Our business may be easy to understand, but it is infinitely more challenging to execute in a consistent, effective and profitable manner. This challenge is based on the fact that we are continually dealing with people at every point in our processes. These people represent a “grey area” that many times can defy our best efforts to qualify and control. Frustration and despair may follow if our actions are not guided by a reality-based set of principles that address the unpredictable nature of the human condition.

Remember

“If you don’t stand for something, you will fall for anything.”

Original Author Unknown

Your principles define your “stand” and if properly formulated and followed, will help you meet the challenges presented by the prospects, clients, recruits, candidates and contacts you deal with on a daily basis.

Over the years, the following have been labeled the “Petra Principles.” They have served me well and have withstood the test of time. Perhaps they will serve as a reference point in developing your own principles for functioning successfully in this business.

Petra Principle Number One

People do things for their reasons and not ours.

This first and most important principle underscores all the others. It is based on the psychological truth that people always act in a manner THEY view to be in THEIR best interest. Consequently, to be successful in this business, we need to understand what “they view to be in their best interest.” This requires an empathetic approach, particularly when their “view” is contrary to the reality of the situation (see TFL – 09/05 – “Dealing Effectively With Objections”). Functioning according to this principle will eliminate much of the frustration inherent in dealing with people both professionally and personally.

Petra Principle Number Two

We have a right and a responsibility to select the people and business to which we apply our resources.

We have a right to select the people and business to which we apply our resources because primary among these resources is our time and effort. These are not infinite resources and once they are expended, they can never be recovered. Therefore, it is our right to select how these resources are utilized.

Remember

Most people do not suffer from a lack of resources. Rather they suffer from a lack of focus for the resources they do possess.

Correspondingly, we have a responsibility not to waste other people’s resources (see TFL – 11/97 – “Just Say No”). This requires that we take an objective approach (standards) to evaluating our circumstances. We cannot wish ourselves to success. We must focus on the reality of the situation and in a timely and clear manner “cut the cord” when the evidence supports this decisive action.

Petra Principle Number Three

We must make certain that our processes are designed to bring maximum value to all those involved.

Good intentions notwithstanding, our best efforts can be derailed if our processes are not designed to meet the objectives of everyone involved, including ourselves (see “Petra Principle Number One). If there is one thing we can and should control, it is our processes. Relinquishing this control to others means we are working blind while increasing the margin for error.

Do not confuse this principle with “my way or the highway.” Our processes need to be both interactive and adaptive to the specifics of the individual situation. However, once the processes are in place and agreed upon, everyone involved needs to accept their responsibility and accountability. To work in any other manner compromises the likelihood of a successful outcome and sets up a situation with no potential winners.

Petra Principle Number Four

We have a responsibility to – but not for.

We have a responsibility to provide accurate, clear and timely information to everyone involved at both ends of the decision making process. We have a responsibility to make certain they understand both the context and impact of the information on their decisions. However, we do not have a responsibility for their decisions. Just as we must accept responsibility for our decisions (see “Petra Principle Number Three”), they must accept responsibility for theirs.

Remember

The decisions they make will have a far greater impact on their lives than on ours.

In the heat of doing business, it is sometimes difficult not to project ourselves and our desires into the decision making processes of others. This is where professional detachment is required. Nevertheless, we need to be responsible for our actions and the subsequent impact of those actions on the outcomes of the process (see TFL – 02/02 – “A Fresh Perspective On Guarantees”). Maintaining this balance is the objective of this principle.

Although there are only four principles, they apply to every aspect of our business. When someone I’m dealing with needs to understand where I “stand,” I share these principles. In almost every case, they appreciate knowing that my actions are guided by a strong set of principles; principles that are consistent with their best interests.

As always, if you have questions or comments are most welcome.

I’ve been waiting four years to write this article’s title.

Since I like to integrate music in my training, I thought I’d try it in my writing. (For the past couple of years, I’ve been playing “We Are the Champions” for the industry survivors.)

Songs can grab attention, create a sensory reaction, and generate good feelings. There’s a marketing idea: Find out our clients’ favorite music genre or artist and forward an MP3 file.

The last time the job market was this strong was in the beginning of 2001, before 9/11 and before the stock market meltdown. Recessions are cleansing. Today’s companies are mean, lean, and hungry to hire. So are search and staffing firms.

If you’re reading this, you’re either a talented manager, an excellent consultant, or you’ve recently begun recruiting. Whichever, here’s where we’ve arrived:

We’re at the leading edge of a new jobs creation cycle that will last for years to come.

At the core, our business remains the same: To serve clients and identify talent.

Now we have new tools and new techniques that make us more effective and efficient.

Now is the time to harness what we’ve learned, take action, and savor the rewards.

Consultants across diverse industries and geographies report “business is back.” A common sentiment is this: “We’ve done a ’180′ from six months ago. We have a lot of new assignments and now candidates are hard to find. What to work on first?”

The same strategies apply in a candidate short market as in a candidate rich market:

Stay focused and disciplined.
Manage your time wisely.
Identify, evaluate and bond with top talent.
A-B-R-B (Always Be Relationship Building).
Follow-up, follow-up, follow-up.

The good news is that we can be ever more selective in the assignments we work. Higher supply of open positions puts us in a better position to negotiate higher fees and be more discerning with terms.

Many ask how can we “adjust” our clients’ thinking to this new world order (i.e., scarce talent), while upgrading contract terms. These are timely topics I review in my training this year.

Over the past few years, I’ve had the good fortune to speak one-on-one with hundreds of consultants. I’ve come to find that one overriding factor separates big billers from average ones.

It is this:

$300K+ billers know which assignments to work and which ones to let go.

Instinctively, this makes sense. If we spend our time only on assignments we can fill, then we’ll focus where the payoff is. This is more complex than meets the eye. Seasoned consultants seem to know intuitively which assignments and candidates to zero in on and which ones not to.

I’ve put together a guide to help in determining search assignment workability.

You may have seen something like this before. The same thinking can be applied for contingency and retained searches alike. I hope you find it to be a simple yet powerful tool.

Risk-Reward, Search Assignment Rating
(1 to 10 scale)

(1)Client status: Current (10), Referred (8), New (5)
(2)Responsiveness: ____
(3)Flexibility:
(4)Urgency:
(5)Ease-to-fill:
(6)Quick-to-fill:
(7)Exclusivity:
(8)Relative Fee:
(9)____________
(10)_____________

Total score:

70 to 80: Excellent assignment: Offer compelling value to capture business.

60 to 69: Good assignment: Standard fee range.

50 to 59: Fair assignment:? High end fee range.

Below 50: Unacceptable, pass on assignment.

By no means is this complete, e.g., how would you rate a ‘Past’ client for (1)?

A quick review of the categories above follows. It’s clear that a new assignment from a current, known client (1) should receive higher priority. Likewise, if a client is very responsive (2) and flexible (3) in the search parameters, then an assignment should be higher priority. Urgency (4) means that a client has a high need to fill. Ease-to-fill (5) comes from your market knowledge, while quick-to-fill correlates with supply and demand of candidates (is one available/qualified or do you have to recruit one?)

Exclusivity (7) is a very important factor: What is your relative competition (i.e., internal candidates or other recruiting firms?) If you’re retained, give a ’10.’ If there are more than three firms working an assignment, that’s a ’1′ in my book. Relative Fee (8) includes the pay-off component the dollar fee (not percentage) compared to other current assignments. If you add your own variables for (9) and/or (10), don’t forget to adjust the scale.

As you see, the total score corresponds to the fee range you may accept. This could be absolute dollars ($25K) or fee percentage (25%).

Of course, there are other negotiables (e.g., guarantee period, which must be considered).

Determine your bottom line and use this as your standard fee range. For example, my firm’s bottom line is working $100K exclusive assignments at 25%. If a retainer’s involved, we may go lower depending on the client relationship.

Always ask yourself this question first: Do you want the search assignment? If so, why?

The light at the end of the tunnel is shining bright. If the good times aren’t rolling for you yet, they soon will be.

One sure-fire way is to be more discerning in the assignments you work. (Another is gaining exclusivity with top candidates. Another still is ongoing training!)

If you’d like a page from my training materials entitled “Negotiating the Fee” which includes my “Risk-Reward, Search Assignment Rating” email me at mramer@ramergroup.com and I’ll send it to you.

“Stockholm Syndrome describes the behavior of kidnap victims who, over time, becomes sympathetic to their captors. The name derives from a 1973 hostage incident in Stockholm, Sweden. At the end of six days of captivity in a bank, several kidnap victims actually resisted rescue attempts, and afterwards refused to testify against their captors.

What causes Stockholm Syndrome? Captives begin to identify with their captors initially as a defensive mechanism, out of fear of violence. Small acts of kindness by the captor are magnified, since finding perspective in a hostage situation is by definition impossible. Rescue attempts are also seen as a threat, since it’s likely the captive would be injured during such attempts.” [Ask Yahoo, http://ask.yahoo.com/ask/20030324.html; more information, http://www.mental-health-matters.com/articles/article.php?artID=469 ]

The inspiration for this article came from a response Danny Cahill wrote to a closing question on www.AccordingToDanny.com entitled “The Eulogy Close.” It’s a particularly challenging close when a candidate wants to accept a client’s offer, but is reluctant or refusing due to a non-compete contract he/she has signed. I won’t go into the Cahill letter here in detail, but I encourage you to visit his site and “look it up,” as my father would say. I associated the Stockholm Syndrome with The Eulogy Close because it’s aic situation that occurs incrementally more often as the issue behind the close has more fear and emotion associated with it. However it can also be a very simple occurrence that will trigger the Stockholm Syndrome within a recruiter and begin to solidify an instinct that will lead to a new recruiter’s failure in our business. This is a crucial issue that needs to be addressed, so let’s break it down tactically……

What is it, who can suffer it and why? The Stockholm Syndrome as it relates to our business happens when a recruiter identifies with the objection from a candidate or client as a result of an exaggerated altruistic feeling toward that person and/or an identification with the objection or situation. It’sically verbalized or imagined as, “I wouldn’t do THAT if I were him. I can understand his objection.” The recruiter literally talks himself out of overcoming an objection or challenge in the process. With new recruiters, the misleading altruism can be a result of a feeling that they want to “help the world” through their noble work and wanting everyone to like them — or a fear of any form of confrontation. If it’s not an altruistic cause, it’s wanting to avoid the fear of failure in working through an objection or looking like a “snake-oil salesman.” With experienced recruiters it can be as a result of not wanting to summon the emotional energy to circumvent the objection (i.e., just being tired or perhaps shall I say it? — lazy). Either way, it’s an illusion. There is no better service a truly consultative recruiter can offer his contacts than removing fear and misunderstanding from a process in order to help them succeed for the long term. Remember, we wear the multiple hats of “change agents,” “teachers,” “counsels” and “anti-fear agents,” among others.

As in the actual Stockholm case noted above, some recruiters will identify so closely with the objection that they become agitated by those trainers or managers who would attempt “rescue action” by helping them understand how to take the proper course of action. The fear or insecurity generated by the objection flips a switch within the recruiter that locks out logic and objectivity and disables the learning function. The emotional defense airbags fly out and wreck a deal, prospective relationship, source for contacts and most importantly the career of a promising recruiter.

When can it happen? On a regular basis with many recruiters almost always with those in the first few years of running a desk, but very often with those in the business for many years. It can happen at very simple times getting basic information, and it can kick in as a first reaction to a particularly difficult or complex objection.

How is Stockholm Syndrome manifested in a recruiter? It could be a simple situation for a new recruiter trying to determine a candidate’s salary we’ve all had that time when an uneducated prospect feels that salary is “private.” The recruiter buys in to the objection without attempting to educate the prospect. It can happen and most frequently does when a recruiter is attempting to source a contact for names or leads. Upon the objection (e.g., “I don’t want to give names to you because you’ll just steal people from my organization.” “It’s not appropriate for me to give you a name without clearing it with the person first.” Or “I don’t know anyone who’s looking.”), the recruiter “owns” it himself of course, he understands why the objection is made, thinking, “I wouldn’t give names either, I know what I’ll do with them.” There are logical, mutually beneficial reasons to get past that objection. (Ask me some time at a conference or refer to Cahill’s web site that’s for another article.) It could happen with the “Eulogy Close,” when a recruiter shares the personal fear of being sued by an employer for breaking a non-compete contract. “I wouldn’t want to have to go through that either.” The emotion of the moment could prevent the recruiter from working through the complex close as Cahill describes thus destroying a deal due to perceived but not actual negatives. There are many other examples of how the Stockholm Syndrome can “infest” a recruiter and that’s literally what it is, an infestation. A great morning meeting at your office would be to role play with your colleagues in identifying red flags, situational possibilities and cures.

Speaking of cures, how can a recruiter look for his or her own manifestations of the Stockholm Syndrome? Be alert and very aware of your perceptions and emotions. Look for the fear in your reaction to objections and challenges. Be mindful of agreeing with a contact’s objections too quickly. Either while you’re in conversation with him, or even before you pick up the phone. There’s nothing wrong with being in mid-conversation and asking to put the contact on hold while you briefly recover from the fear or gather your thoughts. In my early days in the business, I used to put the contact on hold to counsel quickly with my manager or another recruiter I respected. You can even tell the contact you’ve just been paged, can you get back to him in five minutes? Better to put the situation on brief hold rather than react without the proper tactics. Remember that courage is not the absence of fear, but the mastery of it. You can actually practice techniques that will help you master fear. Identification and action are the first steps. Seek education and role-playing from your peers and managers. Be proactive about learning. Passivity kills in this business. The Stockholm Syndrome issue is probably one of the three largest impediments to success we have. Once you’ve learned how to identify symptoms of the syndrome and techniques to respond to them, PRACTICE! Look forward to opportunities to put the techniques to work for you, and your candidate or client.

All of us come into this business with a certain set of pre-conceived perceptions. Many contribute to our long-term success. But many conversely can lead to mediocrity or failure. Those perceptions must be changed in order to provide true value to people’s lives and self-respect for what we do as professionals. This is accomplished through education. Don’t ever stop learning. If you’re reading this, you must believe in that philosophy as I do. You’ve just taken another step forward through awareness. Next comes action. The Stockholm Syndrome in our business is just another speed bump on the path to success. It’s up to you to keep moving forward to your goals. Enjoy the trip!