Recruitment in chemical distribution industry

19 November 2009 17:45  [Source: ICB]

Listen to an interview with IMCD UK managing director John Robinson

Do not be put off by its unexciting image: the distribution industry is full of dynamic, passionate and talented people - and it is always seeking more of them

Rex Features/Chris Eyles

Perceived as dull and uninteresting, the chemical distribution sector struggles to attract young talent. But dig beneath its unglamorous surface and you will find an industry that can offer an exciting, innovative and rewarding career. It is an industry where people are its major asset. But, for many distributors, recruiting and retaining staff is the biggest challenge they face.

"To excel in distribution, a person must be multitalented, dynamic, and of a high caliber," says John Robinson, managing director of distributor IMCD UK.

He adds that working in chemical distribution offers a very flexible and varied job, dealing with multiple products, customers and manufacturers. IMCD, like many others, prefers to recruit experienced staff from within relevant industry sectors.

Often, a distributor can offer a technical person working within quality control, production or research the chance to move into a commercial environment. Robinson says that as well as having a technical degree, applicants must also have strong interpersonal skills and a penchant for the commercial world.

Robinson says distributors can find it difficult to retain young people if they start as a graduate. This is because many cannot compete with the career development opportunities that many large and multinational chemical manufacturers offer.

But German-headquartered distributor Brenntag is doing just that, and has developed a series of personal development and training programs to rival many corporate schemes. The company's management says it attaches great importance to motivation and giving employees opportunities to improve their qualifications and take part in further training programs.

A case in point is Markus Klaehn, now president of Brenntag North East, who has progressed rapidly through different geographies and functions after joining the company straight from university (see box p24).

STRUCTURED PLANNING
To systematically and consistently assess personnel, Brenntag has implemented the Brenntag Potential Assessment (BPA) scheme. This is done via a web-based questionnaire between managers and employees, using a group-wide standardized set of criteria that provides a basis for structured succession planning.

Brenntag has several training and development initiatives, but two of its major schemes are its Leadership and Growing Leaders programs.

The Leadership Program, conducted with the UK's Ashridge Management College, is designed for managers and young executives who have the potential to be Brenntag Group executives and senior managers. So far, about 90 managers from all over the world have completed this training.

The program Growing Leaders was launched in 2006 and ran again in 2008 with a second group of junior managers. This program gives employees a sound business background, analyzes leadership behavior and gives support in managing small teams or in performing first managerial tasks.

For IMCD, on-the-job training is the optimum way for it to develop techno-commercial staff, although it also makes use of external training services for specific "teachable" skills. Robinson says that strong leadership and in-house expertise is fundamental in developing quality people.

For small and medium-sized enterprises (SMEs), recruitment and career development can be a problem. The UK's Chemical Business Association (CBA) says SMEs appear to be at a disadvantage in terms of the resources they can focus on recruitment. "At first sight, career prospects within SMEs tend to suffer by comparison with a more formalized career structure offered by larger firms," says CBA director Peter Newport.

Research shows that many graduates consider SMEs a "second-best" choice, but Newport says perceptions of SMEs may be shifting. "SMEs can provide a real launch-pad for an ambitious person. SMEs are also quick to recognize and reward bright people," he says.

Robinson believes that as well as salary, increasing responsibility, variety, international interaction and providing a positive working environment are key factors in retaining staff.

"We regret the current shortage of chemistry engineering students" Hendrik Abma, director general, European Association of Chemical Distributors

The US-based National Association of Chemical Distributors (NACD) agrees. NACD chairman Bruce Schechinger says: "If talented people find a place that treats them well, challenges them, and helps them grow and develop, they will stay."

Global logistics firm DHL also recruits from within the industry as attracting talent outside the chemical sector is very difficult. Because of this, career planning and talent management are paramount, and succession plans are in place for all its staff, says Amy Grint, human resources (HR) manager, environment, energy and technology - chemicals.

Grint concedes that although roles in chemicals require technical skills, these do not have higher rates of pay to match the skills needed, adding a further challenge to an already difficult employment market.

DHL takes three new graduates every year, hoping that they will continue their careers in chemicals once they have completed training. One successful graduate is Richard Laing (see box) who has worked his way up from transport supervisor to regional operations manager.

SERIOUS PROBLEM
DHL, and other logistics companies in Europe, are facing the serious problem of an ageing workforce and growing shortage of drivers. DHL's workforce has a current average age of 50, with only 4% under 30, raising the question of what will happen in 10 years when 47% of its workforce will have reached retirement age.

This trend will be felt more acutely once the economy picks up. Andreas Zink, vice president of the European Chemical Transport Association (ECTA) says the recent introduction of new European working hours and a directive for driver training will put additional pressure on an industry that is not attracting enough new entrants. "A lousy reputation, bad pay, long hours and poor facilities has rendered the driving profession very unattractive," says Zink. He adds that there has also been a substantial outflow of know-how in functions such as transport planners and fleet managers.

Practical steps to help young people enter the profession must be taken, such as subsidizing driver's license training, promoting driver training programs and including the profession as a vocational option at schools. The ECTA is working with industry and other associations to launch several initiatives aimed at encouraging new drivers.

Raising the image of the chemical industry to potential recruits remains a challenge in the long term, although it is taking steps to forge closer links with schools and academia, for instance the CBA's Chemistry with Cabbage initiative focused on primary schools and Xperimania, a joint project of the Association of Petrochemicals Producers in Europe (APPE) and European Schoolnet.

Hendrik Abma, director general of the European Association of Chemical Distributors (FECC) says: "We regret the current shortage of chemistry engineering students as well as other qualified personnel. Chemical distributors need a highly qualified labor force, and developing human resources may need more attention from the authorities and industry."

However, as the European distribution industry is highly fragmented with many SMEs, resources will be an issue. Robinson says: "A company needs critical mass to perform strategic HR initiatives such as career development."

If chemical distribution companies are to be successful in the future, they must focus on how to encourage more talented young people into an industry that its employees say is exciting, dynamic and full of passionate and enthusiastic professionals.

 

MARKUS KLAEHN, PRESIDENT, BRENNTAG NORTH EAST
Klaehn joined distributor Brenntag 15 years ago as a project manager in corporate development in the company's head office in Germany. It was his first full-time job.

He worked there for four and a half years before moving to the US as a vice president for Brenntag North America, where he was responsible for coordinating the integration of Holland Chemical International, the largest acquisition that Brenntag has made.

Transferred back to Germany in 2002, Klaehn was appointed vice president for the group's corporate development and IT and was involved in the sale of Brenntag to private equity owners Bain Capital.

Two more years in Germany followed, then Klaehn went to Houston, US, where he was chief financial officer of Brenntag Latin America. In the past two years, Klaehn has been working for Brenntag North America in charge of the Northeast region.

Klaehn has been very impressed with Brenntag's management development programs, particularly the potential assessment (BPA) tool, which he says is excellent for systematically identifying employees with management potential.

He says that Brenntag's leadership programs are a great way to motivate staff and expose them to top management and the structure of a global group. "It is great to meet international colleagues and gain an awareness of the international scope of our business. It is eye opening," says Klaehn.

His experience has taught him that industry attractiveness is not enough to retain top talent. "People need to know that their development is an integral part of the company's strategy. If they outperform, they can progress further."

Klaehn is excited about his time with Brenntag. He says: "I was fortunate to get the opportunities and exposure to different cultures. It has been a good journey."

RICHARD LAING, REGIONAL OPERATIONS MANAGER, DHL
Laing joined global logistics company DHL in September 2001 on the DHL graduate training scheme where he had the choice between entering the retail sector or chemicals. Laing chose chemicals.

He says: "At the time I opted for chemicals as I felt that the work would be more diverse and because I already had an understanding of the influence that chemicals have on all our daily lives, which I don't think people normally understand."

Through the scheme, Laing undertook three placements, two in chemicals and one at a retail consumer. At the end of the scheme, Laing was successful in applying for the position of transport supervisor in the chemicals division.

"I really wanted to stay in chemicals, as the need for technical capabilities is much greater than in other areas," he says. While on his placements, it quickly became apparent to Laing that the chemical supply chain landscape was lagging behind the fast-moving consumer goods sectors, offering a fantastic opportunity to develop creative solutions and apply entrepreneurial spirit.

Laing says: "A career in the chemical industry is something that I have found extremely rewarding and has exposed me to some great people who have unrivaled energy, enthusiasm and passion for the sector."

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By: Elaine Burridge
+44 20 8652 3214

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