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The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'contingent'

Industry News

Staffing Firms Top Inc. List Of Fastest Growing in HR



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From the giant IPO-bound staffing firm Staffmark Holdings, to Indianapolis’ 14-person HR services firm FlashPoint, 156 self-described human resource companies made the annual Inc. list of the 5,000 fastest growing businesses in the U.S.

Inc. ranks the companies, all privately held, by growth rate; the faster revenue increased over three years, the higher the company ranks. By that measure, HR staffing and services firm Nextaff was first among the HR companies that volunteered to participate. (Participation requires companies to divulge annual revenue, employee counts and growth, etc. Only some companies are willing to publicize that kind of proprietary information.)

Jeff's On Call!

Jeff’s On Call!: Converting From Contingency to Retained Search



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This week’s inquiry comes from Brigitte Welters:

Dear Jeff,

First of all, I really appreciate your advice and expertise concerning placement very much. I hope you can advice me on following subject matter:

A short introduction:  I manage a headhunting agency which is specialized in placement of professionals. This company is based in the Netherlands and we place mid-level to high-level professionals in the legal and financial field in the Netherlands. We work mainly for international firms. These clients are very appealing to our candidates since they offer interesting career opportunities and development for them.
Our clients set very high standards; multiple in-depth interviews and tough assessments are the rule. Working in this field of placement is very interesting and challenging; not one day is the same.

We now work for the largest part on contingency basis. Yes our clients are happy with our services, however, we now want to work for the largest part on retained fee basis. The reason we want to convert is that contingency poses many risks for us.

My question is how to convert contingency-based services to a retained fee business?

Thanks so much for your advice,

Kind regards,

Brigitte

TFL archives, The Business of Recruiting

Both Sides of the Desk



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In August 2001, my dream of going back to work for the US Government fell through, and I was subsequently adrift without a backup career plan.  At this time I entered graduate school full-time with the goal of becoming better educated while trying to determine the next step in my working life.  In December 2001, while feeling the disappointment of not having a definitive career goal, I went to go see my parents’ next-door neighbor, who just happened to own a search firm, seeking career advice.  I figured he could point me in the right direction or somehow give me a professional epiphany.  Low and behold, after several conversations I was offered a position in his firm.  In January 2002 I started my career as a professional recruiter.  I worked for this boutique search firm until November 2004 at which time I transitioned onto the corporate side of the “recruiting desk”.

Why this transition?  When one works in a boutique search firm he/she tends to learn a lot about the crucial foundation of recruiting.  But, what a “young” recruiter fails to learn in a search firm is how a corporation works regarding the important synergy and integration between the corporate business and the role recruiting plays in its success.

I came to the conclusion that I needed to know this information and get this experience if I wanted to become successful and last long-term in this highly Darwinian business.

Uncategorized

Never Negotiate Perm Fees Again!



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In conjunction with RecruitersConnection, I’ll be conducting a free one-hour webinar tomorrow (Wednesday, May 26) on perm fee negotiations. It is scheduled for 1:30pm-2:30pm Eastern.

You have probably seen this in your free training, but this will be live! So join us to refresh what you know, or to ask questions or share with your team. This fast-paced session will bring you back to the basics — let’s face it, everyone in the industry is often faced with having to lower their fees or go head-to-head with free resources, such as job boards and ads.

If you hear, “Your fees are too high,” or “We are going to see what we can get for free first,” this session can save your desk.

The method can be implemented on your very first call after this session; the concept lies in getting back to the point of understanding what the word contingency means and how you can better sell this to the client. In essence, you can never be overpriced when it will always be the customer who will decide if they want to pay the price. The best part about this technique is that you don’t have to change the things that have worked for you in the past.

Be sure to register here.

Uncategorized

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.