Split Placements Add Value to Recruitment Businesses

by Dave Nerz

hand making a flow chartIndependent recruiters are risk takers. Recruiters typically strike out and leave the comforts of the corporate life behind. Many of these entrepreneurial ventures grow and prosper. One of the things I am seeing more frequently is the desire to create an “exit strategy” from the recruiting franchise that produces value in return for the risks taken and the successes achieved. In some cases the founding entrepreneur has been better at creating and growing the business than they have been at making the business saleable. Those buying a business want to see what value has been added to the business. They are not buying the entrepreneur; they want to buy what is left after the founder is gone.

So what can be done to add value to a recruiting business?

Add Process: The buyer wants to know that the success of the business is not dependent on any one individual. There needs to be a process for recruiting, doing the books, hiring and retaining, marketing the recruiting franchise, and even keeping the place clean and stocked with pens and toilet paper. A rule of thumb: if it is not written down, it is not yet a process.

Add Quality People: What people stay behind when the entrepreneur leaves? They don’t all need to be employees but they should be part of the process and the relationships might be better if captured in writing. This one is a little trickier as some buyers may want to use their own bookkeepers and cleaning services, so don’t get locked into irreversible contracts.

Add Connections: Develop and document the relationships that separate your business from others in the same niche or market. Trading partners that work cooperatively with your business can be the difference between a good year and a great year. They can add the revenue that represents the total profit for any year. These connections add value, but need to be documented in order to produce value at the time of sale.

Add Sources of Revenue: The number one value added source of revenue for any recruiting business is contract placement. These contracts smooth the peaks and valleys associated with contingent recruiting. The ongoing revenue adds to the basic value of the business and increases the likelihood of a sale for a recruiting business.

A second way to smooth the ups and downs is the inclusion of split placements. Split placement revenue is not guaranteed, nor is there a guarantee of continuation on the departure of the founding entrepreneur. But if properly documented as part of the recruiting process, split placements can be demonstrated to add value and reduce the risk of long dry spells for incoming revenue. The ability to work others’ jobs when you have none—or to seek the help of others (without adding staff) when the business is overwhelmed—is a great value that needs to be documented and sold as part of the business.

Add a Formal Split Fee Network: Showing a potential buyer that you have formalized the process to the point of being an active member of a split fee network is a bonus for any potential buyer.

Make your years of risk-taking pay off. Plan ahead and add value that a future owner would potentially pay for.

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Image courtesy of Sujin Jetkasettakorn
/ FreeDigitalPhotos.net


Develop an International Recruiting Mindset

by Veronica Blatt

globe with business peopleI came across an article on Recruiter.com titled Recruiting Internationally? Think Local, which resonated with me in many ways. One of the most compelling points was the idea that so many recruiters think differently about international recruiting as compared to local recruiting. It seems that many recruiters somehow think the recruiting PROCESS is different because the geography is different. While there are legitimate reasons why international recruiting may be more difficult than local recruiting, I don’t believe it’s because the process is wildly different. Read the rest of this entry »


5 Ways Global Recruiters Alienate Job Seekers on the Web

by Veronica Blatt

angry guy holding cell phoneToday, I am on a rant. I have had it up to *here* with websites that don’t function effectively on a mobile device. Turns out I’m not alone. Job seekers have had it, too. Global recruiters simply MUST do a better job creating mobile-optimized websites that are friendly to job seekers.

Job seekers are increasingly using mobile devices as their primary, if not ONLY, means of accessing the internet. The mobile web is different. Job seekers will NOT use your site if it’s too hard to do on their handheld device. Global recruiters who respond, NOW, with a great mobile experience for job seekers will be way ahead of their competitors and clients.

What do I mean by a “mobilized” website? Simply put, a site that fits correctly on the screen of a mobile device and does not require a user to *work* in order to use the site. Whether you build a separate mobile site, a mobile app, or a responsively-designed website, you simply cannot afford to ignore mobile devices any longer. Still not sure what I mean? Look at our website, www.npaworldwide.com on a desktop browser. You’ll see a left-to-right orientation, lots of images, sidebar menus, etc. Now load our site on your mobile device. The site automatically adjusts to accommodate the size of your device. The dynamic, pop-up menu goes away in favor of a simplified, larger, text-based menu. Sidebar menus go away or become part of the main text area. It’s a completely different experience because the mobile user demands a completely different experience.

Here are 5 things about global recruiters’ websites that drive job seekers batty:

  1. Enough with the pinching and zooming already. Have you tried to use your firm’s website on a mobile device? If visitors have to pinch, zoom, and scroll to see the whole site and use its features, you should assume they won’t come back. Savvy global recruiters will invest in a responsively-designed site that makes it easy for visitors to find and share content.
  2. Drop-down menus. Are you SERIOUS? Drop-down menus are a nightmare on a mobile platform. Get rid of them in your mobile installation and job seekers will be more likely to return.
  3. Itsy-bitsy, teeny-weeny, hyperlinks. If users can’t see or click on hyperlinks without pinching and zooming (see #1 above), they will leave your site in favor of global recruiters who don’t inflict this torture on their site visitors.
  4. Limited functionality across a range of devices. Your site is optimized for the iPhone 5 and the newest Samsung tablet? Give yourself 10 points! But deduct 10 points for each type of older device that you forgot. While the news reports might make it seem like *everyone* is clamoring to buy the newest handheld gadget, that’s simply not true. There are literally millions of fully-functional older devices still in use. Forget about them and you’re guaranteed to alienate those job seekers.
  5. Long application forms. Filling out forms on a mobile device is painfully slow and difficult. Don’t ask job seekers to do this. While you’re at it, eliminate the requirement to create an account to use your site.

Have you found a great mobile recruiting site? Share it in the comments!


Independent Recruiters: What Decade Are You Recruiting In?

by Veronica Blatt

I has a conversation with a friend the other day and she was saying that  her VCR broke and she was going to look for a new one. I thought to myself  “she means DVD player” so I corrected her and it turns out I was wrong. She was looking for a VCR because I can only presume that she’s been living under a rock for the past decade (my apologies to those of you that still own a VCR). I started thinking of all the great movies she is missing out on because she hasn’t adjusted to the changing technology.  I found this infographic, published by Atenta, this afternoon and I thought it would be interesting to post to see how many independent recruiters are still recruiting in the 1920’s.

If you don’t keep up with the changing times, you will be missing out on great candidates and opportunities. As an independent recruiter I can understand it might be hard to invest in every technical change that occurs so maybe you  need to do your research and pick the ones that will be most useful to your company. The latest wave of recruiting includes sourcing through social media channels, including LinkedIn, Facebook and Twitter. Make sure that, at least, your visible through each of these platforms.

What are some of the archaic tools or systems you are currently using that might need a little makeover?


New Ideas for Independent Recruiters

by Dave Nerz

Effective independent recruiters need to stay current on the trends, tools and ideas being used by the competition.  With the growth of competition locally and from international recruiters looking to expand their coverage areas, it’s wise to be on top of all the ideas that might be used to maximize success.  Everyone uses the traditional tools of recruiting like referrals, LinkedIn, Twitter and all the other more traditional sourcing methods.  Here are a few off the wall ideas for the open-minded and aggressive independent recruiter to find and close new candidates:

  • The Buddy System.  When you find a good candidate, find out who their best friend in the workplace is and make an offer to both.  You will hopefully get a strong and effective team of new hires and instead of just one your client will get two.  Your fee?  That’s up to you but maybe this offers an opportunity to show the client a savings?
  • Push News and Openings.  If you are not sharing with the best candidates the placements you have made and the best opening you have, you need to start doing this.  A simple email list and newsletter can get it done quickly and effectively.
  • Create Skill Challenges and Contests.  If you hire accountants, create a contest that will challenge their knowledge and experience.  Offer a $500 to the best response to a question or problem.  You will engage many that are employed and top thinkers.
  • Create a Talent Space.  If you can create a space on social media like LinkedIn for people with the skill you seek to gather and connect, you will get a stranglehold on those in your targeted profession or skill area.
  • Experiment with Traditional Media.  No one is doing so any more so you will stand out.  Include direct mail in your efforts, now a days it is a unique way to capture those you seek.
  • Offer Interview Options.  Make the interview easy to do.  Offer interview outside of work hours, do it in casual setting on a Saturday morning, do it by Skype, do it at a location your candidate selects…you will learn something about them from each of these options.
  • Side-by-side Comparison Worksheets.  Create a sheet that describes what the new employer is offering…upside, benefits, market share, working conditions, hours, etc.  Let the candidate complete how the existing employer stacks up right in front of you.  It lets you know where the issue are in an instant.
  • Know Why They Said Yes.  As an independent recruiter are you doing ‘post-mortems’ on successful placements to see what were the 3 to 5 most influential things said or done to get a yes out of the candidate.  If you know what works for one the process may be more repeatable for many.
  • The Diminishing Offer.  I personally love this one.  Because you know candidates will string you out to get as many active offers in before deciding do this…make the offer tiered.  If they accept within 24 hours of the offer it comes with a signing bonus of X.  If they take from 24 to 72 hours it is X – 25%.  And if it is more than 72 hours it is X – 50%.  If it is more than a week it is X – 75%.  You will quickly know how serious the candidate is and they will be explaining the issues holding them back with greater urgency.  It is a gimmick but it is hard to create urgency particularly when the candidate is employed in a border-line acceptable existing situation.

Independent recruiters need to try new things. The competition from other recruiters including international recruiters is certainly not going to get much easier.

 


International Recruiters: Social Media Use in Asia Pacific

by Terri Piersma

Recently, NPA, The Worldwide Recruiting Network conducted a member-owner meeting in Beijing. International recruiters attended the meeting from not only many countries in Asia but also from Australia and North America. The meeting agenda consisted of a combination of business, networking, and sightseeing opportunities.

While this meeting involved face-to-face communication, international recruiters must often communicate with clients and candidates via the telephone or online including through social media. How effective is social media usage in Asia Pacific? In March 2012, Alexander Mann Solutions and Chapman Consulting Group conducted an online survey of Asia Pacific recruiters regarding the impact of social media. Read on to learn about key findings: Read the rest of this entry »


Recruiting Resources: Understanding the Millennial Generation

by Veronica Blatt

Young and old business peopleToday’s guest blogger is Rick Corey with OpticsProfessionals, LLC in Rochester, New York, USA. OpticsProfessionals specializes fields of optics, photonics and imaging technology. OpticsProfessionals, LLC assists employers in staffing key talent, while helping individuals with career transition and growth opportunities. Rick is the immediate past chair of the NPA Board of Directors.

Recruiters who have been in business for some time understand the differences in the expectations of “Baby Boomers” (born 1946-1964) and “Gen Xers” (born 1965-1979). A new challenge for recruiters is being able to understand the next generation… the Millennials (born 1980-2000). How we connect with them, what their needs and expectations are, and what type of corporate culture is the best fit are all recruiting resources that will help you work effectively with Millennial candidates.

The Millennial Generation is the most connected generation in history, with connections and networks globally through social media, young professional organizations, alumni networks, etc. Partially because of this, they are group/team oriented, and believe a team can accomplish more and better things. They are confident in their abilities, and are ready to take on the world. Millennials are multi-taskers on a scale never seen before. (I learned this when my daughter was in high school…doing homework, playing Xbox, and texting with friends all at the same time.) The first recruiting resource that will help you is to master social media to connect with Millennials.

When it comes to their work life, Millennials seek challenge and do not want to experience mundane assignments or boredom. They seek leadership, and even structure, from their older and managerial coworkers, and expect to have their ideas respected. If older senior management does not relate to them, or understand the way they use technology at work, they will look for new opportunities. Effective recruiting resources include ensuring that your client is equipped to welcome Millennials into the work environment.

Millennials prefer to communicate electronically at work as opposed to face-to-face or even over the telephone. They routinely make use of their own technology at work and most believe that access to technology makes them more effective at work. However, technology is often a catalyst for intergenerational conflict in the workplace and many feel held back by rigid or outdated working styles. From their employer they want to see where their career is going and to know exactly what they need to get there. At least 70% want assignments abroad to enhance their career. So, another recruiting resource is to help your client understand that “different” doesn’t always mean “bad.”

Millennials are used to balancing many activities such as teams, friends and philanthropic activities, and they expect flexibility in scheduling and a life away from work. If their needs are not met in their current work environment, they will network their way out of that workplace and into one that meets their needs. Recruiting resources will need to accommodate these increased demands for balance and flexibility if Millennials are part of your candidate pool.

Millennials are… Confident, Connected, and open to Change. What recruiting resources have you used to source top-notch Millennial candidates?


International Recruiting: Singapore Hiring Outlook

by Veronica Blatt

NPA members recently gathered in Beijing, China for a Global Owners Meeting. Part of the agenda was devoted to learning and discussing international recruiting needs throughout Asia. Thank you to NPA members Stan Tan from PHR Executive Search and Alban d’Sa from Gemini Personnel Pte Limited for sharing their knowledge of the Singaporean economy.

Singapore has been rated as #1 in Asia for quality of life, with the 3rd most globalized economy among 60 of the world’s economies. It is also rated as the most politically stable country in Asia. The World Bank has named Singapore #1 in the world for ease of doing business, for the seventh year in a row. Current market conditions include slowdowns in the banking and technology sectors.

Some other economic highlights:

  • Employment creation moderated in the third quarter of 2012, after increasing in the previous quarter. Preliminary estimates show that total employment grew by 24,900 in the third quarter of 2012, down from the increase of 31,900 in the same period last year and 31,700 in the second quarter of 2012. International recruiting opportunities still exist, though slightly lower from earlier in the year.
  • The growth in employment slowed in services from 21,200 in the third quarter of 2011 to 11,300 in the third quarter of 2012 and manufacturing from 3,900 to 3,700. Boosted by public infrastructure projects, construction continued to register strong employment increase of 9,800 in the third quarter of 2012, up from 6,700 in the same quarter last year.
  • Layoffs rose after declining in the preceding two quarters. An estimated 3,300 workers were made redundant in the third quarter of 2012, mainly driven by higher layoffs in electronics manufacturing and retail. This was one of the few higher quarterly redundancy figures reported in post-recessionary periods, though it was substantially lower than the highs of 6,000 to 12,800 per quarter registered during the last recession.
  • Unemployment rates remained low, reflecting strong manpower demand amid the tightening in foreign manpower controls. The seasonally adjusted overall unemployment rate dipped marginally to 1.9% in September 2012 from 2.0% a quarter ago, while the unemployment rates for residents and Singapore citizens were unchanged at 2.8% and 3.0% respectively.

While layoffs have increased somewhat, the continued low unemployment rate in Singapore means employers continue to have international recruiting needs. Recruiters with global partnerships are well-poised to meet this demand.


Recruiting Franchise Opportunities will Benefit from the War for Talent

by Dave Nerz

open signMany say it is a great time to start to start a business and in light of the long-term demographics a recruiting franchise or staffing franchise is a good bet for success. Recruiting and staffing franchises help employers find workers either as full-time company hired employees, as temporary contractors, or as full-time contact employees.

Because of the uncertainty in the economy, many employers are looking for less permanent types of arrangements with employees. They want to pay someone to implement a project, lead a launch or manage a program but want to “rent” employees rather than “owning” them for the long haul. Demographics point to a long-term shortage of talent due to the aging baby-boomer generation leaving the work place and insufficient talent in the pipeline behind them. This is more real in technology, engineering, healthcare and science than it is for service-type jobs. But regardless, if the economy gets moving again, the demand for talent (aka skilled and talented employees) will be overwhelming. It is projected by many to be a “War for Talent” that will play out both locally and across borders and continents. And according to a report by The Bureau of Labor Statistics, the employment services industry is expected to be the United States’ 9th-largest in terms of job-creating industry over the next 10 years.

When I look a the money MRI, Spherion and others are charging for a recruiting franchise, I wonder why more are not going it on their own with the help of a peer group for support. While the turnkey option offered by the big boys is appealing, it also has its own unique risk. Because owners go into to it with a large debt to service, the success must come faster and the profits must be shared with the franchising operator. The success these major operators have is tough to argue with if you are relatively new to the recruiting business.  f you value independence, the recruiting franchise option will be somewhat frustrating as you are really a part of a bigger operation and must do certain things to honor the relationship bought into with the franchisor.

A seasoned recruiter, who knows the tools of recruiting, has a recruitment process, and just wants to strike out independently may value a peer group and some partners to help along the way. Vendors to the industry act as a great support mechanism and can provide ideas and support if a relationship is nurtured with your ATS provider, your accountant, job board partner, etc. Online networks, organized recruiting networks, trade associations and trainers to the industry are all excellent options that, while not fully replacing a recruiting franchise, certainly offer an option to those who want to be more independent.

What kinds of numbers have you heard that a recruiting franchise from a major brand costs in today’s market?

Would you pay the price or start the business independently?

Any resources that are a must for a new independent recruiter?

Recruiting franchise opportunities and the opportunities for starting a staffing business are good. Franchising, while not for everyone, is an option that will prosper in the war for talent.


Tips for Independent Recruiters – Setting Your 2013 Budget

by Veronica Blatt

As we approach the end of the year here at NPA, we are working on our 2013 budget. I imagine many independent recruiters are in this same position. A budget that is feasible and realistic is probably one of the most important assets that can keep your independent recruiting firm on its feet. In larger firms, there may be an accounting person handling your 2013 budget. But what if you don’t have an accounting person? What if you are the recruiter, accountant, customer service representative, etc? I’ve included a few tips below for independent recruiters who are or will be working on their 2013 budget. Read the rest of this entry »


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