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The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'business ownership'

For Managers, How-To, The Business of Recruiting

Here’s How to Plan Your ‘Grand Vision’ For 2015



Target Plan

Year-end is a great time. We get to reflect over what we have accomplished and what we have yet to do. We get to celebrate what we did right and we get to write off our failures as part of the past. And we get to redirect our efforts in a new campaign. It’s a cleansing of sort and if done properly will provide energy and direction going into the New Year.

When I look at year end planning, I believe it begins with the overall Vision Statement. This Vision Statement should describe the “grand, overall” destination of where you want to be. I learned from the great Mike Gionta, that a good Vision Statement is a one-page statement that tells a story as if it had already happened. Basically, write a one page statement as if you were 5, 10, 20 years in the future describing what your life has accomplished. Revisit this statement annually and modify it as you deem appropriate.

With the Vision Statement in place there are certain “Big Bucket” plans that will need to be addressed. They all must work together to support the Vision Statement and the execution of these plans will allow your Vision to become reality. The Big Bucket items that I believe fit our industry are:

Business, Jeff's On Call!

What You Need to Know About Selling Your Placement Business Through A Broker



Placements and the law logo

Some days it seems that everyone in the placement business is looking for ways to leave it. When you’re one of them, you’ll need to know about that mysterious person called a “business broker.” He or she can really help.

Here are the eight questions we’re most asked about business brokers, and the answers we give:

1. What is a business broker?

The obvious answer is that it’s someone who introduces a prospective buyer of a business to a seller, and arranges a sale of the business for a fee. However, the real answers are:

For Managers, Motivation

With A Performance Contract They Fire Themselves



Results-free

Results-freeFor managers, there is one thing worse than hiring the wrong person and that is to keep that individual employed with their agency long after the collective experience dictates they should be terminated. Yet, in almost every case, managers will admit they have difficulty with making termination decisions.

From my many years of experience in working with managers in hundreds of staffing firms on both a national and international basis, I have concluded that the primary reasons for this apparent lack of decisive action include one or more of the following:

Industry News

Staffing Firms Dominate Inc. 5000 HR Category



Inc. 5000 top 10

Inc. 5000 top 10Inc. magazine is out with its annual list of the 5,000 fastest growing private companies in the U.S. This year, 199 self-described human resource companies made the list, many, if not most of them recruiting and staffing firms.

The largest staffing firm is Elwood Staffing with $763 million in revenue last year. The company places temps in several areas from administrative and clerical positions to the skilled trades. It’s direct placement division — Elwood Professional – conducts searches for mid-level professionals on up to CEOs.

For Managers, The Business of Recruiting

When You Set Standards and Manage to Them, Everyone Knows Where They Stand



hiring right 4

Note: This is the fourth article in a series on decreasing turnover and increasing profits. In the previous three articles Terry discussed turnover  (High Turnover Is NOT Just Part of the Business), who to hire (What It Takes to Attract and Hire Recruiting Winners), and setting expectations and training (Your Onboarding Should Not Be Like A Box of Chocolates). 

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Fast-Paced! Volatile! High Risk! High Return! Competitive! Sophisticated! Pressurized! Stressful! Demanding! Exhilarating!

These are some of the terms used by managers to describe our business. However, as with most adjectives, these terms are subjective and can mean different things to different people. That is where performance standards come into the picture.

For Managers, The Business of Recruiting

Your Onboarding Should Not Be Like A Box of Chocolates



Forrest Gump box of chocolates

hiring right 3In our previous two articles (Part one: “High Turnover Is NOT Just Part of the Business“; Part two: “What It Takes to Attract and Hire Recruiting Winners“) we discussed whom to hire and how to attract them to your organization.

In this article, we will focus on one of the most overlooked functions of the selection process, that of establishing realistic expectations for the employment relationship.

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If realistic expectations are not established between you and your new employee a state of mutual mystification will result whereby neither of you will have a clear understanding of what to expect from the other. To begin the employment relationship in a state of mutual mystification is analogous to Forrest Gump’s comments about the box of chocolates, “You never know what you’re gonna get.” This can lead to fear, confusion, anxiety, and frustration on the part of your new employee, which can produce a lack of commitment and effort. Without the proper commitment and effort, failure is assured and turnover will result.

How-To, The Business of Recruiting

What It Takes to Attract and Hire Recruiting Winners



Nowork illustration-free

Note: This is the second in a series on decreasing turnover and increasing profits. In the first article Terry identified the eight major factors that contribute to staff turnover and he looked at whom to hire. In this article he discusses how to attract the right individuals (winners not whiners) to your firm.

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 A company is known by the people it keeps.

hiring right 2For most firms in our industry, whether temp, perm or search, the managers attempt to hire individuals who are intelligent, well educated, possessing solid business experience, can think on their feet, present themselves in a positive, professional manner, possess better than average interpersonal skills and are well motivated to do the job. Almost daily, these managers meet individuals who appear to possess these traits. However, most managers we have surveyed described a feeling of increased frustration at being unable to attract these good people to their firms. Over and over we hear comments like:

  • “No one wants to work on straight commission anymore.”
  • “The right people have too many good employment options available to them and, therefore, they will not give serious consideration to our business.”
  • “We can’t match what they can be offered elsewhere.”
Entrepreneurship

Why I Left Corporate Recruiting



Matt Lowney
Matt Lowney

Matt Lowney

As you may have read in my previous post, “Staffing Agency Pitch: ‘We’re Different.’ Employer: Yawn.” my belief is that there’s not strong differentiation in the staffing vendor world. Too often sales pitches don’t strongly reinforce their key differences in building a business case. Said another way, most firms seem to be focused on business development and not recruiting quality.

That’s a broad brush to paint the industry with and there are certainly several very strong local and national firms, but that seems to be the overall client perspective of staffing firms. With that in mind, I recently decided to move out of corporate recruiting and start a recruiting practice (actually two different firms) with an eye to doing things differently.

For Managers, The Business of Recruiting

High Turnover Is NOT Just Part of the Business



hiring right part 1

Editor’s note: Today, Terry Petra begins a seven part series on recruiting’s most challenging job: recruiting, training, and retaining high performing recruiters. This series first appeared in our monthly newsletter, The Fordyce Letter. Each Thursday look for the next installment of Terry’s series, HIRING RIGHT.

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Based on the tremendous response from readers regarding my previous article on hiring top performers (“Why Can’t I Do A Better Job of Hiring?”),  I will be doing a series of articles on this most important topic.

This article diagnoses the problem and subsequent articles will offer suggested solutions.

Most everyone would agree that the most important factor in determining the long-term level of profitability for your firm is your ability to attract, hire, train, maintain and retain consistent producers. However, many owners and managers believe that having high turnover of recruiters and professional staff is just part of the business. They cite such industry-wide myths as:

Business

How Did You Do Last Year? Bullhorn Comp Survey Can Tell You



Comp by industry bullhorn 2014

Bullhorn comp survey 2014How much money did you make last year? The industry average for all independent recruiters was $74,000, somewhat less than half the $154,000 agency owners and CEOs earned.

Break that down by the type of recruiting, and who comes out on top but recruiters who work exclusively on contingency. They earned on average $96,000, while owners and CEOs of contingent firms average $149,000.