The World Needs More Independent Recruiters

by Veronica Blatt

business-cardToday’s guest blogger is Martin Snyder, Main Sequence Technology. Founded in 1998, Main Sequence Technology creates talent acquisition technology solutions wherever and however organizations are built. PCRecruiter is the solution of choice for thousands of third party recruitment, corporate, and outsourced staffing teams across economic models and around the world. PCRecruiter provides comprehensive CRM and ATS functionality converged into database, voice, and email interfaces to empower recruiters to do what they do best with accessible, cost effective technology. Main Sequence is proud to serve the NPA organization and our many individual NPA affiliated customers. To learn more, please visit www.pcrecruiter.net.

As a guest blogger, I wanted to bring one of my old saws along. I have posted versions of it elsewhere, so if you have seen it, at least you don’t have to hear me expound (at length) about it over a root beer.

It goes something like this: The World Needs More Independent Recruiters.

More recruiters doing more recruiting could bring some measure of unemployment relief, but importantly, more recruiting may actually increase real economic development. To convince the world of that proposition, the world needs a better understanding of who independent recruiters are, and how they create value.

Easier said than done. Recruiting is deceptively simple to explain, yet complex in the execution, with widely varying performance styles and backgrounds among highly successful recruiters. Even many otherwise savvy business professionals have little understanding of what recruiters actually do.

In January 2012, a blog entry was published on Recruiter.com that generated thousands of tweets and Likes. The post starts with the story of Twenty Heartbeats. In an ancient country, a rich man wants a painting of a beloved horse. He takes the horse to an artist, and pays much gold in advance. The artist looks the horse over, and then goes off to paint. After years go by, the horse is old, and the rich man is angry by the lack of production of the painting. He confronts the artist, who whereupon paints the horse in a few brush strokes (twenty heartbeats of work), and the painting is incredibly brilliant and lifelike in every way. Enraged by this display, the rich man turns his back on the artist, but as he is leaving the artist’s home, the man sees the thousands of studies, scraps, and nearly complete paintings of the horse that the artist made in preparation to be able to create the stellar work in just twenty heartbeats.

The metaphor, of course, directly applies to recruiting; while it looks easy enough to persuade a person to move from one job to another, in the real world, it actually takes years of study, market expertise, and an intangible knack to reliably make it happen. Owners of independent recruiting firms understand that if a person does not have the knack, hard work and training are best invested in others. Recruiters are salespeople. High stakes salespeople.

A house is a pile of sticks, a car a hunk of metal and plastic. A job is identity, security, ambition, and social position. HR people are constantly talking about “fit” and “culture” when they talk about recruiting and staffing. It seems that the act of moving between tribes is a process choreographed around deeper evolutionary and cultural roots to comfort both the newcomer and the tribe that there is a fit; a mutual desire that can be reasonably counted on.

People who wish to learn about and understand cultural phenomena reflecting the knowledge and meanings guiding the life of a cultural group are called ethnographers (from Greek ethnos = folk/people and grapho = to write).

Superior recruiters are often superior ethnographers, able to understand and manipulate the knowledge and meanings that create the culture of organizations – both sources of and targets for candidate talent. Superior recruiters are market makers of Social Capital. Social capital refers to connections within and between social networks, which helps explain why social media has had an explosive impact on the profession. As a sociological concept, the prevalent view is that the greater the stock of social capital, the higher the likelihood of positive economic outcomes for any given group.

To be sure, independent recruiters are capable of creating jobs where no job actually exists according to many models. According to The Establishment Level Behavior of Vacancies and Hiring (NBER Working Paper No. 16265), in most models of search, matching, and hiring in the labor market, employers post vacancies to attract job seekers. Many establishments with zero reported vacancies at month’s end do hire new employees the following month. Establishments reporting zero vacancies at month’s end account for 42% of all hires the following month. Only about half of that gap can be explained with current econometric models, implying that many hires are not mediated through vacancies.

Independent recruiters know exactly how many of these hires are made: an organization was presented with the opportunity to bring on a particular person with a given set of attributes, and a latent or new role was created, formalized, or activated as a response to that presentation.

That presentation is very often the work of a professional recruiter.

Coincident with the rise of social media in recruiting, the subspecialty of Sourcing has become recognized. Recently, the American National Standards Institute (ANSI), for the first time ever, recognized a standard for HR (Cost per Hire), which identified sourcing activities as a distinct component of staffing operations occurring prior to the job application.

Sourcing and Recruiting are often synonyms in practice.

By whatever name and in whatever environment, recruiting is a basic economic activity. Recruiting takes place everywhere that organizations are built. Effective recruiting means understanding cultures and effective management of social capital. Applying recruiting skills more formally in economic development efforts, taking a market-based approach to working with unemployed candidates, and identifying and developing the sales talent inherently required for superior recruiting results are ways to enhance economic results for individuals and organizations. In my opinion, it is undeniable that the world needs more recruiters and greater understanding of what recruiters really do.

For those anticipating purely technological solutions, it may come as a surprise, but in matters of high-impact social situations, computerized browsing does not evade encounters, it merely prepares them under the best auspices. The same implacable laws will be in force as soon as the persons involved are in contact.

In the arena of the implacable rules of moving between tribes, recruiters are looking like irreplaceable players. It’s my old saw that the world needs more of ‘em.

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Are resumes still a valid recruiting resource?

by Veronica Blatt

image of woman preparing for a job interviewThere are beginning to be more conversations about whether resumes (or CVs, in other parts of the world), are still a necessary recruiting resource. It’s not a new argument. After all, certain types of professionals (visual arts, graphic designers, etc.) have always relied on a portfolio of works instead of a traditional resume. And the idea of being ‘paperless’ has been a much-hyped goal for at least 20 years.

But it feels different to me this time. And I think we might, actually, be at the beginning of the decline of the traditional paper resume.

What’s different?

Well, for one thing, this time around, the conversation isn’t just limited to new media or high-tech Silicon Valley candidates. Some companies are starting to experiment with more ‘traditional’ kinds of roles. Employers are realizing more and more, that a candidate’s ability to ‘fit’ the corporate culture is often just as important, if not more so, than their ability to do the job. It’s tough to get a sense of ‘fit’ from a sterile, one-dimensional resume.

For another, it’s no secret that employers are making “social media research” part of their screening process. While it may be true that such efforts are often a tool to reduce the candidate pool, there are some amazingly great things about candidates that are online. In addition to a LinkedIn profile, there are blogs, digital portfolios, slide decks, and content curation sites like Scoop.it and even, perhaps, Pinterest, that can show a more complete picture of the candidate as a person. It’s early days, and most candidates probably aren’t doing these things (or doing them well), but those who are probably have a competitive advantage.

As for independent recruiters, for whom the resume has long been the ‘gold standard’ by which candidates are measured, The Ladders reports that the average recruiter spends just six seconds (!!) per resume during the initial screening process. Six seconds? It’s tough for me to believe that anyone can make an accurate assessment about anything other than cursory keywords in six seconds. That’s the best recruiting resource to assess a candidate’s potential?

Finally, I believe that the staggering proliferation of mobile devices may very likely cause the death of the resume as we know it. Not this year, maybe not in five years, but I think it’s coming. Candidates are using smart phones for everything. They aren’t storing a resume on their phone. It’s not something they can access easily in a mobile environment. There are now recruiting firms and other services offering suggestions on how to make mobile-friendly resumes. Independent recruiters and employers are increasingly mobile, too, with their own smart phones and (to a lesser degree) tablets. How does that six seconds thing work for you when you’re trying to read resumes on your iPhone? Hiring managers and HR professionals are reviewing resumes on mobile devices when they are away from the office, and the traditional format simply does not translate well to the small screen.

I don’t think the revolution is upon us yet. Resumes are a deeply entrenched part of the recruiting process. It will take time before many traditional employers will be ready to let go and embrace a different (still undefined) alternative.

Are resumes still a prime recruiting resource in your recruitment agency? What do you hear from clients?

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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 »


7 Ways to Increase Your Recruiting Firm Valuation

by Veronica Blatt

golden-eggAs the Associate Director of Membership for a global recruiters network, I see split placements being made every day. With each recruiter taking home 47.5% of the client fee, it adds up quickly – and for most of our members, it’s more like “icing on the cake” for the profitability of their business. So, it goes without saying that recruiting can be a very lucrative business, but what happens when you decide you want to retire? How do you ensure that your independent recruiting firm has a resale value that amounts to more than your unpredictable client list?

Add contract work – Active contracts are guaranteed revenue for your business and can be valued and purchased outright. Obviously, this is more tangible than working on a contingent basis.

Expand your client base – If 70% of your business comes from one client and that client decides to move to another recruiting firm, your business will be significantly devalued.

Specialize – Once your specific niche is defined, figure out how to grow it. You want to be the “go-to” firm for executive placements in your specialized niche. Your team should experts  and this knowledge will give them an edge with clients and prospects.

Create business procedures – Create standard business procedures and document them. It is valuable information, especially if they are efficient and help make your firm successful.

Use a unique business name – Avoid naming the firm after yourself, e.g. “Smith Global Services.” Chances are the party interested in purchasing doesn’t have the last name Smith.

Try (as much as possible) to avoid turn-over – If your top producer decides to stick with the firm through the sale, they are a big asset and valuable to the bottom line.

Purchase real estate – It goes without saying, but owning the building or space where your business is operated will significantly increase the sale price. Even if the building is not being purchased, it’s an asset that can be sold seperately.

Disclaimer: I’m not a black, blue, or even green level expert in this area. Most of what I’ve included might already in your exit strategy, but it never hurts to continually re-evaluate based on the current economic and industry conditions. The bottom line is – your business is worth what someone is willing to pay for it.

What are you doing in your global recruiting firm to ensure a high business valuation?

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HR: An Independent Recruiter’s Friend or Foe?

by Veronica Blatt

I was reading one of my favorite blogs the other day, Fistful of Talent, and came across this post by Andy Porter, The 5 Reasons Why Most RECRUITERS Hate HR. Which got me to thinking there are probably MORE than five reasons. It’s no secret that the relationship between HR and independent recruiters is often contentious.

Andy’s got a pretty good list of reasons, especially when he talks about how HR sometimes uses recruiters as the scapegoat for their own inaction. I’d like to expand on that point. Read the rest of this entry »


Tools for Global Recruiting: Viadeo

by Veronica Blatt

I tend to write about social media and social connection, and today, I will not fail you. Last week Marcia, in our office, discovered a new social media tool called Viadeo, a Paris based professional networking website with members who are looking to increase their business opportunities, enhance their visibility and online reputation and develop their network of professional contacts, according to their CrunchBase profile. It looks very similar to LinkedIn but I signed up, created a profile, and did some searching to see what it’s all about. Because time is of the essence for independent recruiters, I’ve included some information about Viadeo below. According to my minimal research, here is what I know: 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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Recruiting Specialization: Risky or Smart Business?

by Dave Nerz

The recruiting trainers preach recruiting specialization. The more you become an expert in a particular specialty niche, the less likely that you will become irrelevant to the customers you serve. The concept I have heard is pick an area of specialty that is one inch wide, then learn it and work it a mile deep. Sounds like good advice, but it also is not without risk. Read the rest of this entry »


Split Placements: Are You Your Own Worst Enemy?

by Veronica Blatt

When it comes to making split placements, are you your own worst enemy? Let me give an example.

One of our members (I’ll call him Tony) shared a frustrating experience about split placements. He saw a job opening from another member. Turns out both of these recruiters work with this same client, but Tony didn’t happen to get the job order this time. But that’s OK, because he likes to make split placements, so he’s more than happy to supply candidates. He wants a happy client. Read the rest of this entry »


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