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The Fordyce Letter

Straight Talk for the Recruiting Profession


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Tactical Approaches to Close More Relocation Deals, Part 2



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Yesterday’s article shared how relocation has become something of a nightmare for many recruiters. Countless recruiters are having fall-offs very late in the placement due to relocation issues that they thought were already addressed. In fact, several recruiters and clients are swearing off relocation altogether. Today, in part 2, we’ll discuss more ways to handle common relocation objections.

The telephone interview went well and your candidate is preparing for their face-to-face interview. Now is the time that most objections not previously rearing their ugly head come up out of nowhere.

If you have not given them information about the area, do it now! If you have not talked with the spouse, do it now! If you have not set the appropriate relocation expectations with your candidate, do it now! If you have a relocation professional helping, get them involved to help with these steps. Remain in as much control of the process as possible.

If your candidate will have to sell a home, find out what the market is like in their area. Don’t let them rely on the neighbor-down-the-street scenario; the real estate market is changing so fast that appraisals are being thrown out after two months. There are free tools on the Internet to help in determining your candidates housing situation simply from an address. Do it yourself and deliver the information to them if you are concerned about them getting this done on their own. This gives you one more reason to contact them and keeps you in control of process flow.

Giving your candidate homework like talking to a real estate agent about selling their house without you can backfire. They may procrastinate or just not do it at all and tell you they have. It is better to find out that they cannot sell now then when you are sitting on an offer and you have just wasted your time and your client’s money.

Look for common relocation objections that can and very often will cause a deal to fall apart. Selling their home, finding a new one in a “good” neighborhood, schools for the children, and leaving family or friends.

The Employee Relocation Council recently released a survey showing that 41% of relocating employees are reluctant to relocate due to family resistance to the relocation. Dig deeper and find out if there are special family circumstances such as a high school football star who needs a special program, home-schooled children, a stay-at-home mother. These types of objections do not always hinder a relocation, but if the perception is that they cannot live in the new area in the same way they are accustomed to, they will get in the way. This can cause extended offer acceptance periods, and even worse, a kill the deal.

If your client has not determined the exact relocation benefits for the position, start addressing what the candidate may need to help them with. Find out what your candidate will need and start formatting amounts for the negotiation. Get a quick quote on the move. Find out the costs of temporary living, get trend information on what should be covered for that particular level of hire.

If you are requesting $30,000, show line-by-line what it will be covering and how much each line item will cost. This way you have the data, you aren’t scrambling for it, and can justify your request when your client is ready to write the offer.

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Tactical Approaches to Close More Relocation Deals, Part 1



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Relocation has become something of a nightmare for many recruiters.

The details, the whining, the demands, the questions, and the art of the negotiations can be overwhelming. Countless recruiters are having fall-offs very late in the placement due to relocation issues that they thought were already addressed. In fact, several recruiters and clients are swearing off relocation altogether.

But is that the best approach?

In this menacing economy, it is critical for your clients to attract top talent to achieve growth. Clients who once considered dropping relocation are now leaning on recruiters to take care of the leg-work involved in getting a candidate to sign on the relocation dotted line.

So where do you start? How do you proceed? Where can you get information?

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Your Criteria For Accepting Business



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What criteria must be met before you consider accepting business from a client?

In today’s uncertain economy, accepting business that has not been properly measured against an established set of realistic criteria is inviting a misappropriation of your firm’s limited resources.

Remember…

Most firms do not suffer from an absence of resources; rather, they suffer from a lack of focus for those resources.

As I’ve said in the past, “every company, in order to be successful, must have in place a set of criteria against which they judge the business opportunities that are available to them.”

Only in this manner can they properly focus their resources. Experienced business professionals understand this reality. As staffing industry professionals, we should as well.

Therefore, consider using the following criteria as a guide for doing business with your clients.

  1. Measure the client’s sense of urgency about receiving the staffing solutions you can provide. This is the most important criteria because typically, the higher the client’s sense of urgency, the higher their level of cooperation and flexibility.
  2. Measure the value the client places on the staffing solutions that can be provided by your firm. This has a direct impact on your fees and/or bill rates. The cost of your service is always linked in the client’s mind to their estimation of the value received (whether perceived or real).
  3. Determine whether or not you will be working with the client’s key decision makers and measure the decision maker’s attitude about receiving your services. While a positive attitude on the part of the decision maker can go a long way toward insuring positive results, correspondingly, a bad attitude may compromise the outcome.
  4. Determine the nature and scope of the process that will be followed in providing your services, including the level of competition, both internal and external. Commitment from all parties to following an appropriate process can help ensure a positive outcome that exceeds expectations.

Although not all-encompassing, following these criteria for doing business will improve your quality ratios, increase client share, and when reviewed with prospects during the sales process, help position you as a business equal. By only accepting business that meet these criteria, you help ensure that resources are properly focused for generating the greatest return in the most effective and efficient manner.

As always, if you have questions or comments about this article or wish to receive my input on any other topic related to this business, just let me know. Your calls and emails are most welcome.

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Replay of Shally’s Part 2 on Client Sourcing



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While the video portion wasn’t functioning, Shally rocked the information via audio-only until the show ended unexpectedly due to technical difficulties. Shally shared countless useful tips, websites, and more — one of today’s viewers likened him to a reference librarian, and after taking notes from this hour-long replay, you’ll understand why.

(Shally will return to Fordyce TV in November — save the date for November 10!)

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Why So Many Recruiters Fail in Our Business



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As a management consultant and trainer to the industry, I look at our industry and how it functions from a unique perspective.

I consider myself more of a student of the business rather than a trainer. I want to find out why things work so that I can develop a model that average people can adopt to achieve above-average billings.

It’s a unique way to teach the business and is a different style compared to all the other trainers. I know there are a lot of great trainers out there who are incredibly talented and use that talent to achieve success in the business. The problem is that most people just don’t have that same level of natural talent. Most of the people I have encountered in the search and staffing business are average people like me.

So if you weren’t born with the smarts of many of the industry gurus, how can you achieve success in the business?

You have to follow a system.

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Jeff On Call: Cold Calls and Defining Harassment



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Q: Given the ease at which recruiters can now find passive candidate information online, when does a cold-call to a candidate at their place of work constitute either harassment or an invasion of privacy (or something else)? Must the candidate declare the solicitation unwanted (as in sexual harassment) for the recruiter to become liable for something? What if the candidate has posted their employment details in the public domain as in Linkedin or Facebook, for example? Do they somehow legally waive the right to be contacted at their place of employment if they upload this information themselves (without a phone number)?

A: “Harassment” is a word used frequently by people who are hassled about anything, at any place, and at any time. But it’s difficult to imagine how a professional contact — or even a series of them by phone, email, express mail, or regular mail — could be deemed so annoying as to rise to that level.

There are no reported cases in the history of American Jurisprudence where a recruiter was even accused of harassment. Who’d bother? If there’s anything a contingency-fee recruiter doesn’t do, it’s waste time with contrary candidates. So if someone stalks an LPC (least placeable candidate), he deserves what he gets.

Now, on to the tort (non-contractual civil wrong) of invasion of privacy.

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Phony Academic Degrees



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In its new report, “Smoke, Mirrors, and Resumes: The Growing Threat of Diploma Mills,” background screening firm EmployeeScreenIQ claims that
phony academic degrees are a “constant presence in email inboxes, and their popularity is exploding with job candidates” and feed on applicants “who will do anything to enhance their resume” in a tough hiring market.

The company tried out a test: it requested a master’s degree in economics for its president and C.O.O., Jason B. Morris. In exchange for $75, they would send a “genuine” diploma. For an extra $75, the diploma mill would verify the degree by phone or email. EmployeeScreenIQ says it received the diploma within seven days; it featured raised seals and was printed on the type of paper one would expect for an academic degree. It had the proper dates and signatures and was ready to be framed.

For the full list (and it’s extensive, including such prestigious-sounding names as International Theological University – California; Northwest Florida
University; and Northern New England University), either click here to read the school names or download the entire free report at http://www.employeescreen.com/whitepapers_articles.asp.

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Fordyce TV: Client Sourcing, Part 2



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Are you looking for some fresh client prospect sourcing tips?

Then save the date for Tuesday, October 27, when Shally Steckerl returns to Fordyce TV! This is a follow-up show to his episode back in August, which explored Shally’s best sourcing tips and how he reverse-engineered his world-famous Internet sourcing and research techniques.

In this live show, Shally will share more of the ways he gets insider details, including key names and job titles, contact details, internal promotions/moves, and other intel to better prepare himself for the cold call.

The show will be held at 2pm on Tuesday the 27th on www.fordyceletter.com (right before the show you’ll see a small TV logo — click the white arrow in the box — if you don’t see the box at 2, try refreshing the screen once or twice until you see it). There will be a live Q&A session via the chat box with Shally after the presentation, too, so come prepared with questions.

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Replay of TalentDrive on Fordyce TV



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For those of you who missed it yesterday, or those who simply want to watch it again, here is the video of TalentDrive’s CEO Sean Bisceglia exploring the distinct personalities and agendas among HR professionals. Sean also reviewed the results of his “What Gets HR’s Attention” survey and how understanding the current mindset of HR helps prepare you to sell through objections.

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The Allen Magic Collect-A-Fee System, Part 2



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Editor’s note: Yesterday, in part 1 of this 2-part article, attorney Jeff Allen shared the first five tips for collecting more fees. The article concludes below.

6. Send your invoice the day employment commences.

Earlier is too aggressive, while later risks the employer questioning the hire or obtaining the candidate’s cooperation to avoid the fee.

7. Discount the fee for prompt payment.

It’s a well-established business practice, but don’t discount the fee for late payment! This must be strictly an inducement to accelerate the payment.

Whatever discount you want to use is legally acceptable. However, you must also indicate the full fee on your invoice and when it is due. Otherwise, it’s virtually impossible to obtain it later.

8. If the account becomes past due, pursue collection personally.

Why do you think this is recommended?

There are six reasons:

  • Preserving the rapport between your recruiter and the client is important in the future.
  • The further away from the dispute your recruiter is, the better a witness he will make.
  • The recruiter is personally involved, often hungry, and probably worked very hard to make the placement.
  • The recruiter is probably not qualified to collect the fee.
  • Sometimes a different personality can close the deal.
  • It’s your responsibility.

9. Don’t send your placement file to the employer.

More fees are lost by doing this than all of the other mistakes combined.

This is like playing poker with your cards backwards. The result is a complete defense to the employer. This includes a sanitized file and a turncoat candidate.

Whenever some human resourcer says, “Show me why we owe a fee and we’ll pay it,” understand the translation: “Show me why we owe a fee and we’ll show you we can avoid it.”

If you ever feel the compulsion to do this, just ask the employer for its file. That will make you a believer.

10. Refer the matter for collection when it is 30 days past due.

Almost any change in circumstances weakens your position. What can happen?

  • Termination of the employee.
  • Termination of the person responsible for the fee.
  • Promotion or transfer of the employee.
  • Termination of your recruiter (maybe over this issue).
  • Sale of assets of the employer.
  • Insolvency or bankruptcy of the employer.
  • Change in corporate structure of the employer (merger, acquisition, etc.)
  • Time is always on the employer’s side.

Here are the typical defenses to placement fees (in order of frequency):

  • The recruiter did not make the placement (this includes split-fee disputes with other recruiters)…………………………………….30%
  • The placement fee is “too high”……………………………….20%
  • A fee schedule was not received……………………………….20%
  • A trial period was promised (or is customary)…………………10%
  • The lower base starting salary does not include commissions, bonuses, or incentives (“salary” versus “compensation”)………….10%
  • An invoice was not received……………………………………..5%
  • The employer cannot afford to pay………………………………5%

With the exception of the defense that the employer cannot afford to pay (asserted only 5% of the time and often solved by a little patience), The Allen Magic Collect-A-Fee System will help you avoid all of these problems.