEIIC offers pay and benefits at least in line with the competition, this is a baseline that gets the company into the game; it will not differentiate SEIIC unless the package is notably superior to what competitors are offering. Some research has found that compensation is itself a motivating factor (Igalens & Roussel, 1999), but there is a reasonable argument that this is not true for younger workers or for those whose skill sets already command strong compensation by default. Understanding the competitive landscape requires research, but this step is essential to getting SEIIC to the starting line.

Understanding Millennial vs. Experienced Worker Recruiting

Once a competitive baseline of pay and benefits has been established, the next step is to focus on work environment and opportunities for advancement. Before investing heavily in these efforts, however, SEIIC must determine its primary recruiting target, because the approach differs significantly depending on whether the company is seeking experienced professionals or millennial candidates.

Millennials have distinct values that are reflected in what they respond to in recruiting efforts. They are less oriented by money, particularly in the short run, and their real motivation comes from Herzberg's motivating factors — especially work environment and opportunity. This is a generation that rejects excessive formality and embraces true meritocracy. They want to be in environments where strong performance is recognized and rewarded. The traditional model of paying dues and biding time is unappealing to people who recognize that such a system could disadvantage them for decades. If they have skills, they want those skills put to good use in environments where rewards are based on performance and ability rather than seniority (Downing, 2006).

These priorities have significant implications for how SEIIC structures roles and career paths. The company needs specific job descriptions — ones that also allow employees to create their own opportunities. The most progressive companies allow employees a percentage of work time for self-directed projects, though this may not align with SEIIC's business model. Clear job descriptions do, however, allow performance to be quantified and measured against historical benchmarks. Employees who routinely outperform expectations are then best positioned for promotion, with advancement criteria based on excellence at attributes required for the next level — thereby helping the company avoid the Peter Principle.

References

Ambler, T. & Barrow, S. (1996). The employer brand. Journal of Brand Management, Vol. 4 (1996), 185–206.

Downing, K. (2006). Next generation: What leaders need to know about the millennials. Leadership in Action, Vol. 26 (3), 3–6.

Igalens, J. & Roussel, P. (1999). A study of the relationships between compensation package, work motivation and job satisfaction. Journal of Organizational Behavior, Vol. 20 (1999), 1003–1025.

Knight, P. & Westbrook, J. (1999). Comparing employees in traditional job structures vs. telecommuting jobs using Herzberg's hygienes and motivators. Engineering Management Journal, Vol. 11 (1), 15–20.

Maxwell, R. & Knox, S. (1999). Motivating employees to "live the brand": A comparative case study of employer brand attractiveness within the firm. Journal of Marketing Management, Vol. 25 (9–10), 1–16.