Global Recruiting

I read with interest Glassdoor.com’s listing of the Best Jobs in America. Sometimes I think there is a direct relationship between the best jobs and the most highly recruited candidates. According to Glassdoor, what makes a job the best job is the combination of compensation,  demand for the skill, and advancement opportunities. Those in recruiting and HR know that hot job categories and in demand skills are multipliers when it comes to compensation. So the relationship between best jobs is in effect right now.

Here is the list of best jobs in 2016:

1.  Data Scientist
2.  Tax Manager
3.  Solutions Architect
4.  Engagement Manager
5.  Mobile Developer
6.  HR Manager
7.  Physician Assistant
8.  Product Manager
9.  Software Engineer
10.   Audit Manager
11.   Analytics Manager
12.   Software Development Manager
13.   Product Marketing Manager
14.   Marketing Manager
15.   QA Manager
16.   Finance Manager
17.   Business Development Manager
18.   UX Designer
19.   Strategy Manager
20.   Technical Account Manager
21.   Consultant
22.   Construction Superintendent
23.   Nurse Practitioner
24.   Electrical Engineer
25.   Software Architect

Without exception I can say these are highly sought after candidates by the independent recruitment agencies in our network. Good-performing candidates in any of these professions can be easily placed by independent recruitment agencies into new and better jobs.

This is the list for the best jobs in the US. What are the hottest jobs in your market?

Our guest blogger today is Michelle Burke from our friends at Social Talent. Read more about Social Talent at the end of this post.

By now we should all be well aware that creating a positive candidate experience is an integral part of the role of a recruiter.  Without having an open line of communication with potential candidates, you run the risk of them walking away from the process with a negative opinion of your organisation.  And you know what they say – have a good experience and you’ll tell one person about it; have a bad experience and you’ll tell ten.  But are recruiters actually taking heed of this? Read the rest of this entry »

Twice annually, we conduct a business barometer survey of our members. The purpose of the survey is to benchmark past results as well as to help form a short-term recruitment outlook. Survey participants are the owners of the nearly 500 recruitment firms that make up our membership. In our newest survey, fully two-thirds of respondents reported a positive outlook for the next 180 days. Seventy percent indicated that business over the past 180 days was the same or better when compared to a year ago.

Survey participants are also asked to provide where their business is physically located compared to where most of their actual recruitment activities take place. Approximately 60 percent of respondents are located in the USA and also conduct most of their business in the USA. Nearly 23 percent are located in Australia / New Zealand and conduct their business in that region as well. The remaining respondents were located in Asia, EMEA, and South America.

More than 80 percent of survey participants said that recruitment fees are in line with or ahead of last year; this is to be expected as the severe talent shortage continues. Simple supply and demand laws dictate that prices are higher when supply shrinks. Fees are, in many cases, rising either due to price increases or because salaries are rising in order to remain competitive.

The strongest vertical markets reported by NPAworldwide members are:

• Accounting / Financial Services
• IT / Hardware / Software / Electronics
• Manufacturing / Mining / Construction / Supply Chain

A number of respondents anecdotally suggested that consumer goods (particularly FMCG) and retail also have strong recruitment activity.

There were not significant weaknesses reported in any verticals apart from some pockets in manufacturing. Again anecdotally, members who are working in petroleum-related sectors have reported some slowness due to continued low oil prices.

Overall, members are growing and feel positive about continuing that growth into the year.

Do you all remember when fuel prices were skyrocketing? It really was not that long ago. Everyone raised their prices. Airlines started applying added fees to your ticket. Delivery charges went from $25 for local furniture companies to $50. Everyone was tuned into the hardships created by the rising costs. We choked down the increases and went on with our lives.

So has anyone heard of a company or service that has reversed those increases driven by high fuel costs? I don’t know about you, but I can now fill my car with fuel for the week for less than half of what it cost just two years ago. Are airlines offering those who booked tickets six months ago a $50 check when they board the flight? Is a company that does landscaping saying costs are down for one of the major components of variable costs and now you, the customer, will see a 10% decrease?

What the heck does any of this have to do with recruiting? Here is my point…we live in a world of supply and demand. It is difficult to raise prices, but easy to keep the increase for a longer than a deserved period of time once you make the effort to implement an increase. Check your invoices this month for surcharges driven by old news regarding fuel if you do not believe me.

Have you been filling jobs with ease in record numbers, or are you getting more difficult assignments for a very limited collection of candidates? Thinking that tough jobs with limited candidates to fill from describes a typical job now. Am I right? Guess what that means? Good recruiters are in demand…supply is low!

Now is the time. Charge what you are worth. Once you battle through the pain to  increase recruitment fees, you will reap the rewards for many months, perhaps even years after.

A word of caution…do not be that company that fails to pay attention and keeps surcharges well beyond the period they are appropriate. Adjust recruitment fees to market conditions…your services are in demand right now, so act accordingly.

Perhaps a surcharge is a way to make this more palatable to a client. “Wow, that is a tough job in a limited candidate pool. We charge a 5% premium for those types of positions. Or, this type of search requires an engagement fee of 25% of the fee up front.” Figure out a plan and a message that will work for you. No gouging or being unfair. Be realistic and strike a balance with regard to recruitment fees.

Not too long ago it was Valentine’s Day here in North America…maybe the customs are different around the world but a dozen red roses is considered a nice way to mark the occasion for your loved one. Guess what happens to prices for roses at this time of year? Yes, they double or triple in price. And red roses, a sign of love (in greatest demand), rise in price the most.

Convertible cars cost more to buy in the spring than at the end of the summer. Concert tickets cost more for popular groups or performers than those that are out of style (demand). Hotel rooms cost more on Friday and Saturday nights. A beachfront vacation rental home costs more in the summer than in the dead of winter. I could go on….

Supply and demand…think about how your recruitment fees are connected to the bigger economy and act accordingly.

Our guest blogger is Rod Hore from HHMC. Rod is a 35-year veteran of Australian and international IT and corporate advisory organisations. His executive-level credentials traverse many segments of the staffing and recruitment industry and include corporate advisory assignments, mergers and acquisitions mandates, and C-level advisory to multinational and other public and private organizations. Located in Sydney, Rod founded HHMC to provide local industry acumen and global knowledge to Asia Pacific recruitment agencies. HHMC’s innovative business strategies and well-grounded guidance result in clients realising their personal and corporate goals.

Acquisition can be a powerful tool for accelerating your recruitment company’s growth. 2016 may be the year to build on your capabilities, add new services or products, gain new customers or enter new markets.

However, it’s important not to get swept away in the excitement of a deal and to remain strategic. A carefully planned, strategic approach greatly increases your chances of successful M&A and long-term business growth. As you consider growing your business in 2016, HHMC has a few tips to ensure you remain strategic.

Begin with strategy.

Your overall growth strategy should be the primary driver and guide for your acquisition. While this is a simple principle, it can sometimes be forgotten in the excitement of the deal.

Do not acquire a company simply for the sake of acquiring a company.

Buying the wrong company can be an expensive mistake that devours management time and cash reserves.

Use a demand-driven approach.

We strongly recommend clients research markets before pursuing individual companies. The reason is that selecting the right market is critical to successful growth.

The chosen markets should have healthy, stable demand for your services and be aligned with your overall growth strategy. HHMC strongly recommends selecting a market prior to identifying acquisition targets or potential partners.

Without understanding market dynamics, you may be tempted to pursue what looks like a promising opportunity, only to find that the market is not economically appropriate for the long term or not appropriate for your particular business.

In addition, market research will help you enormously when it comes to evaluating and identifying potential companies to acquire.

Develop measurable criteria.

The criteria should be aligned with your overall strategy. It may include growth rate, size, geography, customers, or key players.

Begin your research at a high level and then progressively zero in on individual market segments you find attractive as you gather more information. Further research is required to understand if the market is compatible with the type of services your business offers.

During the research, make sure to use your selection criteria to remain objective.

It is important to note that in some markets the available targets for your criteria may be scarce, so you may need to be realistic in your particular search.

Expand beyond the “usual suspects.”

It’s important not to fall back on the “usual suspects” or businesses that are already known to you.

They should not be your only source of candidates. Turning to these companies alone may mean you are ignoring a whole host of companies that could be strategically valuable acquisitions.

Remember the human factor.

Acquisitions involve much more than just financial figures. It’s extremely important to develop a relationship with owners, especially in privately-held, not-for-sale acquisitions.

Owners tend to be emotionally attached to their company and convincing them to sell to you involves much more than just a market-value cheque. Consider the owner’s drivers and motivations: what does he or she really care about? Developing a strong relationship with an owner early on in the M&A process will greatly benefit you and increase your chances of developing a winning acquisition proposal.

HHMC believes 2016 will continue to be a strong year for M&A activity and recruitment agency owners will have to put their best foot forward in pursuing strategic acquisitions. HHMC wish you every success in with your growth plans for 2016.

Today’s guest blogger is Scott Love. Scott helps staffing and recruiting companies get more business from better clients, and at higher rates and fees. Over 4,500 staffing and recruiting firms from over 35 countries have invested in his systems. Access his Staffing and Recruiting podcast and other free videos and tools that will help you sell more: www.StaffingSalesTraining.com. We are very excited that he will be one of the featured speakers at our upcoming Global Conference in Washington, DC!

Recruiting and staffing firms have entered a year that many believe will be a record in production. Everyone is hiring! Clients want to get more candidates!

But that red-hot image of the future may in fact be a destructive fire on the horizon. Here is the dilemma, and it’s a double dilemma. I hate to sound like a pessimist, but I see so many firms that are not prepared for this impending doom.

First, the candidate pool for staffing and recruiting firms is shrinking. Most people in our industry believe that is a good thing. Why is it shrinking? It’s not just because of the demographic issues, such as retiring baby boomers and a void of talent that is ensuing. But the problematic issue for recruiting and staffing firms is that technology has made it easy for companies (our clients) to boost their hiring through social media. Many have added low cost internal recruiting departments, which means they can hire those who are “good enough” through the ability to easily and more swiftly capture that low hanging fruit. For many of you, your clients have now become your competitors.

That’s the first dilemma. And it’s a big issue.

This second dilemma compounds that issue and even exacerbates it. It’s the fact that, because there is a boost in recruiting firms and staffing agencies in terms of numbers and also in terms of activity, then the companies you hoped to get as clients will not perceive you as valuable since now you are a dime a dozen and seem to be just like all the rest. The batch of new staffing and recruiting firms all want to get business, so they are going to “buy” it by lowering rates and fees; they are training your prospective clients that your business, in spite of the need for it, has become a commodity. If you don’t believe me, count how many times you have heard that your rates or fees are higher than your competitors.

So both of these converging issues mean that 2016 might not be that robust year you were hoping for. Sorry.

But here’s the good news. Many of your competitors might not see the problem and might not know how to be prepared for dealing with it. Let me give you some tactical ideas that can still help you make this an amazing year for you.

1. Understand that the middle has disappeared. This is something I see when I visit and consult to staffing and recruiting companies and speak to them about the competitive landscape. The successful ones know that they need to adapt and change how they perceive their value in the market. It doesn’t have to be a big change, just a shift in your perspective. You will make money by either becoming a Tiffany’s or a Wal-Mart. Both are viable business models and both will make you successful.

2. Understand and articulate your uniqueness. “Staffing firms are all the same.” That’s what your clients think. Are they really that wrong? You have access to the same pool of candidates. You look the same. You charge the same. You do the same thing for them. What’s the difference? You can build in uniqueness by focusing on a certain niche or sub-niche. You can highlight that difference by articulating a message or a story that is relevant to your clients. You can highlight that difference by finding a common theme of specific value and tailoring your message to that theme.

3. Go for the brass ring, not the low hanging fruit. If you hold all the cards by focusing on placing candidates that everyone needs and nobody else has, then you have value and are in a position to charge higher rates and fees. I once consulted to the owner of an independent temp agency in south Florida who was depressed and exasperated from the rate pressure coming from larger competitors. I advised her to build value through specialization and differentiation. I gave her a strategy solution and advised her that, instead of focusing on all administrative areas, she needs to limit her activity to only placing degreed executive assistants who are bilingual on both a temp and perm basis. Her increased value in candidates, just from this minor shift in focus, resulted in price not being an issue. She was the only one in her area that had this focus on specific value in a fungible position, so she was not limited by industry and made more placements at much higher rates and fees. Her processes were easier and more replicable, thereby scalable as she added new employees. Her perceived and tangible value increased, as did her stature in the market. An ancillary benefit of this strategy was that it got her out of the HR department and into the corner office, which meant she could negotiate directly with the executive-level decision-maker whose commitment to those specific placements was much more emotional and personal.

4. Sharpen your skills. Add up your training budget for the past year (how much you have invested in training and development, such as books, seminars, online resources, coaching and consulting). Now, compare this number to what you paid for your college education. Most people might admit that they invested less than $1,000 a year in their own development, but for a college education, they spent tens of thousands in something that has no impact on their income. When you finally start playing to win by investing in yourself and your team, then you will discover ideas and reach new levels of performance.

These are simple ideas, but if you follow them, my prediction is that, at the end of this year, you will be celebrating your best year ever.

Copyright © 2016 Scott Love – reprinted with permission

Qualigence International has released its 2016 Recruiting Trends white paper. The report offers a comprehensive look into some of the changes recruiters can expect to see throughout the year, including cross-industry hires, diversity, college graduates, benefits, talent pipeline, and big data. A few of the salient points are highlighted below.

Cross-Industry Hiring. While traditional hiring activity has focused on hiring candidates with direct industry experience that matches a particular role, there can be value in considering candidates that may not have that exact experience in the background. Such candidates may have broader understanding of markets, increased exposure to different types of people and business styles, or be more willing to try new things or tackle new challenges. It’s also wise to remember that longevity in a particular industry may not equal top performance.

Diversity. More employers are looking to diverse their workforces, whether that includes more women in executive or technical roles, increases in racial minorities, or other cultural differences. Other types of diversity can include education levels or work experience.

Talent Pipeline. There is a growing disconnect between finding candidates and making placements. Things that contribute to this include recruiters who either don’t engage with candidates, or who engage with them inappropriately or at the wrong times. Regular, consistent follow-up is critical. Excessively-long hiring processes and multiple below-market offers also cause candidates to withdraw. These are areas where recruiters and employers alike can improve this year.

Candidate Assessments. Employers are getting more sophisticated in how candidates are evaluated, from video interviewing to personality assessments to sample work assignments and more.

Customized Benefits. As candidates continue to value work-life balance, employers are beginning to look at customized benefits packages. While some employees may place more importance on a flexible schedule, others may be more interested in health insurance or fitness/wellness incentives. Look for customized packages to increase.

Time-to-Fill. As the time it takes to fill open positions is near historic high levels, recruiters and employers are beginning to understand the negative impact this can have on a company’s morale, productivity, and financial performance. Efforts to improve the candidate experience, including speeding up the hiring process, should increase as a result.

What recruiting trends are you seeing? Please comment below!