Global Recruiting

Drinking Beer and Headhunting

by Veronica Blatt

image of beerToday’s installment was submitted by Jeff McGraw of The Callos Companies in Pittsburgh, Pennsylvania. Jeff serves as the secretary/treasurer of NPA’s Board of Directors, and has been a member of the network since 1994. The Callos Companies provides a broad range of human resource services including recruiting & search, outplacement, temporary staffing, executive coaching, employee leasing, and travel medical professionals.

The six Jivaro Indian tribes are spread out across the Oriente of Ecuador. These native South Americans are notorious for three things: headhunting, beer drinking, and resisting the encroachment of the outside world.

Obviously, beer was an important part of the Jivaro life. So this one fact prodded me to learn more about this tribe and even further ponder “what is the correlation between drinking beer and headhunting.”

There are more similarities than one would think.

The Jivaros are the only tribe known to have successfully revolted against the Spanish Empire and to have been able to thwart all subsequent attempts by the Spaniards to conquer them. They have withstood armies of gold-seeking Incas and defied the bravery of the early conquistadors. The Jivaro Indians are known to be an intensely warlike group, tremendously protective of their freedom and unwilling to subordinate themselves to other authorities.

As independent recruiter headhunters, we too, in some way, have revolted from the mainstream and have been able to prevent attempts from competitive threats to conquer us and put us out of business. We have withstood threats from armies of job boards, managed service providers and in-house recruiters. And as recruiter – headhunters we protect our freedom to work independently and to limit our subordination to authority.

Protecting our independent recruiting business from outside threats while maintaining our business and at the same time meeting our client’s staffing needs in a timely fashion with the highest quality candidates can be an awesome task. However my firm and I have found a weapon of choice to stave off these threats. Being a part of a split placement network has given us the edge to remain independent and to compete at a higher level.

A recruiting split-placement network is typically a group of independent recruiters who share candidates and job orders in order to meet their client’s needs. These recruiter networks also enables its members to better serve their clients with an expanded geographic reach, greater access to industry specialization and access to more candidates (and job orders). Some networks provide a worldwide association of recruiters which can provide a global reach for smaller firms.

Looking back at the Jivaro tribe it was estimated that an adult Jivaro male consumed three to four gallons of beer in one day. I certainly would not advocate drinking four gallons of beer but I do highly recommend joining a global split placement recruiter network.

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How to Become a Global Recruitment Agency

by Veronica Blatt

image of earth to represent global recruitmentToday’s installment was submitted by Julie Parsons of Premium Consulting in Brisbane, Queensland, Australia. Julie is a member of the NPA board of directors and an occasional guest-blogger. Premium Consulting is a boutique independent recruiting firm that provides professional and practical recruitment consulting advice specializing in retained recruitment, partial services, psychometric assessment and appraisals, outplacement and career counseling.

At some point, most recruiters or recruitment firms realize that in order to stay competitive and present a broad range of solutions to their clients, they need to go global. Some common excuses to avoid the work of creating a global firm include: “it’s too hard,” “that’s what franchises are for,” “franchises are so common, set up in every major city with multinational contracts.” Although each of these excuses have some merit, none of them should stop you in your global expansion tracks.

Try to set yourself above your competitors by keeping up on international market conditions and legislation. Your knowledge in these areas will be valuable in targeting where you want to expand and in what industries. One way to jump the international hurdle is to connect with like-minded firms throughout the world. A great place to start is through LinkedIn. Recruiters are pretty transparent on social media so they might be easier to find than you think.

Also, think about joining a network. There are obvious questions to ask as it relates to policies, operations and integrity before jumping into something like this, but if you’ve done your homework, your investment will almost certainly result in a positive ROI as well as global connections. NPA’s President, Dave Nerz, says “half of something is always better than all of nothing.” Yes, this statement may be a little cheesy, but he’s right. Could it be that the way to growing your reach is not through giant steps alone, but through half-steps with others recruiters like yourself?

What are some of the challenges you face with making your global footprint?


Business Process Outsourcing (BPO) for Global Recruiters

by Dave Nerz

The global financial crisis and the resulting downturn in overall business conditions have made many recruiting organizations more aware of their fixed costs. Many global recruiting firms have struggled to maintain services to clients while managing the fixed costs of providing those valuable services.

In these times of doing “more with less,” we can learn from our overseas recruitment partners. Many recruiting organizations and global recruiters have turned to creative and innovative solutions to address the needs of their business while minimizing the costs. One solution is Business Process Outsourcing or BPO.

BPO staffers are typically hired on a contractual basis to add services or increase the efficiency of a recruiting organization’s key staff. For example, if you have great client contact employees or great candidate closers, you allow them to continue doing what they do best. Then, you contract (or BPO) the functions your staff does not perform effectively or efficiently.

The cost and availability of these BPO or overseas recruitment partners is a major advantage if you can effectively integrate your contract partner with your recruiting organization. Some concerns have long existed about the language skills of overseas recruitment partners like this. Many times, your global recruiters are the only ones to have contact with clients. The services provided by a BPO partner are behind the scenes. Some recruiting organizations have made partnerships with Philippine-based BPO organizations. Since English is a first or second language for most in the Philippines, the issue of language is greatly reduced.

The cost to contract for a full-time Philippine-based skilled addition to your staff can be as little as $900 per month. Recruiting organizations are also able to split services with others requiring similar services. Part-time contacts based on a weekly or monthly number of working hours is available from many BPO providers. Consider supplementing the skills of your staff with a BPO partner. Allow staff to excel in their areas of expertise and strength and allow your BPO to fill the gaps.

Image courtesy of jscreationzs / FreeDigitalPhotos.net


“Lurking Evil” for International Recruiters?

by Dave Nerz

Vacancy Clearing, a UK-based recruiter networking organization, reported that as many as 1/3 of all Fortune 500 and Fortune 10,000 companies are signed up with Bounty Jobs. That is a big number. If this is a trend that continues, the world will look very different for international recruiters in the years ahead.

If you are not tuned into Bounty Jobs, the concept is simple and also alarming. Employers come and place their job openings on the Bounty Jobs site. Recruiting organizations visit the site and bid to work the jobs that are posted there. The bad news is that the candidates submitted may become the property of the employer, recruiting partners are working in competition with many other recruiting organizations, and employer fees are typically reduced from the industry “norm” of 20-25%. If you are successful in making a placement, the fee is collected by Bounty Jobs and the recruiter introducing the successful candidate gets paid after the rebate period is past and about 4 months after the deal was done. Oh, did I mention that the recruiting organization gets only 75% of the deal?

The solution is not all that complex, but it is not as easy as going to a website. If all international recruiters invested some time in developing more recruiting partners, it may minimize the “lurking evil” that is taking hold in the industry. There are thousands of recruiter networks. Join a recruiter network on LinkedIn or online today; they are free and offer peer support on many issues. Reach out to recruiting partners and make a connection. There are split-fee networks like TEAM in the UK and NPA, The Worldwide Recruiting Network, working globally. These organizations facilitate split fees. Splits are typically a 50% fee model where you determine the percentage for a candidate and maintain “ownership” of your relationships with candidate contacts. You also develop relationships that produce more than one deal. Recruiting partners can help smooth the ups and downs of your business model in a way that allows you to maintain margin and work on a cooperative and healthy basis.

Reach out to a fellow recruiter and minimize the “lurking evil.”