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The Fordyce Letter

Straight Talk for the Recruiting Profession


TFL archives

The Five Minute Challenge



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What would you do if a prospective client said?

“You have five minutes to tell me ‘why’ I should use your service.”

Do you have a well prepared and thought out approach to differentiating yourself from the competition if you were given only five minutes in which to do so? Most recruiters and staffing professionals do not. Instead they rely on the typical sales approach that is long on promises and short on relevant content. They make the mistake of trying to “win” the prospect’s business within the five-minute time frame. In most instances, this is an unrealistic objective because they move too fast and sell too hard. Rather, when given only a short period of time in which to make your presentation, your objective should be to “win” more time by stimulating the prospect’s interest and curiosity in what you have to offer.

Many years ago I was faced with just such a situation when making a company visit with one of my senior staff members. We were caught off guard by the prospect’s “five minute challenge”. Considering the brief period of time in which we had to work, I decided to concentrate on building an interest on the part of the prospect in learning more about our services.

To the best of my recollection, my presentation proceeded as follows.

“Mr. Prospect, if in the next five minutes I fail to explain to your satisfaction the value of our approach to meeting your needs, we will terminate this discussion and not call on you again. Fair enough?”

Since the prospect was the one who issued the “challenge,” he was agreeable to my terms. The script that follows should only be considered a guideline, as the actual wording should be yours. Follow the logic.

“The experience of our clients has proven that in order to have a successful outcome to the hiring process, they need to make crucial determinations in three key areas.”

1. “They need to determine whether or not a candidate can perform the essential job functions at or above the standards that are in place for the position.”

2. “They need to determine whether or not the candidate will fit into the work environment and successfully interface with the team currently in place, including their direct supervisor.”

3. “They need to determine whether or not the candidate will remain on the job for an appropriate period of time in order to justify the investment they will be making in them. This is the elusive ‘STABILITY’ factor that is important if an employee is to grow and assume additional responsibilities thereby increasing their value to the organization.”

“Mr. Prospect, are these three determinations important to you when making your hiring decisions?”

Wait for a response. Do not proceed without one. In almost every instance, the prospect will respond with a “yes”. If they do not, be prepared to ask, “What else is important to you?”

Every employer should identify with these three factors. They are universally understood to be critical ingredients in the hiring equation. However, they are seldom discussed in a systematic manner.

“In like fashion, the astute candidate needs to make three critical determinations before they can arrive at an appropriate decision about the employment offer.”

1. “They need to determine the essential components of the position and where the position fits into the overall scope and mission of the company (division or department).”

2. “They need to determine what it will be like to work for this specific manager. What can and can’t they expect from them on a day-to-day basis?”

3. “They need to determine the standards that are in place to judge their performance in the position. What standards of measurement will apply on a daily basis?”

“In considering what both you and a candidate must determine during the hiring process, the overlap becomes obvious. The common ground is:

1. “An absolute need to work from a detailed job description that includes both the job specifications (what needs to be done) and the person specifications (what a candidate must have for qualifications in order to perform successfully in the position).”

2. “Work standards must be in place in order to evaluate performance on the job and to provide the new employee with a measuring device to monitor their own performance.”

3. “Understanding the people mix in the working environment. This is a critical factor that can make or break an employment opportunity. Remember, people go to work for people not companies.”

“Experience has demonstrated that focusing on these determinants at the beginning of our process will allow all of us to concentrate on the most critical factors that directly influence the employment decision. Does that seem reasonable to you?”

Once again, wait for an answer. Generally, it will be positive. However, if it is not, do not proceed without asking questions, the answers to which will help you better understand the prospect’s specific situation.

At this point you will have used up most of the five minutes. Therefore, ask:

“Based on your response, are you prepared to take this discussion to the next level?”(Or some variation of an appropriate closing question).

If the prospect says “yes” or responds in an otherwise positive fashion, you will have successfully met the “five minute challenge”.

One of the primary reasons this specific approach works is that it demonstrates to the prospect that you possess a thorough understanding of the key factors that influence the employment decision. It also demonstrates a systematic approach to working together which includes a focus on the candidate’s decision-making process. In many instances, this creates a positive learning experience for the client.

You cannot predict when you will be confronted with “the five minute challenge” in some form or shape. However, you can prepare yourself by making certain you fully understand and can effectively articulate the basic fundamentals that serve as the foundation for a valid decision making process.

As a wise sage stated many years ago:

“Prior Proper Planning Prevents Poor Performance!”

As always, your questions and feedback are most welcome

TFL archives

The Owner’s Success Formula



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What’s the owner’s success formula? It’s very simple; Systems = Freedom. If you, as the owner of your firm, go on a 4-week vacation, what happens to your business? What happens to the quality and quantity of activity? Some authors have defined the strength of a small business as being directly proportionate to how much of it can continue in the owner’s absence. Whether you own a large firm or a micro business, having simple and effective systems in place will make it much easier for you to step away from your office without waking up at 3 a.m. in a cold sweat.

As I mentioned last month, a system is a documented way of performing a task that solves a problem and ensures that the task is performed properly and consistently. Creating successful systems having effective forms, scripts, follow up, marketing processes etc. that are used by you and your staff. In also includes an effective carrot and stick management plan that helps your staff to manage themselves.

Here are some ways that systems give the owner and staff more freedom:

  • Employees are freed up to be creative because they don’t have to “wing it” or reinvent the wheel.
  • Everyone operates at a smoother pace because there is a proven, working process.
  • Systems reduce burnout and turnover.
  • The more you grow the more you need systems and the more you will see the benefit of increased freedom.
  • Recruiters don’t have to “learn the hard way” but rather they learn what works the first time.
  • The firm is no longer people dependent; it’s systems dependent. If a big biller leaves, it’s not the end of the world. You have a system to “grow” a new one.
  • The owner can work 4 days a week or take a vacation with much less stress.

Each owner needs to decide what percent of his or her business needs to be systematized. If you have a large firm you will need more complex systems whereas if you’re a micro operator you just need simple systems. If you were a systems purist you might say that if an owner goes on vacation for 3 months, and the business proceeds without a hitch, then he has a fully systematized business.

Obviously for smaller operators or soloists that’s not going to be practical or realistic. So if you can’t systematize your entire business then choose a percent as a goal. Try to systematize 25% of your business. You may use automation or support staff to do this if you’re small. So what that means is that if you go on vacation, 25% of your business functions continue without you. Be sure to consider your firms size when deciding what level of systemization is relevant for you.

Examples of systems:

Let’s take Starbucks as an example: What happens when you walk into a Starbucks? Usually you have the feeling that you’ve just walked into a friend’s living room: there’s jazz playing, people are relaxed and talking, some of them are having business conversations, someone may be typing on a laptop, there’s a cool ambience and decor, the colors are warm and rich and there is a smell of robust coffee in the air. The menu even has its own system: short, tall, grande and venti. None of this is an accident – all of it is a perfectly integrated system.

Every time you walk into the Starbucks it’s the same experience; same quality of coffee, same uniforms, same ambience. They’ve been able to kill their competition due to their precision. The subtle message to you as a customer is: we offer a consistently good service and you can trust us. This consistency makes people feel comfortable with your service.

Here’s an example that comes from professional football. The most popular offensive system in professional football is the West coast offense. This system was perfected by Bill Walsh and the 49ers. Joe Montana is considered by many to be the best quarterback to ever play the game and he worked in this system. The West Coast offense is a system with unique characteristics; lots of passing, screen passes, fast receivers etc. It is a system that started in San Francisco and has now been successfully duplicated in many other cities. So systems apply to business and they also apply in many other contexts as well.

The Franchise Prototype:

Michael Gerber suggests that owners pretend that their businesses will be the prototype for 1,000 other businesses exactly like it. Pretend someone is going to walk in your door next month with the intention of buying your business – but only if it works and works without a lot of work for the owner. Imagine that your prospective buyer will need to see your formula on paper.

Could you explain to a prospective buyer how your firm ticks and hums and makes a solid profit each month? Is there a documented “operating system” that you could hand to that person? If not, then you may want to start to think of your business in a new way. It doesn’t matter if you will ever open a second office or sell your firm because it’s the process of thinking this way that will give you the payoff.

So, if you want more freedom and peace of mind then you need to systematize and “bottle” your very own proprietary success formula. Once you have these systems in place you will be able to enjoy much more freedom whether you decide to grow or stay small because you will be able to trust in your formula.

TFL archives

Weekly Desk Strategy



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Each week on your desk needs a customized strategy. This is how you do it. You look at your entire week of pending deals and follow these steps. Do this at the beginning of the week. Spend some quiet time thinking about your clients and candidates and do it while you have your activity list in front of you. (Your activity list is the printout of search assignments, dates of candidate presentations, dates of interviews, and candidate names). Look at this sheet and focus on those items that are either placement possibilities or events which leads to a closed deal.

1. First, ask yourself this question: What pending deals have the highest probability of closing the soonest? You always want to spend your time chasing those deals with the highest likelihood of closing; not the biggest fees. Invest your time in sure things. You win in business with singles and doubles – rarely home runs. Your week consists of ten time slots of four hours each. They are rare and precious and deserve a few minutes of strategic thought. This is the greatest frustration of the business. If we place our time on the wrong priority then there is a double loss: not only do we lose out on a fee; we lose our time and can never get it back. Don’t get upset when your deals fall apart and you are left penniless and frustrated. Instead be thankful for this lesson of proper time management that you will never forget. Once you spend weeks and weeks on search activity that results in nothing but the empty spinning of your wheels you will then appreciate how important a weekly strategy is, and you will also realize how much control you really have over your desk. (Note: this thought model applies primarily to direct-hire staffing and contingency search where compensation is dependent upon placement).

2. When you evaluate candidates, evaluate them the same way, looking at which qualified candidate has the highest likelihood of providing the best value to the client, not the biggest fee to you. Which candidate has the highest likelihood of both performing and the highest interest level in making a move?

3. Sometimes you need to test the urgency level of your searches. If your compensation is conditional upon you being able to perform, then a requisite of this model is to find out which clients will actually hire someone from you. Last week one of the search consultants in my mentorship program said he had spent so much time with one client and was now at risk of not closing other deals on his desk because the search still required a major investment of his time. I told him, “Tell your client you’ve gone as far as you can on a non-exclusive basis. Tell him that the best way you can help him fill the position is for him to work exclusively with you. If he doesn’t give you exclusivity, then you’ve just saved yourself two weeks of your life and can work on all those other deals that will keep the cash flow coming in. If he does give it to you then now you know that the need is still there and that he will hire someone from you. All you have to do then is find the candidate.” It worked. He emailed me back saying he had the exclusive and was able to carve out blocks of his time to dedicate on the search. He just increased the likelihood of closing a deal by a factor of ten because now he is working on an assignment that has eliminated a large amount of variables over which he has no control, the competition from other search firms.

Bonus Tip: The manager who birthed me in the business nine years ago, Jim Vockley who now manages a 60-person mega-search firm, told me to always find out “What’s happening next and when.” When you analyze each deal, ask yourself “What is happening next, and when?” As you go through each process of the search, that single question will help you to stay on track and keep your desk on a firm strategy.

If you work retained search, your thinking needs to be even more strategic because now you are held accountable for each block of time by your clients as measured by the results of the search. Your model and mindset shift from “which block of time is going to pay me” to “which block of time serves the client with the most impact.”

Remember that you have more control on your desk than you realize. Think in terms of ‘results first’ when you strategize your week and you’ll be amazed at how much more successful you feel and how much more successful you will become.

TFL archives

How To Spot Hiring Authorities With Higher Priorities



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“Getting a job order.” “Obtaining a search assignment.” The very words imply that you need to talk someone into something. Or even worse — out of something. The object is writing up the almighty JO. Some offices even have quotas for them. Contests. Awards.

But are they “hot?” Are they even “real?” Let’s look at a few other reasons you might have “been given,” “obtained” or “received” one:

1. The hiring authority wants to get you off the phone.

2. The hiring authority is “window shopping” with the idea of hiring if Superstar, M.B.A. is recruited.

3. The hiring authority is “always looking for the best people”.

4. The hiring authority wants to conduct a little industrial espionage on the competition.

5. The hiring authority is looking to network with colleagues without leaving their office (on company time).

6. The hiring authority thinks a contract won’t be awarded, but wants to have qualified candidates available if it is.

7. The hiring authority is just trying to impress you with their power.

8. The hiring authority is looking for a job and wants to draw you into presenting them.

Higher priorities of hiring authorities — certainly higher than hiring. Hidden agendas you’ll never write on your JO. Too bad you’ll write it at all. Because you, everyone else in the office, and even your networkers will waste an incalculable number of hours only to discover that the hot new JO is cold and old. But you were told — you were just too bold, and sold, to listen.

“Hiring authorities!” It sounds so official. Maybe one of our trade associations should make up badges so we could deputize them, swearing them in formally at meetings. In fact, maybe we should certify them like we certify consultants. They’d have to adhere to a code of ethics and pass a test like this:

To be answered with a YES or NO answer:

1. Are you ready to hire or are you just checking the labor market, appeasing management, or trying to cover yourself if someone quits?

2. Are you consistent in your fee policy?

3. Do you tell consultants they have an “exclusive” when others have been given the same search?

4. Do you communicate promptly with consultants once you place job orders?

5. Do you communicate candidly with consultants once you place job orders?

6. Do you change the specifications arbitrarily after placing job orders?

7. Do you have a reliable procedure to ascertain whether a candidate was referred through more than one source?

8. Do you have an objective, disclosed policy of honoring referrals based upon time, presentation or interview arrangement?

9. Do you treat recruits with the courtesy they deserve?

10. Do you attempt to avoid or reduce an agreed fee after you’ve hired the candidate?

Anyone who could answer, “Yes” to those questions deserves a badge!

We remember sitting in a brainstorming session at an association meeting where someone suggested we require employers to sign a code of ethics before working with them. Everybody laughed.

No — there won’t be any tests to find out if they’ll hire, or any rules to make them do so. You’ll just have to know how to spot hiring authorities with higher priorities – preferably no later than after the first phone call.

Here are a half-dozen ways:

1. CHECK THEIR REPUTATION

Of course, you don’t ask them. In fact, you don’t even have to call them in the first place if their name (or their employer’s) has an unsavory aroma. Ask around.

A favorable reputation is the result of dealing with recruiters openly and honestly over an extended period of time. Almost everything in the placement process is fraught with opportunities for misunderstanding (non-exclusive assignments; contingency fees; “temp-to-perm” conversion fees; raiding client companies; violating confidences about impending hirings, firings, and cutbacks, etc.) It takes an open-minded, PR-oriented person to keep our industry happy.

It also takes an unusually secure one to walk that line, since well over half the time the requisitions are impossible to fill or the company isn’t serious. Sometimes they know it, sometimes they don’t. Faced with that decision between their job and yours, most hiring authorities don’t even see a conflict of interest.

Consider the source. Most people don’t. Is it a competitor or someone who can’t be trusted? Is the bad rap based on hearsay or direct experience? Is it based on one incident or a course of dealings? Does it present a challenge to you to change the hiring authority’s mind about our industry?

Our best clients through the years have been the ones who have been burned by other lawyers. They know the difference, and (unfortunately) their negativism is sometimes justified. The chances are someone who’s been victimized by a recruiter will have a bad reputation — it usually can be traced to a fee dispute or anger over an attempted raid.

So look for a good reputation, but if you proceed with caution don’t automatically avoid a hiring authority with a bad one. They’re easy to get when you’re responsible for hiring humans through humans.

Now, let’s see the personality types you can spot when you don’t know a thing about them:

2. THE CHATTERER

Hiring honchos who talk incessantly usually don’t act instantly. Even worse, they’re extremely poor listeners — it’s physically impossible to talk and listen at the same time.

Chatterers are avoided, even by subordinates who want to get their job done. Other supervisors tune them out, stop listening to them, and resent expending the incredible amount of time and energy necessary to pay attention to them.

Another difficulty with chatterers is that they invariably gossip. If you reduce your fee, recruit from a competitor, or send out a candidate they don’t like, you’ll be on their lively lips every time another recruiter calls, candidate sits or peer group meets.

The sign is obvious — they just won’t zip the lip.

3. THE PROCRASTINATOR

Procrastinators surface in the first conversation. And the second, third and fourth. Consider these unspoken excuses that make “hot” JO’s frigid:

a. It’s easier for me to hire when the work is backed up. I’ll wait until management panics.

b. I don’t have time for the formality of interviewing. I’ll let the headhunters prescreen and then if there’s someone I really like I’ll have them send a resume.

c. What if I make the wrong decision?

d. I really don’t want to spend the time training someone now, but screening will keep management off my back.

e. The last thing I need is some outsider telling my people how great things were somewhere else.

f. I’ll wait to fill the job until after (insert one or more):

(i) my vacation.

(ii) the holiday.

(iii) my pension plan vests.

(iv) my review.

(v) my boss returns.

Heard enough? You asked for it. Sometimes literally. Just listen to your recruiters. They pry open JO’s withic lines like:

a. “It costs nothing for you to look.”

b. “Well, would you pay a fee if the right person came along?”

c. “We’ve just completed a retained search and have some excellent candidates who are interested in talking to you.”

And the Beethoven’s 5th of all time:

d. “Our fees are ne-go-ti-a-ble.”

So procrastinators are given every opportunity to hide behind the bureaucratic, administrative delays inherent in every organization.

4. THE WEAKLING

Most recruiters take the inflated term “hiring authority” literally. This causes them to forget completely that they’re literally “consultants.”

Middle-management supervisors are undoubtedly among the most emotionally fragile people in the working world. Their “authority” is constantly questioned from above, below and even from lateral supervisors. Statistically, the chances of making a “wrong” decision are much higher than that of making a “right” one. And there is a greater likelihood of someone magnifying a wrong decision to:

a. Shift the blame for a mistake.

b. Justify not paying the supervisor more.

c. Fire the supervisor.

Recruiters aren’t restrained like these folks. Truly they are “consultants,” with the objectivity that comes from freedom. From being able to deal with whomever they like. There are virtually unlimited options available.

Weaklings only “win” when you let them — you can both win if you focus on consulting not selling. Bryce Webster told how in The Power of Consultative Selling:

The client will want to feel that he has chosen reliably, so that he will not feel out on a limb. He does not want to fail, so his sense of security (“I could lose my job if I blow this one!”) may be threatened.

Keep these questions in mind to direct the flow of your presentation:

a. Have I explained the common ground that I have with the hiring authority?

b. How is the hiring authority reacting to me (“negatively and skeptically or positively and trusting”)?

c. What things have I said that interested the hiring authority most (recruiting approach, availability of candidates, contingency fee, guarantee, etc.)?

d. What objections has the hiring authority raised repeatedly? Have I ignored, fought or adequately responded to them?

e. Am I respected as an objective “consultant” or merely tolerated as a faceless “headhunter.”

The last item is the result of the first four, and without it you might as well be calling someone else. I discussed the importance of the “consultant” image in Finding the Right Job at Midlife:

While the call can start differently and take controlling the dialogue. It should be a dialogue, not two monologues.

You may have to leave a few messages before you swing into action. If the supervisor calls back, always be courteous but too busy to talk. Ask if you can return the call in a “few minutes.” This makes you appear in demand. It then enables you to organize your thoughts, review your notes . . . and relax. Then by initiating the call, your control position is increased.

In studying the Consultant Phone Call, you’ll note that the emphasis is on helping someone else. We are utilizing one of the most basic success principles ever discovered:

You’ll get what you want, if you give others what they want.

The call also considers the natural insecurity of anyone who depends on another for emotional and financial support. It is a success principle etched in bronze on a plaque in our office:

There’s a big difference between advising and assisting.

Don’t overreact and bully weaklings — work with them, not against them. Help make them look good and you’ll make placements.

A recruiter can get so hung up in “overcoming objections” that they buy into the game. It’s a no-win situation — procrastination in “giving” a job order or “confirming” a fee signals someone who can’t “close”.

As Paul Hawkinson noted in the industry guidebook Closing on Objections:

Many consultants spend endless hours with people who can’t say yes. In our business this is an ever present problem… Never try to get an iron-clad commitment from a reluctant gnome… it can’t be done. And the more you try, the worse you injure yourself.

Hang up the joborderphone. Don’t procrastinate.

5. THE RULEMAKER

Rulemakers invariably have little “industrial relations,” “human resources” or “administration” empires. They surround themselves with a set of rules so they can enforce them.

Rulemakers tend to be tough, rigid people. Although they may pass most of the 10 questions in our hiring authority test, you won’t place with them.

It’s not that they intentionally sabotage you, but rule makers have trouble getting things done — like ramrodding a job offer through the hiring cycle. Strict adherence to procedure drives movers and shakers crazy. Since they can’t openly admit rules are meant to be broken, they just make the rule maker’s life difficult. Sandbagging a pending hire is one way.

In Office Relations Mary DeVries observed:

Other departments and their personnel are. . . perceived as adversaries at times; competitors for a larger share of the company’s budget, for certain promotions, and for other desirable benefits.

. . . Although you may be competing with your peers, you must balance this position with an open, friendly and cooperative attitude.

Avoid potential conflicts by being a good listener and trying to understand the position of others.

Rigorously religious rule makers just don’t have the time or flexibility to finesse interpersonal relationships the way you’ll need. If they lay a long list of laws on you, expect a heartbreak. They just don’t relate to the “rules” of recruiting. The law of Headhunter’s Jungle isn’t like their rules at all.

6. THE INCOMPETENT

Too bad they don’t answer the phone “Peter Principle speaking.” They’ve reached their level of incompetence and test your level of intolerance. A few of their traits are:

a. They’re indecisive, so readily accept your suggestions on job specs and source companies (whether you’re right or wrong).

b. They’re disorganized, so forget appointments, get distracted during interviews and lose hiring paperwork (resumes, emails, applications and even fee schedules).

c. They’re shortsighted, so accept referrals from anyone who calls.

d. They’re inconsistent, so revoke accepted job offers before the start date.

e. They’re unrealistic, so give you a wish list, then blame you for producing recruits who won’t make a lateral move.

f. They’re insecure, so insist on “qualified” candidates but sabotage their placement (calling them “overqualified,” “too senior” or just “unsuitable”).

But what do you do in response to these things? Are you the kind of person Donald Smith was talking about in How to Cure Yourself of Positive Thinking?

The easy way to live with inefficiency, bungling and monumental stupidity is to go along with it and to respond with a cheerful and enthusiastic “Right, Chief!” and establish yourself as a positive thinker, eager and willing to go along with the times.

. . . The person who is working you into a corner with an unreasonable or selfish demand cares not a fig for your feelings and that is exactly what you owe him… It isn’t working, is it? So why do you cling to the belief that it does work, or will work, or could work if only… (and here you can fill in any of a thousand feeble excuses).

You won’t make a placement with any of these folks, They’ll just relentlessly waste your time and infect you with an incurable case of consultant burnout.

These are six ways to know if your hiring authority is (l) hiring and (2) an authority at all. Best wishes for success in using them!

TFL archives

Defrosted Cold Calls



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We all know we have to make “cold calls” to keep our client base fresh. That does not mean it is easy or even that we like it. Probably more important is whether it is good use of our valuable time. Since we only have time to spend I try to spend it the most effective way.

My training (like many others) started with picking an MPC (Most Placeable Candidate) and progressed immediately into a 55 second marketing presentation for that MPC. Over the years and thousands of those presentations I found the following problems:

1. In the IT world where I work finding a true MPC is next to impossible.

2. In the IT world it is difficult for the client to tell you what he needs let alone see the value of that MPC.

3. Voice mail is a killer. Even with innovative approaches and creative messages 5-10% contacts rates are common and very inefficient.

4. The techie managers I am calling are not interested in anything but today’s immediate need.

5. When I do make contact the hiring manager is defensive and the conversation can be strained.

Because of these problems over the years my marketing calls have changed. When I get ready to do marketing I pick my best job order, develop a presentation and start calling hiring managers. The presentation is based on the sizzle for that job whether it is the project, position or company so they will want to hear about it. Here are the advantages I have discovered while using this approach:

1. Especially in a tough market managers like to hear there are still good opportunities.

2. Contact rates are around 25% which is a significant improvement.

3. Sometimes you find that perfect candidate for your open position.

4. After the conversation gets comfortable most clients will give you the job order if they have it.

5. You can start a relationship with a new client/candidate.

For these reasons it can be an easy transition from those “cold calls” to something that resembles warmth as you spread good news. The real key is the opportunity to open new doors in a friendly and upbeat way. The next time your client list needs freshening up give a hot recruiting call a try but keep your ears open for a great job order.

TFL archives

Jeff Allen Answers Inquiries



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Two situations have arisen immediately after the last issue hit the streets. We asked Jeff for advice:

Situation #1 Major law firm client posts new opening on their website. Recruiter sees it, recruits perfect person and Emails resume. Immediately upon receipt, the client calls and says “Sorry, that person is known to one of our employees and, in fact, we already have a call into her. Even though she hasn’t yet responded to our telephone message, we won’t pay a fee if we hire her.” P. S. – Client has no problem with the fact that the opening was picked off the website since that seems to SOP for this recruiter/client relationship.

Jeff’s Answer

No defense as to the prior knowledge of the candidate. Possible defense as to the prior call to the candidate. This is a causation issue, not a race. If the call to the candidate from the law firm “causes” the hire, no fee. If no return phone call or the call doesn’t “cause” the hire, the referral from the recruiter “causing” the hire invokes liability for the fee.

This is why we use referral periods on signed fee schedules they eliminate this nonsense.

The notification by the law firm is a professional response to this dilemma. It shows good faith and. Those kinds of clients should be thanked, not tanked.

Situation #2 – Just recruited an applicant (Director of Payroll) from a competitor of my client. The candidate pointed out to me that she knew many people from my client, she actually did a few presentations at their offices on a new system they where implementing at the time and knows the Dir. of IT at this client.

How do you suggest I handle bringing my applicant to their attention? I do have a signed fee agreement with them, yet I am still not comfortable. This is a brand new client that I just developed. I already have 3 people in play for the job, yet I know this woman is THE ONE. Your suggestions would be most appreciated. Also, the applicant informed me that no one has ever contacted her about this position and me calling her, was the first time she has heard of it.

Jeff’s Answer

The candidate’s prior knowledge of employees working for a “client” has nothing to do with the right to a fee. The candidate is not a contracting party, only the subject matter of the contract. I would just email or fax the candidate’s information and state that although she knows some of the employees at the “client,” nobody there has contacted her regarding the opening.

Our suggestion

Get the candidate’s authorization to refer her to that company. Here’s what we previously recommended, not only for this situation but for all similar circumstances:

 

AUTHORIZATION TO REFER

I authorize (search/placement firm) to refer my credentials to the following companies:

_____________________________________

_____________________________________

_____________________________________

I have not previously sent my credentials or resume to these companies for the purpose of exploring employment opportunities nor have I authorized the referral of my credentials by anyone else, such as other recruiting firms, inclusion of my credentials in a database or through personal acquaintance with any current or previous employee of these companies.

Signature_________________Date_______

This makes it completely safe for you to refer this candidate to “client” since they acknowledge that you are the one who tapped her shoulder, stimulated the interest and got the deal done.