Apply Today

Independent Recruiters, Does Relocation Have You Singing the Blues?

by Veronica Blatt

Today’s installment is courtesy of guest blogger Laurie Johnson. Laurie is Vice President of Account Management with Recruiter Relocation, a firm that provides relocation support for recruiters and their candidates domestically and internationally. Laurie has over 11 years of service with Recruiter Relocation and is considered the “go-to” person for best practices and industry resources regarding placements and relocation. For more information, contact Laurie at www.recruiterrelocation.com

For any independent recruiter involved in a search assignment, the more complicated the prerequisite skill-set, the more likely it is that the placement will involve a candidate relocation. This can certainly present a challenge – for both the candidate and the recruiter. Relocations can fail if certain details are not addressed EARLY- pre-hire/pre offer. The following song titles suggest some important points to help independent recruiters maximize successful relocation rates:

Should I Stay or Should I Go – Companies go to great lengths with their relocation partners to write policies that work both for their employees and meet their fiscal bottom lines. A cost of living adjustment is one item that is often overlooked. A salary increase may initially look good, but if it doesn’t go as far in the new location, it may spell disaster in the long term. Find out the COLA early, and immediately dialogue with the candidate on the results.

How Deep is Your Love? – You’ve found the ideal person for the position. They have accepted. And while that’s a great feeling, this positive circumstance really only represents half the battle. For a great, lasting result, they are going to have to perform in the position for a substantial amount of time. A relocation that fails to address the concerns of the new hire’s immediate family: spouse, children, or elderly parent could be destined to fall short of a company’s objectives. These familial difficulties and challenges should be identified and addressed from the very beginning. Converse with your candidate and their family on realistic relocation costs and expectations before an offer is extended.

Dancing on the Ceiling – In this market, there are few who are unaware of the equity position with their home. However, secondary and tertiary considerations such as title charges, taxes, fees, and commission expenses may factor in to a candidate’s willingness to get on board due to a small relocation allowance. Uncover early-on whether a home sale (or inability, therewith) could present a problem.

Pump Up the Volume – Often we use ourselves as an instrument by which to measure other people’s preferences. If a potential candidate is considering a move to a small New England town that we find quaint, it is easy to overlook some of the cultural or even infrastructure issues that might be less than ideal for them. It is important listen and find out what is most important to the candidate and their family – so all their needs are being adequately addressed.

While it may be painful to lose an otherwise acceptable candidate to relocation incompatibility issues, both the company and the candidate will be far better off if the considerations above are addressed from the beginning. Independent recruiters can benefit from working with a relocation partner to help resolve these concerns.

Not All Split Placements Are Created Equally!

by Terri Piersma

Recently, I’ve noticed during conversations with some recruiters with whom I speak about membership in our split placement network that they say they have made split placements. Further questions reveal they didn’t make the split placements the “traditional” way. Instead, they provided a candidate to an employer via an online service like BountyJobs.

I propose that the “recruiter community” language for split placements has changed. You can no longer assume that when recruiters state they have made split placements that it occurred the “traditional” way.  Specifically, what I mean by “traditional” way is when a recruiter with a job works directly with a recruiter with a candidate and the candidate is hired by the employer. This results in the two recruiters splitting the client fee.

“Traditional” split placements happen in one of the following ways:

       1. Informal Network

  • Recruiters form their own, usually small, network of trusted trading partners. Most savvy recruiters will have signed split fee agreements even if they make splits with recruiters they have known for a long time.
  • In addition, larger informal split networks exist online including in LinkedIn. It is not unusual for recruiters in these informal networks to have never met face-to-face. Again, savvy recruiters will have a signed split fee agreement before working with another recruiter they met online.
  • If you are a recruiter considering making split placements with other recruiters or are currently making split placements and do not have an agreement signed with the other recruiter, check out our sample split fee agreement which can be used as a starting point to create your split agreement.

    2.  Formal Network

  •  A recruiter pays to participate in a formal network. In NPA, The Worldwide Recruiting Network, members pay one-time enrollment fees, monthly dues, and brokerage payments when split placements occur.
  •  Networks can have a general focus or specialize in an industry or niche. Some networks may include members located in only one country or state and others, like NPA, have members throughout the world.
  • Formal networks must have rules of engagement so that trust can build among its members. If the formal network is not built on trust, an environment develops where split placements will not flourish. The rules of engagement will typically including the treatment of candidate referrals. Also, a formal network should address what happens if something in the split placement process does not go well. Of course, clear and written communication between the recruiters can minimize these situations. As a cooperative of independently-owned recruiting firms, NPA recruiters are bound to act within the Bylaws approved by our members.
  • Signing the network’s membership agreement or contract binds its members to abide by its rules of engagement and may eliminate the need for a split fee agreement to be signed between trading partners. In NPA, a separate split fee agreement between trading partners is not necessary since the owners of the member firms signed the NPA Membership Agreement.

Many differences exist between informal and formal split networks as well as split job boards. It is important for recruiters who make split placements to understand the differences including the different definitions of a split placement?

What is your definition of a split placement?  Do you prefer “traditional” split placements or those made through split job boards?

 

Image:  FreeDigitalPhotos.net

 

 

 

8 Ways to be a Better Split Placement Partner

by Veronica Blatt

soccer netAt a recent NPA meeting, members shared tips and ideas for how to be more effective split placement partners. These ideas are valuable whether you make splits within a formal network or on your own.

If you work the job/client side:

  • Share the client’s name with your partner. That way, your partner won’t accidentally source candidates from the company that is hiring. While you’re at it, provide the names of competitors that COULD be a good source of candidates.
  • Share how many candidates are currently in the process. How many have been interviewed? Are there any internal candidates? What’s missing from the candidates that have already been presented? This will help your split placement partner recruit more precisely.
  • Tell your split placement partner about your relationship with the client. Are you friends with the hiring manager? Do you have a long track record of making placements there? They have a great history of speedy payment? You can guarantee that candidates you present will get interviews? Especially for recruiters who work on a contingency basis, these details will help them feel more confident that a successful split placement will occur.
  • ALWAYS provide feedback on the candidates you receive. Nothing alienates a split placement partner more quickly than sending candidates into a black hole.

If you work the candidate side:

  • PLEASE talk to your candidates before submitting to a split placement partner. And yes, extensive written communication can ‘count’ as having ‘talked’ to the candidate in some circumstances.
  • Add value to the information you provide. Do at least 50% of the work, even though it’s common for the recruiter with the client to drive the hiring process. Be ready to support your split placement partner when it’s time to close the candidate, extend the offer, etc.
  • Make sure the information about the candidate is current. At a minimum, you need to provide the candidate’s current phone number and email, the most recent employment situation, salary requirements, and relocation details. Your split placement partner isn’t interested in sharing 50% of the fee for out-of-date (or incorrect) candidate details.
  • Don’t pester your partner for feedback on the candidate. Your partner is trying to get feedback from the client. Sometimes clients are slow. Nagging your split placement partner won’t make the feedback appear more quickly. And NEVER interfere with your partner’s client relationship.

It takes a great deal of trust and commitment to be a successful split placement partner. Many recruiters are more comfortable making splits within the boundaries of a formal network. If you’re making splits on your own, be sure to execute a signed split placement agreement with your partner to avoid any disputes.

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.

Recruiting Across Generations

by Veronica Blatt

When I started working at NPA there was an article pinned to my desk about the differences in characteristics of people from different generations. Being the only person in the NPA Headquarters office of my generation, it was helpful in understanding the differences between me and my co-workers. For recruiters, it’s important to understand the differences between generations (of job seekers, hiring managers, global recruiters, etc.) and be prepared to answer questions and tailor messages accordingly. The hiring manager might have a preference so the more you know,  the better chance you have at making a successful placement. Below I’ve outlined some of the characteristics of each generation:

Traditionalists (born between 1900 – 1945)

  • Have a strong work ethic
  • Are respectful of authority
  • Value work and their job
  • Place duty before pleasure
  • Are loyal
  • Are patient
  • May have a hard time accepting changes in technology
  • Prefer a command and control style of leadership
  • Rarely say no

Baby Boomers (born between 1946 – 1964)

  • Live to work
  • Invented the 60-hour work week
  • Are loyal
  • Are extremely competitive in work and life
  • Look for leadership
  • Sense of who they are is deeply connected to their career and achievements
  • Still have the mentality that a job can be for life
  • Have some trouble with change

Genxers (born between 1965-1980)

  • Strive for a work-life balance
  • Tend to be less loyal than Baby Boomers
  • Are technology savvy
  • Crave feedback
  • Are independent and resourceful
  • Are entrepreneurial
  • Want to be kept busy with challenging work
  • Look at a job as a contract

Millennials (born between 1981-1999)

  • Are technology savvy
  • Are the digital generation
  • Prefer a team based environment
  • Are collaborative
  • Relate well to Traditionalists
  • Are energetic

Understanding the differences between generations will give you a better idea of some of the things you can expect from a job seeker of a particular generation. These characteristics will help you in working in a global recruiting network as well. Recruiters of all ages are looking to make money and work together to be successful. Part of that success may stem from your understanding of how to work with a recruiter 20 years older or younger than you.

What is your experience in working with a recruiter or job seeker of a different generation than your own?  Do you find the characteristics above to be true?

 

Plenty of U.S. job openings for independent recruiters

by Veronica Blatt

Today’s guest blogger is Anne Downing with Demetrio & Associates, LLC located in greater Phoenix, Arizona. Demetrio & Associates is a boutique recruitment firm that has clients across the US as well as in international locations. The firm places candidates in sales & marketing, advertising, wireless and software positions.

It seems independent recruiters hear about unemployment, job openings, layoffs etc. each and every day. One day there is news of low unemployment rates, and then the next thing you know it we hear something negative and we are left thinking that there are few job openings in the US and it may stay this way for a long time.

As of the end of June, there were 3.8 million job openings in the US., the most since July 2008. Even the lukewarm jobs report for July was the best in five months. Where are all of these jobs you might ask… according to the Bureau of Labor Statistics from the US Department of Labor, the industries with the greatest amount of job openings as of June 2012 are the following:

  • Professional and Business Services (718,000 openings)
  • Healthcare Services (700,000 openings)
  • Healthcare Assistance (644,000 openings), and
  • Transportation and Utilities (601,000 openings).

Other sources, including Monster.com, indicate that highly skilled workers and entry-level workers have the biggest pool of jobs to choose from. Industries including finance, engineering and technology have numerous job openings across the US for the highly skilled workers. Entry-level candidates have the greatest opportunity to find positions in the healthcare and hospitality industries.

We have a long way to go to get back to our pre-recession employment market because the US lost 9 million positions during the recession. It has been predicted by Moody’s that if things stay on course the US will create 2.7 million jobs in 2012 and 4.5 million jobs in 2014. If this turns out to be the case, we will be back to our prerecession number by the end of 2014.

There are a lot of great job opportunities out there and a lot of qualified job seekers. It’s a great time to be an independent recruiter!

3 Myths: Technology and Independent Recruiters

by Terri Piersma

Speculation abounds as to whether using technology to hire candidates will replace third-party recruiters. While technology has certainly changed candidate recruitment, I do not believe it can replace independent recruiters.

Mike Ramer, Ramer Search Consultants, addresses this issue in his blog post entitled “7 Myths of Recruiting with Technology.” I encourage you to read his entire post if you are interested in this topic.

For the purposes of this post, I will comment on three of the myths Mike mentions:

  • Myth:  Technology can be used to identify talent.
  • Myth:  Technology can qualify a candidate.
  • Myth:  The Internet and technology can bring aboard the selected candidate.

While working with independent recruiters may not be appropriate for all open positions, they definitely assist employers fill positions they either do not have time to fill or are those “difficult to fill” positions. The Internet can identify job seekers; many job seekers, in fact, who may or may not be qualified for the open position. However, an independent recruiter will qualify the candidates and weed out the ones who are not a fit for the company and/or the position.

Qualifying a candidate is a key phase of the recruitment process. Technology is not a substitute for having a conversation with a candidate; either on the telephone, via Skype, or in-person. Until artificial intelligence is used in recruitment, interaction between two human beings is the best way to communicate and qualify. Independent recruiters listen to the candidate and respond to what is said and what is not said. Technology cannot do this.

Lastly, I believe there is no substitute for an independent recruiter when it comes to ensuring the candidate who receives the job offer, accepts the offer. Mike Ramer summarized it well, “The main reason technology will not replace recruiters is that it cannot have conversations, listen and respond. Even digital conversations, through email, text or social media, do not have the essential emotional elements (voice, eye contact, chemistry) to guide people through the hiring process.”

Do you agree that recruiting with technology will not replace independent recruiters?

 

Image:  FreeDigitalPhotos.net

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?

If you MUST discount your recruiting fee…

by Veronica Blatt

Independent recruiters face continued downward fee pressure from clients. Many give in to these demands for discounted recruiting fees. I think it’s a slippery slope and ultimately not a good way to elevate the recruiting profession. How many other professional service providers routinely slash their fees? Accountants? Attorneys?

Years ago, when I was going after my first summer babysitting job, my dad told me to establish my fee at 50 cents per hour MORE than the going rate (yes, I’m dating myself, but that was a *huge* difference). I thought he was nuts. There were PLENTY of other babysitters offering lower rates, and I really wanted that job. I knew they’d say yes at the lower price. I was sure they’d never agree to the higher one. “But you’re worth that extra money and here’s why,” my dad said – and helped me to make a list of my differentiators. Turns out he was right. I got the job, and I babysat for them regularly until one newborn infant turned into two school-age kids. They even referred me for other babysitting jobs. (Thanks, Dad!)

It’s not any different when clients ask for discounted recruiting fees. Some independent recruiters establish their fees based on “the going rate” without giving it much more thought. Some don’t think about their differentiators. Some don’t have differentiators. And that’s how the door gets opened for clients to ask for discounts. Greg Savage says recruiters should be having conversations about value, not price. Jeff Kaye says that if you can’t differentiate based on approach, you’ll be forced to differentiate on price. I agree with both of them. Do you really want to be known as the cheapest recruiter?

As an independent recruiter, you’ll face this dilemma more times than you care to admit during your recruiting career. You’ll have to decide when, if ever, to discount your recruiting fee. Last week I saw a Tweet by Jeremy Snell from Zero Entropy Networks that said recruiters should negotiate fee discounts in dollar amounts, not percentages. I absolutely agree with him. It’s far too easy to offer a 10% discount, which seems like a small number until you actually calculate the math. Why not offer a discount of $1,000 instead? The client will still reap a sizeable financial savings, but you won’t have given away such a big chunk of your well-deserved paycheck. Better yet, ask the client to give you something in exchange for the discount – for example, payment within 10 business days. After all, it’s a negotiation, right? Tying the discounted recruiting fee to an action on the client’s part doesn’t devalue your service.

Understand the value of the service you provide, and be able to articulate it to your clients. Then protect it fiercely. Don’t sell yourself short because “everyone else is doing it.” My babysitting customers were happy to pay a premium for my services because they knew they were getting excellent value. Don’t you want the same kind of relationship with your clients?

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

  • Press Releases

  • Blog Topics

    • Please ensure Javascript is enabled for purposes of website accessibility