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The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles by elaine.rigoli

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U.S. CEO Pay ‘Grotesque’



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The discrepancy between American and international CEO compensation is due to greed, plain and simple.

That’s the findings in the latest issue of The Conference Board Review, which surveyed several leaders at global recruiting firms. The article attributes this behavior to a “pervasive form of greed engendered by the modern worship of high-flying American CEOs such as Jack Welch as all-conquering deities who deserve ever-bigger bags of gold as tributes.”

Richard Emerton, head of the CEO practice at Heidrick & Struggles in London, points out that “a perception for the last 10 years in Europe is that the level of remuneration for U.S. CEOs has been excessive.”

Meanwhile, Manfred Kets de Vries, who heads the Global Leadership Center at INSEAD in France, calls  U.S. CEO pay “a little bit grotesque.” Still, he acknowledges that many international CEOs secretly look upon American top executives with envy.

And because CEOs are an international resource, their “market value” will be set by a global standard, with international firms fighting for talent.

Explains Michael Bekins, senior client partner at Korn/Ferry in Hong Kong, “We are now faced with having to recommend comp packages for C-level recruits that are higher than what Asian companies are used to.”

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A Ramp-Up on Investment Recruiting



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Over the past quarter, financial services recruiter Huxley Associates says it’s seeing a 10% rise per month in the number of placements it has made in the banking sector.

Huxley — which also announced the opening of its first office in India this week — attributes the increase to a “thawing of the international recruitment freeze” imposed by the majority of the major financial institutions.

“This is another piece of very positive news. Our increasing global reach enables us to deliver our dedicated service at a local level to meet the needs of global organizations increasingly looking for multi-shore staffing specialists,” explained Morgan Kavanagh, a Huxley director based in New York.

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New England, Georgia Personnel Associations Host Conferences



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Some of our industry’s biggest movers and shakers are headlining annual conferences this week — and there is still time to register.

From May 6-May 8, the New England Association of Personnel Services is holding its annual conference, with Danny Cahill and Barb Bruno as keynote speakers, as well as presentations by Rob Mosley, Jenifer Lambert, Jon Davis, Aaron Wandtke, and more. On May 6, the event will also offer a Certification Immersion class for training within NAPS legal manuals and to prep individuals for the CPC or CTS examination.

In Atlanta, the Georgia Association of Personnel Services is holding its annual conference from May 7-May 8. This year is extra-special, with an awards dinner honoring Conrad Taylor, a GAPS member and NAPS president. The conference will also feature keynote presentations by Jon Bartos, Craig Silverman, and more.

If you’re not able to make it to New England or Atlanta this week, then save the date to catch these speakers, as well as other industry leaders, at the NAPS annual conference in May in St. Louis and the Fordyce Forum in June in Las Vegas.

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Barclays Sued for Payment



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Pagoda Partners, a Singapore-based recruiter, is suing the British bank Barclays after allegedly referring a high-level candidate from Merrill Lynch but never receiving its fee.

According to the lawsuit, Pagoda sent Barclays the candidate’s resume in January 2009.

However, attorneys for Barclays say the new employee — who earned $348,000 in his first year — was hired as a direct referral after Pagoda failed to set up a meeting, according to the court filing. The attorneys say there was never any agreement for the engagement of Pagoda’s services, court documents reveal.

Barclays says it typically pays search firms between 10%-18% of annual compensation for new hires, with a cap of $123,000.

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Eliminating Candidates Based on Online Information



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With at least 90% of us regularly tapping Google to dig deeper into candidates’ backgrounds, how many “digital deal-breakers” have caused you to think twice about a candidate’s total package?

On the one hand, it might be odd if your candidate has zero Internet references — no blog comments, published articles, online community participation, or accounts on LinkedIn, Facebook, or Twitter.

But worse than being invisible, according to a new ExecuNet report, is when recruiters are forced to scrap an otherwise suitable candidate because an Internet search reveals potential ethics violations, falsified employment history, felony convictions, shady connections, and more.

In 2005, only 26% of executive recruiters eliminated candidates due to online information. That number jumped to 36% in 2006, and is now at 48% in 2010.

The Executive Job Market Intelligence 2010 is based on simultaneous surveys of ExecuNet’s executive members and the search firms and corporate recruiters who regularly use its services.

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Robert Walters Wins International Award



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Robert Walters, a recruitment firm with 37 offices in 17 countries, won in the category of Best International Recruitment Consultancy at The Recruiter Awards for Excellence, held  recently in London.

The independent panel of judges highlighted “the outstanding contribution” made by Robert Walters through its development of an Asia Job Index and the successes of its International Career Management program.

Two other firms, NES and Penta Consulting, received the Highly Commended category. Other finalists included Antal International, HCL, RP International, Tangent International, and Volt.

Here is the complete list of 2010 categories and winners.

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ExecuNet: Companies ‘Cautiously’ Considering Hires



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While nearly 75% of search firm recruiters report their clients significantly reduced executive hiring in the last 12 months, only 31% of corporate HR executives make the same claim.

What accounts for the difference? The split might be from companies assigning only the most difficult assignments or those too big to tackle.

An ExecuNet report says the competition for search assignments “will intensify as companies cautiously consider making additional hires” this year. Consider that:

  • 14% of corporations are not adding new executive-level jobs; 6% are not filling open positions; and 3% are eliminating them.
  • However, 21% of corporations are adding new executive-level jobs, and untapped opportunity is hidden in another hiring pocket: 56% of corporations are trading up with new hires for existing executive jobs.

The Executive Job Market Intelligence 2010 is based on simultaneous surveys of ExecuNet’s executive members and the search firms and corporate recruiters who regularly use its services.

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Jigsaw’s Fowler on Cold Calls, Passive Searches, and More



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Jim Fowler, founder and CEO of the online business directory Jigsaw, chatted with us following last week’s news of the $142 million proposed merger with Salesforce.com.

Jigsaw, best known in the recruiting community for helping with passive candidate searches, will pretty much stay the same.

“Salesforce recognizes that recruiters have played a huge and key role in crowdsourcing the Jigsaw database and don’t plan to change anything that is working!” he says.

Fowler says there are no bundle plans in the works yet, the Jigsaw brand and model will stay around after the merger, and Jigsaw will operate as a separate business unit.

It’s the “need for raw business card data” that enables recruiters to do a very specific title search.

“Jigsaw has well over one million unique titles. Many recruiters are used to working with data sets where there are a very small amount of ‘normalized’ titles. Being able to search by a very specific key word in a title can help narrow a search very quickly, which makes a search far more efficient,” he says.

“Having an email and a direct dial phone number is invaluable when recruiting a passive candidate. Another way Jigsaw can help is by setting a saved search on companies and seeing which employees are added and ‘graveyarded.’ Understanding the ebb and flow of employees from a given target company is critical information that many recruiters don’t take advantage of on Jigsaw,” he notes.

The Jigsaw website claims that 75,000 in-house and independent recruiters use its service each month, but the company says third-party recruiters likely account for “well over 50%,” with “certainly more” interest among independents than in-house recruiters.

Yet for those recruiters who do not need sourcing help, Fowler suggests that there is “much more” to a search than just sourcing, since “every recruiter needs to know who gets added and subtracted to a target company.”

Jigsaw, which has dealt with privacy criticisms over the years, “decided to change our privacy model because we felt it was the right thing to do,” he says.

“Even though we weren’t legally compelled to offer an opt-out model, we decided to do it so that the market would recognize Jigsaw as having the most progressive privacy policy in existence [as a BtoB data company]. We’re proud of these changes and hope the market understands that Jigsaw sets the standard in this arena,” adds Fowler.

Under the new privacy model, Jigsaw notifies by email every person who gets added to its database. The email explains what Jigsaw is and gives them a chance to remove themselves from the database.

“Interestingly, most choose not to do this because Jigsaw — alone among data companies — allows anyone to set preferences and provide instructions on their business card. These instructions tell salespeople, marketers, recruiters, etc. how to communicate with them. These instructions save EVERYONE time,” says Fowler.

The old system gave financial incentives to upload contacts, but Fowler explains that the cash-incentive system was never a big part of its model, nor was it very effective. A tiny percentage of members participated in this program, so it was killed after about a year.

“Many businesses, and especially recruiters, need a constant source of fresh, accurate data to run their businesses. If you think about how much time a salesperson or a recruiter spends just trying to figure out the right people to contact, it can get staggering. The basic Jigsaw model is that for every record a member adds, updates, or graveyards, he or she gets a record in return,” he says.

“It is far more efficient to do bit of work on Jigsaw to get your points than to blindly cold-call a target organization. Our community continues to grow at a very rapid pace,” he adds.

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Harry Joiner’s Ultimate Recruiting System



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What do a Franklin planner and a $35 wrist-watch have in common?

Harry Joiner, who has made a name for himself in the recruiting world as THE e-commerce recruiter, has some secrets about these low-tech, high-value items.

“It’s about measuring, measuring, measuring — have your dashboard wherever you go,” he says.

Check out this video to see how a planner and watch become “the guts” of the ultimate recruiting system.

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Salesforce to Acquire Jigsaw’s ‘Contact Gold’



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The computing company Salesforce.com is working on a $142 million deal to acquire Jigsaw, the online business directory that has been praised as a marketplace for contact information but reviled for its controversial privacy practices.

Thousands of independent recruiters use Jigsaw every month. In its own words, Jigsaw touts that its services can provide “company phone, direct dial phone, work address, and B2B email for candidates,” which also “allows you to download this gold into lists, CRM, or other systems — you OWN the data with Jigsaw!”

(Cue the 70′s-era disco ball and streaming confetti…“Gold, man. You OWN it.”)

Indeed, writers for The Fordyce Letter have endorsed Jigsaw as a way to increase your online brand and implement new emerging media trends into your trusted candidate sourcing techniques.

Yet the prickly privacy angle has been a sore spot over the years because Jigsaw would reportedly pay people who uploaded other people’s contact information.

In fact, this issue was a source of contention during a moderated debate at ERE Expo back in 2008.

During the session, Jim Fowler, Jigsaw’s founder and CEO, said “there is a relatively small percentage of people who are concerned. Perhaps 2% or 3% of the world who really care about their business cards. Privacy is a huge issue, but my point is that most people don’t care about this particular piece of data.”

Yet TechCrunch now reports that Jigsaw has changed its model, and people can “see if their personal information has been uploaded, and there is a process to have it removed, at least temporarily. And users are no longer paid cash to upload contacts. Instead they receive points that can be used to download contact other people’s contact information.”

In a press release, Salesforce said “Jigsaw’s unique Wikipedia-style crowd-sourcing model delivers the world’s most complete, accurate, and up-to-date business contact data, providing developers with an opportunity to deliver entirely new applications that leverage the business contact data found in Jigsaw.”

In other words, for Salesforce, this acquisition may create more opportunities to partner with information services companies (i.e., Dun&Bradstreet, Hoover’s, and LexisNexis).