A problem exists in the Recruiting Industry. The problem is that not all recruiters feel that the fee they charge is justified. The truth is though; their fee should probably be more. There are lots of recruiters out there working less than 25% fees. This is what today’s post is about. I mean, you write an [...]
Artices Tagged ‘businessdevelopment’
You Are Probably Underpaid
January 14th, 2008
Congratulations! If you’re in the Search and Placement business right now, your timing is terrific. Historically, our industry has always been one of L-O-N-G boom, followed by a bust …. followed by another L-O-N-G boom! We are only two or three years into this boom. Lots of time to go! Moreover, as this is written, we stand [...]
Almost everyone involved in selling a product or service understands that, in order to complete a sale, the potential buyer must reach a point where they believe the value (whether perceived or real) of the product or service is greater than its’ cost. In terms of our industry, our fee must be justified by [...]
Business has improved and many of you are beginning to re-staff and reconfigure.? Hopefully you have learned the importance of NOT just?? “FILLING A DESK,” and have developed a hiring process to identify the top talent your firm needs to achieve future goals and growth. If you are like the majority of the owners and managers [...]
Our already good market continues to heat up, with prospects of a long boom ahead.? In this type of market, many owners are rightfully adding to their staffs. New owners who may never have done so before, however, will encounter unexpected problems.? Even experienced owners who may not have hired new people since pre-recession days will [...]
Many search firms across the country are now hiring additional recruiters. Inevitably one of your “rookies” will be thrilled they just obtained twenty searches from the same client and they have an exclusive.? Before they take a breath - they now ask the dreaded question, “What kind of a deal can I give them, for [...]
Before you start calling those candidates, ask yourself a few of these questions. Use this matrix to test each prospective client. Rank it on a scale of one to ten, with ten the best rating, one the worst. Add up your score and judge the likelihood of you filling the position and getting paid for [...]
Often the paying of a fee to a recruiter is per?ceived as “paying for” the person that is hired. This is a misconception. The service is what is being bought. Since the assessment of the ser?vice charge is based on the starting salary, the fee is therefore associated with the individual. But it is a [...]
The recruiting business is tough. You fight for every assignment and every placement. Most are made by convincing employers that their job requirements are unrealistic, then convincing someone else’s employees to work for them. There can only be only one successful candidate in each placement. The high roll; the big race; the whole enchilada. Winner [...]
How is your production - and bank account - in today’s market?? Both looking solid?? Good!? For most firms, our current market is both strong and steadily improving, and is likely to continue that way for quite a few years! But there is a major trap in this kind of economy which may cost you both [...]
Every day I receive calls from practitioners who want to know how to increase their billings, close a greater percentage of their business, or move toward building exclusive client relationships. The most recent example was a call I received from an experienced recruiter with over nine years in this business. He’s averaging $175,000 per year in [...]
As recruiters, we often advise clients to do everything in their power to “keep their keepers” to enhance the stability, value and growth of their firms or corporations. This article will summarize 5 easily implemented and market-tested strategies to improve the longevity of your placements and to diminish the efforts of outside recruiters who are [...]
Once you introduce yourself to an employer, the subject invariably turns to negotiating your fee. It’s as though they consider your services not worth the money. Most consultants are ready to negotiate too. Some even offer a reduction before they’re asked! They justify it by a multitude of excuses (”easy placement,” “important client,” “preferred list,” [...]
For years now I have relied on A. Bernard Frechtman?s book, Employment Agency Law, A Guide for the Personnel Professional.? In the book I have (which I purchased in 1985), Chapter 3 is entitled, ?Collecting The Fee You Think You Earned.?? In this chapter Frechtman deals with what he calls The Efficient Procuring Cause principle.? [...]
When should you consider terminating a new consultant? That’s what a number of readers have asked lately, especially since they started re-staffing their offices a few months ago. It depends upon a number of factors. In an office specializing in local clerical and/or administrative support placements, the time should be significantly shorter than in an office [...]
Carefully consider your response to the following question because it will serve as “a reflection on your process.” ? In dealing with your clients do you submit candidates to be considered or finalists to be interviewed? ? There is no right or wrong answer to this question. It is posed only to draw your attention to where you are [...]
Consider the possibilities if you could add one placement per month to your current production. That’s twelve placements over the next year multiplied by your average fee. According to anyone’s calculations, the results would be a substantial increase in personal income. Now, consider the fact that you could realistically accomplish this without putting in [...]
?A List Of The Possible “COV” Factors If an airline bought a new 747, and then let it sit for two months on the runway because they didn’t have a pilot, what would the cost be to the airline? In other words what is the cost of a vacant position? Many firms calculate the cost of a [...]
The client called me and said he was wanted to help me fill a position in his firm. “Hey, cool,” I thought to myself. “This business really works.” I tried not to sound like a babbling idiot and attempted to shield my excitement so I came across like these types of calls [...]
One corporate account I’ve been doing business with for 17 years every now and then goes into “slow motion” modes. These periods create a situation where even an entry-level finance or business analyst earning $50k requires eight weeks or more to get from first interview to offer stage. Eight Weeks!! Another “Fortune 100″ [...]
The perks: Working as a Solo Recruiter offers a good amount of attractive perks: low overhead, lots of freedom, ability to choose where you work, no employee hassles, no dress code, no boss and full fees. These and many other perks entice a significant number of people in our business to fly solo or, at [...]
This morning I received a call from a Recruiter with over 15 years in the business. Although the call wasn’t particularly noteworthy in and by itself, it was indicative of hundreds of other calls I have received over the past few years from Recruiters who shared the same problem. Whether it involved asking for [...]
As the pace of business picks up and an increasing number of practitioners are utilizing direct and indirect recruiting approaches to locate potentially qualified candidates, we would do well to remember the confidentiality slogan from World War I, “Loose Lips Sink Ships.” Now this isn’t World War I and we aren’t talking about ships. [...]
You know the rule: It’s no secret that the 80/20 rule applies in most recruiting firms. That is, 80% of your revenue comes from 20% of your recruiters. Everyone knows this to be true, not just of our industry, but also of sales offices in general. However, what happens if you have one big biller [...]
Jim is a tenured recruiter. He and I have known each other for some time. He knows that I teach recruitment technique and have for many years. He represents a group of tenured recruiters who, with all due respect, know how to make marketing calls, how to make recruiting calls, etc. [...]
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