‍Status Quo

“There is nothing permanent except change.” This famous quote, formulated by the Greek philosopher Heraclitus, despite being over 2500 years old, can be seamlessly applied today in many domains. The world is in fact constantly evolving and both people and businesses need to react quickly in order to keep up with the pace. However, not everything evolves at the same speed or with the same intensity. If, on the one hand, we have sectors where it feels like running a marathon (where frequency and consistency are key elements), on the other hand, there are industries whose main players are constantly running a 100M sprint. The same goes when we think about the strength of the change. It can be a soft and natural evolution, or it can represent a complete and abrupt shift.

Looking at the automotive industry, the magnitude of the transformation that both OEMs and Tier-1 suppliers are facing is huge and a simple adjustment in the product offering isn’t enough anymore. In order to be successful in the future, companies have now to attract and retain top talents and leaders who are able to drive innovation within the different emerging domains – from electrification to software-defined-vehicle.  

Tough Times create Good Opportunities

The earthquake that is shaking the auto industry, despite spreading a considerable amount of uncertainty in the air, opened up new paths in the executive search realm, which were unthinkable just some years ago. Suppliers and Original Manufacturers are in fact on the hunt for out-of-the-box leaders, coming from different industries and equipped with a non-traditional background and skill sets. Attracting those talents is, however, easier said than done, and it pushes small and big players to redesign their talent attraction strategies. In doing so, there are some elements which are worth paying attention to. We have identified four of them:  

• Entering a new territory

In order to hire diverse talents, automotive companies need to tap into industries (such as semiconductors, software development, AI, and battery manufacturing) where the competition is fierce. Convincing executives to leave a dynamic and growth-oriented environment to join a more traditional scenario, considering also the gap in the C&B package, represents a tough challenge which can be won just with a holistic approach to the hiring phase, where salary is just the last piece of the puzzle.

• Rethink their brand positioning and market reputation

In line with what was written before, any recruitment effort that is not encompassed in a more organic redefinition of how automotive-related brands are perceived from the talent market, is designed to fail. Brands that have shaped the history of the two and four-wheel world rely too often on past legacy, showing evident difficulties in positioning themselves as an attractive employer for younger generations. Climate-related topics are not contributing to make the issue any easier, but it’s a hurdle that these firms need to overcome, to have a chance in the so-called “war for talent”.

• HR: time to get a seat at the table

In this complex context, the HR function plays a pivotal role and cannot limit itself (or accept being limited) to a mere supporting cast role. Human Resources Executives are paramount in defining the company’s strategy and they need to be seen as such. In accordance with it, HR should be equipped with the right amount of freedom and budget to run its own initiatives, make its own calls, in other words, it should have a well-defined space, recognizable internally and externally.  

• Balance is key

When hiring people from a completely different environment, companies should also be aware of the challenges that present themselves after the hiring phase is completed. Integration and retention, just to mention two of them, deserve the same degree of attention. A different approach in the onboarding phase, for example, represents a good starting point. More in general, the need for non-traditional talent doesn’t have to let automotive companies lose their identity. In this sense, a balanced workforce mix, especially in terms of background and previous experience, is crucial for a successful transition.  

What’s ahead

How the automotive landscape will look like after this huge wave of change, can’t be predicted. However, it appears quite clear that winners and losers will be determined by their ability to actually implement changes and open up to a new and diverse generation of leaders. In order to thrive and make a long-lasting impact, however, it needs fertile ground for innovation. Whether this will happen or not is in the hands of companies. The path forward is clear.

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