Global Recruiting

Global Recruiting, Beijing, and the Asian Market

by Veronica Blatt

Today’s guest blogger is Geoff Crews with Forsythes Recruitment in Newcastle, New South Wales, Australia. Forsythes Recruitment specializes in engineering and technical recruitment; corporate recruitment, including executive, sales, HR, and finance; office support recruitment including admin, accounts, and clerical; trade and industrial recruitment; and organizational consulting including psychometric assessment, outplacement, and OD. Geoff serves on NPA’s Board of Directors where he is a member of the Tools, Knowledge, and Services Committee.

Skype, social media and news relayed via journalists are good mediums. But there’s nothing like being in a room with employers and global recruiting agency owners to share opinions and ask questions about employment outside Australia.

It’s now Sunday night in Beijing and most of the 46 attendees and speakers are on a plane heading home. I’m staying an extra day before heading to Shanghai tomorrow to visit some of our global recruiting partners there.

This was a successful NPA Global Owners Meeting: 15 attendees from China, 12 from Australia, 9 from the US & Canada, 3 from Singapore, 2 from Indonesia, 2 from the Philippines, and 1 each from Korea, Taiwan and Ireland. Everyone contributed and left richer for the experience together.

Asian members represent only 17% of the membership of NPA, The Worldwide Recruiting Network, but are responsible for 33% of successful cross-border recruitment projects. This outward perspective is important to China’s desired transition from an industrial economy to a knowledge economy. And it was highlighted in our meeting in a presentation by CAIEP – the China Association for the International Exchange of Personnel. This speech, via a translator, was a rare window into the strategic thinking on China’s labour costs, manufacturing efficiencies and balanced development across primary, secondary and tertiary industries. The need for high-level creative talent from foreigners was a point emphasized on more than one occasion.

A Q&A session with Chinese HR Managers – one from a marketing/event management agency and the other from a very large, complex manufacturing company – reiterated the need for global thinking in recruiting key staff. As in-house recruitment professionals, these representatives discussed the balance between competition and cooperation with agency recruiters on junior and middle level recruitment projects. But they emphasized the need to partner with global recruiting experts capable of accessing an international candidate pool for leadership and strategic staff requirements.

The time together included country presentations from ten of the attendees. These presentations included details from basic GDP, population and employment figures to the personal experiences of each in sourcing and screening candidates in a range of classifications, industries and cultures. Countries like China, Korea, Singapore, the US and Australia reported softer employment activity in some sectors and a cautious global recruiting outlook. Other regions like Indonesia and the Philippines outlined a national sentiment of confidence and growth.

I am an employer. My expertise includes thinking like a job seeker. Whichever way I look at it, I believe our exposure to these neighbouring Asian markets is important and I am grateful for this time I have spent with old friends and new this past few days.

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7 Gestures to Avoid in International Recruiting

by Terri Piersma

I discovered an interesting infographic recently that shows the top 7 common American hand gestures that can get you in trouble abroad. If you are an independent recruiter involved in international recruiting who travels outside North America to meet with clients and candidates, take a few minutes to review the infographic below as it may save you from an embarrassing situation. The infographic shows a drawing of each gesture, a description of why it is offensive, and the countries in which to avoid using that gesture.

I have a friend who went to dinner in Australia and inadvertently used gesture 2 on the infographic to communicate the total number of people having dinner in his party. Unfortunately, his gesture communicated something else! He walked away not being seated for dinner and not understanding what happened. He returned and apologized and explained he didn’t mean anything negative. His party was then graciously seated for dinner.

 

In addition to this infographic, the following books may be of interest to you if you are involved in international recruiting and travel around the world.

Kiss, Bow, or Shake Hands – How to Do Business in Sixty Countries by Terri Morrison, Wayne A. Conaway, and George A. Borden, Ph.D.

This book contains information on cultural overviews, behavior styles, negotiating techniques, protocol, and business practices.

Gestures – The DO’s and TABOOs of Body Language Around the World by Roger E. Axtell

While the infographic I shared earlier covered 7 gestures to avoid, this book goes into greater detail about the number and use of gestures around the world.

One gesture, in particular, is called “The Ultimate Gesture. ” The author purported that the ultimate gesture carries certain welcome characteristics unlike any other gesture.

  • First, this “ultimate gesture” is known everywhere in the world.
  • Second, it is rarely misunderstood. Primitive tribes and world leaders alike know and use this gesture.
  • Third, scientists believe this particular gesture actually releases chemicals called endorphins into the system that create a feeling of mild euphoria.
  • Fourth, as you travel around the world, this gesture may help you slip out of the prickliest of difficult situations.

What is this gesture?  The smile.

Have you ever inadvertently made a gesture when traveling that inadvertently communicated something offensive?

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7 Workplace Forecasts Affecting International Recruiting

by Terri Piersma

What will the work environment look like in the next 10 years? In a recent study by Apollo Research Institute (ARI), 65% of employers and 75% of college students felt that today’s job skills would be suitable 10 years from now. Apollo’s research suggests otherwise.

According to ARI, three key changes affecting the workplace in the next 10 years involve technology, globalization, and demographics. ARI stated that as organizations become flatter and more socially networked, workers will need to demonstrate new forms of collaboration and productivity. International recruiting will definitely be affected by these changes. Read the rest of this entry »


Global Recruiting Update: Korean Economy

by Veronica Blatt

Today’s post is courtesy of Joshua Ro with People Consulting Group in Seoul, Korea. People Consulting Group places senior executives in manufacturing, information technology, consumer products, banking and finance, telecommunications, logistics and distribution, professional services, entertainment, and fashion. Joshua serves as a member of the NPA Board of Directors.

In the midst of global business attention on Asia, it seems like Asian economies are doing relatively better than other regions of the world. I have been noticing people are eyeing Asia more than before for new global recruiting opportunities and to expand their market shares.

China was the strong business driver and the center of business opportunity in Asia and many parts of the world for a while covering most of the business sectors. However, due to the recent downturn of the global economy from the U.S. to the Euro zone, it definitely has affected Asian business markets.

Korea’s economy had been steadily driving the business in general and seemed promising in many different occupational and industry sectors. Starting at the end of 2011, economic forecasting has been somewhat negative due to several reasons:

  • U.S. and Euro zone financial crisis, which will affect trade activities
  • Banking and finance has been in decline, facing high risks both in corporate financing and the consumer sectors
  • Construction industry has been down due to the excessive supply over demand
  • Consumer and retail industries facing slower sales
  • Luxury industry side was booming, especially in the imported car industry where the general index  seemed positive, yet the new demands were mostly coming from younger generations using bank loans instead of cash for purchasing.

And surely from the beginning of 2012, slowly the Korea economy began to face a downturn which has impacted businesses in all sectors. Layoffs have been increasing and many large corporations are still undergoing restructuring processes. Global recruiting opportunities have been limited.

A few trends have been noticed during 2012 in Korea’s recruitment industry, which are:

  • Hiring activities have slowed down and no particular industry seemed promising
  • Hiring process has gotten longer
  • Downward pressure on commissions from clients
  • Client expectations have gotten much higher in candidates, yet the packages offered are limited

There are a few positive indicators. Large Korean conglomerate companies have grown their interest in green energy, wind energy, specialty chemicals and especially these days on the overseas power plant projects. Over the coming years, more demand for global recruitment for foreign professionals is expected. These professionals are in high demand and clients are ready to offer high and great packages. This demand is mostly being seen in very small niche sectors and industries, where it is extremely difficult to locate available candidates.

Many clients are opening up for the hiring of foreign professional talent in recent days. This is actually something that should have been seen a long time ago but has been slow to open up.

In 2013, we look for a turnaround in Korea’s economy which will create better global recruiting opportunities for clients and partners.

Interested in global recruiting? Download NPA’s free white paper, 7 Trends for Global Recruiting.


Will Semantic Searching Reshape Global Recruiting?

by Veronica Blatt

Today’s installment is courtesy of guest blogger Brock Vaughters. Brock is an Account Manager with Monster®, the worldwide leader in successfully connecting people to job opportunities. Monster Worldwide, Inc. (NYSE:MWW), is the global leader in successfully connecting job opportunities and people. Monster uses the world’s most advanced technology to help people Find Better, matching job seekers to opportunities via digital, social and mobile solutions including monster.com®, our flagship website, and employers to the best talent using a vast array of products and services. As an Internet pioneer, more than 200 million people have registered on the Monster Worldwide network.  Today, with operations in more than 40 countries, Monster provides the broadest, most sophisticated job seeking, career management, recruitment and talent management capabilities globally. For more information visit about-monster.com.

Google’s doing it! Apple’s doing it! Microsoft’s doing it! Oracle’s doing it! Are you doing it? Wait… Wait… What is everybody doing?

Well, it’s called semantic searching. It is hard to explain in words (because it doesn’t use keywords), but it uses the concepts behind words – and the context of those words in relation to every other word – in order to search information and return results. If that explanation is still a little fuzzy, let me give you an example.

If a recruiter were looking for a programmer’s resume, using semantic search, he could simply type in the word ‘programmer’, and the system will automatically find matching concepts like Software Developer, J2EE Engineer, and .Net Technical Lead,  without having to construct a complicated Boolean string.

At Monster, with our Power Resume Search, the best part about using semantic search is that you don’t have to understand the technology to use it effectively. Maybe the most surprising aspect of semantic search is that it lets you describe who you’re looking for, almost as if you were speaking with a networking contact who knew all the top candidates out there.

So let’s answer the title question of this post, “Will Semantic Search Reshape Global Recruiting?”

Do companies still need recruiters when semantic search is available? The fact is that most employers who have been using recruiters will find that these human experts will remain essential to the sourcing, recruiting and hiring cycles.

The goal with any advancement in technology is to improve the process and make it user- friendly. The key here is the word “user.” Semantic search will allow global recruiters to do what they do best, which is develop relationships, screen out candidates that look good on paper but aren’t a great fit for one reason or another. Remember that semantic searching using Monster’s Power Resume Search will bring the best candidates to the top of the list, but then the best recruiters take that list and make actual placements. At Monster, our goal is to give the best recruiters the best tools to find that best candidates. Recruiters are a big part of this process.

How much time would you save if your recruiters had a tool that could:

  • Recognize a candidate’s breadth and depth of experience?
  • Identify job hoppers from long-tenured employees?
  • Distinguish “must have” vs. “nice to have” skills?
  • Assess a candidate’s context of experience (i.e. 3 months vs. 10 yrs)?
  • Score a candidate based on recent vs. outdated skills?
  • Automatically identify related skills?
  • Understand the latest industry acronyms?

Monster Power Resume Search uses Monster’s patented 6Sense technology to do all of these things — at lightning speed. How much is your time worth?


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


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