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Straight Talk for the Recruiting Profession


Articles tagged 'businessdevelopment'

For Managers, How-To

Ten Steps to Dominating Your Market and Owning Your Niche — Part 2



Jordan Rayboy

The best way to build a high-billing practice is to recruit within a niche and become the absolute best recruiter on the face of the Earth in that niche. You want to own your market.  All top billers do it. Regardless of whether they recruit in IT, Accounting, or Healthcare – they are POWER BROKERS in their industry.

Yesterday, we gave you Steps 1-4 of how to dominate your market and own your niche. Today, we bring you steps 5-10.

For Managers, How-To

Ten Steps to Dominating Your Market and Owning Your Niche — Part 1



Jordan Rayboy

I just moved into a house in southern Oregon after traveling the past four years in a giant RV. We love our new digs because we are in a pretty remote area. My wife Jeska won’t even let us get a TV in our house (she’s smart). And honestly, my advice to you as well is this – turn off the TV, and especially, turn off news – it’s usually bad. Get outside. Get Healthy. Most importantly, become grateful for all that you have. If you are in this profession, you have SO much to be grateful for. We make a difference in people’s lives. (usually for the better) We help our clients achieve their goals by solving urgent and critical problems. What we should be most grateful for is this: you, and only you, get to decide what your W2 is at the end of the year. No one is in control of your earnings except you.

Your market sucks? I guarantee there are recruiters out there billing huge numbers in so-called “depressed industries” like construction, automotive, and financial services. Someone out there is getting creative, perhaps jumping into mergers and acquisitions. If you need to, change markets. I saw Jon Bartos start up three different markets in three years and build them each to $1M+ annual billings. But then again, Jon is…well, he’s Jon Bartos. The dude has a mini golf course in his office, and a hockey rink in the empty space next door.

The best way to build a high-billing practice is to recruit within a niche and become the absolute best recruiter on the face of the Earth in that niche. You want to own your market.  All top billers do it. Regardless of whether they recruit in IT, Accounting, or Healthcare – they are POWER BROKERS in their industry.

The Business of Recruiting, Weigh In!

Fun Friday: What’s the craziest thing you’ve done for your business?



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It’s Friday – so let’s have a little fun! Today’s challenge:

Tell us about the craziest thing you’ve done to either win new business or close a deal. This could include things that helped you get a candidate to an interview, get an offer to close, get in front of a new client, etc.

Here are a couple of examples:

Julia Stone – President, BizWerks: Julia once took a candidate to the dry cleaner and made him strip out of his wrinkled clothes to have them pressed before going to an interview.

Paul DeBettignies – Managing Partner, Nerd Search, LLC: One of Paul’s candidates had a babysitter lined up to look after his three young children while he went on an interview. The babysitter no-call-no-showed, so Paul played babysitter while the candidate went on his interview. (as a plus, the candidate is going on a second interview)

Share your crazy story in the comments below. Who will have the most outrageous tale to tell?

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Spark & Hustle with Tory Johnson



Tory Johnson

The Fordyce Letter recently chatted with Tory Johnson about her Spark & Hustle conference, scheduled for July 29-31 in Atlanta.

As the CEO of Women For Hire and Workplace Contributor on ABC’s Good Morning America, she has a significant following among career management professionals. She is offering Fordyce Letter readers who may need help turning their ideas into cash a discount to attend (use code FORDYCE to save $200; leave a note that you’ve registered so she can flag it for her staff and she can include you in the after-hours get-togethers).

Tell me more about the agenda and “inner circle” of experts. Also, is this designed mostly for female business owners?

While the contents of the three-day conference would apply equally to men and women, our market is primarily women. Don’t get me wrong, we love men — and they’re welcome to register to attend — but truthfully it’s largely a women’s event by default!

The core focus of the agenda is turning passion and potential into PROFIT. The current and aspiring small business owners and solopreneurs I meet are generally really good at what they do. Where they fall short is how to SELL their services. How to PROMOTE their businesses. How to EXPAND their platforms. This isn’t an event to come discover your passion. Our attendees will arrive knowing exactly what their passion is—that is their SPARK. And they’ll leave having gained the tools and tactics for turning that passion to profit—that’s the HUSTLE part! It’s all about making money right now.

Readers of The Fordyce Letter are motivated by becoming or maintaining their status as “Big Billers”; along those lines, what tactics do you teach at these events to MAKE MONEY NOW?

That’s my kind of crowd!

In no particular order, attendees will learn how to build their digital identities, how to overcome sales objections, how to write compelling copy that sells without being sleazy, how to generate media coverage that’s for profit not just for vanity, how to form complementary alliances, how to generate multiple revenue streams to enhance the core business, and so much more. All of these things can be put to work Monday morning after the event.

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A Call to Action: Kicking Your Business Development Efforts into High Gear!



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Change is on the horizon. Some of us have seen signs of improvement in our search practices, while others are still waiting for some positives signs before re-engaging at full speed in their business. And there is another camp still hunkered down, not sure if it’s safe enough to stick their head out of the foxhole and look around just yet. Regardless of which camp you find yourself in, the real key to getting your business back on track is to get busy developing existing relationships and building new ones.

This is the time. Now!

Building a comprehensive business development plan (a topic I’ll be talking about in detail at the Fordyce Forum in June in Las Vegas) requires some work and effort on your part — but it’s essential to ensure you set your business up for a very healthy recovery.

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Your Criteria For Accepting Business



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What criteria must be met before you consider accepting business from a client?

In today’s uncertain economy, accepting business that has not been properly measured against an established set of realistic criteria is inviting a misappropriation of your firm’s limited resources.

Remember…

Most firms do not suffer from an absence of resources; rather, they suffer from a lack of focus for those resources.

As I’ve said in the past, “every company, in order to be successful, must have in place a set of criteria against which they judge the business opportunities that are available to them.”

Only in this manner can they properly focus their resources. Experienced business professionals understand this reality. As staffing industry professionals, we should as well.

Therefore, consider using the following criteria as a guide for doing business with your clients.

  1. Measure the client’s sense of urgency about receiving the staffing solutions you can provide. This is the most important criteria because typically, the higher the client’s sense of urgency, the higher their level of cooperation and flexibility.
  2. Measure the value the client places on the staffing solutions that can be provided by your firm. This has a direct impact on your fees and/or bill rates. The cost of your service is always linked in the client’s mind to their estimation of the value received (whether perceived or real).
  3. Determine whether or not you will be working with the client’s key decision makers and measure the decision maker’s attitude about receiving your services. While a positive attitude on the part of the decision maker can go a long way toward insuring positive results, correspondingly, a bad attitude may compromise the outcome.
  4. Determine the nature and scope of the process that will be followed in providing your services, including the level of competition, both internal and external. Commitment from all parties to following an appropriate process can help ensure a positive outcome that exceeds expectations.

Although not all-encompassing, following these criteria for doing business will improve your quality ratios, increase client share, and when reviewed with prospects during the sales process, help position you as a business equal. By only accepting business that meet these criteria, you help ensure that resources are properly focused for generating the greatest return in the most effective and efficient manner.

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 emails are most welcome.

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How to Quickly Identify ‘Good’ Accounts, Part 2



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As a company (your client!) grows, it becomes more mature and formal in the way it conducts business with customers, partners, and suppliers.

Your client starts to implement policies and procedures and business processes to optimize their supply chain, reduce redundancy, and take advantage of economies of scale.

What does this mean for us in the staffing and recruiting business? It means it becomes more challenging to sell into the account and conduct business with these organizations.

Let me share with you a real-life example:

Several years ago I started selling into a rapidly growing company with revenues of $1.5 billion. I quickly discovered that the IT and Engineering departments were staffed 3:1 contractors to full-time employees. Yes, it was a “cash-cow” of an account to say the least. All hiring of IT contractors was decentralized. There were no HR policies in place. It was the “wild, wild west,” and I (along with competing sales reps) loved it.

I quickly got a contract in place and put a handful of consultants to work in a short period. Naturally, I thought this account was going to be my “bread and butter” for months or years to come.

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How to Quickly Identify ‘Good’ Accounts, Part 1



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Out of the millions of companies we have available to prospect for new business, how does one quickly decipher through it all and identify “good accounts?” This is arguably one of the most challenging tasks in the staffing and recruiting industry. And we haven’t even started selling yet!

Good Accounts Defined

What is a good account? That depends on your business model and sales objective.

For example, are you selling MSP or VMS type programs or are you trying to get a contract in place to be one of many suppliers to a large managed program? Or is your model such that your goal is to establish one-on-one relationships with the end-using hiring managers? Based on those different objectives, I would define “good accounts” differently, based on each of those unique sales objectives.

But let’s assume (and I think this is the case for most staffing/recruiting professionals) that your objective is the latter.

Your goal is to establish one-on-one relationships with the actual hiring managers so that you can sell value and generate high-end gross profit margins. Your goal is to avoid HR and Procurement at all costs!

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Business Development: The Truth About Getting Those New Job Orders



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Recently, I had a conversation with a staffing agency president who was interested in buying some guru or others insight for business development.

He said, “But Rachel, I don’t want any insight, I want a quick and dirty tool that will help me find and get job orders.”

In another case, the managing director of a contingent staffing agency said, “I don’t have enough job orders, I need MORE, a lot more so we can pick and choose what we work on.”

How fast do you think they will be out of business?

Let me make this crystal-clear to you as a person who has led million-dollar lead generation efforts for technology projects/staffing firms and was responsible for search agency business development: There is NO quick and dirty tool to get business and the days of picking & choosing what to work on are OVER.

The staffing agencies that are doing well today are the ones that:

  • Have a specific niche focus and do very well in what they do. They don’t just specialize in IT or sales, generally they specialize in IT security, SAP professionals, or independent sales agents for insurance. They focus on recruiting professionals where there is demand, scarcity, or emerging needs (they understand the market) and they work with recruiters and sourcers who understand these positions and can find and fill the orders. They have relationships with clients and understand where the client needs are and work to fulfill them — whether directly or through splits.
  • Understand that business development is a process and takes work to achieve relationships. One staffing agency recruiter/account executive talked with me about how she called month after month to contacts, especially when they told her “not right now”. One of the people she contacted for six months gave her a job order that was pretty significant. He thought of her first. I had that happen as well, seven months of calling, emailing, and watching the company to see if an opportunity would come, and it did. It takes time, effort, and patience to build new business.
  • They wisely invest in tools and support that will enhance delivery and fill job orders (client loyalty) or have direct impacts on business development effort. Instead of spending a few thousand dollars on branding, take your unique value proposition and engage someone who will work with you to do lead generation. Real branding can take years to develop — IBM didn’t achieve its brand equity overnight. Many staffing agencies do not have websites, though a website can be designed and built for less than $3,000 and SEO applied.
  • They know too that there is no magic bullet or shortcut to getting new job orders. Some staffing agencies invested in sales training methods and techniques, only to find the system created more complexity and even negative effects rather than positive. The best system is to understand your core competencies, what makes you worth working with, and how you can bring value to a new client and then bring that message to prospective clients. Value does not translate to cost either. One staffing agency executive had a unique focus , she could find and network with resources that could bring direct bottom line impact to organizations seeking to expand sales efforts in particular demographic markets. I worked with her to develop a 30 second pitch encapsulating that value. This, by the way, is also an example of a staffing agency that positioned candidates as a “solution” to a business problem — something articulated in a recent Fordyce article.
  • They also know the days of “picking and choosing” are over. I don’t know of any industry where organizations source business and then pick and choose which contracts or projects they will work on. If a company gets a project it can’t fulfill, it usually will enagage another firm to assist or pass it to someone else. It is ok to say “NO, this is not something we specialize in. However, I can refer you to XYZ if you have a need in this area.” Companies only go after business that they know they can fulfill or meets certain guidelines. Staffing agencies need to gain a better hold on their core competencies and source job orders that they know they can fulfill. From conversing with corporate recruiters in charge of agencies, they only will work with companies that have a track record of fulfilling job orders — the rest they are scrapping.

The Client Perspective

From the client perspective, no one has time to manage multiple agencies and spend time ramping-up or working with firms that have no ability to fulfill what they need. Just as agencies don’t have time to spend talking with or dealing with unqualified candidates, firms have no desire to deal with unqualified firms. Firms that repeatedly fail to deliver or do poorly will be dropped permanently from the roster and, in this environment, a reputation for failing to deliver is not one that you want to earn.

Many “experts” will emerge who will advise you on what to do or how to get job orders, if they haven’t made a business development call or closed business — pass them by. Be sure to ask, when your material, advice, or insight was applied — how much new business did your clients secure, in what timeframe? The best way to spend your limited funds on business development is to find a resource who will work with you to develop the message, write your website copy, develop emails, and make those hundreds of calls to establish the relationship.

There are incremental resources like me or actual agencies that do not require “big bucks” to help you. Spend your money where you get a return; if done properly, the money you spend will repay itself in new job orders.

Truth, Justice and the American Way of Headhunting

Getting Business: A Guide to Increasing Your Customer Base in Challenging Environments



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In my travels supporting sales/marketing efforts for HR service companies, I hear a common lament: how can I get more business and find more prospects with a need for my recruiting/staffing services?

Today, this is particularly more top-of-mind because key clients are:

  1. Freezing hiring activities or cutting back.
  2. Reducing their vendor lists.
  3. Pulling more of the recruiting internally.

The net effect — combined with stiff recruiting competition — reduces the need for adding more recruiting or staffing resources.

Drivers of Success

Many larger recruiting firms have developed strong networks, both client- and candidate-based, have marketing/advertising dollars, and strong methodologies. This does not mean they have a lock on clients.

The first driver of success, of course, is delivery. Many companies are willing to give agencies a shot, particularly if they are willing to perform contingency search. A lot of failure to break in is attributed to lack of delivery.

I have seen situations where the TPR was given a chance but blew it, for example, because the candidate presented was scraped from a job board and recognized by the client, did not do due diligence and had the candidate drop out, or didn’t have the recruiting/sourcing competency in the first place to build an adequate pipeline suited for that client.

Many times, recruiters or account executives also fail to forge ongoing interactive relationships; they meet the client once and then never contact them with updates or let them know what is going on. The client will never do business with those firms again.