I got called by a company the other day. They were referred to me even though I have not recruited for a while. The guy said he was referred to me through a good mutual friend of mine. We talked for a little and he told me the kinds of people he needs and then [...]
Artices Tagged ‘fees’
We’re Cheap When It Comes To Recruiters
January 17th, 2008
You Are Probably Underpaid
January 14th, 2008
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 [...]
One of the most frequently asked questions in seminars and workshops is what to do about the “placement in the basement” — the “back door hire,” when you discover a referred candidate has magically appeared working for a client.If you go through your recent files, you’ll discover that for every four candidates you know you [...]
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 [...]
Once again, one of the “Golden Rules” in our business regarding the principles of a “Class A search assignment” has proven to be gospel.? In my twenty-fifth year of headhunting I have become vigilant about qualifying the searches I will and won’t spend my ultra-valuable, only-thing-I’ve-got-control-of, straight-commission time on.? However, every now and then I [...]
“When I need a heart by-pass, rest assured that I won’t select my surgeon on the basis of what he charges.” That’s what an ailing executive recently opined when he was informed by his doctor about his arterial blockage problems. Why then are corporate executives so tightfisted when dealing with what is so commonly thought of as [...]
The obvious contractual defect to the Candidate Acceptance Agreement is a failure of consideration. The recruiter is really not giving up anything in exchange (”legal detriment”) for the promise of the candidate to accept. This is because there is no liability on the part of the employer (and therefore no absolute right to the fee) [...]
The employee selection process is about as random and unscientific as anything can be. Resumes and interviews are nothing more than snapshots of the candidate. They can be touched up, enlarged and changed to present a different image. Successful recruiters know that they are the photographers, and that a placement starts with presenting the right picture [...]
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 [...]
One of the most vital skills that you can learn as a recruiter is how to zero in on those searches that give you the best chance of making a placement - and to only focus on them. Is this a skill that takes time to master?? No, you can learn it the first time [...]
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 [...]
Even adding interest or “finance” charges can be risky unless you do it with other employers. You want it to appear that you expect payment, and are just being patient. Otherwise when your other records are subpoenaed, you’ll blow your cover. Since you should be referring past due accounts to your lawyer after 30 days from [...]
After every recession, the power pendulum swings away from the employer and towards the candidate. Employees who have endured less than ideal working conditions during these economic downturns expect their employers to reward them when things turn around. When they don’t, they polish up their resumes and usually find a more than willing target audience. Those [...]
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 [...]
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 I first joined the recruiting business in 1995, there was a fellow named Patrick in the cubicle next to me who kept saying over and over again, “Man, I can’t believe a company will pay me such a big fee to place someone.? I just can’t believe it.? I just can’t.” He didn’t make it [...]
With growing frequency, companies are telling recruiters that they will not honor our referrals because “they already exist in our Monster.com account (or some similar job board).” With millions of often worthless resumes residing on Monster, HotJobs and CareerBuilder, it’s a bit like saying, “We found that candidate’s name in the phone book after [...]
You can have the greatest attitude, a strong telephone presence, and the best recruiting and client development skills. But if you lack strong work habits, you are destined to failure. Work habits are comprised of five components. First, the Plan The plan is how you are budgeting your time. Your time is fixed and limited [...]
FORDYCE FORUM Dear TFL: I had a situation when a Vice President interviewed one of my candidates. He left his company and went to another, and took my candidate’s information with him. He hired my candidate at his new company. He pointed out that my agreement was with his former employer, and not [...]
These days, it’s like every recruiter on the placement planet is tripping over cadaver candidates. Some recruit is pitched to some employer and somehow ends up working there. Why? When? How? Good questions, gory answers. Don’t expect much help from your cadaver candidate. They have every motivation to stay stinkin’ stiff. It doesn’t matter what the story [...]
“I deal with recruiters who charge half of what you charge.Why should I deal with you at your fee of thirty percent?” Hey, that’s a real good point, I thought to myself. I would probably ask the same question if I were in my prospective client’s shoes. He was a sharp and intelligent seasoned professional [...]
“I deal with recruiters who charge half of what you charge.Why should I deal with you at your fee of thirty percent?” Hey, that’s a real good point, I thought to myself. I would probably ask the same question if I were in my prospective client’s shoes. He was a sharp and intelligent seasoned professional who [...]
?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 [...]
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