New Year, New Start for Recruiting Networks

by Veronica Blatt

union-jackToday’s guest blogger is Liz Longman, the Managing Director of TEAM (The Employment Agents Movement), and has been involved in recruitment for 20 years. She previously headed up a region for a generalist agency before joining TEAM some nine years ago. TEAM is an NPA partner that extends NPA’s reach into the UK and in return offers TEAM members access to NPA affiliation. Each of these recruiting networks offers unique value to members.

It’s safe to say that over the last few years, businesses of all shapes and sizes – including recruiting networks – have had a tough time. With the economic downfall and several changes to UK legislation, the recruitment sector has been on a real roller coaster ride, which many couldn’t see the end of. The words ‘doom and gloom’ were prevalent across the media throughout last year and the outlook for the UK economy was pretty bleak.

However, as we enter 2013, I think it’s time to move onwards and upwards! We can all take our own lessons from the recession, but it’s time we left the past behind us and looked to a positive future. After all, how else will we move closer to success than with a motivated, optimistic attitude? Recruiting networks are poised to capitalize on some of the positive changes happening.

The situation in UK recruitment now is much better and reports from the end of last year are real proof of this. The Office of National Statistics reported in November that the UK economy was growing slowly but surely, finally pulling us out of recession. The Autumn Evenbase Quarterly Report also showed a few positive signs, with a 40% rise in contract and temporary recruitment roles being advertised and an 11% increase in proactive jobseekers sending CVs.

This positivity is reflected across many of the recruitment agencies we speak to at TEAM. As the recruiting network continues to grow and share activity, we are seeing more members reporting an improvement to their business. Fees are improving and in general the outlook is much better than it has been in the past few years.

There’s not just high growth in the UK market though. Positively, we are seeing an increase in interest in overseas markets from both our members and international partners within NPA, The Worldwide Recruiting Network. This focus on growth also extends to individual industries. Some of our member agencies are now moving their businesses into different specialist areas of recruitment, and are using TEAM members’ expertise to fill vacancies in new areas.

On the candidate side, we have noticed that, despite the new technology available to recruiters and the benefits which come with using social media, many recruiters are looking to be more personal. While using online opportunities to attract and manage candidates, recruitment is a people business and we need to maintain that personal touch that you can’t always get from an email or Tweet. It will be interesting to see how this pans out throughout the year, but I imagine we’ll see more agencies striving to be innovative in talent attraction, particularly as clients’ expectations are high.

Looking forward to this year, we’re expecting to see the focus on candidate attraction and expansion into new industries and markets continue. There are a lot of positive signs for 2013 and I personally would love to see a continuation of the optimistic attitudes we’re noticing. It won’t be easy though and I expect recruiters will be forced to work harder to come up with fresh ideas in order to compete in the market.


Decision-making and Democracy in a Recruiting Network

by Veronica Blatt

ballot-boxOver the past couple of weeks, I’ve been working on distributing proxy authorizations to NPA’s voting members for our upcoming annual meeting. It’s a great reminder for me of the member-ownership aspect of our recruiting network. As a member-owned cooperative, NPA is run democratically. Voting members who attend our annual meeting cast their votes in person. Those who are unable to attend assign a proxy to NPA’s secretary/treasurer, who ensures each vote is cast in accordance with that member’s wishes.

During the annual meeting, audited financial statements are reviewed and discussed, elections are held for the Board of Directors, bylaws changes are voted upon, and members have the ability to bring up new business from the floor. Every member firm of our recruiting network has an equal say in how NPA is run, regardless of the size (or success) of each firm. As with any election, members may not be satisfied with the outcome, but they are certainly an integral part of the process.

Last year, NPA members voted to adopt brand-new bylaws. The old bylaws, adopted in 1981, had become out-of-date, and needed to be “modernized” to fit today’s business environment and the global nature of our recruiting network. Already this year, NPA’s Board of Directors is proposing two amendments to the bylaws based on member feedback. The changes will be discussed and debated, and members will vote on whether or not to adopt these changes. Next year, it’s conceivable there will be further revisions.

While it’s tough to get excited about bylaws (unless you’re like me), this process is an important distinction between NPA and other recruiting networks or recruiting franchises. It’s what makes us different from our competitors. Other recruiting organizations are owned by individuals. While members or franchisees may be able to offer feedback about how those organizations are run, they do not generally get to participate in business and financial decisions that may impact their own businesses. By contrast, NPA’s president and staff do not establish policy; we implement the programs, services, and policies developed by our members.

If you are considering joining a recruiting network, is member-ownership important to you? Or are you more comfortable paying someone else to make decisions? There is no wrong answer, but it’s a point that deserves careful consideration. Click the link below for a checklist that helps you compare NPA to other recruiting networks.

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Starting a Recruiting Business

by Dave Nerz

sticky-notesIf 2013 is the year you will start a recruiting business, here is a very high level look at some things to consider.  The steps may be spelled out for you if you are buying a recruitment franchise.  I would strongly suggest you consider formal and informal network membership as an alternative to purchasing a recruitment franchise.  Here are the high level actions required to get going with your business:

1. Pick a name

Think ahead. Maybe someday after you start your recruiting business you will want to sell it and retire. Do not name the recruitment business after yourself. There is less value to a business called “John Jones Recruiting” when there is no John Jones in the business. At the same time, don’t let name selection paralyze you. The name might help, but look at Google: who would have picked that name? I think they are doing just fine with a crazy name.

Make sure your company name is not already taken with the  U.S. Patent and Trademark Office or the appropriate service in your location.

2. Register a domain name

Make sure that the name you selected has available the domain that you want. Even better, think about how people might find you via an online search and see if there is a way you can incorporate your top keyword into your domain name (as well as your company name).

Go for the .com extension. If you must give in, consider .net or .jobs. Try to avoid the dreaded hyphen! Check domain names at Network Solutions. There is nothing worse than a thriving business working on a @gmail.com, @yahoo.com or @aol.com address.

3. Arm your recruiting business with tools

Business cards – Vistaprint.com is a great source of cheap cards.

Accounting Software – Quickbooks is a standard. Freshbooks is an online option.

Applicant Tracking System – I like PCRecruiter. They have a low-cost, highly-flexible tool to track clients and candidates. (Disclosure: Main Sequence Technology, maker of PCRecruiter, is NPA’s technology partner.)

Backup system or cloud-based storage area – Dropbox or GoogleDocs are cloud-based, or you can have a scheduled backup from a service like Carbonite.

Mailing/Marketing Service – try Constant Contact or MailChimp.

LinkedIn – buy the best package you can afford. You will be using it all day, every day, so make it your friend.

4. Set up a website

There are many low-cost tools, including godaddy.com, Network Solutions, and Vistaprint. A word of caution: You don’t want your next-door-neighbor’s-kid’s-best-friend to build you a website, unless that person REALLY knows about websites, responsive design, search engine optimization, mobile interfaces, etc. Economical is smart. Cheap is not.

5. Get connected to the industry

Join the industry trade association – NAPS (National Association of Personnel Services) is in the US.

6. Get trained

Look into a service like Next Level Exchange. They provide training on recruiting from many of the masters of industry.

7. Expand your capabilities/make more money/connect to a peer group

Once established, join NPA, The Worldwide Recruiting Network to enable global coverage to your prospects and clients, do more deals, and gain access to fellow entrepreneurs for ideas and coaching.

It is a great time to be a recruiter. It is difficult work, but the demographics are on your side. With millions of boomers retiring each year and companies back into a growth mode, good employees will be hard to find. That’s where you can benefit. Happy New Year and best of luck for a successfully starting a recruiting business.


NPA 2012 Review: Split Fee Placements Prove Profitable Once Again

by Veronica Blatt

NPA is a global network of independent recruiting firms working together to make split fee placements. The network enables members to provide their clients and candidates with better service and increased opportunities. All of these network advantages have proven to be true in 2012 as NPA members made over 800 splits.

The beginning of January brings new business ideas and resolutions for the year ahead. But we can’t forget to close out the year that’s passed. This is very important to see what changes need to be made and so that business can be evaluated accordingly for what lies ahead. With that, here are some of NPA’s 2012 split fee placement statistics.

  • Placements of positions with US$80,000 and above salaries were 56% of total split fee placements
  • Placements of positions with US$100,000 and above salaries were 33% of total split fee placements

Top 5 Trading Groups based on the number of split fee placements, listed highest to lowest:

  • Manufacturing/Mining/Construction
  • Strategic Management/Supply Chain
  • Chemical Process
  • Sales/Marketing/Business Development
  • Information Technology

In 2012 there was over 7.5 million dollars of shared revenue among the more than 400 member firms. NPA also saw increased productivity throughout North America and Australia with continued growth throughout the rest of the world.

The NPA Job Board has also proven to be a key tool for NPA members as its first full year it brought in just under $250,000 in revenue.

Overall, 2012 was a good year for members in NPA as end of year totals have been steadily growing over the past couple years. This leaves me feeling optimistic that the employment market may be becoming less volatile.


Evolution of Independent Recruiters

by Terri Piersma

Independent recruiters represent many different work styles. Recently I viewed an infographic by RecruitLoop that summarized work styles of recruitment consultants from the 1980s to the 2010s. While it is admittedly a generalization of recruitment by decade, I decided to share it with you as an example of how technology has played a key role in changing the landscape of recruitment.

The infographic summarized the past four decades as follows:

  • 1980s Recruitment Top Gun
    The tech boom in the ’80s gave high-flying recruiters a chance to spread their wings and headhunt more senior, more technical, and more specialized roles.
  • 1990s Pulp Fiction Recruitment
    With the booming tech industry and growing dot-com bubble, prosperity ensued. Recruitment Consultants rode the wave, worked hard, and played even harder.
  • 2000s Minority Report Recruitment
    Recruiters became far more tech savvy, as print declined. Many created a virtual presence. Intelligent specialist recruiters created a competitive edge.
  • 2010s The Social Network Recruitment
    Gone are the days of an office. The recruiter is a cyber-sleuth, working anywhere and anytime to stay ahead of the game. Being flexible with the latest social networks and apps are a must. They are adapting fast to avoid extinction.

Evolution of the Recruitment Consultant

Image:  FreeDigitalPhotos.net


Are split placements part of your annual business plan?

by Veronica Blatt

With the start of a new year, many recruiters are developing their annual business plans. Will split placements be part of your business mix this year? Split placements can help level out revenue fluctuations, but it takes time to build the solid relationships that allow splits to flourish. With the continued angst in the US over Obamacare and a sluggish jobs recovery, as well as lingering economic issues around the world, global recruiters really should consider split placements as a way to stabilize, and even increase, revenues. Here are some examples to consider:

  • Your current niche is soft (or softening). Working split placements can help you diversify into niches that are more robust.
  • Your current geography is depressed. If your jobs are located in ‘undesirable’ geographies (high cost-of-living, poor housing, etc.), split placements can help boost your business beyond your current geographic limitations.
  • Your clients are nervous about expansion plans. If your current clients have put expansion plans on hold because they are unsure what the future will bring, reach out to recruiting partners whose clients ARE growing. Remember, someone is ALWAYS making money!
  • You have more jobs than you can fill, but don’t want to hire more staff. Split placements offer economical business expansion – you pay your partner when you need their services, without ongoing costs for equipment, larger office space, etc.
  • You have a good database of in-demand candidates, but not enough jobs. Every recruiter I know is screaming for candidates. If you’ve got ’em, there are people who will help you place them on a split-fee basis.
  • You have jobs that are outside your normal area of expertise. You’ve been placing HR candidates at your best client for 15 years, and now they want you to provide engineers? Reach out to an engineering recruiter who has (or can find) the talent your client needs, without having to invest tons of time/money into learning a new niche from the ground up.

If you are currently experiencing even ONE of these situations in your recruiting firm, split placements may be the solution. Will this be the year you commit to splits?

 


2013 U.S. Job Forecast Positive for Independent Recruiters

by Terri Piersma

December of each year usually brings predictions about jobs for the following year. This December is no exception. Recently, I read Careerbuilder’s 2013 U.S. Job Forecast. Independent recruiters take note! My post today will summarize this forecast which was conducted online in November 2012 by Harris Interactive on behalf of CareerBuilder and included more than 2,600 hiring managers and human resource professionals as well as more than 3,990 workers (employed full-time, not self-employed, non-government).

  • Key Findings
    1. 62% of the companies reported they were in a better position than one year ago
    2. 42% reported sales had increased and another 42% had no change in sales
  • Hiring of Full-time, Permanent Employees
    1. 26% of employers will increase the number of full-time, permanent employees they will hire (up 3% from 2012)
    2. 9% will decrease (up 2% from 2012)
    3. 55% no change
    4. 11% undecided
  • Top 10 Jobs Companies Plan to Hire for in 2013 for Full-time, Permanent Positions

    1. Sales
    2. Information Technology
    3. Customer Service
    4. Engineering
    5. Production
    6. Business Development
    7. Administrative
    8. Research & Development
    9. Accounting & Finance
    10. Marketing
  • Temporary and Contract Hiring
    1. 40% will hire temporary or contract workers in 2013 (up from 36% in 2012)
    2. Among these employers, 42% plan to transition some temporary workers into full-time, permanent employees in 2013
  • Hiring By Region
    Employers  in the Midwest, Northeast, South, and West regions of the U.S. noted if they planned to increase hiring, decrease hiring, or have no change in hiring as well as if they were undecided about hiring in 2013. While all regions showed an increase from 2012 regarding an increase in hiring for 2013, employers in the West and the South responded that they will hire more employees in 2013 than those in the other regions.

To read the complete Careerbuilder 2013 U.S. Job Forecast, click here.

While the forecast shows some employers are optimistic, others are still cautious. However, for independent recruiters, it is good to read that only 9-10% of employers will decrease the hiring of full-time, permanent employees in 2013.

What trends in hiring have you noticed with the clients you serve?

 

Image:  FreeDigitalPhotos.net


5 Great Tools for Global Recruiters

by Veronica Blatt

Global recruiters can face special challenges when trying to coordinate recruiting and interviewing activities across multiple time zones. Here are 5 great tools that can save you time and money:

World Clock Meeting Planner – Timeanddate.com has a variety of great options, but global recruiters will benefit from the Meeting Planner tool. It’s a super-easy way to figure out what time it is in Sydney when it’s 4PM in Edinburgh, for example. Other tools provided include calendars, daylight saving information, and an event announcer. Not a week goes by that I don’t use this site for SOMETHING.

International Telephone Dialing – If you can’t remember which numbers go in front of the phone number (is it 1? or 011?), howtocallabroad.com is the perfect tool for you. Enter the country you are in, and the country you are trying to call and the site will show you the correct international code along with the country code for that country.

Skype – Most people who are making a lot of international calls have probably already figured out that Skype is a good option for this. With free audio and/or video calls from computer to computer, plus affordable international calls to/from landlines, Skype remains an industry leader.

Whatsapp – Whatsapp is a mobile app that provides free international text messaging including audio and media messaging, plus group chats. It’s faster than email and simpler than Skype when time is critical. Whatsapp uses your existing Internet data package and is cross-platform compatible.

Recruiter Relocation – Recruiter Relocation is a free service to recruiters that provides cost-of-living information, immigration assistance, and relocation assistance for candidates. It’s tricky enough to convince a candidate to move from one state to another. Getting a candidate to relocate to another country can be a huge challenge for global recruiters. The professionals at Recruiter Relocation can help provide a smooth transition. (DISCLOSURE: Recruiter Relocation is an NPA Endorsed Program).

If you’re a global recruiter, what’s your favorite time-saving tool? Share in the comments below!

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13 Trends for International Headhunting in 2013

by Dave Nerz

I see these trends impacting international headhunting in 2013:

  1. The demand for recruiting will continue to shift toward employers’ more highly specialized and challenging roles.
  2. The recruiter with international headhunting or global search skills will be in demand in 2013.
  3. Clients will fill easy positions with in-house recruiters or HR, by referral, or with social media tools.
  4. LinkedIn will continue to grow its influence on the search landscape with an ever increasing global footprint.
  5. Traditional job boards will suffer as aggregators like Indeed and Simplyhired gain ever wider use and acceptance.
  6. Other job boards will continue a progression toward even greater specialization both geographically and by industry or sector.
  7. Clients will continue to look for market share and growth on a global basis and will initiate international headhunting assignments to support this direction.
  8. Clients will view many openings as project-dependent and will be less willing to hire permanent employees and more likely to hire contract staff.
  9. The use of mobile and smart phone apps to connect with talent will escalate to even higher levels.
  10. The first contact with recruiters will be increasingly via summarized or speed application processes often identified as “apply with apps.” So the resume/CV will be a follow up step.
  11. The Asian and Australian economies will be slowing so more talent will be available from those markets. This is the opposite of recent years where those markets were net importers of talent.
  12. International headhunters seeking candidates with post graduate degrees will be operating in what is a nearly full employment environment.
  13. Global recruiting will continue a stratification process where research, recruiting, background checking, and onboarding will be sold separately and by different providers rather than in the bundled form to which we are accustomed. Specialist and price leaders will emerge in each layer.

In summary, while many things will be changing, I see 2013 as a relatively flat year with overall business levels similar to 2011 and 2012.


Common Screening Mistakes by Independent Recruiters

by Veronica Blatt

There are a lot of factors to take into consideration when qualifying a candidate for an open position. Some independent recruiters have a set process they follow and some have a different process for each situation. Personally, I think it’s important for independent recruiters to have a checklist of items that must be completed before a candidate can be presented to a client. Whether you feel the need to complete each task based on the job order or client is up to you. To keep yourself organized a ‘task list’ seems like something all recruiters should utilize. If you start to become sloppy with your process you may commit one of the top 10 screening mistakes listed in the infographic below created by Resoomay. Read the rest of this entry »


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