Welcome to The Fordyce Letter:

The Fordyce Letter

Straight Talk for the Recruiting Profession


Michael Gionta

Michael Gionta (mike@theRecruiterU.com) is sought out by owners of recruiting firms, both solos and offices with recruiters, that are frustrated; passionately wanting more from their business. More clients, more time, more revenue and more freedom. Mike's unique systems and processes have helped dozens of firms grow their client and revenue base while removing obstructions. Mike has ranked as a top-10 billing manager three times, ranking as high as second with cash in on his desk in excess of $2 million and his company was ranked the eleventh fastest growing IT search firm in the country.

Articles by Michael Gionta

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Recruiters: When Was the Last Time You Weeded Your Garden?



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Have you ever planted dandelions? Do you have a special garden for them? No? Then why do they show up? Why does any weed end up in your garden if it is not planted?

Weeds, like negative thoughts, spread quickly. The people we talk to, both clients and peers, spread them to us. We then spread them to our team. They are watered every day by more negative thoughts and conversations. Just like invasive plants need to be pulled from a garden, negative thoughts need to be manually removed from your mind.

I was reminded about this when I had the privilege of speaking with over 30 owners of recruiting firms in a 30-minute strategy session about setting a vision in their business.

With the exception of one person, the good news is they are all seeing nice increases in their businesses. Some even saying they are getting a consistent flow of call-in job orders for the first time in months!

Despite this uptick in the business, a few of the folks were a bit “beat up” by the economy over the past year. This is quite understandable. However, I challenged them and I challenge you to “tend to your mind.”

Let me explain with a real example from a client conversation last week.

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The Myth of Knowledge is Power



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We all have the same amount of time. When I choose to study between 6am and 7am before everyone in my house gets up, but you choose to sleep longer or watch morning talk shows, much is revealed about both of us.

I have had three distinct careers and am in a fourth as a trainer and consultant to successful recruiting firm owners. I have achieved top 1% to 3% status in each. However, and this is key, when I began each of those journeys, I was much less than impressive. I never leapt to the head of the pack out of the gate. As a matter of fact, I was often significantly behind the pack out of the gate.

You see, I not only acquire knowledge — I APPLY knowledge, too. I rarely invent, but I often study and apply.

For those of you out there who are frustrated because you feel you need to be significantly different than everyone else, I am here to tell you that you don’t. Follow and execute the path of others who have and/or are doing what you want.

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Can’t-Miss Tips and Ideas from Fordyce Forum ’09



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The people at ERE Media and The Fordyce Letter did another outstanding job of putting on the third-annual Fordyce Forum. Great speakers, a phenomenal location at the brand-new M Resort in Las Vegas, outstanding networking opportunities, and great people.

I was truly humbled when one participant, Gerald Bullock, told me he had been reading my articles for awhile and attended the conference specifically to see my breakout. No biggie you might think, but he came all the way from Japan. That’s a lot of pressure!

I wanted to leave you with a few “nuggets” I took back. You can also view my “tweet stream” by following me on Twitter (mikegionta).

First, here are some nuggets from Barb Bruno:

  • “If I am more successful than you it is because I heard more NO’s than you.”
  • “There are a number of reasons salespeople fail, the number one reason is attitude by 50% of all cases.”
  • “Don’t allow the luxury of staying in a bad mood for more than 5 minutes. MOVE ON!”
  • “Instead of reading or watching the news, invest one half-hour per day in training and self-development. This will add up to 24 days of training after one year.”
  • “Get a coach. I have 3 coaches: a wealth coach, a business coach, and a life coach.”
  • “Change is a necessity, NOT a luxury.”

Second, here are some great ideas from Jordan Rayboy:

  • “Good judgment comes from experience, experience comes from from making mistakes, mistakes come from poor judgment.”
  • “Great recruiters do things consistently that average recruiters only do occasionally.”
  • “The average American loses 28% of productivity per day. The key culprit is multitasking.”

Finally, here are the key points from my presentation on Hiring and Retaining Great Recruiters:

  1. Most advertising for recruiters does NOT sell the position, it describes what we need. Explain your firm’s vision in your advertising to be more attractive to great recruiters.
  2. We are recruiters, yet we don’t recruit our own talent. There are some very attractive places to recruit out of right now like mortgage banking, retail, high end car dealers, and brokerage to name a few.
  3. The key to a successful hire is to begin setting formal and specific expectations as early as the first interview, not just the first week of employment.

Bonus Tip: To enroll for FREE in my 7 part audio series, “The 7 Deadly Sins recruiting firm owners make and HOW to avoid them,” visit www.TheRecruiterU.com. This will give you more ideas on planning and running your recruiting firm, especially in a tight economy.

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6 Steps to Finding, Hiring, Motivating, and Retaining Great Recruiters



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“Hiring in this economy? Are you crazy?”

That is what many recruiting firm owners say when I suggest that NOW may be one of the best opportunities in YEARS to find and onboard your next superstar biller.

That’s right. Most economic indicators are showing a bottoming to the economy and are predicting economic growth late this year and early next. The individuals you are looking for are more plentiful now than they will be next year. Additionally, some of the industry’s biggest billers were “recession children,” having started in times of economic duress.

The people hired in difficult times, with a proper system and mentoring, develop great discipline early on for survival. Once the economy turns, their billings explode as the same effort gets phenomenal results.

If this makes sense and you wish to learn a proven system to increase the likelihood of hiring a great recruiter by upwards of 350%, consider attending this year’s Fordyce Forum in Las Vegas on June 10, where I will be presenting a 3-hour workshop with my step-by-step system.

I will pull back the curtain and reveal the process that increased my ability to attract great talent, get them up and running quicker, and retain them longer.

Check it out at www.FordyceForum.com!

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Attracting Good Recruiters Keeps Firm Owners Up at Night



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TheRecruiterU.com has been running an ongoing survey since January 2008 that asks “What are two or three things that keep you up at night as a recruiting firm owner?”

Of the over 500 responses so far, finding, attracting, and onboarding successful recruiters is the overwhelming thing causing recruiting firm owners sleepless nights as it was mentioned by over 64% of the respondents. A distant second was managing cash flow by 43% of respondents.

Probably not a huge surprise, but with over 500 responses, TheRecruiterU.com’s findings validate beyond a shadow of a doubt recruiting firm owners biggest headache.

There are six deadly mistakes search firm owners make in this process. Each is tied to the other and if one ‘link’ in the chain is broken, the whole chain breaks:

  • Owners are not clear on “why” they are hiring.
  • Owners have weak finding and attracting “systems” for new talent.
  • Owners do not have a defined interview process.
  • Owners do not have a defined onboarding system.
  • Owners have an “owners” mentality for new hire motivation.
  • Owners have poor follow-up systems for new hires.
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Stop focusing on placements and INCREASE your revenues!



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While all professions have their sources of frustration, the recruiting profession is in a unique position because we can be frustrated by either side of the sale. Clients and/or candidates can change their mind or go back on their word. If we were financial advisors and we consulted with a client who chose to invest in 100 shares of IBM, those shares couldn’t say “I don’t want to be in your client’s portfolio!”

Let’s face it: making a placement is an emotional nightmare and is a culmination of a number of activities. Frankly, making a placement is truly the one thing we can’t control in the placement process. Think about it: we cannot control the decision on either side. Can we influence it? Absolutely. Control it? Absolutely not!

If this is true, then why is the main focal point of most owners and managers the ONE thing they can’t control? This is a recipe for perpetual frustration and makes running a search firm educated guess work. Stop focusing on placements. Today! You heard me, stop focusing on placements and focus on what counts … ACTIVITY.

I am going to talk about the taking and tracking of numbers. For those of you reading beyond the last sentence, congratulations! Many have disengaged. We all learned this, yet my experience with my client search firm owners is that few actually do it. My experience is also that those who take, track, and execute to specific targets rarely fail. Actually, they are usually among the highest-producing offices out there.

As we know, placements are a function of interviews and job orders. Interviews and job orders are a function of live presentations, which are a function of attempts. While we don’t control placements, we do control the number of attempts. Attempts and good presentations lead to good job orders and candidates. These can be measured daily and weekly, and tracked over time are predictable.

Again, we all know this, yet most don’t do it. Why? It is Boring with a capital “B”! I don’t take our numbers; I have a service called the lock-on report that emails each AE every Friday morning as a reminder to send their data in. The data is compiled and sent to me in a very easy-to-use format. It is by far the best tool for tracking numbers and seeing their relationship on the market. I don’t recommend the owner or manager take numbers from AE’s with more than six months’ experience, because it won’t happen! Have your administrator do it and put it on a spreadsheet if you don’t want to pay a service to do it.

Now that I have set the table, here are the steps to reducing AE frustration and increasing revenues by putting them in control of their income and their desk.

Follow this simple formula and hold people accountable to execution:

1) Discover what a placement is. By that I mean, how many first-time interviews does it take to make a placement? How many job orders does it take to make a placement? How many candidates do you have to speak with to get one on an interview? How many prospects to take a job order? What is your average fee? Key: if you don’t know, make an educated guess and adjust as you go on … you will develop solid numbers and ratios after three to six months. You can also use the benchmarks in the examples below if you haven’t tracked number as they are close to industry averages.

2) Take their annual production goal and break it down into activity (i.e., AE’s goal is $240k gross production, your average fee is $20,000, and thus you need 12 placements). Each placement is nine first-time interviews and six job orders. Each first-time interview is 20 candidate connects and each job order is 15 prospect connects.

3) Take these numbers and break down to weekly activity. On the above example, $240k = 12 placements = 108 1st time interviews (9 1st interviews x 12 placements), 72 job orders (6 JO’s x 12 plmts). So this recruiter needs to take 1.38 job orders a week or rounded up, three every two weeks and arrange 2.07 interviews per week to be on target.

4) Take these numbers and break them down daily. Each first-time interview is 20 candidate connects or 40 per week, eight per day to get two first-time interviews per week. Each job order is 15 live prospect connects or 23 per week, five per day to get 1.5 job orders per week. This means an account executive in your office with a goal of $240k in gross production needs to make 13 live new presentations or connects per day (eight recruiting and five marketing).

When you do this as an owner or manager you have defined success daily. Again, placements are fairly random events outside of your control. Good recruiters in the professional placement area make only one placement per month on average, meaning they go home 21 out of 22 working days per month without closing a deal. How do they know if they had a good or bad day those other 21 days? Using this methodology, the answer is simple … they spoke with 13 people.

In the near 19-year history of my office, only one person who hit their daily numeric targets failed …ONE! That’s it! The ones who either fail in the business or fail to hit their goals have one thing in common: they fail to hit their daily numbers on a consistent basis.

We, as owners and managers, can give this gift of “certainty” to our people by tracking their activity. You are in a position to coach them daily or weekly to make adjustments vs. waiting months for the placements that do not materialize to define a “slump.”

If this makes sense and you are going to implement it, expect severe resistance. As much as you may dislike taking numbers, AE’s hate tracking them more. For new hires, this will be easy, as it is part of the job. For tenured AE’s, show them the formula first, tie it in with THEIR goals, and ask them if they are deadly committed to hitting their goals. Then ask them if they want you to coach them to that production number and hold them accountable. If they do, and my experience shows they will, you are now managing them to their own self-defined expectation, not your “random” goal.

Following this methodology of focusing on daily and weekly production vs. “making placements” hands more control of success to the account executive. There is tremendous power in telling an AE “hit these activity numbers and the placements WILL happen.” As said earlier, they have little control over a placement. When we focus on what we CAN control, and take the focus off what we can’t “frustration with the business” plummets. While this strategy will not eliminate frustration, the producer will experience less of it as they can see visually where they are in the process. Acknowledge and celebrate the hitting of weekly targets to show your focus is off of placements and my experience shows production will increase dramatically!

Michael Gionta’s seven-part audio series on The 7 Deadly Sins of Search Firm Owners and How to Avoid Them is available at www.theRecruiterU.com. Learn the most common mistakes owners make and some practical tips you can implement immediately to grow your business. Michael is an emerging coach and trainer to owners who are frustrated and want to grow their business. Michael has over 18 years as an owner and billing manager. He has ranked in the top 2% to 3% of Management Recruiters offices for several years. As a billing manager, he ranked as high as 2nd with over $2,200,000 in annual personal production. He can be reached at mike@myrecruitercoach.net.

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The Biggest Lesson I Learned That Increased My Hiring Success 350%!



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When I opened my firm in 1990, I was trained that you would need to hire seven people to keep one more than six months. Naively, I thought I was better than that. I discovered I was not. One of the biggest frustrations I hear about from my coaching clients and peer owners is their challenge of training, onboarding, and retaining new hires.

While this is still a challenge at our firm, there are several changes we made to this process that cut our rate from the old model of hire seven to keep one down to hire two to keep one six months or longer.

What is this lesson? Set expectations throughout the hiring process and follow through for at least 120 days! Now, most of you are probably rolling your eyes at this Management 101 technique. You may know it, but the experience with my client search firm owners is that it is rarely implemented.

My experience with most recruiting firm owners is that they sell “money” throughout the interview process. Money, money, money! That is it! They point to successful people in their office and say, “Look at Bob. He made over $200,000 last year. See Sue, $125,000!” If they are not selling money, many other owners are 180 degrees different, screening the heck out of candidates with multiple personality tests, Rorschach tests, eye retinal scans, etc. Both techniques appear to have equally weak results.

This lesson on setting expectations and holding people accountable is by far the greatest and most profitable lesson I have learned. This process begins in our first interview. We first paint the vision of a successful recruiter – a six-figure-plus income, relative freedom to manage their day, week, working with C and V level executives, etc. Then we discuss the “but.” We explain that this business is an acquired taste, like the first beer consumed as a teenager; most people do not find the ramp-up enjoyable. We explain all of the frustrations of the ramp-up: the seeming mindless nature of 80 to 100 calls a day, the unreturned calls, uncooperative candidates and clients, the occasional fall-offs and counteroffers. We tell them there are going to be days when they wish their parents had never met! But if, if, they can persevere through this relatively short period, the rewards are great!

In each stage of the interview, one needs to balance the opportunity with “the price to be paid.” A mistake I see many of my clients make is not properly explaining the ramp-up process. Sure, we tell them they have to be able to cover themselves financially for the first few months, but we don’t explain a “day in the life” of those first few months. We explain a day in the life of a successful recruiter, and when they start and measure themselves against that level of performance, their frustration and self-doubt begin to breed quickly. The new recruiters listen to successful people and remember “a day in the life” and wonder if they are cut out for this career. They wonder if they can ever sound like that recruiter!

Also, during the interview process we tell the candidate: “A new hire starts out with great enthusiasm and a clear picture of where he or she wants to go, like an explorer standing on one mountain peak looking in the distance at another they will climb. The new hire must then descend into an Amazonian-type valley with thick brush and obscured vision (tons of calls, rejection), that second mountain peak not often visible (why am I doing this?). There is a clearly marked path, however, that is always visible. Stay on this path, avoid the temptation to discover a shorter route, be persistent and more importantly resilient, and success is inevitable. If we continue to move forward in this process, I will ask you if you are ready for this journey.”

What is this “path?” The biggest gift we can give a new hire is a clearly defined road map to success vis-à-vis daily activity. Here is where I am going to lose some of you. I do not focus on connect time for new hires. I measure it; I just don’t make it our main focus. I focus on call and presentation count the first two weeks and add on job orders and/or send-outs in week three and beyond. Ask for connect time in the absence of other activity and you will probably get OK connect time. My experience shows a myopic attention to connect time alone leads to bloated calls with unqualified candidates and, often, more personal calls. Connect time is a function of quality, not quantity, and new hires don’t have much quality.

At the offer interview, I make candidates pledge – sometimes by raising their right hand – to commit to do exactly what I tell them to do for 120 days with no deviation. If they won’t make this commitment, and they all have, I would not offer the job.

The beginning of their path is the first day on the phone. When we began setting expectations for just that day, things began to change. Depending on your program, if the first day on the phone is a full day, we set a benchmark of 100 to 125 calls (including name gathering) and 15 to 17 live combined marketing and recruiting presentations. We ask the new hires to give us their understanding of these expectations verbally to ensure understanding. In what will be a “surprise” to many readers, we find that even after setting specific targets that were agreed to, committed to, as well as completely understood, 8 out of 10 will not hit the targets.

Here is where many of us as owners fall short. We fail to give aggressive, blunt feedback to these new hires that very first day on the phone. I sit down with new hires the next morning to review their first day and ask them for their results by category. If they are among the 20% who hit their target, I congratulate and reinforce their performance. If they are in the 80% who don’t hit any or all of the targets, I ask one simple question, “I wonder why you chose failure on your very first day?” I wait out the longest of silences. I watch them squirm until the confused person at the other side of the table stumbles out a barely discernable “I don’t know.” I again ask what the expectations for the day were and they again tell me. I also ask them what they committed to in the interview process and, again, they tell me. Then I proclaim that “I am confused. Based on these commitments and clearly defined expectations, why would someone so defiantly fail to execute?”

This approach may appear harsh to many. I disagree; it is harsher to allow them to believe that close is OK, that our expectations are merely suggestions. If you check your records for subsequent days of performance, without holding them accountable, I would bet, and my experience shows, that most drift lower. They generally drift lower to a point where the owner finally gets “ticked off” enough to confront the performance. The new hire has now successfully identified the owner’s “real number.” Let me assure you beyond a shred of a doubt that we are being tested. We as owners fail that test the first day we let performance below our stated minimums go by unchallenged.

If failure to hit the minimums persists for several days, we challenge the new hire’s commitment for the last time and ask, “Is this business really for you?” and most say no and actually, I have found, are put out of their misery.

For those who stay on course, be vigilant for at least the first 120 days. Have them email you their numbers every day. As a former VP of sales of mine said early in my career, “Managers get what they inspect, not what they expect!” By this 120-day point, good habits have combined with your coaching to get them into a groove of high activity that requires much less of your attention. Never stop taking numbers; simply let them become accountable to you weekly vs. daily.

My feeling is that not only new hires, but also many of us, as owners, do not see the connectedness of one simple day to a month’s or a year’s success. If we do not see it, how can we show it to them? Once we let them settle into their own self-defined comfort zone, we have often poured the foundation of failure. Later when we fire them or they quit, we shrug our shoulders and say, “They just didn’t get it!” And since history shows us that those who do get it are often the exception and not the rule, who really doesn’t get it?

Michael Gionta has over 18 years as an owner and billing manager. He has ranked in the top 2% to 3% of Management Recruiters offices for several years. As a billing manager, he has ranked as high as 2nd, with over $2.2 million in annual personal production. Michael is an emerging coach and trainer to owners who are frustrated and want to grow their business. His FREE seven-part audio series “The Deadly Sins of Search Firm Owners and How to Avoid Them” is available at www.theRecruiterU.com. He can be reached at mike@myrecruitercoach.net.