Salz Review - Wall Street Journal

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Salz Review
An Independent Review of Barclays’ Business Practices
According to the Topgrading approach, the main purpose of the recruitment process
is to identify the A players and avoid B and C players. The interview process must be
comprehensive and exhaustive on the basis that understanding a candidate’s past
performance and motivators is the best guide to predicting their future performance.
The Topgrading book sets out a comprehensive framework for the recruitment
process, which can involve 10 or more hours of interviews for each candidate. This
resource-intensive approach is justified by the cost to the organisation of mistakenly
hiring B or C players.
Barclays senior recruitment process, which was referred to internally as Topgrading,
was heavily based on the approach documented in the book, using the same
terminology and the two main types of interview technique: competency-based
interviews and an extensive chronological interview to understand career history and
aspirations. Although the approach was most closely associated with the investment
bank, it was also used in the retail bank as early as 2005, as noted in a case study in the
second edition of the Topgrading book. The recruitment process for less senior
employees shared some features with the Topgrading approach, such as competencybased
interviews, although these are quite commonly used and not a distinctive
feature. Topgrading has now been discontinued at Barclays.
10.18 Assessment of personal values forms only a limited part of the Topgrading
assessment process, and perhaps did not receive sufficient emphasis. Our review of a
small sample of feedback forms from recruitment interviews indicates that they were
often biased towards commercial effectiveness. In interviews that should have tested
personal and interpersonal skills – which includes the focus on values – we found
evidence of greater (and at times exclusive) focus on previous financial performance.
It is apparent from some of our interviews that this recruitment process resulted in
some senior hires who were unduly focused on financial success and may have
valued little beyond this. This approach then filtered down through the organisation.
Indeed our own survey indicated that less than 15% of employees believe that
Barclays' values are communicated during interviews and the recruitment process.
On the other hand, we were also told that some senior hires joined Barclays to be
part of a growing, dynamic team.
10.19 Topgrading has now been discontinued at Barclays. In its place, Barclays uses a
recruitment process that follows a structured, multi-interviewer interview programme
aligned to a competency-based framework.
10.20 Except for entry-level staff, induction programmes appear to be neither consistent
nor rigorous. This is particularly the case for those in senior roles. Rather, the
content of the induction appears to be primarily driven by individual managers, with
limited introduction to Barclays’ purpose, values and culture. Induction training is an
important opportunity to explain the firm’s values and expected behaviours to all
employees. For senior employees, who become role models in the organisation, this
is of paramount importance.
10.21 Induction provides an opportunity for employees to explore and make sense of an
organisation’s culture and values. This is an important first step in helping new
recruits to identify ways to adapt. Along with key promotion points, induction