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The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'businessdevelopment'

Ask Barb, Business Development

Be a Value Provider to Improve Margin



Ask Barb

Dear Barb:

I plan to sell my business in three years. I added a temp division to increase the value of my company. However, my recruiters have been having a difficult time selling against markups that are ridiculously low. Clients will ask us for our markup, tell us what our competitors are offering and if we don’t bid lower, we don’t get their business. If I’m going to sell my business for the highest return, I have to protect my margins. How can we overcome this objection and make these clients more reasonable? I want to dramatically increase my GMP (Gross Margin of Profit) in 2015.

Frank S., Detroit, MI

Dear Frank:

If you are dealing with clients who view you as a commodity and base their decision 100% on price and don’t consider business value, there is not much you can do to counter this objection. When we are asked our markup

Ask Barb

How a Follow-Up Call Earned $30,000



Ask Barb
Note: Jeff Allen wrote about a new service called Fee Catcher that will track your sendouts and notify you if and when they are hired by your client. Read his article “Here’s How To Get Fees You Didn’t Expect” to learn more.

Dear Barb:

I heard you speak not long ago and loved your straightforward approach to our business. I’ve already made my money back by using your sendout hot sheet, and calling clients where we had sent our candidates.

Last week we surfaced two placements made behind our back, which totaled over $30,000 in fees. We contacted the hiring authorities, and in both instances verified information and sent an invoice. I could not remember the time frame for the second contact you suggested. Your wrap up session at CSP was the best session of the conference and showed me exactly what to do when I returned to my office.

Jim,  Southern California.

Jeff's On Call!

Have More JOs Than You Can Fill? Hire A Freelancer. Here’s How



Placements and the law logo

Let’s face it. You can’t accept every search. You can’t search and supervise at the same time either. And you certainly can’t afford to have search specialists on your payroll, hoping the right job order comes along. Placement doesn’t work like that.

The result is that you take more JO’s than you can bill — “backup JO’s” just in case you find someone. But you don’t. Some other recruiter does.

Enter the freelancer — a “consultant’s consultant” who does “brokered” searches on a project (one-time) basis.

Freelancers are low-overhead, low-profile recruiters who usually work out of their homes. They don’t market their services to employers, and don’t solicit job orders. Instead, they depend on visible brokers like you to refer search business. This allows them the flexibility to recruit on their own schedule. In fact, many are employed management and technical types who moonlight after hours.

International

Recruiting In Japan: Ask Your Client These 6 Questions



Japan - Vichaya Kiatying-Angsulee - Free

The changing face of recruitment is a global issue, yet international recruitment is presented with the added challenge of cultural nuances and labor regulations that are country-specific.

When a client seeks to enter a new market, in the case of this article, in Japan, the role of a top recruiter is not only to provide recruiting-related candidate information and evaluation, but also advice about the market to determine the feasibility of a future business.

When you consider recruitment in Japan, new market entrants, regardless of industry sector, can benefit greatly by asking them the following six questions to determine if they are taking the right approach to the Japanese market.

Ask Barb

Go After the High Margin Business



Ask Barb

Dear Barb,

We are a light industrial staffing firm and have been in business for 10 years. Two years ago, I heard you suggest that we consider business that is high margin. I didn’t take your advice and now our margins are decreasing and I don’t even know what the Affordable Care Act  is going to do to us.

Can you define what you meant by high margin business? I don’t know that I will be in business next year at this time, if our margins continue going south. Some of the big guys in our business are the ones who are responsible for driving rates down.

Tom F.
Cleveland, OH
Business Development

How I Nearly Lost My Business When I Stopped Marketing



hand marketing buttons-free

hand marketing buttons-freeRecently, a colleague asked me, “What was the most rewarding mistake you ever made in business?”

It’s a great question, and I quickly had an answer for him because it was an incredibly painful mistake. However, it proved to be an invaluable lesson that has served me well in the years since. I’m sharing so perhaps you can learn it the easy way.

The lesson: Don’t ever stop marketing because you think you’ve reached the point where you don’t need to. And, secondarily, believe the old adage that warns, “Don’t put all your eggs into one basket.”

My Story

Years ago, my public relations company connected with a large publishing house that served many prestigious authors. The first few of its authors we

Business

Are Candidates’ Resumes Cutting into Your Profits?



resumes flying

As you review the first six months of the year, what are you finding? Are you ahead of your revenue goal or falling short? If you are ahead, you want to build on that momentum and make this your best year ever. If you are falling short, there is no time to waste to boost your profits. Regardless of your situation, today I am offering you a quick and easy way to increase profit through job candidates’ résumés!

Are you spending too much time coaching candidates on résumés? We often meet a diamond-in-the-rough job candidate. If we could just tweak their résumé, they would be perfect for the client. The problem is that when you are using your time and resources to clean-up bad résumés, you are not focusing on new business or attending to your clients’ needs. In other words, you are cutting into your profit. Here are three ways to improve a candidate’s résumé, without wasting your resources:

For Managers, Motivation

Good Leaders Are Made, Not Born



Demanding Boss

TeamLeadWhy won’t my employees just do what I tell them?

Why am I struggling to motivate my team?

Why aren’t they giving me the performance I need?

If any of these questions sound familiar to you, you’re not alone.

You were probably promoted because you’re a competent technical professional. You know how to build a bridge, negotiate a deal, or justify a capital expenditure. But whether you’re a team leader or a branch manager, your technical skills usually won’t help you be a better leader.

Effective leadership has an undeniable business value. In one study, Jack Zenger and colleagues (“How Extraordinary Leaders Double Profits”) examined the best (top 10%) and worst (bottom 10%) leaders at a large commercial bank. On average, the worst leaders’ departments experienced net losses of $1.2 million, while the best leaders boasted profits of $4.5 million.

Ask Barb

Add Temp to Improve Your ROI



Ask Barb

Dear Barb:

I place engineers only in permanent positions and everyone keeps telling me I should get into the temporary business. I’d love your input.

Pamela M.

San Juan, Puerto Rico

Staffing

Where to Find Contracting Job Orders



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One of the first questions recruiters have when they consider adding contract staffing to their business model is, “Which companies should I target?”

The first and easiest answer to this question is to target your existing client base. Gone are the days when contract staffing was limited mainly to the information technology sector (although that is still a hugely popular area for contract placements). Contractors are now utilized by nearly every industry for positions up to and including C-suite executives. Chances are at least some of your clients have utilized contractors or are considering using them.