Welcome to The Fordyce Letter:

The Fordyce Letter

Straight Talk for the Recruiting Profession


Jeff's On Call!

Jeff’s On Call!: Crazy Contract Provisions



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This week’s inquiry comes from Maureen Knowlson:

Jeff,

I really enjoy your articles in the Fordyce Letter. I have found your column Jeff’s On Call! to be very helpful. I hope you can help.

Here’s my question(s):

I have been working with a company for over 15 years. We work a very specialized niche so there are not a lot of jobs to fill each year. We have made nineteen placements in that time. They were all completed without a hitch. The company called us, we gathered the info, we sent about three resumes, they interviewed, and hired. Normally, took about one month. Sounds great, huh?! We have also weathered the three changes of HR Managers. Mostly, because our original contact is now VP of HR. I have two issues at this time…

Editor's Corner

Fun Friday: What Are You Thankful For This Year?



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By now, many of you have eaten your fill of turkey, stuffing, sweet potatoes, cranberry sauce, green bean casserole, dinner rolls, and pumpkin pie. Many of you have taken your post-Thanksgiving dinner nap in front of the TV while the Saints played the Cowboys. And the brave and daring few of you may have already been to the stores and  back to take advantage of the Black Friday shopping deals.

Did you stop to think about what you’re thankful for this year? I hope so!

Editor's Corner, Entrepreneurship

Being A Good Leader In Tough Times



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A CEO’s job is never an easy one. Whether in good times or bad, a successful CEO must remain a good leader for his or her employees and the company as a whole. This is not a position for the faint of heart because it requires long hours and quite often tough decision-making. Last week, I was privileged to have been invited to the Western Washington University Business Forum here in Bellingham to hear the CEO of Haggan, Inc., Jim Donald, address some of these issues. The luncheon is an annual gathering of some of the business leaders in the community and is designed to help build links between the university and the private sector to generate financial support for student scholarships at the university.

Business, How-To

Best Practice or Most Practice: How to Stop Doing What You’ve Always Done to Achieve Higher Profits



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The major airlines and many recruiting firms have a problem in common — both want to be more competitive yet perpetuate the very business practices that keep them stuck in coach class. Southwest Airlines is the perfect case study of the positive impact of new and improved best practices, including no change fees, rapid turnover of flights, reasonably priced business class tickets, and entertaining service from professional flight attendants that have led to Southwest’s rapid ascent as a dominant carrier in the marketplace. It’s no coincidence that recruiters who have also evolved their best practices are reaping higher profits than those who perpetuate “most practices.”

Industry News

AESC Report Reveals Strong Executive Search Activity Focused on the High-end of Leadership Roles



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Worldwide senior executive hiring was on the increase in the third quarter of 2010, according to the latest report from the Association of Executive Search Consultants (AESC). The yearly trend – from Q3 2009 to Q3 2010 – was strong with both revenues and new search mandates rising across all regions and industry sectors (revenues +32%, new searches +18%). The quarterly trend – from Q2 2010 to Q3 2010 – saw revenues increase by 2.4 per cent, although the number of new searches declined (-5.3%).

Jeff's On Call!

Jeff’s On Call!: E&O Insurance Advice



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This week’s inquiry comes from Norman Lieberman (comment on the Fee Collection and Client Bankruptcy post from last week):

Hi Jeff:

As a successful 29-year veteran independent recruiter, I have been following and buying your sage advise for decades. Your articles, books and materials have helped, and saved me, too many times to remember over the years. One thing is for sure, you saved me a fortune in attorney bills. So a big Thank You is due.

I recently read an article that said E&O Insurance, specific to our industry, may not protect recruiters as once thought.  Apparently some E&O policies have exclusions that are broad and hurtful to recruiters.  Also, the article warns not to compare premiums, but instead compare the Insurance companies’ reputation for denying coverage.  Even better is to have an attorney compare the policies for us.

The article scared me because I may be falsely sleeping well thinking that I am fully covered.  But, in fact, my E&O insurance may not be covering me as I thought.

So Jeff, is it caveat emptor or how do we best protect ourselves?  Where does one find out an insurance company’s reputation?  How can we best protect ourselves and be confidant that our E&O is doing what we need and had intended?

Thank you,

Norman Lieberman

Business, Relationships

Fun Friday: Cursing Out Your Candidates



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Oh boy… this one should be called “Foolish Friday.” David Otto, President of Administrative Employer Services, a Detroit-area Professional Employer Organization (PEO), found himself in the news yesterday for calling a potential candidate a “spoiled, snotty little ‘b*tch’” via email. Here’s how the scenario apparently went down:

  1. Otto contacted Tiffany Sinclair on an employment website to fill a position for his expanding company.
  2. When he looked over her resume, he encountered a ‘glaring misspelling.’ Otto sent her an e-mail suggesting she check her resume for spelling errors. After a couple of exchanges, things apparently got pretty ugly. Take a look at the video below.
Business, Industry News

Georgia Enforces Non-Competes



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On November 2, 2010 Georgia voters approved a stunning 180-degree change in their state Constitution. The one-sentence ballot measure (Amendment 1) was simple enough:

Shall the Constitution of Georgia be amended so as to make Georgia more competitive by authorizing legislation to uphold reasonable competitive agreements?

By voting “Yes”, a majority of Georgia voters upended the state’s strict prohibition against enforcement of employment agreement “non-competes.”  In doing so, they breathed life into the Official Code of Georgia, Sections 13-8-2.1 and 13-8-50 to 59.

Cold Calling, Relationships

What You Wish You Could Tell Candidates



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I’m always hearing recruiters say they want to be more helpful to candidates.

I wonder. I wrote the following with the idea that it might help some express some of their challenges through a third-party voice.

I’m a phone sourcer. That means I am paid to find people who hold specific titles or who are doing specific job functions inside (usually) specific companies.

I’ve been doing this a long time.

There are a few things that spell disaster for you as a job seeker.

Business, The Business of Recruiting

A Rebuttal: 10 Things That Smart Money Didn’t Bother to Find Out About Employment Recruiters



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We recently ran an article entitled Speaking of Perceptions… outlining a piece written in Smart Money about the 10 Things Employment Recruiters Won’t Say. One of our readers, Tom Keoughan, had an opinion on the Smart Money article he wanted to share. Below is his response….

I don’t know where you got your information, but it paints a highly distorted view of the way executive recruiters work. Certainly there are good people and bad people in every profession, but a lot of the weak recruiters have been washed out of the business during the current economic downturn. As someone who has been a successful executive recruiter for almost thirty years, I will tackle your points one by one.