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The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'business ownership'

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.

Business

Don’t Miss Out On Your Marketing Deductions



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IRSBefore you file that tax return today take a second look at the deductions for marketing and promotion. Did you take all the deductions you’re entitled to?

Surprisingly, 43% of small business owners are entering zeros on that line of their business return or on their Schedule C. What’s more remarkable is that 27% of owners aren’t even aware that the IRS allows them to write off legitimate marketing expenses.

Not taking those expenses is like volunteering to pay more taxes than you have to, which makes about as much sense as ignoring a job order from a valued client. You wouldn’t do that, so why would you skip something as valuable as writing off what you spent on things like business cards, your website (and the hosting fees), holiday gift cards to clients, advertising, and those slick brochures you had printed.

Business, Viewpoint

It’s Not Easy Building the Perfect Recruitment Company, But Your Future Depends On It



Achievement cloud - free

Achievement cloud - freeA while ago, I wrote an article that was posted on ERE.net (“Why Recruiters Will Be at the Heart of Our Corporate Future”) trying to explain my concept of what of “good recruitment” was and why recruiters will therefore be at the very heart of our corporate future. I received a lot of great feedback on the post but also some negative comments about how employers and candidates felt after interacting with recruiters. There were also some strong feelings about the impending demise of our industry due to technology improvements and in house recruiting teams.

Consequently, I thought I could extend my opinion yet further to outline another opinion of the structure of “the perfect recruitment company” in today’s world and highlight how recruiters can learn and improve using technology, learn lessons from Silicon Valley and out-compete in house teams for high margin business.

There are five key common principals to the mind-set and success of Silicon Valley companies:

Business, For Managers

Success Is In the Numbers. But Which Ones?



Dart board - free

Dart board - freeWe all have heard and most believe, “Knowing your numbers is critical in this business.” Also known as metrics, what are the most important metrics to follow? Tough question since all are important and all build upon each other. Without the desk-builder metrics of job order and candidate presentations there would be no sendouts, and without sendouts there would be no placements.

As a double bred numbers guy (CPA and banker) I have lived my life believing and analyzing numbers. After eight years as owner of an executive search firm — $8,570,487 in collections, 300,982 attempted calls, 33,523 SMP connects, 1,640 first time sendouts, 313 placements, and more falloffs than I want to remember — I am now more than ever convinced the numbers in our business never lie.

Business Development, Webinars

Webinar: Secrets for Growing Your Business From Neil Lebovits



Neil Lebovits

trinet logoWith an always exciting and fresh perspective on the recruiting industry, well-known industry trainer and recruiting professional Neil Lebovits explores tactics and shares secrets to help you grow your business when he presents the first Fordyce Letter webinar of the year.

Spend one hour on April 22nd and you’ll discover how to calculate and maximize your gross margin dollars, learn the different ways to price contract positions, and what it takes to add temp to your perm business. The webinar is free and sponsored by TriNet.