Today’s guest blogger is Jim Lyons, JD, CPC of LHI Executive Search in the New York City area. LHI is an investigative executive search & research outsourcing firm covering the information technology, capital markets, private equity/venture capital, digital & social media, mobile, cloud, big data, and legal business sectors. Jim has been an NPAworldwide member since 2012 and is currently serving as the chairman of the Board of Directors. Below he discusses his experience as a member of a split-fee recruitment network.
As a successful sole operator of an executive and legal search firm, as well as the Board Chair & CEO of an almost 70-year-old global split-fee recruitment network (www.npaworldwide.com), I can speak directly about the benefits and responsibilities of joining such an organization.
As the Board Chair of NPAworldwide, I make it a practice to try to speak to all new member firms joining the network. In doing so, I am reminded of the reasons why I joined 11 years ago. In my case operationally, I wanted to have access to more assignments and the ability to work across more functions, industries and geographies with the goal of increasing and balancing my cash flow. In practice, I wanted to maintain my own identity and brand, but also be part of something much bigger. Culturally, after being a sole operator for several years, I wanted to form an association with professional, like-minded colleagues. After speaking to several networks and franchise organizations, I made the right choice in 2012.
Below is a brief summary of the benefits I have enjoyed:
Branding & Marketing
Let’s face it. For many HR executives, bigger is better. In my case, I lead with my network brand. In doing so, it allows me to bring to the table the vast coverage and expertise of the entire network. The results; larger assignments and more, broader cross-industry, cross-functional and cross-border transactions. I can say without question that I would have never gotten some of these great assignments over the years had I been a sole operator.
Cross-Functional and Cross-Industry Expansion
My core business sectors are software sales, fintech and legal. In partnership with network members, I have been able to maintain my core business, while opportunistically using network members’ expertise and delivery track records to expand my business and manage the recruitment needs of my clients.
International Business
Prior to joining my network, international assignments were few and far between. However, now I am global with assignments currently in play in Mexico and the UK. Over the years, I have worked with select network partners on both inbound and outbound recruitment assignments worldwide.
Leadership Positions and Marketing
Prior to joining the NPAworldwide Board of Directors, I served as the network’s Cross-Industry Functions Practice Group Leader. Currently, I also serve as the network’s Legal Search Specialty Group Leader. Needless to say, I leverage my thought leadership and subject matter expertise as entrusted in me by the network in all of my marketing and branding initiatives—it works!
Best Practices and Peer Benchmarking
Like-minded professionals sharing what is working and not working. A great value!
Vendor Relationships
One of the tasks delegated to my network’s professional staff is to assess emerging technologies and marketplace tools. Over the years I have implemented a new CTS, two website builds, research solutions, lead gen programs. I can go on and on.
Governance & Professional Staff
In the case of my split-fee recruitment network, we are owned by the membership and strategically governed by the Board. Our professional staff tactically implements board directions and runs the network. This ownership form was a big factor in my decision-making process.
Cash Flow
Prior to joining the network, honestly my cash flow was always up and down. To use a baseball metaphor, now I hit more singles in-between my typical placement.
A Marketplace for Your Business
In my case, I am in the process of merging my firm into a network partner firm. The timing and opportunity is right for me.
The Friendship Factor
Priceless!! Always easier to do business with a friend.
Managing Your Expectations about a Split-Fee Recruitment Network
For me, it has been a ride that has exceeded my expectations. But let me share with you the mistakes and misconceptions some operators make when joining a split-fee recruitment network.
- First, when joining any networking organization, one must be proactive, not reactive. Don’t make the mistake of waiting for the phone to ring—pick up the phone and reach out.
- Network dues and split transaction fees must be viewed as an investment not an expense.
- Participate in the services offered, including practice group and best practice monthly video meetings. And when you get grounded enough, meet a member for coffee or lunch, attend a regional or global meeting.
- Trust your network partners; get to know their work product and capabilities. Treat them the way you would like to be treated.
The essence of a great split-fee recruitment network is the people and relationships. To be successful, one must remember that a network in and of itself will not be the golden ticket in your career. You have to be responsible for your success. Membership does not guarantee your success but does give you a platform to work and find your success. Be respectful of your fellow members: reach out, give feedback, return calls, share your thought leadership and subject matter expertise. The common denominator of success again is being active, working the network. If done correctly the results can be amazing.