The blessing and the curse of the digital revolution! Between email, instant and text messaging, cell phones, Blackberries, and the Internet, we are drowning in data overload. Moreover, the constant interruptions cost the U.S. economy an estimated $558 billion annually. This staggering number does not account for the cost of poorly written emails that land companies and employees in legal trouble, destroy long-term client relationships, and ruin reputations – just review Mike Brown’s (former FEMA chief) emails as Hurricane Katrina raged and you will understand. Add to this mix a lack of civility and common sense, and you have an explosive brew. Writing online is still, as author Patricia O’Conner writes, “in its Wild West stage . . . with everybody shooting from the hip and no sheriff in sight.”

What to do? For starters, treat email writing as writing, not as casual conversation. Whether written in the sky, sent by carrier pigeon, or transmitted via the Web, words must connect with the reader. Good writing allows this to happen; poor writing does not.

Therefore, establish some law and order by developing an email protocol, whether you are a multinational or a single-shingle firm. Simply stated, it’s “the way we do business around here” in terms of communicating via email with coworkers and customers. It is a code of behavior, a set of standards as to how you will frame your words, manage your inbox, even extend your brand.

Consider this story. Within a software company’s accounting department, an employee received a query from one of its international clients regarding an invoice. The client asked how she was handling the invoice, as the company was anxious to receive the product. The employee’s response? “handling it.” Note that the response was in lower case, with no greeting or closing. The client’s response? Not pleasant. The client pulled his account, citing irreconcilable differences. And the result? Loss of revenue, loss of client, loss of reputation. Though we cannot account for the human factor, if a protocol had been in effect, the calamitous outcome might have been avoided because standards would have been in place as to how to respond to the client.

Below is a short list of questions to visit at your next meeting. Your answers could be the beginning of a company-wide document.

How do you greet and close messages?

Companies are crafting a series of key phrases used solely for openings and closings. Remember, you would never call without greeting someone. Why would you not in your emails?

What does your email signature say about your company?

It is an extension of your company’s brand. Professional, with no cutesy sayings, it should contain all contact information. Establish a standard for font style and size – Verdana and Arial remain the ones most commonly used. Also, because you have limited real estate, consider placing your signature block horizontally rather than vertically.

What is the company policy around blind copies?

Some companies use them only for e-blasts; others state that they are strictly verboten. Discuss why, when, and how you will use them. Caution: Some computer programs allow all those who you do not want to see your email to view it if the recipient hits “reply all.”

Do you have a message for the out-of-office auto-responder, and when do you turn it on?

Four hours? One day? A large bank requires that if an employee is immersed in an important project, it must be turned on if he/she is gone from the office for more than one hour. Other companies insist they are available 24/7 for their clients, thus no auto-responder.

How often do you check emails?

Some companies set their programs so emails are called up only hourly, thus reducing downtime and increasing productivity. Others require employees to check their emails a minimum of four times a day.

How soon do you return emails?

Within four hours? 24 hours? Some company policies state all that emails need answering within the same business day.

Do you use emoticons?

Buzzing bees, dancing bears, smiley faces. Suggestion: Heartily rule against it.

How many emails before you pick up the phone?

The rule of thumb seems to be three. If the issues are not resolved, pick up the phone or walk down the hall.

What are your company’s policies about writing business letters, accessing confidential information, or handling racial or sexual harassment? Your email policy should be compatible with these documents.

How will you ensure that employees understand your protocol? For example, who is the contact person when questions arise? How will updates be handled? Will you schedule trainings?

Email has become the biggest productivity drain in businesses today. Getting a handle on this daily data dump by establishing procedures – etiquette, if you will – will make you and your company stand above the crowd. And possibly bring law and order to the untamed world of Internet communication. What are your “best practices”?

Dr. Julie Miller, founder of Business Writing That Counts, is a national consultant and trainer who helps professionals reduce their writing time while still producing powerful documents. She and her team work with executives who want to hone their writing skills and professionals who want to advance their careers. Some of her clients are Microsoft, Washington Mutual Bank, Verizon Wireless, and Cisco Systems. For more information, please call (425) 485-3221, or visit http://www.bus inesswritingthatcounts.com.

Here it is July 2007, the halfway point of the year, and my business instinct tells me a shift needs to occur for my contingency staffing and placement practice.

For 22 years I have been placing business professionals in companies, and for 22 years I have been getting paid after I make the deal. Some days I feel like the most powerful person on the planet, but other days I feel like one of many mice on a wheel aimlessly chasing an illusion of cheese.

Recently, I find myself resenting some of my clients, resenting staff that cannot produce fast enough, resenting that 80% of my income is based on a contingency fee, and resenting the constant chase for the illusive cheese.

Why the resentment? Because over the past two quarters, my contingency placement business has been facing some significant challenges. The type of assignments we had been receiving – and filling with ease – are slowly disintegrating. Today, the types of assignments we are receiving are much harder to fill because of tougher specifications, and the fact that umpteen agencies are working on the same assignments. In a market like this, my experience in the contingency placement business make me feel like we are all a bunch of mice in a cage running on a wheel – and getting nowhere. With a void of candidates facing everyone, I am seriously reevaluating my business and making those necessary shifts.

As the business leader in my company, I ask myself: “What needs to shift?” “What do I want?” “What will it take for me to love what I do every day, or almost every day?” “What will make us more profitable?” “What will make our work more fun?” “What business am I really in? Is it retained search? Contingency placement? Employment agency?”

As I ask these questions and feverishly search for answers, I suddenly hear a voice from the past. When I was 22 years old and just starting out in the placement agency business, my first boss said to me, “Margaret, it is important that you understand our business model. We don’t fill job orders here; we place candidates. And THAT philosophy is at the center of everything we do. Don’t forget that.”

When I started my business, I consciously made a choice to be different from other placement agencies. Alliance’s mission statement would reflect a service philosophy to meet our clients’ needs in the best way possible, period. Since September 1993, there have been many times I have seen, experienced, and felt the huge positive impact of that choice and there have been many times that I have seen, felt, and experienced the sober negative impact of that choice.

At this point, 80% of the income generated from my company’s administrative and business services placements comes from contingency fees. While that is pretty normal in that line of business, the issue is that we have become so client-centric that we operate more like a retained search firm, with in-depth processes, high-quality send-outs, personality assessments, and behavioral inter-viewing; each client who inter-views a candidate from Alliance experiences the red carpet treatment.

This model has been successful in regard to account penetration and referral business. It has also landed us some big accounts with multiple departments and multiple openings. But it has required our focus to be very narrow in the sense that we are here only to fill client needs, as opposed to candidate needs. Candidates who didn’t fit immediate needs were put on the back burner, stored in the database for a potential future.

We have not dedicated ourselves fully to finding employment for these high-quality candidates. We haven’t dedicated sufficient time, attention, concentration, and focus on running candidate MPC campaigns. While there have been weekly email campaigns sent out featuring our “best of the best” candidates, there has not been a disciplined effort to represent a candidate and market that candidate to a specific set of companies that might have a need. The entire focus of my team has been to fill our clients’ jobs, and it has been that way as long as I can remember.

However, given today’s market shift and talent scarcity, I sense that my business model and my attitude need to be adjusted. Many of my business colleagues agree that not only is the cheese down that tunnel a bit moldy, but there are also too many mice trying to nibble on the same bit of it.

Don’t get me wrong: we are making money. Yet we are working 10 times harder to make the same amount of money we made last year. I am spending much more on recruiting resources than I did last year. The time-to-fill metric is creeping up. And we are dealing with too many distractions such as goofy, unrealistic job orders pounding on our door. In some circumstances, good clients are becoming bad clients because they are not managing their open job requisitions strategically, they are waiting too long before listing their jobs, and then they are so desperate to fill jobs with the right people that they are machine-gunning their orders out to anyone and everyone who will work for them: filling the maze with mice running for the cheese.

Much as a car wreck stops traffic, the other day I had a pretty significant interruption of the maze running and cheese chasing. My 16-year-old son, James, who is interning for us this summer, was working hard to “find” candidates using some of our new search technology. After a day and a half of researching he said, “Mom, why are we working so hard to fill jobs that everyone else is trying to fill when there does not seem to be many people to choose from, yet there are other higher-level candidates out there who we could be representing like a talent agent? Why aren’t you doing that, Mom?”

My immediate reaction was, “Nice point, Millennium child, your impatience is getting the best of you, but we need to fill these orders, so just get back to work and stay focused.”

And then it hit me. After all these years of running things my way, I forgot what my first boss taught me. I forgot about the basics. I forgot how I built that book of business in the first place. I was humbled to realize that it’s time to get back to the basics of my rookie training.

Back to Basics

In hindsight, the way I made it to a six-figure income after just three years in the business was really pretty simple. Reaching the Pinnacle Society resulted from more of the same, over and over again. I used the system that my mentors taught me and it worked: I made money, I got people jobs, my clients were happy, and I was in total control of my destiny.

The system required taking a really great candidate – some-one with whom I had forged a relationship, knew had market-able skills, knew would be a key player wherever they would go – and then getting on the phone and calling anyone who might need this person. I called similar industries, similar companies. I called old job orders. I called newspaper ads. I did whatever I had to do to market this person, like a talent agent would market a movie star. Additionally, I did that for three to five people daily. Somewhat how Ari markets Vince in the HBO series Entourage.

As I engage the old memory bank, my head floods with the way we used to do this job. From 1983 to 1987, my first employer had 40-something employment agents. We were all paid from a draw on commission and a 16% payout of each side of the deal. The house provided the resource budget to find candidates. The average income per employment agent was $85,000. Those earn-ing less than $65,000 were considered low producers.

To maintain candidate owner-ship, we agents had to have candidates come to the office and work side by side with us until we placed them in jobs (we called them “repeats”). These were candidates we were committed to placing who were also committed to us placing them. They came to the office every day. They took turns sitting at our desks while we would call through the Rolodex and phone book, and crisscross directory or job ads for them. With 40 or so agents doing this, it seemed like there was always somewhere to send my “repeats.” While I was on the phone looking for Mary, one of my coworkers got a send-out for Suzie, and vice versa.

Following this effective and slightly crazy system, I was able to close an average of 10 placements per month and fill 10 job orders per month. I did this in 43 hours per week. There was not time to match candidates to open orders that were not obvious during the day, so I did that at night. There was not time to do quality-assurance calls during the day, so I did that at night. My “admin” work was done at night, while my people work was done during the day. I never used email because I didn’t have it. I didn’t use the boards because the Internet was not a “tool of the trade” yet. I did however use the phone, nonstop.

I still remember having a lunch break with one of the partners of the agency; our average lunch hour was 30 minutes. She was talking to us about how to get back on track when things did not seem to be working. She said, “If you ever get to the point that deals are not closing, or you’re spinning your wheels, and are not getting job orders or send-outs, then get up and stretch, or go outside. Then come back to your desk and wipe everything off, except your telephone and your Rolodex or prospecting resource. Then pick one candidate you think is placeable – someone who is highly skilled, marketable, hungry to work with you and will do anything and go anywhere you ask, and is flexible about money – and then call everyone you can about her or him until you earn a send-out. Within two days things will pick up, I promise.”

That model worked for me back then, and I believe some version of it could work for my company now in a market with significantly more jobs than there are talented people. To effectively implement this new/old philosophy into my company, I want to review what worked and what didn’t back then and decide what can be revamped, tweaked, or improved for today. I plan to mine any gold nuggets of wisdom that I can from previous employers and my early days in the business as an effort to set us mice on a more fruitful path.

It is crystal clear to me that the conscious choice I made in 1993 regarding a client-centric philosophy has served its purpose and may continue to serve a purpose in a new retained search venture. But it is no longer sufficient (for me) in my contingency search business. It is time for a new conscious choice that applies to today’s market and which honors and utilizes the lessons learned from yesterday as well as the innovations of today.

One of the shifts I will be making in my contingency placement business is to become candidate-centric. Other changes I see on the horizon will include entering niche markets and adding a retained team in an effort to completely separate my contingency and retained businesses, as well as my staff’s focus. We will offer clients the level of service they are willing to pay for. If a client is listing a job with more than my company, it must be a job for which we already have the candidates in the house or one for which we can easily locate quality candidates. No more mice tunneling for cheese.

In implementing a candidate-centric approach to running the contingency placement side of my business, I plan to include some practices borrowed from my first employer as well as things I’ve learned over the years. Another idea is to offer a dedicated marketing campaign for highly qualified working (and hungry to make a change) candidates. We will market these candidates using email campaigns, telephone campaigns, and specific invite-only career fairs. I think if it is done right, candidates might pay for it. Look at how the coaching business has taken off: People of all levels are paying for advice.

Additionally, or as part of the campaign, we can create a candidate certification using our assessment program to certify that a candidate is in the top of the range among the bench-marked best for a specific role, level of accountability, and/or industry.

Another change I will make, as the leader of my organization, is that I personally will work on only retained and consulting projects to leverage my time, effort, talent, and wisdom.

If there really is a skilled labor shortage – and from all indicators there is – we will all need to make some adjustments. Some of us will make subtle adjustments and some of us will make significant adjustments. I know I am up for the game.

Margaret Graziano, CPC, CTS, and mother of three, has been a top producer in the staffing and recruiting industry for the past 20 years and has owned her own firm since 1991. She prides herself on client retention, and making the right hires. She has earned over $5 million in personal “desk production” income and has placed over 2,000 candidates in direct-hire positions. With the competitive business world and the war on talent in full force, Margaret’s company, Alliance HR Network, has ventured into new realms of talent acquisition, organizational development, and human capital consulting services, thus diversifying Alliance’s revenue streams and gaining new and exciting talent acquisition and assessment consulting opportunities. Margaret’s email is mgraziano@alliance hrnetwork.com, and her phone number is (847) 690-0077. The strategic planning forms are listed under a Strategic Planning Down-loads section at http:// www. alliancehrnetwork.com /employers /industry_training.asp.

Direct (perm) placement recruiters are in a great position to make a lot of money and meet all their clients’ needs by incorporating contract staffing into their business model. One major reason for this is that during the past 10+ years, companies have changed their staffing philosophy dramatically. Companies are now supplementing their “core” staff with contractors. Reports state that between 70% and 80% of companies use contractors.

Lifelong employment at a single company has become a thing of the past. An employee doesn’t spend 30+ years at one company anymore and fade off into retirement with a new gold watch. In fact, many analysts believe that people working at several companies is no longer a résumé “red flag.” They think such a varied career is beneficial be-cause the employees actually have broader knowledge and more skill sets. Many employees become contractors because of this ability to learn more things by working at more companies.

Where Are the Opportunities?

Almost all areas of staffing are using contractors. Contract staffing is not just for the old-time information technology “job shoppers” or “independents.” Here is a breakdown of placement disciplines for contract opportunities in 2006:

- 30% – Healthcare
- 20% – Information Technology
- 14% – Engineering
- 13% – Business Professionals
- 8% – Accounting & Finance
- 6% – Legal, HR & Recruiting

Recent survey results show that companies of all sizes use contract staffing. It’s not just for the extremes – large companies or small companies.

- 33.3% – Large companies
- 28.6% – Medium-sized companies
- 33.3% – Small-sized companies
- 4.8% – Unsure of size

How Does the Money Work?

Direct (perm) placement recruiting can often be a roller coaster ride, with many ups and downs in cash flow. But contract staffing is completely different. Contract staffing provides a steady cash flow because contractors get paid for every hour that they work; as a result, so do you (the recruiter). In addition, most clients pay invoices on a weekly basis, which means that’s how often the recruiter should receive his/her share of the recruiter income (profit) on each invoice.

Don Fredrick of Executech, Inc., in Ann Arbor, Michigan, will tell you that contract staffing is very easy and profitable. For his very first contract placement, he placed a software engineer at his client for a 10-month assignment. During those 10 months, Don earned $20,275.16. That equals a steady income of $2,027.52 per month. Everyone would sleep better knowing that kind of money was coming in each month, regardless of how many direct (perm) placements they made.

Ideally, you will have at least a handful of contractors on the job. The money you make by having several contractors adds up nicely. For example, if you have 10 contractors working on assignments, and you are earning an average of $7.51 per hour for each one, that’s $75.10 per hour of recruiter income/ profit. If those contractors continued working for nine months (1,560 hours), that’s $117,156 that you would be putting in your pocket, not including overtime.

Many recruiters experience the same type of consistent cash flow that Don Fredrick did when he made his first contract placement. Add a couple more con-tract placements into the mix, and the checks will continue to arrive on a steady basis. Plus, look at the flexibility that contract staffing offers a recruiter. Want to take a day off work and not even look at your telephone? Go right ahead, play golf, go to the movies, take a trip – the contractors you placed will continue to make money for you.

What Are the Average Markups and Percentages?

In the majority of cases, the bill rate is determined by a multiplier (or markup). Recruiters typically use the multiplier as a guide for marking up the pay rate. Top Echelon Contracting has been tracking multipliers for technical and professional contract placements throughout the United States for 12 years. A markup of 1.51 has been the lowest yearly average, and 1.67 has been the highest yearly average. The current average multiplier is 1.60.

The multiplier is the bill rate divided by the pay rate. Here is an example using the average multiplier of 1.60. Take an engineer earning $95,000 per year and divide $95,000 by 2,080 work hours per year. That equals an hourly pay rate of $45.67. Take that $45.67 per hour and multiply it by the 1.60 multiplier and you get $73.07. Thus, the hourly bill rate would be $73.07.

Based on the above example, if the contractor was an engineer working in Ohio, the recruiter share would be $13.86 per hour for every regular hour the contractor works and $20.97 for overtime hours.

How Does a Direct (Perm) Recruiter Get Started in Contract Staffing?

That is probably the number one question. The answer can be broken down into four simple components, and as a recruiter, you are already familiar with three of the four components.

1. Recruiting
2. “Back Office”
3. Clients
4. Candidates

1. Recruiting Component

The first step is to realize that you are good at being a recruiter, so it doesn’t matter if you are recruiting for a direct (perm) hire or a contract placement. The basic fundamentals are the same. You are good at finding candidates, dealing with those candidates, selling to clients, and negotiating with everybody.

2. “Back Office” Component

The second step is to find a contract staffing service provider (“back office”) to handle all of the administrative, financial, and legal tasks or decide that you want to handle the “back office” tasks yourself. The “back office” provider should become the legal employer of the candidate and handle some specific tasks, including things like new-hire employment paperwork, benefits, 401(k), general liability coverage, legal contracts, timesheets, invoicing, payroll processing, bond-ing, day-to-day administrative functions, etc. Also, the con-tractor needs a W-2 at the end of the year. The only exception to issuing a W-2 would be the small percentage of contractors who meet the strict IRS guidelines for 1099 independent contractor classification. To help determine if your candidate/contractor meets the requirements, you can go to www.IRS.gov and look up Form SS-8, titled “Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.”

- How are the financial issues handled? If you use a con-tract staffing service provider for your “back office” tasks, they should handle all of the financial issues, including payroll funding and processing, federal and state taxes, workers’ compensation, unemployment taxes, invoicing, and collections. They should also handle expenses and per diem if the contractors qualify for these perks under IRS guidelines. Recruiters who decide to be their own “back office” will have to address these things and probably get a line of credit to fund the weekly payroll.

- What about background checks? Another critical step is conducting a background check on a contract candidate once an offer has been extended. Client companies are increasingly insisting that candidates have a complete background check, and quite often a drug screening. Most “back offices” can provide this service, or a recruiter could set up an account with a national background-screening provider if they decide not to outsource the “back office” tasks.

3. Client Component

The next logical step is to tell all of your existing clients that you can provide them with contractors. You don’t have to build a whole new client base to tap into this new, steady cash flow. The chances are very good that you can start doing contract searches with the same client companies you are working with right now. Statistics show that 90% of contract opportunities come from the same clients as direct (perm) placement opportunities.

- Why do client companies use contractors? Here are some of the advantages:
– Staffing flexibility for projects/deadlines
– Immediate skill set avail-ability
– “Try before they buy”
– Minimize employer (client) liability
– Minimize in-house training
– Eliminate pre-hire costs
– Control budget constraints or hiring freezes
– Avoid negative press tied to layoffs

4. Candidate Component

In conjunction with telling your clients about contract staffing, you should also ask every candidate with whom you speak this question: “Are you willing to work on a contract assignment?” You or your contract staffing service provider (“back office”) should have the ability to offer contractors a wide range of benefits, including health insurance, which is critical in today’s society.

- Why would a candidate work on a contract? Here are just some of the advantages that candidates find with contract staffing:

– Potential for higher earnings
– Flexibility in lifestyle
– Increase their technical and professional knowledge
– Opportunity to travel
– Evaluate a specific company or get their foot in the door
– Control their own career path

- How do you find candidates who are interested in con-tract staffing? It is not hard to do. Actually, you go about it the same way as finding direct (perm) candidates. Here are some common ways to find contract staffing candidates:

– Asking every candidate
– Referrals from other contractors
– Advertising on your own website
– Retirees from the same or similar company

Want Some Advice from Another Direct (Perm) Recruiter?

A blended business model with contract, direct (perm), and temp-to-perm placements is the best way to meet your clients’ staffing needs. It’s also a great way to have money coming in from all directions. In 2006, Philip Bartfield of Bartfield Search, Inc., in Princeton, New Jersey, earned $92,432 in contract staffing through Top Echelon Contracting, as well as $93,499 in split placements.

According to Mark Demaree, president of Top Echelon® Network, Inc., “In 2006, 60% of the overall top-producing net-work recruiters incorporated contract staffing into their business model. In addition to that, the highest award winner for the top-producing agency for more than 10 years has always been a recruiting agency that incorporated contract staffing into their business model.”

Bartfield, an information technology recruiter who also makes direct (non-split) placements, is a strong believer in providing your clients with whatever they need – including contract candidates. He says that you don’t want to miss out on showing a client what you can do by helping them fill any kind of placement. If you can’t help them, they will move on to your competitor. Clients also won’t want to work with you when you call later to see if they have any direct (perm) openings. It comes down to this: If you weren’t able to meet their needs when they first contacted you about placing a contractor, what makes you think they’ll give you a chance now on a direct (perm) position?

“Why would you pass up a chance to make money and win points with your clients? I’ve always felt that if a client has a requirement, it doesn’t really matter whether they need a permanent employee or whether they need a contractor. The process isn’t significantly different, so I’ve promoted an ability to do both,” Bartfield says. “Sometimes I’m working on a permanent position and then something will change and the client will say, ‘At this point, we’ve made the decision to bring this person on board as a contractor. Can you help us with that?’ Contracting usually comes up as a possibility. I’ve been more than happy to service my clients’ requirements, whether it’s permanent placements or contracting.”

How Can You Learn More About Contract Staffing?
Since you are already familiar with the recruiting, client, and candidate components, you may want to spend an hour or two reading about contract staffing and researching “back office” options. Top Echelon Contracting has developed a FREE Contract Training Kit that explains how a direct (perm) placement recruiter can incorporate contract staffing into their business model.

The kit is available at www.TopEchelonContracting.com/recruiters/trainingkit.aspx.

Contract staffing can definitely help direct (perm) recruiters increase their business. It’s a great way for recruiters to meet all of their clients’ needs while boosting their own bottom line. Contractors enjoy their lifestyle flexibility, the opportunity to learn new skills, etc. Contract staffing is a win-win-win situation for all three sides – recruiters, clients, and con-tractors!

Debbie Fledderjohann is president of Top Echelon® Contracting, Inc., a contract staffing service provider founded in 1992 and headquartered in Canton, Ohio. Top Echelon Contracting helps recruiters with contract staffing and handles all of the legal, financial, and administrative details associated with contract staffing. They become the employer and handle the employee paperwork, legal contracts, timesheet collection, payroll processing, payroll fund-ing, tax withholding, benefits, workers’ compensation coverage, invoicing, collections, background checks, etc. Since 1992, Top Echelon Contracting has paid out more than $34.5 million in recruiter profit.

In the manufacturing economy, time was the currency. Systems were designed for maximum efficiency, and effectiveness was simply measured by how much time could be dedicated to the process. The assembly line was the perfect example of this. In today’s information environment, knowledge is critical and attention is the currency. Directing our attention to the right places and for the right amount of time is the key to effectiveness. I created the checklist below for you to do a self-assessment.

- You are frequently distracted from your current activity by others or your own lack of focus.
- You finish your day surprised by how little you actually accomplished despite the fact that you felt busy all day (e.g., you were on the phone “all day,” but the phone report shows that you barely cracked two hours!).
- You have a to-do list of important items but always seem to be distracted by more “urgent” activities.
- You find it difficult to focus fully on another person without thinking of other matters.
- You constantly check and respond to your email, text messages, instant messages, etc.
- People get frustrated with you (verbally or nonverbally) be-cause you answer your phone or return text messages in the middle of meetings or conversations.
- You frequently feel a sense of “information overload.”
- You think you are a great multi-tasker.
- You are addicted to emergencies and pride yourself on being the best “fire fighter.”
- You love the feeling of being “in the “zone”/”in the moment” /”in the now” and the feeling of being effective and efficient during those times but are frustrated by how infrequently you are there.

If you checked a majority of the items (and were distracted in the process), then you may be suffering from RADD. The good news is that it is curable and you can fill your own prescription! The irony is that those who suffer worst from this condition actually perceive it as a strength because of their incredible “efficiency and ability to multi-task.”

The reality is that effectiveness IS NOT the same as efficiency. You may feel efficient because you sent out three emails during the “boring parts” of a meeting, but what about the unintended consequences of how others perceive you? Maybe they think you believe you are more important than they are and that your time is more valuable than theirs? What if, by “multi-tasking,” you happened to miss something truly important, and the act of missing it had negative repercussions?

You see, multi-tasking is a myth. There are times when multi-tasking and bouncing from one activity to the next is both unavoidable and necessary. However, the MAJORITY of times that you are busy, multi-tasking, and rushed are merely self-created and ultimately counterproductive.

For instance, when people are driving down the highway while talking on their phone and miss their exit or get pulled over by a person in blue or hit something. All of these are unintended consequences of “multi-tasking.” Each scenario costs more time than what was saved. Okay, so maybe you have that one down and it is not an issue. Now imagine going into a fitness club and seeing a person walk briskly from one station to the next. He lies on the bench press and does one rep. Then he walks to the pull-up bar and does two reps. Then he races to the treadmill and runs on it for 20 seconds. Then he walks over to the sit-up machine and does three sit-ups. Then he goes to the leg-press machine and does two reps. Then he goes over to the cardio area and does three jump ropes. Then he goes to the arm-curl machine and does three reps. Then he drops to the floor and does one push-up. This kind of madness continues for an hour. Afterward, he describes to his buddy in the locker room just how busy he was during his workout. He did over 25 types of exercises in an hour, which must make him the most efficient person in the gym! Right? Wrong! He was completely ineffective. THIS IS EXACTLY HOW WE LOOK AT TIMES WITHOUT ACTUALLY REALIZING IT! Are you the person who spends two hours at the fitness club but exercises for only half that time because “others” are constantly distracting you with their idle chitchat? Are you that way at the office? No matter what, always remember and never forget that YOU ARE THE SOLE AND UNCONTESTED AUTHOR OF YOUR LIFE, AND YOU GET TO WRITE A NEW CHAPTER EACH DAY YOU ARE ALIVE!!!

As I like to say, your inbox will be full the day you die and life will somehow go on! As is the case with any problem, the first step is to recognize that there is one. The good news is that slight changes can produce profound results for yourself and those around you. By implementing the suggestions that follow, you will find yourself “in the zone” more frequently and more effective. Others will experience you being more fully present, relationships will deepen, and you just may find yourself taking less medication for ulcers, headaches, high blood pressure, and the like (you may even find yourself drinking and/or smoking less, too!).

Please review and implement the action items on this list and watch your productivity soar and your stress plummet!

1. Create “platinum/golden hours” in your office. Establish certain times each day when no one can distract others or be distracted. In recruiting, 9:30 to 11 a.m. and 2 to 3:30 p.m. are pretty good times. The only acceptable distractions or interruptions should be emergencies.

2. Create a running task list of administrative activities. As your day unfolds, pick a time before lunch and at the end of the day to handle them, as opposed to throughout the day (e.g., emailing a client a candidate profile/résumé, fee agreement, or note).

3. Loosen your electronic leash four times a day. Set up a special ring on your cell phone for the critical people in your life (e.g., kids, certain clients, etc.) and only answer that ring. Turn off instant messages. Shut down your email. Eliminate all distractions. You should create four different time blocks between 45 minutes and one hour each to fully focus on a specific activity that you have predetermined for that time. Recruiters may designate an hour each for 1) new client calls, 2) client follow-up calls, 3) new recruiting, and 4) follow-up recruiting. If you maintain only a few seconds between each call, then achieving 3.5 hours of market connect time in ONLY A FOUR-HOUR TIME PERIOD is both realistic and highly effective!

4. Establish times when distractions are acceptable. Educate your environment as to when it is best to get with you by phone or in person for activities that are not urgent and critical.

5. Put your “big rocks” in first. Make a list of all your current important projects that are not urgent. They could be reading a book, creating a new marketing letter, creating a list of all the industry sites in your market, etc. Now assign at least two one-hour slots a week to do them. Keep these appointments with yourself the same way that you would with a client. DO NOT allow yourself to schedule anything during those times unless it is a TRUE emergency. If you do not begin to do some of the strategic work now, when will you?

6. Minimize multi-tasking. Practice being fully present and engage in one activity at a time. If someone pops into your office while you are typing an email, ask them to send you an email to schedule a mutually convenient time to get together. What makes typing an email, writing a letter, or even just thinking activities that can so easily be interrupted? Would you begin talking to someone who was on the phone talking with someone else? I doubt it! So why do those other activities not require the same level of focus? I doubt that a doctor is checking emails or taking phone calls in the middle of surgery. I suspect that a lawyer is not constantly checking his Blackberry while the opposing counsel is grilling his client.

7. Plan your day. By having a plan each day, you will spend your time executing rather than figuring out what to do next. If a recruiter spends three minutes in between each call deciding who to call next and has 60 calls a day, then she will spend 180 minutes (three hours a day!) thinking of what to do next as opposed to executing what is next. If the planning takes 30 minutes, then over two hours will be saved. Imagine this analogy: Two people go into a grocery store, and one has a list with exactly what to buy and the location of each item and the other has simply a mental idea of what to get. Which one do you think will accomplish the task more efficiently and effectively?

8. Practice mindfulness. When a professional basketball player shoots free throws with 20,000 people screaming at him and waving brick signs, he must get into a place of complete focus. Phil Jackson, who led the Chicago Bulls to six championships, called this “mindful basketball.” We too must learn to get in our zone through “mindful recruit-ing.” Meditation, breathing exercises, yoga, concentration exercises, and reading books on this topic can help you do just that. The pharmaceutical industry may also have the answer for you!

9. Create blocks of similar activities. We all like diversity and variety. However, just as a good meal has a certain flow, so too should a day. Try to plan complementary activities (e.g., business development activities, operational activities, etc.) together in groups.

10. Find the right work/life balance. Just as your time at work should have focus and intensity in each activity, so should your time away from work. Being fully present in all your inter-actions also includes those outside work. When you find your mind drifting to work-related activities while with friends or family, remind yourself to focus back on the people or activity at hand. The opposite should be done while at work.

One day I returned home from work and went upstairs, where my son was busy playing Nintendo. He was so intense that only after five or six “Hello, Dylans” did he finally respond with “Hey, Dad!” I told him to come downstairs to eat dinner, and he said he was busy playing his game. When I shared with him that he could do that later, he said he could eat while playing (another multi-tasker). I said that he had played enough and that life was not only about playing Nintendo. He responded that if it was his life and he enjoyed playing, then why could it not be about just playing Nintendo? I did to him what my father did to me and his to him and said, “Because I said so. Now do what I said or I’ll _______!”

What I really thought was how wonderful it would be to live “life in Nintendo”! How cool would it be if every moment in our life would be like his experience playing Nintendo? I suspect that one day we will all look back and wonder how much time was squandered engaging in activities that were anything but “playing Nintendo.” It was at that moment about six years ago (he is now 15) that I realized the importance of “living in Nintendo”! The biggest problem I have now is that I am so focused in each interaction and experience that others find it impossible at times to get my attention. As a result, my sense of time tends to lapse, causing an issue with my promptness. So you see, with one strength comes an inherent weakness and a new set of challenges to address!

The top producer tip from the trenches this month is short but sweet! It comes from Tiffany Bamberger. Tiffany is in her 16th year at Kaye/Bassman and is a managing director. She has produced over one million dollars in search revenue in each of the last five years. She is a true market master and boasts many client relationships that are over a decade old!

TESTING TO SEE IF YOU HAVE A HOT JOB ORDER

Not sure if you have a hot job order? Test it out! Present one or two candidates and see the client’s responsiveness. Do not continue searching unless you get good cooperation or are working on some form of a retained basis where you are accountable to the client. This is especially good if you have never worked with that particular client. Do they call you back promptly? Are the client’s expectations realistic? If not, do not make it your focus. Move the client to the bottom of your list of prioritized job orders.

It’s okay to continue presenting candidates you come across in the market, but just do not make it a priority. However, do let the hiring manager know what effort you will be giving. Present all candidates that are a reasonable fit. Remember, if you don’t present them, another recruiter will. Someone will eventually fill the position. Don’t forget to stay in contact with the client. You would be surprised how an unrealistic, uncooperative client can quickly become your best client. The longer the job order remains open, the more realistic the clients will become. Clients recognize that if the job stays open too long, they risk losing the opening. Eventually, the pain of it being open may cause them to make it a priority, and when that happens then you can, too!

Jeff Kaye is president and CEO of Kaye/ Bassman International and Next Level Recruiting Training. This former Management Recruiter Nat-ional Recruiter of the Year has helped build the largest single-site search firm in the country, with annual search revenue in excess of $18 million. His firm has won national awards for philanthropy and workplace flexibility and also was named the best company to work for in the state of Texas in 2006 and 2007. Kaye/Bassman has retained over 30 search professionals whose annual production exceeds $400,000. The same train-ing that helped build this successful firm is now available through Next Level Recruiting Training. They are making a series of DVDs for training. The first series was on the candidate side, and the four hours were dedicated to research and recruiting. The new series, on the client side, is dedicated to marketing, effective search assignments, and fee clearing. It is over seven hours in length.

To learn how to take your practice and business to the NEXT LEVEL, please visit www.nlrtrain ing.com and view their product and service offerings. You can also email Jeff a thought or question at jtk@nlrtraining.com.

They are the enemies of every recruiter: turndowns and falloffs. And they’re on the rise everywhere. I hear about them so frequently from other recruiters that I think it’s time to take a serious look at these dreaded deal breakers.

We’ve all been there. Your star candidate accepts a counteroffer, or that sure thing turns out to be anything but when your candidate suddenly says yes to another position. We’re often left scratching our heads asking, “How could this happen?” The turndown and the falloff are the dirty words any recruiter or recruiting manager would like to live without.

Why are they happening so often now? It’s basic supply and demand. The unemployment rate is hovering around 4.5% (0% for the niche A players), and the economy is picking up steam. The demand for talent has increased substantially over the last 12 months. And they know it. Top talent can afford to be picky about their teams. Added to the mix is the growing commitment that employers have to protecting and retaining their best employees. Hiring managers know how difficult (and expensive) it is to find and train replacements for top performers, so they’re willing to do whatever it takes to keep them. It’s a tough market for recruiters, and it’s getting harder and harder to shake loose firmly embedded talent from their comfortable positions.

We make it harder on ourselves, too. Most turndowns and falloffs happen thanks to our own professional carelessness. Let’s face it: recruiters aren’t perfect. No matter how professional or experienced we are, we sometimes miss critical steps in the process. Things fall through the cracks. And when we take shortcuts in the placement process – simple mistakes such as failing to cover the counteroffer early and often, or not following up after a placement is made – the likelihood of a turndown or falloff increases dramatically.

My firm recently placed a financial adviser at a major national brokerage firm. We thought it was the deal of a lifetime for the candidate. He was recruited from a small Midwestern bank, and the signing bonus alone matched his previous year’s W-2 of $175,000. When the offer was made, the whole office celebrated. Based on his income, it was the largest signing bonus we had ever negotiated on behalf of a candidate. A perfect deal. The candidate would make a ton of money, we would receive a handsome fee, and the national brokerage firm was thrilled with the candidate. But the party was short-lived. When the candidate submitted his resignation, his employer counteroffered and matched the signing bonus plus added a few incentives of stock options. The candidate who was offered so much is still working at that small bank in Cleveland.

Unfortunate situations like these will continue to occur. It’s a candidate’s market, and it’s going to stay that way for the foreseeable future. But don’t throw in the towel just yet. Fortunately, there are steps we can take to minimize, if not completely prevent, turndowns and falloffs.

10 Steps You Must Take to Make a High-Demand Talent Market Work for You

1. Truly get to know your candidate

Don’t be in such a rush to fill a job order that you skip the crucial step of getting to know your candidate. Instead of completing a rough candidate data sheet and quickly submitting him or her for a position, slow down. Take the time to understand what your candidates like and dislike about their current job and employer. Ask what they would change about their situation. Gain an understanding of their personal life: hobbies, recreational activities, their spouse and children, what they would like to do more of. Try to find out everything you can about their personal and professional priorities because a career move is not just about the candidate – it’s about anyone in their circle that will be impacted by the change. Today’s candidates value work-life balance, and you need to understand how a career move can affect that balance.

Dig in. Find out the real reason behind the desire for a change; it’s usually not money. Finally, understand your candidates’ dream job. What is their ideal job … the perfect next move in their career? Only then can you be more than just a recruiter. You’re a talent scout, looking out for the best interest of your clients. You’ll know what makes them tick, why they’re ready for a job change, and what they want next in their careers. When you develop this level of professional relationship with candidates, you increase your odds of a successful placement, and decrease the chances of turndowns and falloffs.

2. Encourage candidates to ask current employers for changes

It may sound like you’re helping the opposing team, but it works. Once you understand a candidate’s motivation for a job change, encourage them to ask their employer to accommodate their needs. The vast majority of the time, our candidates won’t do this. But it’s a great way to flush out other areas of professional dissatisfaction to help the candidate really commit to the idea of a job change. “Since you’re unhappy with the overtime hours and all the excessive travel, why don’t you just ask your boss to be flexible and give you more time to be at your daughter’s softball practice?”

The best time to get the candidate out of the process is in the first conversation. Once the candidate actually attempts to resign, the hiring manager will likely make an effort to change the situation that’s causing the employee to look for another job. Never go forward with a candidate unless they have a good reason for considering a new position or they go to their employer to ask for changes in their current situation. Let them know that you don’t want to waste your time searching for the ideal position unless they’re really ready to make a change. Make them prove it to you.

3. Get a verbal agreement about a potential job change

Eliminate gray areas by attaining a verbal agreement from any candidate about their commitment to a career move. Get confirmation that once you’ve found the right position, one that fills the void their current position does not, one that is a desirable next step on their career path, they will act. Candidates need to say it. By verbalizing this commitment to change, it becomes a reality. Avoid working with candidates who are too unrealistic. If they say, “If you find me the perfect job that fits every criteria I am looking for, then I’ll make a job change.” Perfect will never come. The key to getting a verbal commitment is to take a few of the major motivating points for making a change and fulfill them. Once you have it, it’s time to discuss roles in the process and set expectations.

4. Establish roles and set expectations

One of the most important steps in the recruiting process is to establish roles and set expectations. Like any relationship, the recruiter/ candidate one needs ground rules to thrive. Clearly define how you will work together. Many recruiters don’t. And then they wonder why phone calls are never returned and feedback isn’t given. A great way to begin a relationship is to explain your role in the recruiting process: a professional job description. It is a powerful tool for a recruiter.

“My role is to become your talent agent. I will present you to new teams that have opportunities that are a potential fit to your background. I will find companies that meet your requirements for the next best step in your career. I will present you in a positive manner, work to get interviews set up, and take care of all the details in between. I will also prepare you before interviews. I’ll discuss with you the hiring manager, the company, and the job description, including what is expected of a successful candidate. I will debrief you after interviews, and openly and honestly address any concerns the company might have. Before the final interview, I will help to negotiate a strong compensation and benefits package so it will be a win-win situation. I will walk you through the resignation process and cover the counteroffer. After you join the new team, I will follow up with you on your first day, after two weeks, and after 30 days. If at any time you have any issue, no matter how small, we will work together to resolve it. I want to be a partner in your success – your talent agent for the rest of your career.

“You have a significant role in this process as well. You need to be as flexible as possible with your schedule for interviews and time to talk with me. You have my total commitment to openness and honesty at every stage of this process, and I need nothing less from you. If you have any questions or concerns, it is imperative that you bring them to my attention immediately. If at any time in this process your interest level wanes, let me know. If you are considering another opportunity, let me know. In order for us to reach a successful conclusion, we need to be able to work closely together and to trust one another completely.”

It’s also important to set expectations on preferred communication methods and times as well as an expected timeframe to return calls. Be firm. Discuss the ramifications of not honoring the ground rules. Let candidates know that they can and will be dropped from the process if they don’t play fair.

5. Get their skin in the game

The more skin in the game, the better chance you have of winning. It all starts by getting the candidate’s commitment up front to a new opportunity. From being flexible in scheduling time to talk with you, to sending a résumé on time, to updating a résumé to highlight the most recent relevant experience, it all amounts to skin in the game. I like to have candidates send me an email explaining why they are a perfect fit professionally and personally for the opportunity. I try to have candidates do something for the hiring manager or me all through the process – from providing a list of re-searched competitors to a 90-day business plan of what they would do if they got the job. This keeps the candidate deeply involved in the process and encourages their commitment going forward.

6. Requalify at every contact

Every time you talk to your candidate, make sure you have a handle on their commitment level. Ask, “Has anything changed in your work or personal life since the last time we spoke?” Be a great listener. If something has changed, make sure you really understand the impact it may have on the process or job search. Requalify: “On a scale of 1 to 10, with 10 being you are ready to take the new job, where are you in the decision-making process today?” Follow up with “What do we need to do to get you to a 10?” Life comes at you fast. Things can change in an instant. Make sure you’re in your candidate’s head, daily.

7. Accept the offer on their behalf

Know where the candidate needs to be financially. Many candidates hate this, but if you are truly working closely, there are no issues with discussing this up front. Ascertain what an offer needs to be financially in order for the opportunity to make sense for the candidate. Don’t accept “I want to evaluate the opportunity first to determine that.” That is a losing pro-position. What many candidates want is to take a job based on its requirements. This is invalid in the eyes of hiring managers. They consider a position pay range and what a candidate currently earns and come up with a figure that usually doesn’t go much beyond the midpoint. Inject a dose of reality here. Candidates need to understand that at max they’ll be looking at a 10-15% raise. If a candidate has a problem with these figures, it’s time to remove him from the process.

Once you’ve agreed upon a number that the candidate can live with from an earning perspective, get a further commitment of acceptance. Ask, “If things go well in the interview and you like what you see and the hiring manager likes what he sees, can I accept an offer at $X on your behalf after the final interview?” Many times candidates don’t like this question. But a good recruiter maintains control of the process at all times. If the candidate raises any objections – I need to see the benefits, vacation policy, etc. – simply say, “Let’s assume all the data is in line and meets expectations in the final inter-view; can I accept the offer on your behalf?” If there is any answer other than yes, there’s more going on than the candidate is telling you. There may be another issue pending, or a hidden objection. It’s time to start digging for the real issues.

8. Cover the counteroffer – both emotional and financial

Because companies won’t let their best talent walk out the door without a fight, it’s hugely important for recruiters to give candidates a thorough explanation of the counteroffer and a strategy to deal with it. Cover this early in the process. Make sure candidates understand that it is a certainty.

There are two types of counteroffers that come when a good employee resigns. The emotional counteroffer appeals to an employee’s sense of honor, loyalty, or guilt. It may sound like “We built this together!” or “You are a critical part of our team!” or “You’re like a daughter to me!” Prepare your candidate for an emotional roller coaster and help them ride it out.

Financial counteroffers are becoming more and more aggressive, thanks to the costs associated with losing a productive employee. Make sure your candidate knows it’s coming. This is the time to explain the reality of working for a firm once they’re on notice that an employee has considered another job. From the firm’s perspective, the employee’s loyalty is gone, and they’re the first to go if cuts need to be made. From a candidate’s perspective, point out that things haven’t changed, and it’s still the same job, company, and people they were dissatisfied with. Rejecting counteroffers, both emotional and financial, is in the long-term interest of the candidate, no matter what the circumstances.

9. Role-play through the counteroffer

Handle the counteroffer by equipping a candidate with confidence. Role-playing is a great way to prepare for this eventuality. It gives the candidate the chance to address in advance any emotional and financial counteroffers. You can be of great help here. Encourage the candidate to focus on the transition plan, explaining that it’s not about the company, it’s about the candidate’s future, family, and career. Make sure they understand the importance of keeping a friendly relationship with their current employers. Entertaining a counteroffer and then rejecting it completely destroys that relationship; burning bridges is not the way to walk out the door.

10. Don’t forget about a placed candidate

Starting a new job is tough. Many companies really struggle with the onboarding process, and have trouble ensuring that the new employee gets off to a good start. It’s an uncomfortable first 30 days for most new employees. And this is when they’re most vulnerable to a call from their past employers. Recruiters should touch base often with any placed candidates for the first 90 days in a new position. I usually contact candidates on their first day, after two weeks, on the one-month anniversary of their hire, and after 90 days. If, in your conversations, you detect a problem, address it immediately with the hiring manager and the candidate. Ask the hiring manager to help resolve the issue and to help with bonding and onboarding. Your goal is to make sure that your candidate and the hiring manager have the best chance of successfully working together.

Turndowns and falloffs are professional hazards for any recruiter. They can be damaging to your reputation, to your confidence, and to your relationship with your client that you have worked so hard to attain. That’s why the best recruiters are proactive. They work with their clients to develop a win-win hiring process, educate them on the marketplace, and get them involved in helping to sell candidates on opportunities to head off these deal breakers.

Minimizing turndowns and falloffs is all about the details. Don’t take shortcuts that cause you to miss critical information. Take the time to implement these 10 steps into your process now to maximize your recruiting success in the challenging market ahead.

Jon Bartos is a premier speaker and consultant on all aspects of human capital. As CEO of Jonathan Scott Inter-national in Mason, Ohio, he has achieved industry-leading success. He is one of an elite group of executive recruiters who year after year have billed over $1 million annually. Jon has also established JSI as a top executive search and contract-staffing firm. The office has won 14 international awards in the MRI franchise system, including International Billing Manager of the Year and Top 10 SC Office. Jon runs an executive-coaching program called “Magnum Program” and also hosts a career-focused talk show on Fox radio, Talent Wins with Jon Bartos, Your Personal Career Coach, every Sunday at 2 p.m. EST. Jon can be reached at (513) 701-5910 or jon@jonathanscott.com as well as jon@talentwinsonline.com.

Are you making the same marketing calls to prospects that you’ve made for years? If all recruiters call and say, “We will find you the best candidates,” the phrase starts to lose relevance in the client’s mind because they have heard it so many times. Put yourself in your clients’ shoes; they are getting loads of calls from your peers, who are saying very similar things, and they have less time to evaluate recruiters than they had in the past.

So the question for the smart recruiter becomes “How can I engage this hiring authority in a conversation where they see me as a human being and a solution provider rather than just another salesperson?”

Many retained firms diligently work to position themselves well in the minds of their potential clients before they ever make a sales call. This is a relationship-building method as opposed to a transactional sales method. It takes more time, but it builds more loyalty and profitable referrals over the long haul. Referrals are the very best marketing method that a consultant can develop, and these come only through a relationship built on trust.

The survey as a marketing call:

One way to build trust with high-level people is to ask for their participation in a survey or interview for an article that you are writing. What are the trade journals and publications that your target market reads? Contact those publications and tell them that you are thinking of writing an article on a topic of interest (current hiring trends, management’s perceptions of recruiters, etc.) and ask if they would be interested.

Most will say yes, as you are an expert in your specialty area and they are usually eager to get outside material. If you cannot get a response from your industry publications, try writing for a recruiting publication on a topic such as “What our clients really think of us.” Between print, online publications, newsletters, and e-zines, finding a place to accept your article will not be difficult.

Once you have decided on a venue for your article, you then want to construct a brief presentation and questions for your target contacts. Your contacts should be high-level hiring authorities with whom you want to do business. The call needs to be sincere in that you are actually doing research for your article, but on the other hand, you are also engaging in a business conversation (rather than a sales conversation) with somebody that you want to build a relationship with.

The Initial Call:

Start the conversation by introducing yourself and saying, “I’m not calling to do business with you but rather to see if you would be able to share some knowledge about ____ for an article that I am writing. We would probably need about 10 minutes.” This way, you take the pressure off them (and you) and also set an expectation for how long it will take. You can ask if they are available now or if they would prefer to schedule another time.

At this point, many hiring authorities would ask, “Who are you writing the article for and when does it come out?” It is important that you have done your homework and can answer this question. Once you have permission to go ahead with the call, you are then able to demonstrate your professionalism to this potential client in a nonthreatening environment.

The best selling takes place by asking excellent questions. You are judged by the quality of your questions. If you ask an intelligent question, you are perceived to be intelligent; if you ask a mediocre question, you are seen as mediocre. Be sure to stay within the time frame that you stated initially, or if you are going to run over, to acknowledge it and ask if he has time to continue. This demonstrates, in a subtle way, that you can be trusted to deliver on what you promise.

Here is a sample script that you could use with a potential client:

“The reason for my call today is that I’m going to be writing an article for______ on ________, and I’m conducting a brief survey with a select group of people who I thought may be able to shed some light on the subject. If you could grant me about 10 minutes of your focus to answer a couple of questions, it would be very helpful. Are you able to do that now?

1. What methods do you typically use to locate exceptional staff?
2. What have been your toughest challenges with either finding or retaining employees?
3. For what percentage of your searches do you use retained vs. contingent?
4. How would you describe your level of satisfaction with each?
5. How has the current economic climate affected your business?
6. What innovative ways have you found to reward your staff or inspire greater loyalty?
7. How do you define excellence in your team’s performance?”

When you finish the interview, be sure to thank them, and engage in any business-related discussion to which they might be receptive. Offer to be a resource by stating something like the following:

“Feel free to call if you need to keep a pulse on what the market looks like for certain skill sets or if you would like us to research salary comparisons for your current staff. I provide this for my clients at no charge and would be happy to do this for you as well. I will contact you when the article comes out and will get a copy to you.”

This builds rapport and trust and opens the door for future conversations.

The Follow-Up Call:

You now have the perfect follow-up method, which is to contact them when the article comes out and to send them a copy. You may even quote them in the article if it makes sense (people LOVE this). Premeditated follow-up is the most important part of this method. During the follow-up call you can move toward more of a sales question by asking, “Are there any types of candidates that you’d like me to keep an eye open for in the next 90 days?”

Send the client other articles that you have come across that may be of interest to them, and stay in touch regularly. There are many other back-door methods that you can use besides a survey; the point is to give yourself as many options as possible to position yourself well in the mind of your potential client. When there is an opening, you want to be seen as a trusted ally that they will call on first to offer an exclusive contract.

Gary Stauble is the principal consultant for The Recruiting Lab, a coaching company that assists firm owners and solo recruiters in generating more profit in less time. Gary offers several FREE special reports, including “14 Critical Candidate Questions,” on his website. Get your copies now at www.therecruitinglab.com.

The level of trust a client places in you may be the single most important factor in determining the structure, efficiency, and effectiveness of your working relationship. That is why it’s important to understand the real level of trust you have with each client in order to adjust your approach and process accordingly.

From personal experience as well as from the input of hundreds of top producers, we have identified four primary levels of trust that can exist between a recruiter and his or her client. Although they may appear to fall into a natural progression, where our business is concerned, the movement between levels is anything but natural and certainly not guaranteed. Therefore, understanding the nature of each level is imperative to developing a successful strategy to move from one to another.

Level One – Situational Trust

This is the first level of trust and must be established at the beginning of your relationship, at the point where your potential client is still a prospect. This level is achieved once you have established a directed business dialogue with your prospect; when your prospect willingly engages in a two-way discussion in which the focus is on how your services can best meet their needs.

Many practitioners new to our business struggle at this level if they are not properly trained in the skills necessary to accomplish the three following objectives during the first 30 seconds of the marketing call.

- Gain the prospect’s undivided attention.

- Eliminate or at least not create a reflex rejection on the part of the prospect.

- Change the call from a monologue (recruiter talks) to a directed business dialogue in which both parties willingly exchange pertinent infor-mation.

Once these skills have been mastered, recruiters will consistently be able to move from level one to level two with their clients.

Level Two – Transactional Trust

At this level the prospect becomes a client. Situational trust has earned the recruiter an opportunity to do business with the prospect. Basically, by agreeing to work with the recruiter on one of their open positions, the new client is essentially saying, “I trust you enough to see what you can do for me.”

If the recruiter is working smart, they will properly qualify the order/search (see TFL – 10/01 – “Eight Is Enough”) and not be tempted to work on “low-hanging fruit” just because the client offers it to them.

Remember

There is one thing worse than having no business on which to work. And that is working on poorly qualified business that ends up wasting your time while providing little or no return.

Most recruiters in our industry work at this level. Their clients periodically engage them to fill positions, generally on a non-exclusive basis. This is also the level where the greatest degree of commoditization occurs. Since this trust is based only on the inconsistency of successful transactions, any contingency firm that has a fill ratio greater than one in three will have a difficult time distinguishing themselves qualitatively from the competition. Therefore, in order for these firms to move to the next level, on a client-by-client basis, they must successfully fill the majority of orders/searches on which they work.

Level Three – Relationship Trust

Relationship trust is achieved through a series of successful transactions. The positive results that you and your client have achieved through working together enhances their trust level. The client places a greater expectation on your work. When they engage your services, they expect you to perform. Consequently, many of these working relationships become exclusive as well as inclusive.

Increasingly, you are included in the client’s operations and planning. They value your perspective and welcome your input, as you are now viewed as an organizational insider and no longer just an outside vendor.

Most recruiters aspire to reach the “relationship trust” level with their clients. However, they often fall short of achieving it due to inconsistency of service, a willingness to be compromised in their processes, or a lack of patience and knowledge on how to develop a win-win approach with their clients. Conversely, one of the prominent characteristics of most top performers is their ability to consistently reach a level-three trust relationship with many of their clients.

Remember

Trust is difficult to earn and easy to lose. All it takes is one sin of omission or commission and trust can be lost, and once lost, it is almost impossible to reestablish.

Level Four – Loyalty

It is at this level that the client views you and your services as being absolutely indispensable to their long-term success. Achieving this level requires more than just filling positions for your client. Growing from relationship trust, achieving loyalty with your client means they will work with you at the exclusion of all other options. Not only do they rely on you to provide mission-critical employees, but they also are totally invested in your processes and utilize your guidance and expertise when making decisions. Many times these are not just hiring decisions but could include any decisions regarding staffing (conflict resolution, terminations, reassignments, re-alignments, etc.) as well as broader-based organizational decisions that may require your perspective and input as an astute business professional.

Loyalty necessitates a long-term perspective and is the strongest relational bond. Be-cause of this, most recruiters are not equipped to achieve it or have purposely chosen not to go beyond level three, and that’s fine. Although loyalty places the recruiter in a unique position of power, it also requires much in return, most importantly a willingness to shoulder a greater responsibility for the outcomes achieved by your client. Additionally, to be successful in achieving and maintaining loyalty, you must be more than a traditional recruiter; you must become the “go-to expert” on the organizational team.

Each relationship level has its own challenges and rewards. Obviously, achieving level one is most important, for without it, none of the other levels are achievable. However, you can only earn a living in this business if you are successful in achieving level two or higher. How much higher depends on you and what you are prepared to put into the development of each relationship.

Many recruiters remain at level two by choice. They prefer the flexibility and freedom that defines a transactional relationship. However, for others, level three is their goal. They understand that achieving relational trust with clients provides a certain sense of security, as mirrored commitments are the rule and not the exception.

Most important, you need to understand the level of trust you have achieved with each client and whether or not you wish to elevate that level. Choosing the right approach, strategy, and business model depends on it.

As always, your questions or comments are most welcome.

Recipient of the 2006 Harold B. Nelson Award, Terry Petra is one of our industry’s leading trainers and consultants. He has successfully conducted in-house programs for hundreds of search, placement, and temporary staffing firms and industry groups across the United States, Canada, Mexico, Australia, New Zealand, Russia, England, and South Africa. To learn more about his training products and services, including “PETRA ON CALL,” visit his website at www.tpetra.com. Terry can be reached at (651) 738-8561 or email him at Terry@tpetra.com.

TRUTH, TIMING, AND TURNCOATS AT THE TRIAL
Recruiters are shocked to learn how the court system really works. They think that if they’re “right,” they’ll win. They’re wrong, though.

In the introduction to The Employee Termination Handbook, I noted:

The public has the impression that a court is like a giant automated teller machine. Just plug in the right facts and law, and the cash will appear. Trial lawyers are disabused of this impression rather violently during their first court appearance. This is the difference between science and art in the practice of law. The proof and interpretation of the law are critical.

The collection process provides an excellent example of the difference between “making a placement” and “collecting a placement fee.” It’s a matter of understanding the impact of truth, timing, and turncoats at the trial.

1. TRUTH

The truth about the facts leading up to the placement doesn’t matter. “Truth” and “justice” are closest to each other on the front of the courthouse. Unfortunately, lawsuits are tried inside. Let’s assume you made the placement yourself (so there’s no question about what really happened) and:

a. The hiring authority called you with a job order.
b. You thoroughly cleared the fee (using an example, confirming it, etc.).
c. You sent your standard fee schedule to the hiring authority.
d. You presented a candidate and the hiring authority wanted to see a résumé.
e. You obtained a résumé from the candidate and sent it to the hiring authority.
f. You called the hiring authority and set up an interview.
g. You called the candidate and confirmed the interview.
h. You called the hiring authority after the interview and discussed the candidate.
i. You called the candidate after the interview and discussed the job.

Then it happens:

j. You discover a “placement in the basement” – the candidate is hired without your knowledge.

You go through the usual “congratulations” calls and letters to everyone. But you’re not ecstatic enough to make a gift of your fee.

What went wrong? Nothing! If the truth could get you paid, there would be no problem. Your referral was the procuring cause (or at least the substantial cause) of the hire. Courts don’t respond to truth, though. They respond to proof. Sure, they’re concerned with “finding the truth.” They just don’t respond to it unless you can prove it.

A destroyer employer with a cooperative candidate can drive a Mercedes truck through our scenario. This is because under any recognized theory, you must at least show that:

a. Your act of referring the candidate
b. Motivated the employer to hire the candidate, and
c. It knew that a fee would be owed to you if it did.

Now, let’s assume that the candidate’s résumé was in the employer’s database (or that it magically appeared there). How can you prove that your referral motivated the hiring authority? You can’t.

You argue that “but for” the referral, the hiring authority wouldn’t have known about the candidate’s availability. No problem – “but for” reviewing old résumés, the hiring authority wouldn’t have called him. Or “but for” an employee referral. Or “but for” response to an advertisement.

Of course, you could have initially asked the hiring authority if they were considering anyone. Then you could have asked the candidate whether his or her résumé had been submitted to any employers. And you could have written letters to each of them confirming that they didn’t know about each other.

Judges lecture about things like this when they’re not lecturing about the wonders of signed fee schedules. It’s not justice; it’s justification. Hind-sight to justify judgment for the “job orderer.”

Almost everyone who takes the witness stand believes they’re telling the “truth.” In fact, if you gave them lie detector tests, they’d probably pass. There’s such a difference in perception among human beings.

As soon as the next visitor to your office leaves, ask your staff to write down what the person was wearing. Everyone will write something different. In fact, some of them may think “he” was a “she.” And it’s unlikely that any of them will be much more accurate than if they just guessed.

Placements are hundreds of times more complicated, they occur over an extended period, and disputed facts may not be unraveled until years later. The possibilities for misinterpretation and inconsistency are infinite.

It’s their word against yours, you say. Not quite. There are more of them. They’ve got the documentation (or can get it with a little creativity). And you’ve got the burden of proof by a pre-ponderance of the evidence.

Perhaps now you’ll see why experienced trial lawyers know that truth easily lulls clients into a false sense of security. Donald Smith told us why in And They Also Kick You When You’re Down:

The study of contract law never seems to cover the idea of desperation. . . . The rules of sportsmanship do not apply when one contestant is caught in quicksand. People have lost their jobs . . . for telling the truth. It can indeed be very painful.

Of course, tell the truth. But recognize that you must prove it.

2. TIME

We’ve already discussed how the passage of time distorts perception. Time is also a problem because your value to the employer and candidate decreases as the clock ticks. It starts clicking when you make the presentation. You fade fast when you furnish contact information. Then, when the candidate is hired, you’re history. At that point, the employer either pays or tries to figure out ways to avoid paying.

They’re easy to figure out, too. When you consider that most placement files don’t contain any acknowledgment by the employer of the presentation, send out, introduction, or interviews, it’s depressing enough. But less than 5% of those we see contain any acknowledgment of the fee!

The average candidate walks on water. But once they become an employee, they start to sink. You’re not there to rescue them. If you doubt it, call any hiring authority and ask what they don’t like about the candidate. Wait until your guarantee period expires, though. It’s not that you don’t place qualified candidates – this is human nature.

So is fee avoidance once the candidate starts to sink.

The average case takes 2.4 years to get to trial, and the average candidate leaves his or her job every 2.4 years. You can see how likely it is that your candidate will sink or swim away (along with your fee).

Consider also:

a. Transfer of the candidate (out of the jurisdiction of the court)
b. Transfer or termination of the hiring authority
c. Termination of your not-so-cooperative consultant
d. Insolvency or bankruptcy of the employer
e. Change in corporate structure of the employer

Time is always on the debtor’s side. This is particularly true in the placement process. Almost any change in circumstances weakens your position.

You must move to collect and refer the matter to your lawyer as fast as you can. Then your lawyer should accelerate the lawsuit. This can be done by:

a. Pre-judgment attachment (to “freeze” assets pending trial)
b. Injunction (to prevent moving assets out of the jurisdiction of the court)
c. Priority in trial setting (by using theories entitled to preference, “short cause” time estimates, etc.)
d. Summary judgment (based on undisputed facts)
e. Waiving a jury trial (juries don’t identify with consultants anyway)
f. Bifurcating (severing) facts or law for adjudication
g. Stipulating (agreeing) to undisputed facts or law
h. Requesting orders shortening time (based on dissipating assets – theirs, not yours)

3. TURNCOATS

These are honest hiring authorities and candidates who unconsciously change their stories to suit their employers and themselves.

Francis Wellman noted how being called as a witness causes people to turn their coats in The Art of Cross-Examination:

[W]itnesses usually feel more or less complimented by the confidence that is placed in them by the party calling them to prove a certain state of facts, and it is human nature to try to prove worthy of this confidence.

The feeling is unconscious on the part of the witness and usually is not a strong enough motive to lead to actual perjury, but it serves as a sufficient reason why the witness will dilute or color the evidence to suit a particular purpose, and perhaps add only a bit here or suppress one there. This bit will make all the difference in the meaning – Many witnesses experience a sudden dread of being considered disloyal.

Even giving them the benefit of the doubt, witnesses facing job loss easily contract “sudden dread.” We wonder how many have turncoated since The Art of Cross-Examination was written in 1903.

There are formal pre-trial ways to lock in the testimony of these witnesses: depositions (oral questioning), interrogatories (written questioning), and other discovery devices. Despite their name, they don’t actually discover; they annoy, program, and educate the witnesses. Practice makes perfect for trial. Just like rehearsing for interviews.

The primary value of discovery devices isn’t discovery anyway – it’s to obtain documentation of prior inconsistent statements. These aren’t used as evidence to prove the case, but to impeach the credibility of witnesses who change their story on the stand.

Preventing turncoat testimony is best accomplished before a lawsuit is even filed. That’s when the facts are fresh in the witness’s mind, you’re still friends, and there’s less pressure to fabricate. A simple letter is fine – no notarized affidavits, declarations under penalty of perjury, or subpoenas.

Here’s how the Federal Trial Handbook says to use it:

[T]he witness may be asked to defend or otherwise explain the inconsistency between his prior and his present version of the events in question, thus opening himself to full cross-examination at the trial as to both stories . . . If the witness admits having made the prior inconsistent statement, no further proof is necessary. (48 FTH2d 575)

Witnesses deny oral inconsistent statements. That’s why a short factual note is better than a long testimonial speech.

Jeffrey G. Allen, JD, CPC, turned a decade of recruiting and human resources management into the legal specialty of placement law. For over 32 years, Jeff has collected more placement fees, litigated more trade-secrets cases, and assisted more search and placement practitioners than anyone else. From individuals to multinational corporations in every phase of staffing, his name is synonymous with competent legal representation. Jeff holds four certifications in placement and is the author of many best-selling books in the career field. He can be reached at Law Offices of Jeffrey G. Allen, 10401 Venice Blvd., Suite 106, Los Angeles, CA 90034; (310) 559-6000; email jeff@placementlaw.com. The Placement Strategy Handbook and other books on search and placement can be purchased at: www.searchresearchinstitute.com.

The first annual Fordyce Forum, held in New Orleans this past June, far surpassed any expectations I may have had. We were after those power recruiters for whom there were very few options at other conferences. By putting together a group of presenters, most of whom are $1million producers themselves, we succeeded in attracting about 200 of this country’s premier professionals and a couple from South Africa and Australia as well.

ERE Media, Inc., our parent company, already holds three conferences every year for the HR community, and they are consistently ranked as the best in the business. Their experience along with their truly amazing staff provided a flawless conference. We will definitely have another one next year, so stay tuned for the dates and venue before you commit to any other meetings.

Exhibitors were amazed at the caliber of attendees and have already reserved space for the next one – and 97% of the attendees rated the conference as excellent or good.

Here are a few comments from attendees:

“For a first conference, it was exceptionally well promoted, well organized, well run; fantastic presenters, great topics. Very worth my time/$.”

“Great job, Paul. I’ll bring back my senior recruiters again.”

“I liked that it wasn’t a replica of NAPS. It catered to more senior recruiters. The speakers were very useful.”

“Love the fact that most speakers have industry current involvements, some actually still working a desk. Everyone was very friendly and willing to share ideas and concepts. That was a pleasant surprise.”

“Extremely validating to understand that all recruiters have similar frustrations such as wild-goose-chase searches, unethical clients, unruly candidates, counter offers, etc. Also validating to understand where I stack up against my colleagues, and what it takes to bill $1MM.”

“Excellent. Please do it again!”

“Keep it blunt, candid, and outspoken just as this one was. I will attend again. Very good stuff. When is the next forum?”

“I loved the access to such successful recruiters. The motivation and enthusiasm for our industry was phenomenal!”

WHEN TO DUMP A CANDIDATE?

The past two months, we covered when to terminate a relationship with a client/employer. But what about dumping a candidate? When do you do it? Why?

What is a candidate? For many in our business, the term “candidate” is an ambiguous one. Just because someone answers an ad or a posting or just walks into your office or calls or emails, are they a candidate – or just an applicant? Is there a difference between someone who approaches you rather than being recruited by you? If you get a résumé from a guy working at Jiffy Lube wanting to be considered for a senior engineering position, is he really a candidate? Of course not!

Most recruiters consider applicants to be candidates only if they meet the minimal requirements for a job assignment and have been seriously considered by or successfully set up for an interview with a client. Some practitioners in our business get apoplectic over a couple of words: “agency” and “applicant” – words that many consider demeaning. So instead of calling things what they really are, we use terms such as “executive recruiting,” “executive search,” “executive shoulder tappers,” and the like. Applicants become “candidates,” “nominees,” “panelists,” “finalists,” etc.

Not to belabor the semantics of our nomenclature-obsessed practitioners, but there are times when you have to cut the cord with an uncooperative “candidate.”

What may surprise many of our readers is the fact that over 50% of practitioners still (very successfully) use the MPC (most placeable candidate) approach. In this scenario, should we refer to the MPC as “bait”? Probably not in our best interest, no matter how true it might be.

Dave Staats, premier producer and Pinnacle Society member, said: “Beyond being a candidate for a search, I only ‘work with’ about one candidate out of 100. Real MPCs are so rare I just don’t have much time to do my business that way. That said, whether for a search or not, I was taught to establish a ‘social contract’ with my candidates. As my Pinnacle Society colleagues have said, ‘Be excellent to each other’ and actually . . . just mutual honesty and trust. Also, Richie Harris said, ‘We must have total trust, complete honesty, and a common goal.’

“Once this is established, if it is violated, I drop the candidate like a hot rock because if they’ll do it to me, they’ll do it to the client. I know that sounds like a ‘Whatever, Mr. Perfect’ response, but it’s one of the few I do actually live by. Life’s too short!”

Another reader wrote, “Everybody says that talking about candidate control is somehow politically incorrect. Maybe so! You can’t really ‘control’ another person, but you can motivate, persuade, stimulate, inspire, and encourage them to do that which you want them to do and, hopefully, it is in their best interest as well as yours. The word is control, no matter how you try to obfuscate it. If you hear that someone is ‘sleeping’ with some-one else, do you really expect everyone to think they are off snoozing together? Of course not! Once I begin to lose ‘control’ over a candidate, I try to fine-tune the relationship. If that fails, I don’t need the aggravation and I will drop them from consideration. I do, however, make it crystal clear to both the candidate and the client that if, at some later point, they decide to climb into bed with each other, I get a fee for making it happen, even if under duress.”

Another reader warned, “I have had more deals go awry because of spouses than any other reason. That’s why I always interview the spouse of any finalist. If I sense any vacillation on their part, I move on. I had one candidate tell me to never speak to his spouse because he wanted to surprise her with the new job she had been nagging him to find. He took my client’s offer, reported for his new job in a distant city, and I thought everything was OK until I got a visit several weeks later from an FBI agent. Seems he never told his wife he was leaving, and she reported him as a missing person.”

Addressing both the client and candidate sides, one long-tenured reader said: “Seems like I have fired about half of the big player companies in my niche (and it is not that large). I am doing business with fewer and fewer companies, but I am having the best year I can remember. However, even with some of my better clients, I am feeling a strong push by HR departments to keep control of the turf they gained in the past few years. I have either fired or turned down chances to work on many job openings mainly because of the companies demanding low fees of 20% or less, long payment terms, unreasonable guarantees, or such ridiculous HR demands that I ignore the great contacts I have spent years building and go through them (HR) with all communications. It is as if they are trying to punish me for being effective in my job. At least if I choose not to do business with them, I can still keep my contacts.

“I have been reading The Seven Habits of Highly Effective People, and it seems to me there are a lot of companies out there that are trying to squeeze the productivity out of everything without replacing or maintaining the things that make them productive in the first place – the employees, vendors (recruiters included), customers, etc. I try really hard to not work for those kinds of companies, if at all possible.

“It seems like this has been happening more and more as larger companies have purchased smaller companies, and when they get larger they seem to, sooner or later, get around to thinking they can turn recruiting into a commodity vs. an art. Nowadays many hiring companies want to be our competition, and they try it, but only a few can cut it. What they can do, however, is make it much tougher for us good recruiters to do what we do well. When I run into one of these companies, I run the other way fast. Life is too short, and I have too many kids left to put through college to let these companies control what I can earn.

“Regarding candidates, if they are already all over the Internet, and already working with other recruiters, I rarely even bother with them. I always like to put the odds in my favor as much as possible, and working a candidate who is all over the net is a sucker bet.”

If your “candidate” is already on the market when he contacts you, you can expect a lower level of cooperation, especially if he has already contacted several other employers or recruiters. But never forget, if you are responsible for bringing a recruited “candidate” into the job-changing mindset, she will probably also become a very active jobseeker on her own – which is definitely not in your best interest. She will be weighing your client’s situation against others she has found on her own or through others. It’s known as The Better Deal Theory, as pointed out by Terry Petra (TFL – 3/07), and maintains that “before a person closes any kind of a deal – including marriage – he always worries about the fact that there may be a better deal down the road. It’s an uncontrollable instinct: at the last moment, the thought has to at least occur to a person that he might be missing out on a better deal somewhere else.”

Some of the reasons for dumping a “candidate” are:

- Lies about their background, education, salary, etc.
- Unwillingness to schedule interviews
- Reluctance to provide timely feedback
- Failure to return phone calls from you or your client
- Drastic changes in requirements for a new job
- Uncooperative
- Spousal reluctance
- Inability to make decisions
- Attitudinal problems
- Prima donna syndrome

As Dave Staats says, “Life’s too short.” Many of these reasons mirror those about when to “fire” a client.

One final word of warning: If you decide to dump a candidate, make sure you continue to follow up on all referrals you have made with them and let them know that if they accept a job through one of your referrals, a fee is due. Many candidates develop a “crawdad” attitude because the client has intimated (with a wink and a nudge) that they’d sure like to hire them but the fee is just too high – and they think that doing something to get themselves “dumped” by the referring recruiter just might get everyone off the hook.

Remember, we are the choreographers in this business, and when one of the dancers decides to do their own thing, they must be replaced or re-educated.

Tony Beshara, a legendary multimillion-dollar biller who does more placing than searching, has a very useful program for keeping his candidates in step with the process he directs. Like the gentleman he is, he has offered to share a Candidate Prep technique with our readers (see This & That for more information).

VOLUME DISCOUNTS. Can you imagine telling your best consultants that the more they bill, the lower their commission/bonus rate? As far as we know, only the government tax collectors think this is the way to operate.

Now that business is strong and employers are beginning to feel the talent shortage pinch again, there’s an ongoing propensity for fee-haggling. When times were tough, they said they couldn’t afford us. Now that times are better, they’re dangling multiple assignments in our faces as the incentive to recruit on the cheap.

In a perfect example of a “what’s wrong with this picture” scenario, an employer approached their best recruiting source (35 hires so far this year) and said, in effect, “Since you know exactly what we look for and you’ve done such a sterling job for us during the past several years, we’ve decided to pay you less per placement.”

Another firm that used a long list of recruiters decided to scale back the number used to only those who had collected X dollars in fees over the past year. At the same time they decided to cut back their fee cap from 25% to 20%. In a sense, they were saying, “Congratulations, you made our approved list of recruiting sources, so you can work harder to make less.” Shortsightedness in all its glory!

But how do you handle the request for volume discounts when you suspect that this “fleet discount” proposal is merely a ploy, as it often is?

Publications that carry advertising learned long ago that when a potential advertiser tells you that they plan to advertise in every issue if you’ll give them a discounted rate, they usually plan on only one insertion. To service those with honorable intentions, they came up with the “earned discount.” The same is true in the recruiting business.

Of course, discounts make sense in some cases . . . even for recruiting. There should probably be a monetary trade-off for a 10-placement deal. You’ll save money by not having to re-incur marketing/business development costs for each of the openings; you won’t have to learn the cultures and idiosyncrasies of 10 different firms since all placements will be with the same firm; and your sourcing efforts will be more efficient, especially when all the openings are for similar types of people. There are other factors as well.

If you have a true exclusive (is there really such a thing?), it may be worth a discount, but stuff happens. What if the openings are frozen after the first two placements? What if some are filled by employee referrals, thus reducing your true multiple-placement opportunity? What if (you fill in the blanks)?

Here’s one example of how these types of deals can be formulated. Suppose you’ve been asked to find 10 digital design engineers, all at the $60,000 level. At your normal 30% fee, these fills would give you $180,000. You’ve been asked to do the job for 25% fees, which will bring in $150,000, or $15,000 each.

Explain to the employer that you have no objection to a $30,000 discount as long as the deal is done as expected. But also explain that the lion’s share of your time and cost expenditures will be up-front and propose the following formula:

Placement 1 @ 30% $18,000
Placement 2 @ 30% $18,000
Placement 3 @ 30% $18,000

Placement 4 @ 25% $15,000
Placement 5 @ 25% $15,000
Placement 6 @ 25% $15,000
Placement 7 @ 25% $15,000

Placement 8 @ 20% $12,000
Placement 9 @ 20% $12,000
Placement10 @ 20% $12,000

TOTAL FEES $150,000

If the employer is not yanking your chain, they should have no problem with this formula. The bottom line is exactly what they wanted; the payout, however, protects you against any unforeseen termination of the search effort while still covering your heavier up-front costs. You’re moving the “what ifs” into the employer’s court. If they tell you no, they’re telling you that (a) there won’t be 10 placements and (b) they want the advantage of the cheaper placements at the front end.

Another formulation bases fee percentages on hire-in salaries rather than on which number the placement happens to be, but it’s complicated, unwieldy, and more applicable to multiple deals at varying salary levels than openings at the same level. The only advantage to this type of calculation is that it discourages the temptation on the part of employers to hire the cheaper ones first and defer the more expensive hires until the discount threshold is reached.

A third way is to give a discount coupon applicable to future fees, but as one practitioner told us, “We’re in the talent business, and coupons smack of pizza peddlers, not professionals.”

Whatever deal you structure, make sure that volume becomes reality before offering volume discounts for what could turn out to be only one or two placements.

Here are a couple of volume discount proposals used by readers:

- 1st and 2nd annual hires – billed at regular fee.
- 3rd and 4th annual hires – billed at 5% reduction from regular fee.
- 5th and 6th annual hires – billed at 10% reduction from regular fee.
- 7th and 8th annual hires – billed at 15% reduction from regular fee.
- 9th and 10th annual hires – billed at 20% reduction from regular fee.
- 11 or more annual hires – billed at 25% reduction from regular fee.

And here are a couple more:

- There is a volume discount available for multiple placements during a twelve (12) month period. Should your company hire a second person from us during a twelve (12) month period following the first placement, we will compute the service fee as 30% of the total compensation to be earned by the candidate whom you employ during such candidate’s first twelve (12) months of employment. We will rebate your company 3.3% of the fee charged on the first placement. For all subsequent placements during the twelve (12) months following the first placement, service fees will be computed as 25% of the total compensation to be earned by the candidate whom you employ during such candidate’s first twelve (12) months of employment.

- We will rebate to your company 5% of the fee on the previous two placements. The invoice for the third placement will reflect this discount.

Although fees have devolved from the benchmark 30% over the past few years and many recruiting firms have now acquiesced to this lower standard by decreasing their fees to a maximum of 25%, I feel that now is the time to get them back to where they ought to be – 30%. If 25% is presented as the standard, employers will want a discount from that percentage. It’s human nature. If you already know they’ll be asking for a discount, the starting point for that concession should be 30%, not 25%. In fact, we have long advocated changing the conversation on discounting. I don’t know why most think the next available discount from 30% should be 25%. How about 28% or 27%?

Many have decided that, since they already have more business on their plate than they can handle, they won’t discount at all . . . and they’re getting full fee. Let’s face it – our business is all about alleviating pain. We probably won’t be asked to accept a search unless the employer has already tried everything else. If your toilet is overflowing, you won’t be asking the first plumber who shows up for a better price.

One of our readers recently cashed a $212,000 check from a company that had already been unsuccessful through the Heidrick & Struggles search process. Paying two fees in that amount indicates real pain.

But how do you approach the employer limbo contest where their only interest is in “How low can you go?” Here are some possible approaches:

HOW SEVERAL PRACTITIONERS REPLY TO “WE NEED A LOWER FEE!”

1. “I understand that you would like to solve this problem as inexpensively as possible. No one likes to overpay. But our fees are based on an analysis of our expenses along with a reasonable profit. I seriously doubt that I can talk my boss into accepting this assignment with no profit, so I must ask you which of the elements of a complete search would you not want us to perform?”

2. “While there may be some area in which we can achieve a compromise, it almost always results in a less than satisfactory outcome. Just as you would want the best available team to perform a family member’s open-heart surgery, I’m sure you’d be hard-pressed to tell us which of our crucial functions you can do without.”

3. “Our fees are based on the proposition that your search will be performed by a seasoned and successful veteran rather than a rookie, that the full resources of our research department will be brought to bear on your problem, and that our net will be cast to cover the entire universe of potential candidates. One or more of these components must, by necessity, be scaled back or ignored if the fee is reduced as you ask. This, I’m afraid, will compromise the final result in a way we can’t condone, so if your demand for fee reduction is firm, we’ll have to bow out and recommend that you seek that low bidder you’re looking for.”

This #3 scenario indicates that you care, but not enough to lower your standards. That’s a powerful negotiation tool.

Two more approaches to “Why won’t you lower your fee” are:

4. “It’s been a very long time since someone has even asked us to negotiate a fee. That issue was laid to rest some years ago, when the hirers of the country negotiated and agreed with the personnel consulting profession that the established standard fee for our services should justifiably be 30% (or whatever you wish to make it). Survey after reliable survey indicates that 30% is a fair amount and that employers who ask for, and get, lower fees end up with substandard results.”

5. “I’m not at liberty to even discuss fee reduction on a contingency search, but if you want us to handle it for 25%, we’ll be happy to do so under an exclusive retained agreement with expense reimbursement factored in. If you wish, I’ll start preparing the retainer agreement right now.”

From an old pro who swears this works more often than not:

6. “I suppose I don’t object to your asking me for a dramatic discount in the fees we normally charge, but if you’ll bear with me for a moment, I’d like to think out loud about your proposal.

The company for which I work has a sterling reputation for ethics and for success, both with employers and with candidates. We have never compromised on the quality of the services we provide. I’m proud of that, and that’s why I feel I’m privileged to be with the best.

I’ve spent many years learning my profession. I’m very good at what I do, and the greater percentage of my business comes from repeat clients who obviously feel the same way about my work as I do.

Our fee schedule is based on the same factors as almost everyone else’s. They are similar because everyone in our profession knows that our charges are fair, competitive, and reflective of the actual costs of doing business. Those who have cut their fees in the past just aren’t around today.

I didn’t spend years honing my expertise, gather-ing vital contacts, and building my reputation to agree to work for Bargain Barn prices just because someone was insulting enough to ask. As a matter of fact, I’m positive that I couldn’t effectively work with a company whose sole criterion was price rather than value and quality of service. Shall we proceed?”

The use of script #6 takes practice, confidence, and a bit of chutzpah, but for those who are able to master it, it often works to turn lowball wheeler-dealers into full-fee clients. The following is based on pure logic.

7. “I’m sure we wouldn’t be discussing this if your need wasn’t a critical one. Is that correct? (If yes, continue. If no, end the conversation.) My success is based on my track record. All I have to offer is my expertise and my time. If all my clients willingly pay me 30% – and they all justifiably do – on which assignments would you logically expect me to spend my time? One for which I’ll be paid 30% or yours, where my time will be spent for considerably less? For the amount you offer, I’ll be happy to do a file search, but if you truly seek an impact player who can make a difference to your business unit, the fee is 30%. I’m sure you’ll find dozens of others in the Yellow Pages.”

I still occasionally receive subscription checks addressed to me at the old TFL address in St. Louis, probably because that address is already programmed into an automated check-writing program. While I forward them to the New York headquarters office, this sometimes delays the renewal or the subscription start date. While you’re reading this, take a moment and change the address from P.O. Box 31011, St. Louis, MO 63131 to ERE Media, Inc., 580 Broadway, Ste 304, New York, NY 10012.

I am still totally responsible for the content every month. For me, that’s the fun part. Even better, all the back-office functions are now the responsibility of ERE’s outstanding staff in New York. So if you have a subscription problem or question regarding renewals, address changes, switching from mail to email, subscription delivery problems, etc., you can call (212) 671-1181 or email help@ere.net. For conversations about the business in general or questions in particular, you can still call me at (314) 965-3883 or (preferably) email your comments or questions to me at: TheFordyceLetter@aol.com.

I still want to hear from you.

Last month, we addressed several ways that practitioners are accelerating fee payment from slow-pay clients. Long-tenured and very successful practitioner Neil McNulty (McNulty Management Group, Virginia Beach, Virginia) weighed in on his methodology with the following:

Trouble getting paid? Use the following procedure and you will rarely face that problem again.

Day of placement, invoice the hiring authority (the direct report senior to your candidate) with your invoice as a Word attachment and terms “net due receipt of invoice.” Call the hiring authority to confirm receipt of the invoice and conclusion of the placement. It’s OK to leave this on a voice mail and email. This can sometimes result in payment prior to start date. Some employers may think that your candidate will not be allowed to report for work until after you are paid.

On the start date, email and vmail the hiring authority and tell him, “(Candidate) is excited about reporting aboard today and beginning his career with (name of company). Can you let me know when you sent our check for payment for his placement? It is already (x) days past due. Thanks!” Of course, no check was sent.

On start date plus 10 days: “(Hiring authority), we still have not received payment for (candidate). I am beginning to feel very uncomfortable here, that perhaps (placed candidate) is not performing up to your expectations. Please call me and let me know what the problem is. Thanks.” Of course, 95% of the time the placed candidate is doing fine and the employer is simply delaying payment, but your message will begin to make HIM uncomfortable because the last thing he wants is for you to contact his employee and plant seeds of doubt in the placed candidate’s head about his performance.

On start date plus 20 days, leave the following voice-mail message: “(Hiring authority), since we have not received payment for the placement of (placed candidate’s name), I can only conclude that he is not performing up to your expectations and that he is not working out. I have a duty to inform him of that. Please call me right away. Thanks.”

Ninety-five percent of the time, you will receive an immediate callback. If not, then it means you are correct in that the employer is unhappy with your placed candidate. In that instance, you should inform your hiring authority that he needs to either terminate the placed candidate immediately, or pay you. Do not fall for the “we need to give him more time to get his feet on the ground” excuse. Such placements never succeed, and you will not get paid anyway.

If you receive an immediate callback, which is the vast-majority result, you need to tell the hiring authority, “(Name), from my experience in these things, the only time companies are slow to pay for a placement is when they are unhappy with the placed candidate. Since you have said that is not the case here, I need to receive payment within three business days. If I do not receive the check in three business days, I have a duty to contact the candidate and inform him that IT IS MY OPINION that you are unhappy in some way with his performance because you have not paid the fee for his hiring.” Note: Be sure to state “it is my opinion” because you cannot say “he is unhappy” if you cannot prove it is true.

You will receive your check within three days if the company is happy with the hire.

The scene is Cal State Northridge, the week before the major earthquake in the mid nineties; the occasion is a career conference sponsored by the diversity students. I was in the midst of a talk on job-campaigning techniques and had just completed a segment on net-working when one of the students shouted the question “When do you start networking and how long do you have to keep networking?” Before I could answer, one of the more exuberant seniors stood up and proclaimed: “Man, if you haven’t already started, start today. You stop networking on that great going-home day, when they lower you into the ground.” To which I said, “Amen, brother!”

Here are a few generic ideas about networks. A net, says Webster, is an instrument formed of thread, twine, or other fibrous materials woven into meshes used for catching fish. Net-working is an interlacement into a fabric, a complicated inter-mingling of lines. Networks are people talking to each other, sharing ideas, information, and resources. Networking is a verb – not a noun. ACTION!

The important thing in networking is not the finished product but the process of getting there – the communication that creates the linkages between people and clusters of people. One of networking’s great attractions is that it is an easy way to get information. Networks cut across society and provide a direct approach to people and issues.

In networks today, members treat each other as equals – because what is important is the information. Information is the great equalizer. Today’s networks are essential to the job seeker and the recruiter because they are a speedy access to information. Networks are bridges to where you want to go, bridges to other contacts.

When friends or family, business acquaintances, and candidates lose their jobs or decide they want to look for a new opportunity, how often do we advise them to begin networking? We tell them, “You have to get the word out to people who can help you.” Career counselors, out-placement professionals, and coaches all preach the value of networking. Do we realize the importance of networking in our own business?

Networking has always been a critical basic in the recruiting business. I know that many still think networking with former and current candidates is the best way to find top talent. I can still hear some of the industry trainers telling us, “Do your networking on the phone or in person; don’t waste time on Internet data mining. All you need is a few names to get started. Then your goal is to get three names from everyone networked. This is the way to identify and recruit top talent. Join some associations, go to conferences, collect names and then get résumés. This will keep your pipeline primed for candidates to fill your jobs.”

In my early days in this business I extended my networks by going to industry and trade conferences, publishing a news-letter, doing tons of favors for people, and a host of other things. In the early 1980s, I placed a diversity CIO in a national insurance company. He asked me, “How many other diversity people did you tell where you placed me?” “Just a few people,” I said. He then gave me some advice that I’ve followed ever since. “You should write or call lots of folks and tell them. This will extend your network and help you build a huge database of diversity candidates.” I started sending a few letters out after a placement. This grew to over 200 letters for each placement – typed, signed, sealed, stamped, and posted. Thank God for email.

I used to be a believer in that school of thought, but no longer. Like Bob Dylan, I believe “the times they are a-changin’.” We haven’t got time to talk to all the people necessary to build a database of candidates for cur-rent and future openings. I still believe in all the basic truths of networking, like:

– Interacting with people to determine their experience and expertise and to get their referrals
– Asking these people to refer other qualified candidates
– Networking, which can take place anywhere – at meetings, the check-out lane, hockey games, etc.
– Adding names and contacts to your networking list
But I know there is a better way to do all this. Today, Internet networking, e-networking, is quickly becoming the heart and soul of our industry.

Peter D. Weddle, a journalist for CareerJournal (www.careerjournal.com and www.weddles. com), wrote, “Networking has long been one of the pillars of successful recruiting. As one observer says, recruiting is a contact sport, and networking is one of the best ways to extend your range of contacts. Net-working is connecting with your peers and building relationships with them. Moreover, as its second syllable notes, network-ing involves work. The word is not ‘netplay’ or ‘netrelax.’ Effective networking is a lot like taking care of your health. Only you can do it, and you have to work at it every day.”

I participated on a panel for a leading manufacturer of health products. The subject was “Candidate Research.” Another panel member, Meredith Freeman, manager of Recruiting & Research, Willmott Talent Acquisition Solutions (email MeredithF@willmott.com), led a discussion on Internet net-working, candidate research, and candidate development.

To facilitate audience inter-action, Meredith distributed a workshop manual that she wrote. To give you an idea of what kind of training is available, read the table of contents for her manual:

1. Sources for Research
a. Telephone
b. ISP
c. Google
d. Directories
e. Alumni
f. Associations
g. Usergroups
h. Discussion groups
i. Web-based networking
j. Résumé databases
k. Outplacement firms
l. Blogs
m. SIC codes

2. Company Information/ Industry Information
a. Websites – company research
b. Job boards – research/ recruiting sites

3. Google Internet Sourcing Techniques
a. Basic language
b. Techniques/File type searches
c. Google Web alerts
d. Google University search option

4. Searching
a. Finding documents
b. Finding r̩sum̩s Рin title/in URL
c. Finding Excel spreadsheets
d. Finding Microsoft or PDF documents
e. Finding résumé books
f. Finding people
g. Finding information on people/companies
h. Finding email addresses
i. Finding alumni groups

5. AltaVista

6. Online Research Communities

7. Sourcer Training

8. Diversity Information
a. Fraternities and sororities
b. Associations
c. General diversity sites
d. African American websites
e. Hispanic websites

9. Niche Job Boards

The Benefits of E-networking

Let’s return to Peter Weddle. “The Internet, as the only networking venue that is available all the time, is a valuable networking resource. Networking online, or e-networking, is not limited by your location or the number of hours in a business day. Viable methods of e-networking include:

- Participating in verbal communities
- Corresponding with newsgroups
- Keeping up with fellow alumni at your alma mater’s website
- Building relationships with candidates whose résumés are archived in your organization’s database
- Maintaining contact with former employees through alumni database.”

This certainly beats hours and hours on the telephone talking to many people who are not remotely qualified for current and future positions. This type of network building doesn’t have to be done during duty hours in your office. You can usually get on the Internet anytime and anyplace you choose.

“Despite its advantages,” Weddle states, “e-networking is considered a waste of time by many recruiting organizations. They want recruiters to network the old-fashioned way – one-on-one over the telephone during business hours – and feel that the only recruiters who should be on the Web are Internet sourcing specialists, who typically have little work or recruiting experience and modest networking skills. But even though their use of the Web is encouraged, these specialists data-mine for résumés rather than build relationships with candidates and referrers, missing out on the opportunity to e-network.”

Networking Considerations

- Screen in network members. Be in play; networking can take place anywhere. Get names; pyramid your contacts.

- Networking brings opportunities. Network members open doors. Make networking a “win-win”; ask “How can I help you?”

- People want to share information; they want to help you.

E-networking considerations

- Good recruiters are always building lists of prospective candidates, or people who can lead them to these candidates in fields in which they specialize. Most build the lists before they need them. E-networking simplifies and expedites this list building.

- One of the critical factors for an e-network member is the trust relationship. You have to get and give trust.

- Remember: E-network members not only benefit from favors; they also have to do favors for others. You get to know e-network members and they get to know you; these are people you can email if you need something from them and people who can do the same with you.

- Emailing, the communication channel for e-networking, demands more than adequate writing skills. Sloppy or insensitive writing-communication skills lend themselves to short-term, probably spam relationships.

- The goal of e-networking is different from that of traditional networking. In e-networking your objective is to increase the number of people you know so that you will get in front of large groups of people.

Frank X. McCarthy is president of Diverse Workplace Inc. (www. diverseworkplace.com), a Massachusetts-based diversity recruiting firm. He was a Catholic priest from 1956 to 1970, working in parish and school assignments, serving as a paratrooper chaplain with the 101st Airborne, and as pastor and director of an African American community project in Paterson, New Jersey. In 1973, he founded Xavier Associates and conducted diversity searches for over 25 years. Frank is a well-known and widely respected author and speaker on workplace diversity, recruiting, and candidate research. He can be reached at frank@ diverseworkplace.com