Welcome to The Fordyce Letter:

The Fordyce Letter

Straight Talk for the Recruiting Profession


Terry Petra

Recipient of the Harold B. Nelson Award, Terry Petra is one of our industry's leading trainers and consultants. He has successfully conducted in-house programs for hundreds of search, placement, temporary staffing firms and industry groups across the U.S., Canada, Mexico, Australia, New Zealand, Russia, England, and South Africa. To learn more about his training products and services, including PETRA ON CALL, and BUSINESS VALUATION, visit www.tpetra.com. Terry can be reached at (651) 738-8561 or email him at Terry@tpetra.com.

Articles by Terry Petra

Cold Calling, How-To

Getting the Recruit To See You As A Counselor

by on Mar. 14, 2013


Cold calling logo

Note: This is the final part of a four part series on cold calling. In part one, Terry talked about the first 30 seconds of making a cold call. Three goals must be achieved in that time, he said: Get attention; Avoid rejection, and; Establish a dialogue. In part two, Terry explained how to begin a dialogue with a client explaining why it is you called them and what you can do to help them. Last week he offered a number of openings that will get the attention of a candidate, even one who’s been hearing from other recruiters regularly

Setting a proper frame of reference with a recruit should be a primary objective during your first in-depth discussion. This will determine whether or not the recruit views you as an asset or a liability.

For the purposes of this article, we will define a recruit as someone with whom you have initiated the first contact, and someone who, at the point of that initial contact, was not actively seeking a change in employment.

Remember: The decision a recruit makes will impact their life to a greater degree than it will impact yours.

Keeping this in mind, it is imperative for you to quickly identify with the recruit any and all potential motivations they may have for a possible job change. This can best be accomplished by asking certain questions. The answers will quickly establish a realistic frame of reference between the two of you, and serve as a foundation for your relationship.

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Cold Calling, How-To

Here’s How To Grab That Hot Recruit’s Attention Fast

by on Mar. 7, 2013


Cold calling logo

Note: This is part three of a four part series on marketing calls. In part one Terry talked about the first 30 seconds of making a cold call. Three goals must be achieved in that time, he said: Get attention; Avoid rejection, and; Establish a dialogue. In part two, Terry explained how to begin a dialogue with a client explaining why it is you called them and what you can do to help them. The final part will be posted next Thursday.

Have you ever experienced any of the following responses when making your opening comments on a cold recruiting call (not referred by a third party)?

  • “I get calls from recruiters all the time. Take me off your list and don’t call again.”
  • “Tell me the name of the company and I’ll tell you whether or not I’m interested in listening to you.”
  • “I’m not interested in changing jobs.”
  • “How did you get my name?”

When statements like these interrupt your opening comments, it is typically an indication that the targeted recruit has had one or more negative experiences with recruiters and/or you have seriously mispositioned yourself on the call. Although you have no control over the recruit’s previous experience with recruiters, you can and should control your positioning on the call. This positioning begins with your opening comments, which should contain the reason for your call. If your reason for calling does not position you as having something of value for the recruit, they will immediately begin to implement an exit strategy from the call. When this occurs, the recruit stops listening and your call has little chance of success.

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Cold Calling, How-To

Here’s How To Give Your Prospect A Reason to Hear You Out

by on Feb. 28, 2013


Cold calling logo

Note: This is part two of a four part series on marketing calls. Last week, in part one, Terry talked about the first 30 seconds of making a cold call. Three goals must be achieved in that time, he said: Get attention; Avoid rejection, and; Establish a dialogue. The remaining parts of the series will publish on each of the next two Thursdays.

In our last article we stated, “The most critical skill set to develop is not getting people to listen to you. Rather, it is the skill of getting them to talk with you, to open up, to willingly share the specifics of their individual situations”. Many times on an initial marketing call (cold call), the first step of this process of “… getting them to talk with you …” can be accomplished by explaining the reason for your call.

Think in terms of the person you are calling. Put yourself into their position and you will understand that your call (as well as any unplanned call) will be viewed as an interruption to their busy workday.  Therefore, you must give them a reason to listen, you must stimulate in them an interest or curiosity, and you must engage them willingly in a two-way business dialogue.

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Business, Cold Calling, How-To

You Have 30 Seconds to Answer: ‘Why Are You Calling Me?’

by on Feb. 21, 2013


Cold calling logo

Note: This is part one of a four part series on cold calling potential clients. Each part of the series will appear on successive Thursdays through March 14.

Whether you are making an initial marketing call or a cold recruiting call, you have approximately 30 seconds to do three things:

  1. Gain the individual’s attention;
  2. Eliminate (or at least not create) a reflex rejection;
  3. Change the dynamics from a monologue to a dialogue.

The ultimate success of your call depends on your ability to accomplish all three of these objectives in a brief period of time. If you fail to accomplish any of these objectives, the individual you are calling will immediately begin to exit the call. Once this occurs, it is very difficult to turn them around.

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Closing

Why the Client Should Never, Ever Discuss Money With the Candidate

by on Dec. 13, 2012


Businessman backing off

Most recruiters and consultants realize the importance of preparing their candidates to “never, ever, discuss money” with one of their clients.  However, how often do you prepare your clients to “never, ever discuss money” with one of your candidates?

Recently, I received a call from a recruiter who wanted to discuss his process for working with clients.  As he detailed the step-by-step process, I was stunned when he reached the “offer stage” and stated, “… at that point I step out of the picture and allow my client and candidate to speak directly with one another about the specifics of the offer.”  Although I did not say anything initially, when he completed his description, I made this statement:

“Anytime you have a candidate and a client in direct discussion about compensation, you have lost control of the process.”

He then asked, “What if the client brings up the subject with the candidate?” or “… asks the candidate how much they are currently earning?”

My reply was:

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Business, Business Development, How-To

Fill Ratios Define You As A Recruiter

by on Sep. 18, 2012


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I had a lively e-mail exchange awhile ago with a seasoned recruiter on the subject of tracking job order/search assignment fill ratios. To date, this successful veteran has not tracked this particular ratio although he does track several others. When I asked “why” he did not find value in tracking this number he replied:

The reason I never track fill ratios is this: Let’s say that I write a JO and it’s last minute. They have three candidates coming in on Friday and I get one last person in on the same day. He doesn’t get the job.

Or I write an assignment and some internal ‘water walker’ shows up from Australia where he’s been at a different division for two years and gets the job.

Or I write an assignment and the position goes on hold due to bad 3rd quarter earnings. All real situations that I cannot control.

As far as fill ratios are concerned, I most certainly understand, and have lived through every example he provided, and, in some instances, many times during my early career. Those experiences notwithstanding, I have learned my lesson well and this has been further validated through my consulting and training work with thousands of recruiters over the years.

Fully Qualify the Assignment First

Lesson: Most job orders/search assignments go unfilled because they were poorly qualified by the recruiter at the beginning of the process.

  • The recruiter had not established a positive working relationship with the right decision maker.
  • The recruiter had not taken the time to fully understand their client, the client’s organization, and the outcomes that must be associated with successful performance in the position.
  • The recruiter had not established realistic, job related selection criteria.
  • The recruiter had not gained a commitment from the client to work within an interactive, adaptive process which mirrored mutual commitments.

All in all, the recruiters had not differentiated themselves to the point where a privileged working relationship could be established.

Sometimes, Just Say ‘No’

However, where all of these exist, you find nearly one-to-one fill ratios, exclusive working relationships, and many times, front-end money. Nevertheless, almost all of this can be accomplished on a pure contingency basis if the recruiter has the training, competence, and confidence to say “NO” to business that does not meet strict, but realistic standards.

Remember: You should know the criteria that must be met before you will accept a piece of business from a client. This sets the stage for everything that follows

This topic is a hot point for me. I have written volumes on the subject. Yet, in our industry today, most recruiters are still working the “low hanging fruit,” have fill ratios of 1 in 5 or higher, and are satisfied with mediocre income based on annual production of $250K or less, which typically reflects fewer than one filled order/assignment per month, which I consider to be an absolute MINIMUM for someone with more than one year in our business.

Have A “World Class” Ratio

Yes, I am sounding off a little bit. However, I have never met an achievement oriented person in any field of endeavor who didn’t keep their eye on the standard, whether self-imposed or an industry standard. In our industry, that standard is client satisfaction, i.e. how many of the openings they place with us do we actual fill successfully? This ratio, more than any other factor, will ultimately determine whether or not we retain the client long term, and under what circumstances that retention occurs.

If your goal is to build a reputation as a “world class recruiter”, you need to begin by defining “world class.” Against what standard will this definition be formulated? It better be a standard that defines “world class” to your clients and if it does, it most certainly will include your fill ratio. In essence, this ratio will ultimately define you as a recruiter.

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 e-mails are most welcome.

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Interviews

Vetting Your Prospect Using Behavioral Interview Techniques

by on Jul. 29, 2012


Chart- behavioral characteristics

The work we do with our clients begins with a focus on defining, in quantitative and qualitative terms, what constitutes success in the position. The result is the finalization of the position’s critical performance outcomes (usually somewhere between four and ten). This step must be properly accomplished before you can establish job-related, performance-based selection criteria. Once these have been established, you can move forward with the candidate assessment process.

For accurate assessment, properly constructed, behaviorally-based selection techniques may require you to use a combination of various interviewing approaches and questioning styles that will allow you and your client to evaluate not only the candidate’s skills and abilities but also the characteristics listed in the chart, and most importantly, Motivations.

Properly developed and utilized, behaviorally-based selection techniques will provide you with honest, accurate, and timely information on which to predict behavior and assess the candidate’s “can do,” “will do,” and “fit” for the position and for the organization.

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For Managers

Think Units, Not Dollars

by on Mar. 9, 2012


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Daily I receive calls from owners and managers who ask the same question:

“What billings goal should we have for our consultants?”

This is a fair question. As a prudent business owner, you need to understand the billings/cash-in numbers required to support your operational objectives. This includes determining your monthly operational break-even point or “nut,” as well as calculating revenue projections and profit margins. From that point you can establish minimum and targeted production figures for each position in the organization and for the organization as a whole. However, in managing your staff, focus on unit placements first and dollars billed/cashed-in second (number on assignment, length of assignment, and gross margin for temporary staffing).

Most of the experienced producers in our industry, if allowed to concentrate only on dollars billed/cashed-in, reach a production comfort level somewhere between $150,000 and $250,000 per year. With an across-the-board average fee of $19,000 to $22,000, that equates to less than one placement per month.

A specific example is an experienced consultant I spoke with last week who has a goal of billing $250,000 this year. However, his average fee is $32,000. That means he needs to finalize only eight deals/placements this year. Although the overall billing numbers do not look bad, consummating eight placements within a 12-month period of time means this consultant will be continually walking the fine line between success and failure. If one or more of these deals do not come to fruition, his overall billings number shrinks dramatically.

As an industry, we tend to recognize high billing numbers, and to some extent we should. However, as owners, managers, and producers, a more accurate picture of our capability is reflected in our number of unit placements.

In those staffing firms where the focus is on unit placements, minimum individual performance standards generally align with the following numbers:

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Business, For Managers

An Eight-Step Process for Achieving Your Goals

by on Feb. 6, 2012


goals

Using a proper methodology for setting your goals is very important because the result must be specific, realistic, and most importantly, achievable. Additionally, you must baseline your performance and establish specific activity benchmarks that must be met on a daily, weekly, and monthly basis in order to achieve your goals (see my June 2008 article in The Fordyce Letter, “Baseline Your Performance”).

Observations from my consulting work with hundreds of search and staffing firms indicate that goal setting is generally a challenge for both management and staff. However, as turnover rates and year-end results clearly demonstrate, the bigger challenge is achieving the goals once they are established.

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Closing, Fees

Developing Exclusives – Q&A and Final Thoughts

by on Aug. 23, 2011


exclusive contract

Our previous three articles have focused on “how” to develop exclusive client relationships. In this article I will provide a summary of the questions from the near record number of calls and emails I have received in response to those articles.

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