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The Fordyce Letter

Straight Talk for the Recruiting Profession


Uncategorized

We’re Cheap When It Comes To Recruiters



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I got called by a company the other day. They were referred to me even though I have not recruited for a while. The guy said he was referred to me through a good mutual friend of mine. We talked for a little and he told me the kinds of people he needs and then warned me that they are very cheap with their third party recruiters. I said what do you mean cheap? He said that his company only pays 20% to recruiters. I said really, he said yup. I then asked him if they pay 20% for their executive level searches. He said of course not. I said of course you don’t.

Negotiating fees for searches is something that some recruiters are good at. Others, well, not so good. Everyone has their tactics and some work better than others. What has become clear to me though, having spent 15 years in the recruiting industry, is that everyone either tries to make a buck or to save a buck, just depends on what side of the line you sit on. It’s a great industry.

What about this one?

“(After the part where you seem pretty sure you can fill their position and the person you are talking to seems confident about it as well)

You: Our fee for this search will be 30% (or whatever it is you work at)

Them: (silence)

You: will that be a problem? Are you authorized to initiate this search with me at 30%?

Them: It may be. We have recruiters working for less.

You: Most companies do and I am more than happy to discuss this at a later date when you find yourself with this position still open.

Them: Maybe I can work with you at 25%. Would that be good?

You: I have a great idea. We have a policy in our office that when a recruiter is discussing a possible search with a potential client, no one in our office is authorized to recruit from that company. Since a recruiter can’t work with every company in a specific industry, a company is either a client or a source. Does that make sense?

Them: Ok. Let’s talk in two days.

You: Great. I’ll call you in two days.

 

Three good articles from the Fordyce Letter Archives:

How To Respond to “But Your Competitors Are Cheaper”

Creating Compelling Presentation

Three Questions For every New Client

Are you going to The Fordyce Forum In Las Vegas this June?

Industry News

Bonuses, Stock Options Boost Recruiters’ Pay



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Salaries in the third-party recruiting industry didn’t rise much in 2007, but stock options and equity ownership played a bigger part in overall compensation. Those are two of the findings in a research report from staffing-software maker Bullhorn.

In a field where commissions and bonuses make up a large part of a recruiter’s pay, it appears that some firms and agencies are turning to other, non-traditional forms of compensation. The move isn’t widespread yet, but it mirrors what’s happening in other industries.

“Bonuses and commissions are very pervasive within the industry,” says Joe Cordo, Bullhorn’s VP of marketing. “But if you look at other industries with a large number of professionals, the trend across the U.S. economy is toward variable-based compensation.”

Twenty-six percent of the 346 U.S. professionals responding to a Bullhorn survey last fall said their firms offer stock options or equity in addition to base salary. More than half (56.5 percent) said they receive an annual bonus.

It’s not surprising that some companies are spreading the wealth, Cordo says, because staffing and recruiting is doing well. “After the last recession, employment started growing again and a lot of veteran staffing professionals moved out on their own. They want to parlay what they’ve built into an exit strategy.” The report indicates that if equity is going to be offered, it is more likely at a midsize firm of 50 employees or less.

For some employees, variable compensation can compensate for smaller salary increases. Salaries in 2007 rose less than 5 percent from 2006 in most job categories, with the largest jump in the $100,000 to $149,000 bracket. Those making less than $75,000 comprised the biggest group (34 percent) of survey-takers and were more likely to get smaller increases.

“The overall trend seems to be flat over the past two years, partially a reflection of the economy,” Cordo says. He adds that 2006 was a “very good year” for the staffing industry while 2007 was “OK, not great,” starting with a slow first quarter.

Bonus expectations were guardedly optimistic, but in some cases appeared to be below those of a year ago. Thirty percent of those who receive an annual bonus said they would get less than $10,000 (down from 34 percent in 2006) and a third expected $10,000 to $29,000. The number saying they would get a bonus of more than $100,000 dropped to 10 percent from 11 percent from the previous survey.

Bonus amounts hinged most on company financial performance, the survey said. The next most-cited factor (by 37 percent) was the number of placements. Other measurements such as time to fill or placement ratios figured in less than 5 percent of the responses.

More than half were offered matching 401(k) plans (51 percent), and only 3 percent of companies offered it based on performance. Just 13 percent were offered pension plans. Twenty percent were offered profit sharing. A third of were offered tuition reimbursement.

The survey was based on responses from employees of temporary and permanent staffing agencies and contingency and retained search firms. Most worked at companies of less than 60 employees.

Uncategorized

Some Daily Reading



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One of the great things about making placements is that really, it is the same today as it was years ago. The client has a need, and you come along and fill it. Sure there are new tools but when it comes down to it, it hasn?t really changed.

What has changed from what I see is software companies coming along and trying to get rid of the inefficiencies? If you can be more efficient, you can charge less money right?….. (sarcastic laugh)

Here are a few links to some great Fordyce Letter Article from the past. Enjoy!

Myths And Other Fuzzy Thoughts

Three Steps To Raising Fees

FeePhobia

Stop Kidding Yourself ? The Numbers Matter

Uncategorized

You Are Probably Underpaid



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A problem exists in the Recruiting Industry. The problem is that not all recruiters feel that the fee they charge is justified. The truth is though; their fee should probably be more. There are lots of recruiters out there working less than 25% fees. This is what today’s post is about.

I mean, you write an order, you do the work, sometimes you did the work last year so the groundwork is done, then you send the invoice and you get paid. This I think is one of the biggest problems since most people involved, the client and lots of times the recruiter, think they are paying for the candidate instead of the process. If you leave out the process bit of it, it is easy to see why one may think that a 25% fee is too much.

I often talk to recruiters who tell me that they are amazed at the fees their clients agree to pay and that they have no confidence that these fees will continue. Then there are those recruiters who spend a good portion of their time negotiating and carefully choosing their searches, not just based on the fact the search is available, but rather because everyone involved appreciated the collective effort of finding the right person and the cost is secondary.

Paul Hawkinson has an article that appeared in the Fordyce Letter a few years ago and it’s a good one. It’s called Why Recruiters Are Worth What They Charge. If you read it and understand it to the point that you can talk about it convincingly, You can incorporate it into your discussions with potential and existing clients.

You know sometimes, there is nothing quite as nice as making a decision half way through a sales pitch that you are not going to take the search even though you know you are going to get the option to do the search.

Truth, Justice and the American Way of Headhunting

Short post for an obvious reason…



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Maybe it’s just me…It sure seems like everyone came back from the holiday vacation and found a memo that said “Ok, go spend your budget money”. I know things are heating up when I find myself not even having time to finish my sandwich at my desk in mid-afternoon. It’s almost like Y2K all over again…Phone’s ringin’…

Uncategorized

Welcome To The Fordyce Letter Blog



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Welcome to the first post of the Fordyce Letter Blog. I am excited and feel somewhat lucky to be the guy who was asked to put this all together. I have been a fan of the Fordyce Letter and the recruiting industry for a long time now. It’s an industry with no limits and the Fordyce Letter for those who receive it every month, know that there are plenty of real smart people pushing it’s knowledge base all of the time.

About a year ago, ERE media purchased the Fordyce Letter from Paul Hawkinson. It was a great transaction for everyone involved. The idea behind it was a simple one. Paul had been at it a long time and ERE media, one may say is just getting started. ERE media is one of the largest online and offline recruiting media companies out there. They publish a ton of great information and put on a number of well respected recruiting conferences each year. There are about 130,000 people in the recruiting industry who have an account with ERE. That’s a lot of people!

The Fordyce Letter for a long time has really been just a monthly newsletter going out to about 2000 people. I remember being amazed by this but this is exactly why an organization like ERE is the perfect organization to take the Fordyce Letter organization forward. It’s important to know that Paul also said that for every newletter shipped, there are around 4 or 5 others that read it as well. It’s my hope that as a result of the powerful marketing engine that ERE has, the amount of recruiters who will come to know the Fordyce Letter will increase dramatically. The more people with access, the more placements made. 2008 is going to be a great year.

So, what you are looking at here, located at www.fordyceletter.com, is a blog. The term blog has been around for many years now and really, a blog is an online page where one writes more often on it than a regular “website.” Of course there is more to it, but for now, we can leave it at that. I will write often about the benefits of recruiters and recruiting organizations having a blog. It’s a subject I know about and I have seen the benefits. Every day, there will be a new post on the Fordyce Letter Blog, and you the reader will be able to comment and make your own ideas known.

We have archived three years of the Fordyce Letter and all of it is available to you at no charge here on the site. The archived years are 2003, 2004, 2005. The archives contain so much valuable information that I suspect it is more than what is needed to make a living in this industry. Of course, there are multiple tiers to almost everything and when I visited with the recruiters in the Pinnacle Society, most of them have been subscribing for a lot more than 3 years. It kind of tells you something.

One more thing, because it is the new year, have a look at this from 2004. It’s still the same.

Until tomorrow.

TFL archives

Internet Recruiting



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Tips Galore

With the holiday past and not a lot of free time at this time of year, I am offering my annual column of tips from about the last 14 months or so. Enjoy . . .

TIP – Job Leads

I have recently given a couple of classes on finding job leads on the Internet. Thankfully, due to some great Internet resources, this activity is not nearly as technically oriented or time consuming as finding résumés. Although you can use Google or other search engines to locate job leads, it is not very productive compared to other methods. There are a number of FREE sites available to all of us called job aggregators that cull job leads from company websites, national career boards, niche sites, university and government sites, agency sites, free job sites, and other places as well. A few of the larger and well-known sites are:

Indeed – www.indeed.com
SimplyHired – www.simplyhired.com
Jobster – www.jobster.com
GoogleBase – www.googlebase.com (click on Jobs link)
The Ladders – www.theladders.com

Just to name a very few. Aside from being free, these sites are very simple to use. Usually, you just type in a job title or other keywords and a location if applicable, click the search button, and you are presented with a search engine style results queue with clickable results that take you to the actual job posting. Most of the services offer additional filters for further screening and an advanced search page. Next time you have that perfect candidate and no job order, give one or more of these sites a try.

TIP – Resume Advance

I have written before about résumé distribution services and will again in the future, I am sure. These are normally free for recruiters, and they charge the candidate to distribute their résumé to thousands of recruiters across the country. Resume Advance is a service I just recently learned about. You can visit their website at www.resumeadvance.com, sign up for free, and then select whatever criteria you wish in order to start receiving free résumés. There is also a more comprehensive list of free résumé distribution services on my website at www.swatrecruiting.com.

TIP – Define

The tip this month is an easy one but one that everyone can make use of from time to time. The “define” command is used to find out the meaning/definition of a term or acronym. Go to Google at www.google.com and type in:

define:MVS

You will be presented with a page with links to numerous Web pages with a definition of the computer operating system MVS. Substitute for MVS the acronym or other word of your choice, and you can have any definition you need at any time.

TIP – Invisible Web – aka Deep Web

I am asked about this all the time. Most of you know that the traditional Internet search engines search for Web pages. That is great when we are looking for Web pages, but what if we are looking for specialized Web-based databases that contain information we can use? This requires the use of specialized search engines that do a great job of navigating the portion of the Internet not accessible from the standard search engines. Here are a few Web-based tools you can use to look for whatever you like.

http://oaister.umdl.umich.edu/o/oaister/ – A project by the University of Michigan that is mainly for academically oriented resources.

http://www.findarticles.com/ – An excellent collection of over 10 million articles on almost every topic you can think of.

http://www.libraryspot.com/ – List, lists, and more lists.

http://www.firstgov.gov/ – The U.S. government’s official Web portal. More information than you could ever think about using. State government info as well.

http://www2.library.ucla.edu/search/eresources.cfm – A proprietary Web database from UCLA. Much information not found anywhere else.

This is only the tip of the iceberg. For more information about the invisible Web, there is a wonderful resource available at About.com. Try:

websearch.about.com/od/invisibleweb/a/invisibleweb.htm

You might be surprised at what you can find at some of these sites.

TIP – Keyboard Tip

If you ever have the need to utilize international currency symbols but do not have the symbols on your keyboard, here are some shortcuts for you.

Hold down the Alt key, then use the numeric keypad to enter:

0128 for Euros (€)
0163 for pounds (£)
0165 for yen (Â¥)

Then release the Alt key and your character appears.

TIP – Passive Candidates from Active Candidate Boards

I know that many of you are using the major résumé/job-posting boards for candidates. Although it is not paying off as much as it once was, I think it remains a legitimate part of the candidate sourcing process for most of us. Here is one way to extract passive candidates from these services. Use the keyword “references.” Many candidates list references down at the bottom of their résumé. Often these are managers or coworkers who have the same basic skill set as the active candidate in question. To find passive candidates with Java skills, simply type into the search box:

java references

You will get résumés of active candidates with Java on the résumé, but you will also get those résumés that have a list of references at the bottom of the document. Call these people to pitch your opportunity. This is not foolproof, as many candidates also have the phrase “references on request” or something similar and you will pick up those résumés as well, but you may as well make the best use of these pricey services and get as much out of them as you can.

TIP – Bookmarklets.com

For this tip, I am going to steal a tip from a class by Lisa at AIRS. Throughout the day we were given tidbits of information not actually part of the class outline that could be of help to us all. One of the sites mentioned was Bookmarklets.com. This is a site with what they call “power tools for surfing.” These bookmarklets are mini programs that you can use to extract specialized data from a Web page (such as when it was posted), navigate pages in new ways, modify page views, and really too many to mention. Best just to visit this site and see what would work for you. There are over 150 bookmarklets on this site, and they are all free to use. Visit www.bookmarklets.com.

TIP – Nanpa.com

Many times when we are searching for résumés on the Internet in a specific geographic region, we use area codes as keywords. For example, if I were searching for résumés in the St. Louis area, part of my search string might be (missouri OR MO) (314 OR 636) plus other résumé words and keywords. When I started in recruiting, I could almost name the area code for every area, as there just weren’t that many. Nowadays, that task is impossible. There is a site for NANPA, which is the North American Numbering Plan Administration, where you can go and look up the area codes for anywhere you like. It is simply www.nanpa.com. Keep this address in your favorites and use it whenever you need to.

TIP – Find Résumés on Live.com

I thought I would steal a tip from Shally’s Live.com Cheat Sheet. It is easy to locate the résumés of passive candidates on this search engine if you know what you are doing.

Go to www.live.com and type into the text box:

inbody:present inbody:resume java developer -job -jobs -send -submit -you

Most résumés contain the phrase “xxx to present.” Knowing this, I ran the search and got back over 11,000 results. I am sure not every one of those was a résumé, but many were. To cull out more relevant résumé documents, we would add some additional keywords relating to the skills of our assignment, and also maybe put in some keywords reflecting a geographic area (city, state).

Give this a try. Just copy the string above and then substitute my Java and Developer keywords for the keywords from your assignment. Thanks to Shally for this tip.

TIP – *@ Search

This search has at least a couple of solid uses. One might be when you are looking for an email address when targeting a particular employer. In the search engine of your choice, type in:

*@oracle.com oracle design java

In place of the oracle.com, substitute whatever company you would like to target, and also replace my keywords with those more useful for your search. This technique is also helpful if you want to locate the home email addresses of passive candidates. Messages to these addresses are unlikely to be held up or deleted in a corporate spam or junk mail filter. Basically the same but use:

(*@gmail.com OR *@aol.com OR *@comcast.net) oracle design java

Or you can use any common email address you can think of. Others might include yahoo, hotmail, or any of the other email address providers.

TIP – Melissa Data

This is a site that offers many free lookups that we can all use in our daily recruiting and/or sourcing duties. They offer lookups for Zip Codes (by county and city), Telephone Numbers, Addresses, IP Location, SIC Codes (including counts of businesses based on type or SIC code by state), Radius Searches (including zip and area codes), and much more. They do have some fee-based services of course, but most of the lookups are free of charge. I often use them to look up zip codes when trying to source candidates in a specific geographic area. Visit the Lookup page of this site by going to http://www.melissadata.com/lookups/index.htm.

TIP – SearchAllInOne.com

Here is an interesting site that basically is an interface to literally dozens of search engines, many that I am sure you have never heard of. I know I hadn’t. Of course they offer access to all the big search engines, but also allow all-in-one access to many specialized search engines for sports, news, science, encyclopedias, government, financial, education, meta search engines, and directories (which are compiled by humans, not spiders). If you need an answer to almost any question in any category, visit this site. In this case, it is true that a picture (website) is worth a thousand words. Take a look at http://www.searchallinone.com/search.html.

TIP – from Shally

I thought it might be appropriate to steal another tip from Shally’s book for this tip. There are so many in there, I am hoping no one will mind my offering this one to the masses. In his section titled “Results in Ten Minutes or Less,” Shally offers many examples of search strings for different types of passive candidates. Here is one of his tips for sales recruiters:

contact sales.manager IKON 770

In the example above, he is looking for sales managers (the dot between sales and manager forces the search engine to look for that exact phrase) from the IKON office-supply company. The 770 is to find people in the Chicago area. He also uses the contact keyword in hopes that the names he garners will have some way to contact the person on the page. To use this in your office, simply swap out the company and the area code and use other keywords that suit your needs.

TIP – MySpace.com

Unless you live in a cave, you have probably heard about the social networking site MySpace. Its membership is now in the tens of millions and growing by millions each month. There is a common misconception that MySpace is the exclusive domain of teenagers. It makes sense to think that, as most of the time when you hear about MySpace, it is in the context of younger people. I have three young children who are all members, but so am I. Actually, you might be surprised to know that the average age of a user is mid-thirties. It is fast becoming a great way to get leads for passive candidates on the Internet. Although you can go directly to the MySpace website and search the membership from there, we have better luck using one of the lesser-known search engine techniques – the “site” search method. Try this:

Go to www.google.com (or any other search engine that supports the site).
Type in: site:www.myspace.com “graphic artist”.
Click the search button.

I got over 3,000 results using the string above. Not résumés, but profiles of people of all ages, many who were graphic artists. Since that is a lot of hits to go through, to pare down the results, I would maybe add some other skills keywords to the string or even some geography keywords to find people in a specific locale.

Do try this in your office. Simply replace the “graphic artist” with keywords of your choice. Be sure to use the quote marks if you are using a keyword phrase and omit them for individual keywords.

Mark E. Berger, CPC, AIRS CIR, has been in recruiting since 1979. He is currently a partner in Ramsey Fox, Inc., an IT services firm, and has been there and at its predecessor, M. E. Berger & Associates, since 1986. He has been heavily involved in Internet recruiting and is an expert on recruiting and sourcing products, services available on the Internet, and how these products add to the bottom line. Mark’s interests include successfully integrating both computer and Internet recruiting technology into a traditional recruiting environment. He has taken AIRS I and II training and has obtained the AIRS CIR designation. Mark is also on the board of directors for the Missouri Association of Personnel Services. He can be reached at mark@ramseyfox.com. His website is www.swatrecruiting.com, and we recommend that you visit it to see archives of his articles and information offerings exclusively for recruiters.

TFL archives

Recruiting Recruiters



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As our survey shows, practitioners are beginning to again restaff. As hiring becomes the order of the day for many, we thought we would reprise this article. It is as applicable today as when it was first published.

If ever there was a key ingredient to the success of any placement or search organization, it has to be in the quality and caliber of the people on the “front line” . . . the consultant, counselor, account executive, recruiter . . . or whatever you choose to call these people.

Yet, surprisingly enough, far too many recruiting firms let this area grow fallow by sheer default.

As one manager told us, “Listen, it’s hard enough to get someone to work a desk as it is, much less having the option to pick and choose who I’m going to hire. I’ll give almost anyone a chance.” And his success in keeping turnover low was reflected perfectly in the fact that his firm uses “desk names” rather than “real people names.”

His philosophy was simple! “If they haven’t been placed within two weeks or if they are desperate for a place to spend their days, I give them a desk and a phone and tell them to have at it. Who knows,” he sighed, “they’ll at least stir up some dust, may make a placement, and might even wind up finding themselves a job for which I can collect a fee.”

This, of course, is absurd. If we ever heard a more fallacious reason for letting someone represent an organization with its customers and clients, we can’t recall it. But the glaring reality is that it is often true and frequently denied.

No one likes to see an empty desk, cubicle, or office . . . but in the majority of cases, an empty desk is better than filling one with the wrong person. While an unfilled consultant opening is a drag on profits (since you still have to pay nominal expenses to maintain the empty desk, phone, etc.), it is insignificant when compared with the profit-dampening mischief that can be caused by an incompetent or inept inhabitant.

Let’s face it, a consultant is primarily a seller . . . but unlike the salesperson who can face a buyer with a product, having the assurance that their product won’t change, consultants deal with a host of intangibles, very few of which can they ultimately or totally control. Ours is a “people” business . . . and people talk . . . many times saying exactly the wrong things. No matter how well “coached” a candidate is about a particular company or the opportunity they offer, they have a penchant for saying “the wrong thing at the wrong time.” Think how happy (and wealthy) we’d all be if every candidate (or employer) followed the script as we envision it every time we sent a candidate to be interviewed by a potential employer.

Consultants must, by the very nature of their “product,” be a major cut above the average peddler. They must be creative, blessed with an overabundance of empathy, enjoy those better things in life that money can buy, be reasonably intelligent with good verbal skills (able to paint word pictures), be bold and unafraid of failure, be familiar with the business world and its needs, possess emotional stability, be sensitive to the needs of others, and have what one manager calls “true grit.”

“I look for the semi-controllable maverick who not only walks on water, but carries his own lake with him just so he can prove it whenever the need arises,” according to one owner whose average consultant tenure is six years. His philosophy: Hire the best and place the rest!

Not one of his consultants came from an ad seeking consultants. Although he admitted running such ads from time to time, since it permitted him to place the ad (always sales oriented) into the Help Wanted section of the paper rather than buried in the “Employment Agency” section, the only thing these ads brought him was increased traffic for placement purposes.

“The unique qualities I seek,” he continued, “are not usually available in the type of person who answers my ads.” Four of his people are ex-employer/client personnel. “After working with them as customers and watching them in action, I knew I wanted them on my side. The courtship, in one case, took 15 months . . . but it was worth it to us both. Twenty years ago, when I first got into this business, I’d hire them if they were breathing and available, but no more. You get to recognize a certain ‘glint in their eye and an enthusiastic spring in their step’ when you meet the potential winner.”

Probably one of the most difficult tasks in recruiting recruiters is to define exactly what must be done to become a success. The average person thinks of the job in one of two ways: either just a matter of putting candidates and jobs together; or as a day-in and day-out telephone hustler trying to talk one person into hiring another. Misconception about the placement and search business is widespread among those who have not had firsthand experience or exposure. And surprisingly, many managers, whose job it is to screen people for others, find it almost impossible to screen for themselves.

Once you’ve decided to pursue a particular individual, you must have a well-ordered and persuasive presentation about the business you’re in and, where necessary, the specialty you handle. Don’t assume that your candidate knows either your company or about the business in general. Do assume that you’ll have to begin at the beginning with your presentation . . . because no matter what your candidate tells you, you can be certain that they are laboring under many misconceptions.

They’ll want to know how long you’ve been in business, how many offices or branches you have, your network affiliations, how many people you employ (along with success stories), your prestige clients, your approximate dollar volume, your future plans, your benefits, a realistic recitation of the income possibilities for them, your training program, your reputation (among both clients and competitors), and why you are currently seeking to hire them. You must excite them.

Now that you’ve told your side of the business, taken your candidate’s temperature, and concluded that there is a mutual interest, it’s time to dig a little deeper into their background.

Be a little negative. Remember, you’re interviewing for a job where the right man or woman can (and should) make between $80,000 and $200,000. Make them come to you. Let them try to convince you to hire them. If you’ve done a proper presentation of the opportunity, they’ll do just that.

Sit back in your chair. Relax. Be comfortable. When you ask them a question, really ask it. Don’t be mechanical. Make notes while they’re talking. Use such things as:

- Uh-huhs.
- Good.
- I see.
- How do you mean that?
- Why do you feel that way?
- Tell me more about that.
- What makes you say that?
- Anything else?
- Give me an example.

You’ll find that by properly directing this initial personal interview phase, not only will you acquire the type of information you need, but you also maintain the control necessary to make the decision seem to be yours . . . rather than theirs.

After candidates have “passed” this initial interviewing session, many managers use one of the many commercially available aptitude tests as a bridge to the next step. Make sure, however, it is one that can be completed by the potential consultant at home. Also be sure that you can grade and evaluate the test yourself, without having to utilize an outside firm to get the results.

Not only does this provide you with one more step in the “negative” selling process, but it is also a useful tool in determining “real” interest in the job you have to offer. This is judged by the speed with which they complete the test and return it to you. Some may even ask if they can complete it in the office. Others will complete it and hand-carry it in the next morning, mail it “Express Mail,” etc. If they do any of the above, you’ve got yourself a “hot prospect.”

But . . . never grade the test while they are in your office. Rather, it is far better to tell them that it must be sent elsewhere for grading and evaluation, once again because of the negative selling impact.

We are not suggesting a test merely as a “device” in your hiring process. It should be selected because of its prospective ability to evaluate sales ability and those unique personality traits that are indigenous to our business. Although the results are of secondary interest, the type of test selected should convince the test taker that it is being given for a valid reason.

We have also found that managers with staffs having longer than average tenure tend to utilize some form of telephone test somewhere in their selection phase. Since the phone is such an integral part of the business, it strikes us as elementary to test a candidate’s ability to use and effectively communicate with the major “tool of the trade.”

The most effective telephone tests seem to be those in which the candidate is given the application of a fictitious job-seeker. He should role-play over a phone, attempting to arrange for an interview with the role-playing employer (you). How well candidates are able to identify and accentuate the positive, field objections (thrown in by you), and generally handle an effective sales presentation on a telephone can tell you a lot about their success potential.

“It’s easy to say that telephone selling isn’t frightening,” related one manager, “but I’ve seen real pros freeze up when they have to perform via Ma Bell. Before I started giving telephone tests to prospective consultants, I found that a number of them, who I thought loved the telephone, were spending six hours a day calling Time & Temperature and Dial-A-Prayer after I hired them.”

Once you have gone through the preliminaries, and you’ve decided this is your next superstar, it’s time for the final hiring interview. Although much depends on the rapport that you’ve built during the prelims, we still recommend that you have your secretary, receptionist, or another employee call the candidate and schedule the final chat.

Even though you will have already answered the majority of the candidate’s questions, you’ll find that this last session will be the time when they’ll ask those “nitty-gritty” ones that they hadn’t the courage nor the desire to ask during the “Gee, I wish you’d hire me” phase.

There is only one way to treat a potential consultant’s questions during this phase – TOTAL HONESTY.

As in any hiring situation, a certain amount of “romance” is necessary, but you do neither of you a favor by not, at this point, letting your candidate know exactly what he can expect . . . in terms of your training program and, afterwards, during the first couple of weeks on the desk.

Those first few weeks can be devastating to a person who is used to instant results, and you must prepare and program them for what to expect.

Of course, the ideal situation is to have the consultant start immediately . . . but in many cases, they must give notice, and this period is crucial to maintaining their interest in joining your organization.

Many managers, in order to stress the importance of sticking by the decision to join their firms, make a “big thing” of the amount of work and preparation the manager must do to define the new employee’s area of activity, the research that he must do to make sure there is as little downtime as possible before getting the consultant productive and in making other preparations for the rapid assimilation of the new consultant in the organization. Telling them that news releases and publicity will be prepared and released, having them complete the necessary tax forms NOW, etc., go far toward making new employees feel as though they are already a part of the firm and lessen the chances of their “backing out” after telling their boss they intend to leave for a new job.

A word of caution is in order. Successful people in our business come in all sizes, shapes, and personalities. Do NOT try to hire a mirror image of yourself or of some of your best producers. True, there is a definite “success” profile for these people, but they can certainly be packaged differently.

When this writer first entered the recruiting business in the late 1950s, he was given an applicant, a desk, a phone, and the Yellow Pages. The extent of the training period was as long as it took to say, “Find him a job.” Although it worked, it is not recommended procedure.

The first few weeks must be highly structured and will dominate your time unless you’re one of the very few who enjoy spending their time continually restaffing your organization.

Seal your deal with a handshake, follow it up with a “kiss” letter to the new employee (and his wife), and make very sure that, from the very first day, they get the guidance and understanding they’ll need to “make it big” in the business. It’s well worth it. As Euripides once wrote, “A bad beginning makes a bad ending.”

TFL archives

Leverage Your Power: Set Healthy Goals, Hire a Great Coach!



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So here it is, New Year of 2008, and I am reflecting on what a fabulous year I had, everything I accomplished, what I learned, and how I have grown.

Wouldn’t that be a pretty incredible way to start the year, already visualizing what you intended on accomplishing already happening?

A few years ago I was introduced to a goal-setting format called the “Best Year Yet” that, along with the work I have done with Jack Canfield and the law of attraction, has really given me access to setting clear goals and defining a strategy to get there. Another key was taking responsibility for who I am in the matter of being accountable to myself and to my goals.

A fundamental aspect to being accountable for achieving my goals is aligning myself with a coach who can deal with the “Magi” in me as well as the “Margaret” in me. There is this fun, crazy side that if someone calls and the opportunity sounds good enough, I am in, even if it is a Monday. And then there is this part of me that is the “don’t mess with me – I am working.” I suppose my greatest challenge is finding the medium between the high I (fun and creative side) and the high D (dominant and intense side).

In creating what is next for you, it is a good idea to complete what was last for you – what worked, what didn’t. Doing this exercise and being 100% responsible for what you accomplished and what you didn’t will allow you to experience freedom, joy, and power.

For me, 2007 was a year when I had too many goals, of too much magnitude, and my reaction to attaining those goals had me flailing more than sailing through my 43rd year. Lesson 1 learned.

Not having a coach who was on board with my goals and who was checking in with me on the attainment of those goals is my Lesson 2. I chose a coach who would help me access things other than business goals, and in the process, I allowed myself to get sidetracked.

Lesson 3 – Create a purpose worth giving your life for. Through thick and thin, and there has been a lot of both this year, it is my core purpose that has continued to ground me during those tough times.

Work, play, lead, and follow with authentic shared values. Lesson 4 – Surround yourself with people who share your core values. Every time I have compromised myself and what is important to me, the consequences have been disastrous.

Whether it is hiring that one person whom I shouldn’t have, giving someone far too many extra chances after they have already proven they cannot do the job, waiving a process for that perfect candidate, or not holding my ground for the retainer I wanted, or even going on a third date when one was surely enough, it always comes back to me in the form of a wakeup call to bring me back to who I really am and what is really important to me.

To be great in the recruiting business or even good, we have to have a solid combination of instinct and logic, and on those tough days when nothing seems to be going right, it is easy to enter into the gruesome world of self-doubt. Lesson 5 for me is to stay home on those days, make no important decisions, and get coaching immediately. After 22 years in this business, consistently earning at the top of my game, I find that what my common sense and instinct tells me is usually right, and I know that compromising either just doesn’t work.

My lessons are my lessons. What are yours? Take a day, half a day at least, and mentally complete 2007. Acknowledge what worked, and have a martini to celebrate; acknowledge what didn’t work, and deal with why and share that with the person in the mirror or your coach, your therapist, or Mom. Then set a theme for the year. What will you say about the year when it is complete? What will you be celebrating on December 31, 2008? Next, set a theme for each area of life that is important to you: firm, fitness, family, friends, finances, etc., then set one or two goals in each of those areas. Next, set in advance a structure for accountability, because a goal with no status checkpoint is simply a pipe dream. Last, find a coach whom you trust and respect, and who shares your values, and then be vulnerable enough to hear them when they coach you.

Here is to a wonderful 2008.

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 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@alliancehrnetwork.com, and her phone number is (847) 690-0077. The strategic planning forms are listed under a Strategic Planning Downloads section at http://www.alliancehrnetwork.com/employers/industry_training.asp.

TFL archives

When times are good, bad people are bad



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It’s 8 o’clock on Saturday morning, and a man carrying two suitcases walks jauntily into the lobby of an office building. He approaches the security desk and presents his credentials to the watchman on duty, and signs the register to go to his office. The watchman issues a pass, and the man, swinging the suitcases lightly, enters the elevator.

At 4 o’clock in the afternoon the doors to the elevator open in the building lobby, where the same watchman is still on duty. The man who had signed in that morning emerges carrying the two suitcases, his shoulders sagging. He walks slowly to the security desk and with a deep sigh, he sets the suitcases down and signs the register, noting his departure time in the appropriate column.

On the following Monday he arrives at the office and tells his employer that he is quitting. He says that he is going to go first on a long-deserved vacation and then back to his original occupation, as he has tired of recruiting.

The following Sunday an advertisement appears in the classified section of the newspaper announcing the opening of his new recruiting office. And on Monday he is on the telephone calling clients and candidates with whom he had contact in his previous employment.

At the hearing for a preliminary injunction, the watchman testifies that he observed the man enter in the morning, swinging the suitcases easily, and then leave in the evening, struggling with what were apparently full suitcases. The court inferred that the man had taken copies of résumés and carried them out in the two suitcases. The preliminary injunction against their use was granted.

Leaving a Trail

Across town, three people gather together and decide to leave their employer and go into a competing recruiting business. They wait for the Christmas holiday, while their boss is out of town, and give notice that they are quitting. They set up shop and start calling candidates and companies with whom they did business while working for their previous employer. They place a candidate with whom they previously worked, with a company that just gave their previous employer the same job order.

The previous employer sues for the fee that the three employees collected, and at the trial, the employees testify that they did not take any files or résumés when they left their prior employment. When queried as to how they came to call candidates with whom they had dealt, they say that they remembered their telephone numbers and that they were friends.

The court awards the fee to their previous employer. They stop making calls to candidates they knew of from that prior employment.

A Farewell Message

It was the night before Christmas, so the poem goes, and all is quiet throughout the house. The same is true at the office of the recruiter who has already given notice that he is leaving at the end of the week just before Christmas. When all of his fellow employees are gone, he enters his password into the computer and accesses the list of candidates with whom he has been working for the last couple of years, 400 in all. All he does is copy their email addresses, nothing more, and makes a printout. It takes about an hour.

In January, at his new employment he emails all of these candidates, telling them where he is now located. He calls one candidate in particular to discuss a potential new job at a company with whom the recruiter did business while at his old employment and knew about from that time. The placement is made and his new employer collects a six-figure fee.

When the old employer learns of that, a lawsuit is filed against the new employer and the former employee. When the computer is checked, a special program provides exact information of when the employee accessed it, how long he was on it, and precisely what he downloaded and printed. The case was settled before trial.

Trade Secrets: Are They Secret?

These three stories are true legal cases, three of many more that could be told about in this article. They are typical of what has been happening in the recruiting profession from time immemorial. And it is likely this will continue as new people enter into the occupation and then decide to strike out on their own, using confidential information that they acquired while employed. They will then take all or part of a database full of résumés of potential candidates that have been identified as such at great expense and time. And taking the information is easier today than ever before because of the use of the computer and the storing of information in a format that is so easily accessible and transferable.

A long time ago (and sometimes even today), depending on where you are in the country, courts did not understand recruiting, and why the information about candidates for employment represented an important asset of the recruiting company, and that it was not otherwise available in any public documents or source. But today, enough case law has developed that clearly confirms that the information gathered by recruiters about potential candidates for employment constitutes confidential information and therefore is a trade secret deserving of protection by the courts against improper taking by an employee.

Close the Barn Door Now

Recruiting-company employers have displayed a tendency over the years to not take precautions to protect the most valuable asset that they possess: the database of identified candidates. Enormous amounts of time and energy, and certainly money, have been invested in creating this enormous stockpile of information that is not otherwise available to anyone else from public sources.

While you have to depend on the honesty and integrity of recruiters not to take what is not theirs when they leave to compete, whether on their own or with another employer, it is prudent to put certain systems in place so as to at least be able to demonstrate to a court what has been taken, by whom, and when. In the days when we did not have computers and all records were paper, we depended on having résumés and making copies when needed. Copying machines were the first electronic advance that made a difference in recruiting. The fax machine was next; then came the computer.

One way of checking up on whether an unusual number of copies were made at any one time was to check the counter at night, when the office was closed, and again in the morning to see what use may have been made in the interim. Then find out who stayed late the night before. Today we do not have to do that; computers can be programmed to give exact information of their use at any time. Not to take advantage of that ability is foolhardy, given what is at stake. In some states, if a password is required to access a computer, it constitutes a crime to do so without permission or authority.

Is a Trade Secret, Secret?

There are two elements to a trade secret that make it a trade secret: the information is not generally available, and the information is treated as secret. In the case of the database of identified candidates, the first element is satisfied by the fact that there is no other such list available to the public. The second element is provided by treating it as a secret. To do so, access must be limited to only those who must use it in their daily employment activity. In addition, and most important, it needs to be made clear to all employees that the information is a trade secret and it must be maintained as such; that its use otherwise would be a violation of the employee’s fiduciary responsibility; and that any violation of its integrity will be met by legal action to restrain its unlawful use.

In some states, where restrictive covenants against unfair competition by former employees are enforceable, contracts with such a provision are utilized. But in all states, the common law of an employee’s fiduciary obligation of good faith to act with honesty and loyalty to one’s employer can be used to enforce protection of an employer’s trade secrets. In fact, even where restrictive covenants are used, their enforcement is predicated on protecting a trade secret that could not otherwise be protected. Enforcing the fiduciary responsibility can do the same.

Conclusion

1. Make it clear to all employees that the database of identified candidates constitutes a trade secret.
2. Restrict access to the database to only those who use it in the course of their employment.
3. Require a password for access and limit remote access.
4. Insert a program that identifies all users of the database, when and for what purpose, with a permanent record of all such activity. Make sure that any deletions are retained in the backup.
5. Keep the barn door closed.

Note: This article is not intended as legal advice. In all instances the reader is cautioned to consult with legal counsel when utilizing this information. A.B.F.

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A. Bernard Frechtman, Esq., is the author of “Staffing Industry Law: A Guide for the Personnel Professional.” He can be reached at (212) 580 7402, via email at abflaw@att.net, or on his Web page: http://www.frechtman.com.