Global Recruiting

NPA Is a Global Recruiting Cooperative

by Dave Nerz

I am frequently in a position where I need to describe what NPA, The Worldwide Recruiting Network is all about and how it works. One of the greatest challenges is describing the structure of NPA as a recruiting cooperative, and explaining member-ownership. So I started to doing some research on cooperatives, including a chain of independent recruiters and other  recruiting cooperatives and here is some of what I learned…

  • 2012 is the International Year of the Cooperative. No that does not mean you will find it right after the Year of the Rat or the Year of the Boar on a menu at a restaurant. It does mean that the United Nations believes that “Cooperative Enterprises Build a Better World.” That is the slogan for this year long campaign.
  • There are tens of thousands of co-ops around the world, no others focused on split fee recruiting.
  • Co-ops are owned and democratically controlled by their members. NPA is a member-owned recruiting cooperative.
  • Service to members is prioritized over profit.
  • Shared services co-ops provide services to meet the needs of their members. This sometimes includes joint advertising and marketing, offering training and educational activities, and negotiating prices with vendors.
  • Some examples of cooperatives include:
    • Ace, True Value and Do it Best hardware chains. These chains are owned by more than 13,000 independent hardware stores.
    • Best Western is the world’s largest hotel chain with more than 4,000 independently operators in 80 countries.
    • NPA, The Worldwide Recruiting Network…which is really a global recruiting cooperative.

Mergers and Acquisitions in the Global Recruiting Industry

by Dave Nerz

for sale signAs with most things in business, the global financial crisis impacted the number of global recruiting mergers and acquisitions done in the past few years, as well as the value of those deals. Staffing Industry Analysts reports results of global recruiting business acquisitions on a quarterly basis. These facts can be found on their website, staffingindustry.com. According to Staffing Industry Analysts, the number of global deals done in the 3rd quarter of 2009 was at a record low, and even quarters into 2011 showed great weakness in the number of global recruiting acquisitions completed.

More recruiting company purchases are focused on firms doing contract employment and temporary staffing. These types of firms have higher multiples on the sale of a recruiting business because contract employment is considered much more of an annuity than a direct hire placement. Contracts renew and can last for years while direct hire placements can be a “once and done” event. While experts disagree on the multiples, most quote a range of 2 to 4 times EBIDTA. There are many factors that can change this multiple up or down, including the location of the business, the mix of contract to direct hire, and the sector or segment of focus.

The most popular recruiting business sale segments right now are IT, healthcare and industrial. Not a surprise. Again there is  a larger multiple on the sale of a recruiting business from these segments and hence, more frequently a deal completed.

A new trend is the global recruiting business acquisition. The reason for the growth in global acquisitions is obvious to me, but maybe I’m too close to the topic of global recruiting to understand why it would not be obvious to all. I see it like the stock market….diversification is good. The same with growing global recruitment companies. They need coverage and diversification into more market areas and more economies. This should help them tap growth markets while diversifying their business portfolio. Global recruiting is expected by more clients as they grow their search for talent. So firms in the US need an Asian presence, and global recruiters based in the UK or Australia may need a North American location.

Has anyone sold a recruiting business recently or done the work to estimate multiples? I am interested to know your experiences.


International Recruiting Lessons We Can Learn From the 2012 Olympics

by Veronica Blatt

I don’t know about you, but my free time is currently consumed with watching the 2012 Olympic Games. I follow the updates on the internet and (even though I usually already know who won) rush home to tune into the coverage. You can guarantee, until the last medal is awarded, I will be watching  athletes from countries around world, with different backgrounds and economic conditions, compete on the same stage in hopes of achieving greatness. The Games give me an opportunity to inspire recruiters to work a little harder to achieve success by keeping some of the tips below top of mind.

  1. Training pays off – Like the 2012 Olympic athletes, you’ve been “training” your entire life for a successful career. From the lessons you learned in high school and college to your first day on the job, your training has shaped the recruiter you are today. So, if you want to be good at what you do, invest in yourself. Attend conferences, training sessions and webinars, hire coaches, increase your opportunities through recruiter networks and take the time to increase your knowledge through professional development. Michael Phelps didn’t become the most decorated Olympic athlete of all time over night, and it probably won’t happen overnight for you either. But with each investment, you increase your chances for success.
  2. Be aware of your competition – Each of the 205 countries participating in the 2012 Olympics are very aware of what the other countries bring to the table as it relates to athletes. It affects the way they prepare and the strategy that goes into each competition. You, too, should make yourself aware of your direct competition and do everything you can to gain a competitive advantage. Create a value statement that separates your firm from your competitors and make sure it is continuously evolving. International recruiting is a great way to set yourself apart from your competitors and the ability to serve your clients throughout the world will definitely give you an advantage.
  3. Be diverse in skill set – For most of the Olympic athletes, they are competing in the same sport but in more than one competition. For example, there are several different swimming styles and distances and for the most part, the best athletes are competing in more than one event. This allows them optimal odds for success. As recruiters, you want to allow yourself the best chance for success (and money). Being able to place different types of candidates in different niches will allow you a broader opportunity to make money. If you are an expert in one particular niche, join a global recruiting network and utilize your network partners for help with positions or candidates that are not in your specialized niche.

What are some of the comparisons you can make between the 2012 Olympic Games and international recruiting? I know the Olympics inspire me to work a little harder and go the extra mile to achieve success. What about you?


Removing Barriers to Recruiting Internationally

by Dave Nerz

Businesses are growing internationally and global recruiters interested in growth will need to find ways to support this shift.

A study, sponsored by MAXIS GBN of more than 350 multinational business executives, reports that 40% percent of those surveyed intend to expand operations outside their home markets. The expansions will be in both developed and emerging markets.

With growth and expansion come challenges for businesses—and the global recruiters supporting them—to find talent in local markets. The war for talent is on and it is being waged on a global stage! Consider these findings:

  • Close to 20% of the largest multinationals surveyed expect to double their total workforce outside their home country within the next five years.
  • Twenty-five percent of companies will enter new markets in five years.
  • Global markets are outpacing home markets for revenue growth. Thirty percent of respondents expect 70% of their revenue from outside of their home country within five years.
  • Brazil, China, India and the U.S. are target markets for companies looking to sell products.
  • Vietnam, South Africa and sub-Saharan Africa are considered the best opportunity for those seeking to source materials, products or components.

The Barriers to Global Recruiting

Engaging in international recruiting will be an important survival strategy for recruiters in the years ahead. Yet there are many barriers to recruiting internationally that will delay or even stop recruiters from addressing this opportunity. Here are some of the challenges indentified by successful global recruiting organizations:

  1. Desire and Awareness – Some recruiters have become insensitive or immune to their clients’ growing need for talent outside of their local geographies or home counties. Relationships with clients built long ago and grown locally have remained locally focused. Some smaller recruiters have not investigated their clients’ international recruiting requirements. In some cases, lack of awareness is compounded with a lack of desire to change from a comfortable recruiting process.
  2. Knowledge – A lack of knowledge about foreign markets for talent keeps many recruiters from asking about international recruiting requirements.
  3. Networks – The absence of a network of international recruiting partners has prevented smaller firms from competing for international recruiting assignments.
  4. Success – As with most things, we tend to fear those things we have never tried or been successful with in the past.

Remove the Barriers

Take these actions to begin exploring the opportunities that recruiting internationally can offer your firm:

  1. Ask Clients About International Needs – You might be surprised how many small and mid-sized companies are seeking talent in areas outside the markets you have served. By asking, you will identify the opportunity that international recruiting represents within your client pool. Remember that recruiting is competitive and that developing a skill may help you land the next new client…so it is not just about the clients you have today.
  2. Become Knowledgeable – Read, ask questions, attend webinars, and add to your knowledge about what is going on in international recruiting markets.
  3. Grow Your Network – Increase your networking skills and efforts. LinkedIn and the many LinkedIn Groups are a great way to start. Become connected to more international recruiters. Based on client feedback, you may identify target countries to focus on initially.
  4. Demonstrate and Promote Your Efforts and Success – Talk about what you are doing when given an opportunity. The more you can display your knowledge, interest and any successes the more others will think of you as capable of international recruiting.

The growth of international recruiting is an opportunity for recruiters. Find a way to add global recruiting to your capabilities. Doing so will enhance your firm’s likelihood of survival, growth, and profitability in the years ahead.

Image: FreeDigitalPhotos.net


5 Elements of International Recruiting

by Terri Piersma

Flags of the WorldAs Director of Membership of a global split placement network, I’m fascinated and inspired with the details involved in international recruiting. One can easily conclude after learning the details of these types of split placements that the world is definitely smaller than in the past. Technology has played a major role in this situation.

As an example, I’d like to share with you the five elements of a recent split placement in our network. This split placement highlights how a network of independently-owned recruitment firms with a web-based sharing tool can better serve its clients and candidates; regardless of location in the world.

The 5 elements are as follows:

  1. Recruiter with the position was located in Australia.
  2. Recruiter with the candidate was located in Russia.
  3. Client was a geology company headquartered in Australia.
  4. Position Location was in Guyana in South America; just north of Brazil.
  5. Candidate was a German geologist working for a Russian geology company and doing fly-in/fly-out work in Guyana.

The recruiter with the position searched in NPA’s web-based sharing tool hoping to find a geologist. He found much more than just a geologist. He found a geologist currently doing fly-in/fly-out work in the very country where his position was located – Guyana! Needless to say he was thrilled and contacted the recruiter who had posted the candidate. All worked out during the placement process and the geologist started his new position this past April.

In NPA, this scenario works because we have technology in place to facilitate split placements among our members. In addition, all recruiters in NPA operate under the same Bylaws resulting in relationships built on trust.

How do you achieve success in international recruiting? How do you find candidates when your clients have operations located around the world? Are you a member of an informal or formal recruiter networking group?  How do you build trust with trading partners from different cultures?

Image:  www.freedigitalphotos.net


Hiring Recruitment Consultants Requires Creativity

by Veronica Blatt

Today’s guest blogger is Julie Parsons of Premium Consulting in Brisbane, Queensland, Australia. Julie is a member of the NPA board of directors. 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.

Gone are the days when a recruitment consultant was happy with a job, good base salary and commission.

These days, hiring a good recruitment consultant is like finding a needle in a haystack.

Salaries in the Aus/NZ region are through the roof and uncapped commissions are being offered to attract top billers. Reputation is important; it can take years to build and days to disappear. What attracts good recruiters to your firm?

Some recruitment consultants want the security of working for a global brand name. It may be difficult to attract great talent to a boutique recruitment agency. Belonging to a global recruitment network, such as NPA, can help an independent recruiting firm compete for talent by offering both global reach for recruitment as well as a global brand. It also can open doors for a recruiter to learn new skills and to start billing in other regions and markets they may have been unfamiliar with.

State-of-the-art technology and tools are also seen as attractive. Our workforce is younger and very tech-savvy; when hiring recruitment consultants, you may need to supply the latest computer/laptop or iPad, along with an iPhone or other smart phone to enable them to operate on the go. Old cumbersome systems and slow databases are a no-no to the young recruiter. Secure job and candidate data and access to job sharing tools can be the difference between filling a job and billing or not.

Flexibility, shorter working weeks, longer holidays, remote workers, job share, these are all terms we are hearing and should look at offering our recruitment consultants, in order to compete and stand out.

Learning and development–what is in it for the recruiter? Where can they go, can they develop, will they be promoted, can they earn an equity role in a company? Do you invest in regular training? Can recruitment staff attend conferences and seminars where they learn the latest techniques and trends from their peer group and the industry’s best?

As our workforce ages, we must adapt and keep up with technology in order to successfully hire top-notch recruitment consultants.


Recruiting Trends: College Grad Hiring to Increase in 2012

by Dave Nerz

It looks like 2012 grads will have a better chance of employment than their recent predecessors. The National Association of Colleges and Employers (NACE) has released its annual Job Outlook Survey. The survey is likely good news for both grads and recruiting organizations that provide recruiting resources to recent grads. A separate NACE survey shows  specifically that employers plan to increase hiring of college graduates by 9.5% in 2012, while the current survey details desirable skills or qualities sought by those making hiring decisions for recent college graduates.

The ten most desirable abilities that employers seek in new graduate hires are: Read the rest of this entry »


Global Recruiting Opportunities for Independent Recruiters

by Terri Piersma

We’ve all heard a talent shortage exists. However, do the shortages vary around the world? A 2011 Survey by Manpower answers that question. In January 2011, 39,641 employer interviews were conducted either by telephone or collected online in three areas of the world – the Americas, in Asia Pacific, and in Europe, the Middle East, and Africa (EMEA). My post today will provide an overview of the findings. I encourage you to review the survey results in more detail. Read the rest of this entry »


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 can global recruiters provide local candidates?

by Veronica Blatt

Almost a year ago, I blogged about a possible new global recruiting trend emerging regarding a preference for local candidates over ex-pats. Today, I read another report that seems to confirm the trend in Asia: Western ex-pats are no longer the “most desired” candidates for management positions.

Companies want to hire managers who have a deep understanding of the local cultural norms. In most cases, that means Asian natives who have been US- or European-educated. According to the article I referenced above, both Spencer Stuart and Korn/Ferry acknowledge that these highly desirable candidates are difficult to attract and retain. Read the rest of this entry »


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