Direct Search Alliance is a Search and Talent Consultancy established by Staffing Industry leaders to provide an alliance between America's best employers and executive, management and professional people. The focal point of our business is directly recruiting for candidates and developing relationships to continually build a network of experienced professionals with connections inside the top employers to work for.
Friday, August 6, 2010
WASHINGTON (AP) -- Companies showed a lack of confidence about hiring for a third straight month in July, making it likely the economy will grow more slowly the rest of the year. The unemployment rate was unchanged at 9.5 percent.
Private employers added a net total of only 71,000 jobs in July, far below the 200,000 or more jobs needed each month to reduce the unemployment rate.
The modest gains were even weaker when considering a loss of government jobs at the local, state and federal levels in July that weren't temporary census positions. Factoring those in, the net gains were only 12,000 jobs, according to the Labor Department's July report Friday.
Investors reacted by selling stocks and shifting into more conservative Treasury bonds. The yield on the 10-year Treasury note, which helps set rates on mortgages and other consumer loans, fell to 2.85 percent from 2.91 percent late Thursday. Major stock indexes all fell and the Dow Jones industrial average dropped more than 130 points in morning trading.
The department also sharply revised down its jobs figures for June, saying businesses hired fewer workers than previously estimated. June's private-sector job gains were lowered to 31,000 from 83,000. May's were raised slightly to show 51,000 net new jobs, from 33,000.
"There is still a labor market recovery, but it's a very, very weak one," said Nigel Gault, chief U.S. economist at IHS Global Insight.
The slow pace of hiring will weigh on the recovery, he said, with economic growth in the current quarter likely to come in even lower than the April-to-June quarter's already weak 2.4 percent.
Overall, the economy lost a net total of 131,000 jobs last month, mostly because 143,000 temporary census jobs ended.
The "underemployment" rate was the same as in June, at 16.5 percent. That includes those working part time who would prefer full-time work and unemployed workers who've given up on their job hunts.
All told, there were 14.6 million people looking for work in July. That's roughly double the figure in December 2007, when the recession began.
Even if hiring picks up, it will take years to regain all the jobs lost during the recession. The economy lost 8.4 million jobs in 2008 and 2009. This year, private employers have added only 559,000 new hires.
Friday's report is being closely watched by the Federal Reserve as it considers ways to energize the recovery. The report could persuade the Fed to take new steps to boost the economy and keep interest rates at record lows when it meets next week.
Without more jobs, consumers won't see the gains in income needed to encourage them to spend more and support economic activity. Even those with jobs may not feel confident enough to ramp up their spending.
That's important because many of the trends driving economic growth earlier in the recovery are fading. Companies boosted production in the winter and spring to rebuild inventories that were depleted in the recession. But those efforts won't last much longer. And the impact of the federal government's stimulus package is also declining.
The economy grew at 5 percent in the fourth quarter last year and 3.7 percent in the first three months of 2010. But that slowed to 2.4 percent in the April-June period. That's not fast enough to generate many jobs and reduce the unemployment rate.
Many companies appear to be getting more out of their current employees rather than adding new staff. The average work week increased by one-tenth of an hour to 34.2 hours, the department said. That's up from about 33 hours in the depths of the recession.
Average hourly pay also rose 4 cents to $22.59, up 1.8 percent from a year earlier. That, along with the increase in hours worked, could provide some boost to spending.
The number of temporary jobs fell by 5,600, the first drop after nine months of gains.
Employers usually hire temp workers if they need more output but don't want to hire permanent employees. But "firms aren't even adding temporary workers right now," Gault said.
Manufacturers added 36,000 jobs in July, slightly above its monthly average this year. Those gains were aided by General Motor's decision to keep its plants running last month. Usually it closes them and temporarily lays off employees to retool for the new model year.
Construction firms cut jobs for the third straight month, losing 11,000, while financial firms shed 17,000 workers.
But retailers added 6,700 jobs. And the leisure and hospitality industry hired 6,000 additional staffers.
Corporate net income rose sharply in the second quarter, but businesses aren't yet using the proceeds to ramp up hiring. Companies in the S&P 500 index reported a 46 percent increase in net income for the April-to-June period, compared to a year earlier.
But many employers are uncertain about the direction of the economy. Some are concerned sales will slow once government stimulus and other temporary factors fade. Others fear what will happen if federal income taxes are allowed to rise next year as tax cuts enacted by President George W. Bush expire.
"People have a long worry list they're looking at," said Ethan Harris, chief economist at Bank of America Merrill Lynch.
Some companies are adding permanent workers. The hospital chain HCA Inc. has 8,300 open positions, company spokesman Ed Fishbough said. That includes nurses, physicians and information technology professionals needed to build HCA's ability to handle electronic medical records. HCA employs about 190,000 people.
But layoffs are also continuing. FBR Capital Markets, an investment bank based in Arlington, Va., cut its work force by about 15 percent in early July to about 500 employees, saying it needed to reduce costs.
AP Business Writers Stephen Bernard and Tali Arbel in New York contributed to this report.
Thursday, June 10, 2010
Post-Recession Bounce-Back Plan: Recover Your Earning Power
During the recent economic downturn, many Americans vastly lowered their expectations about earnings. One survey of career-fair attendees, conducted by Next Steps Career Solutions, found that 65 percent of respondents were willing to accept compensation that was up to 30 percent lower than their pay at their previous job. In addition to salary cuts, workers have also reduced their hours or accepted lower-paying jobs than they've previously held.
But now that the economy is beginning to rebound, Laura Browne, a corporate trainer and the author of "Raise Rules for Women: How to Make More Money at Work," says there are new opportunities to bump up pay. "Companies are giving money back to people, but they're being selective about who gets it," she says. Here's how to get on that list:
1. Forget the past
Whether you've suffered a pay cut or a raise freeze, understand that complaining about the hardships you've endured will get you nowhere. Instead, show your managers what you are doing now--and what you'll continue to do in the future. "They want to know, 'Did you make money for the company?' And even more important, what you are doing right now that will continue to make money for the company over the next six months to a year," says Browne.
2. Start the conversation now
Even if the company is still struggling, Brown says it's important to start talking before the good times start rolling in. "By the time you hear that your company is making money, it's going to be too late," she says. Approach your boss at a time you're feeling upbeat--that is, not the day you got a big credit card bill, for instance. Explain that you know times are tough for everyone (not just you) and thank your boss for sticking by you and recognizing your hard work. Once the positive tone set, let him or her know that when things start to pick up again, it's important to you that you are recognized for what you've done--and for what you'll continue to do.
3. Arm your boss with data
Your boss may need to convince upper management that you should get a pay bump. So provide him or her with a results summary--not simply what you did, but the results you got--that can be taken to decision-makers. "You have to help your boss help you," says Browne.
4. Work crazy hours
If you've had to reduce your hours, let your manager know that you can work whenever he or she needs you--Saturdays, holidays, or late at night if you can. "If company revenue and income are on the rise, then they'll need more hours to meet increased demand," says Jeff Cohen, the author of "The Complete Idiot's Guide to Recession-Proof Careers."
5. Make new friends
If you can't get enough hours in your department, get to know the people in other departments and see if there are opportunities to pick up extra hours there. "Tell everyone you know that you're looking for more hours--in a pleasantly persistent way," says Browne.
Sunday, November 1, 2009
US staffing market primed for recovery
In a live satellite link up to California at APSCo’s member sales conference in London, Mester told delegates that the value of the world’s largest staffing market (on a country-by-country basis) has now fallen to $93bn (£58.5bn), from $126bn in 2008.
But total revenue is predicted to grow to $98bn next year and temporary staffing is forecast to grow in all sectors measured by the research firm, including industrial (15%), finance/accounting (8%), IT (8%), marketing/creative (5%), legal (5%), clinical/scientific (4%), engineering/design (4%), office/clerical (4%) and healthcare (1%).
According to Mester, US recruiters have been more agile in the recession, increasing their value-adds of recruitment process outsourcing, HR outsourcing, managed service provider services, vendor managed services and master supplier services, while there were 8% more staffing companies placing professionals over office staff and industrial staff last year than in 2004.
Mester said: “Over the next 10 years, employment services will be one of the biggest growth industries. Increasingly, there are more people that want to work in flexible arrangements. Management teams are looking for more flexible workforces and there are skill shortages in professional skill sets.”
But elsewhere, Palmer Forecast predicts that US temporary worker demand is set to fall by 13.7% in 2009.
The industry consulting firm’s findings indicated a 22.2% decline in temporary help for Q3 2009, which actually came in at a 24.5 % decline more than predicted due to higher than expected unemployment figures.
According to the Bureau of Labor Statistics, seasonally adjusted temp jobs fell 23.3% year-over-year in September, up from the 24.5% year-over-year decline in August. Temp jobs, seasonally adjusted, fell slightly, 0.1% sequentially from August.
Palmer says this is an encouraging early sign of rebound and provided a 3.1% boost on a non-seasonally adjusted basis. The 2,000 temp job losses were the lowest rate of loss since October 2007.
The unemployment rate increased to 9.8% in September from 9.7% in August, the highest jobless rate since June 1983.
Saturday, April 18, 2009
Physician, heal thyself
A pithy saying, a bit dated for these modern times, but spot on with what ills the Staffing Industry.
What the industry sells to business clients is flexibility and access to talent; responsiveness and quality, as well as specialization and depth in any one industry or discipline. With economic times uncertain, the need for flexibility and talent is more acute, a message Staffing Industry companies are quick to point out to customers who have cut back on spending on staffing and talent searches.
Staffing Industry leaders; however, espouse the benefits of industry services staffing firms bring to the economy, while at the same time have cut back or eliminated the use of "in-house" temporary employees and put a freeze on using outside search firms to find them talent specific to their industry segment. Hmm...what is wrong with this picture?
Another proverb says it best...charity begins at home. You should take care of family and people close to you before you worry about helping others. For customers and the industry analysts to have confidence in the industry as a whole, we must set the example to validate what we sell is truly of value to businesses--even in difficult economic times.
As the premier source of top talent to the Staffing and Human Capital Services Industries, I have the pleasure of working with companies who value talent and trust us to be the specialist practice we are to provide talent for sales, recruiting, client services, management and executive positions. We do, however, come across companies that have shut down the use of the very services that they sell.
In my opinion, this is a factor germane to the success or failure of the industry to recover. Be a part of the solution to our fiscal challenges and use Staffing Industry services, benefit from the flexibility and the access to talent that are central to growth and prosperity.
With talent, we can help.
Monday, March 23, 2009
Win Friends and Expand Your Network
Do you freeze when someone invites you to a networking event? Do you groan at the mere mention of the word networking?
Networking isn't about artificial settings or immediately asking someone at a professional event for a job. Rather, in the truest sense of the word, networking is about friendship and communication.
Your family, friends, and neighbors, and current and former coworkers are all part of your natural network. So is everyone you stay in contact with and show an interest in.
Reach Out and Touch Everyone
To have a friend, you must be a friend.
And to have a robust natural network filled with friends, you've got to be a thoughtful friend. This means remembering people's birthdays and other important occasions. It means giving kudos for their accomplishments. It means sending thank-you notes for referrals or favors you receive.
It also means staying in regular contact through emails, phone calls, and get-togethers. Each week, set a goal to send one friendly unsolicited email to someone who's in your network (or someone you'd like to be in your network). Also, make at least one personal phone call a week to another individual. Finally, at least once a month, arrange to meet someone in your natural network for lunch, cocktails, or just coffee.
If none of this comes naturally to you, make it a priority by putting each obligation on your to-do list.
You Wanna Be Starting Something
A great way to connect with people and, yes, network, is at an event. But rather than attending yet another formal-but-worthless gathering, get people together informally, and for fun.
Start a weekly poker game. Start a book club with coworkers. Start a cooking club. Start a band.
Have a dinner party or a backyard BBQ. Invite your guests to each bring another friend who's not part of your immediate circle.
Arrange a potluck lunch at the office. Initiate a walking group with coworkers during the day. Spearhead a company outing or fundraiser.
Initiating group activities allows you to network organically while having fun.
Oh the Places You'll Go
Joining is as important as initiating. What are your natural interests? Follow them to expand your natural network.
Do you like to golf? Rather than playing with your usual partner, walk on to a course as a single and play with a threesome. You could make three new friends -- and add three new members to your network.
Have you always been interested in pottery? Or learning sign language? Take a course after work. You'll be with a group of like-minded folks from all walks of life. Odds are at least one or two will wind up members of your network.
Joining a gym, a special interest group, or getting involved with local politics are all great ways to meet new people and make new friends.
Become the Ultimate Connector
One of the best ways to be a good friend and great natural networker is to become a connector.
Rather than focusing on how people in your network and new friends can help you, focus on how you can help them. Keep your ears open when someone says they're looking to break into a certain industry or they're seeking someone with specialized knowledge. Who in your network can help? Who in your network would benefit from such an opportunity?
Becoming the ultimate connector may not bear immediate fruit for you and your professional ambitions. But when you need it, you will have a flourishing network to lend you a hand.
Friday, February 20, 2009
9 Recession-Proof Careers
By Cathie Gandel and Hilary SterneAdditional reporting by Neena Samuel and Kathryn M. Tyranski
These industries project promise—and jobs—for the future, according to the Bureau of Labor Statistics and the Occupational Information Network database.
1. Education
Math and science teachers will be in demand as the U.S. struggles to compete with other countries in engineering, technology, and medicine. A growing immigrant population means more English-as-a-second-language classes will be needed.
2. Energy
Some of the jobs in this field are the result of projects started a year or more ago. But the real boost will come from the new administration's commitment to a more efficient national energy system. "Growth of energy consumption around the world will keep this sector strong," says Laurence Shatkin, coauthor of 150 Best Recession-Proof Jobs.
3. Environment
Green is getting the green light in a nationwide push to make homes and office buildings more energy-efficient and to develop alternative energy sources (solar, wind, nuclear) as well as fuel cell technology. "Anything involved with wind power, either the design or related products, will be big," says Laurence Stybel.
4. Financial Services
Rising from the ashes of a very bad year, financial services have a bright future. Corporate America's wretched excesses mean more government regulation. Workers who are retiring will need advice on how to make their money last. Small businesses may outsource accounting services. As we get to the middle of the recession, there will be a wave of mergers and acquisitions, Stybel predicts. "People with experience in managing the process-corporate attorneys, investment bankers, and accountants-will be in demand."
5. Government
More than half a million federal employees will retire by 2016, leaving open positions at agencies from the CIA to AmeriCorps to NASA. There will also be opportunities at the state and local levels. "In addition to police work and homeland security, government inspects and regulates many industries," says Shatkin. "Workers can sometimes capitalize on their experience in an industry by moving into a regulatory job."
6. Health Care
Health care pops up at the top of just about every list of hot careers. All of us are getting older and living longer, sometimes with chronic health conditions. What's more, health insurance practices may undergo a radical revision during the Obama administration, which has announced plans to address three central issues: coverage, cost, and quality of care. "Health care is a growing industry," says Bettina Seidman, "and not just for health care professionals. There will also be jobs for secretaries, accountants, and administrators."
7. International Business
Corporations, consulting firms, nonprofits, and even governments are going after global markets. People with international expertise, foreign-language skills, or a willingness to move abroad will be in demand. "The global economy is only going to grow," says John Challenger. "U.S. involvement will expand, short and long term."
8. Law Enforcment
International terrorism makes daily headlines, and fear of financial insecurity is matched only by concern for our physical safety. "Crime doesn't go down in a recession," says Shatkin. "It may even increase."
9. Technology
New uses of technology in services and products like electronic health records mean that this sector will continue to be strong. "We have just begun to use the Internet as an entertainment medium in publishing, music, and film," says Peter Weddle.
And We'll Always Be Looking For..."Think of basic human needs, the things we can't do without," says Shatkin. They provide what he calls "little islands" of employment in this economy. For example, he says, we will always need sewage and water treatment. Challenger says the food industry is a core area: "People have to eat, and the global population is increasing."
In a down economy, people don't buy new cars—they repair their old ones. People turn to their clergy for comfort. Funeral directors will always have jobs. And since pets are very much a part of the family, veterinarians and veterinary technicians will continue to be in demand.
Tuesday, December 30, 2008
Despite Layoffs and Hiring Freezes, The War for Talent is Not Over
An underlying fact in the American workplace is the shortage of qualified workers available to fill jobs. The principal business challenge of recruiting, retraining and inspiring talent continues, even in a slumping economy - just like in good times - as employees retire, quit, are terminated, find a new job, enroll in school or move away.
With layoffs the remedy for economic ills, it is often mistakenly thought that hiring is linked to economic growth. Statistically; however, economic growth makes up only about 5% of overall hiring actions in the U.S. Turnover is the overwhelming and primary reason for the majority of a company’s need to hire.
When headcount is monitored closely and managers must “made do” with less people, poorer performers are less tolerated and are “performance managed” out. As such, managers look for top performers from outside the company to ensure their teams are able to perform at high levels in challenging times.
At the same time, in a weak economy, top performers seek out opportunities they perceive as recession-proof causing employers to compete against rival employers.
Under a hiring freeze, overall headcount is targeted to remain at an established number. In these circumstances, when an employee leaves, managers still must make “backfill” hires to cover key positions.
After a period of reactionary cutting and freezing, hiring activity will return to a level of normalcy, business as usual. Then, employers will find that that they are lacking talent in a competitive job market—the market for “employed” top performers.
During times like this, employers will be flooded with candidates from which to choose. A nice change…or not? Hiring managers are well advised to proceed with caution as you contemplate hiring from the pool of available “active” candidates—recently available due to layoffs. Likely, these candidates are “first wavers” who in a robust economy “flew under the radar” and now find themselves “redundant” in an economy that requires top talent to produce results. This doesn’t mean all unemployed or job-seeking candidates are bad or mediocre, but for many, it is indeed the fact.
As the numbers of candidates on the market increases it becomes increasingly difficult to “separate the wheat from the chaffe” and choose the people that are of high quality from a group of mixed quality.
Does it make sense then to continue to employ the services of a search firm to find talent for your organization? Consider that a professional executive search firm is in constant contact with candidates and hiring managers across the segments in which they specialize. This “constant contact” is with “passive” candidates who, when facing economic instability, are more likely to entertain a new opportunity if presented by a known, trusted advisor.
The bottom line…great people are hard to find in even the best “employer's market” circumstances, and only great people are a good investment when resources are dear. An investment in a search fee pays dividends when a new employee not only joins your organization, but contributes with the high level of skill, talent and character commonly found with employed, “passive” candidates who “fly under your radar.”
Direct Search Alliance is exclusively a direct recruiting firm, targeting passive candidates (we do not use ads or postings of any kind; we source top talent directly by researching the market and reaching out to working processionals to develop relationships and share connections). We are the Staffing Industry’s best resource, with multidisciplinary depth and breadth across Commercial and Professional segments, to source a top performer for your organization in 2009.
Friday, December 19, 2008
Season's Greetings
May the New Year bring optimism, innovation, the coming together of talented people, support from colleagues and leadership, aspiration to overcome difficulties, and the power to make the best of trade and industry in the marketplaces we serve.
Teamwork brings everything together.
2009, a time to hope for peace and think green. A time to step it up in the face of adversity. A time to renew the spirit of service and go to work.
Monday, December 15, 2008
Employment Situation
Employment is one of the primary measures NBER uses in tracking the economy, and it noted that U.S. payrolls peaked last December and have declined every month since.
Historically, temporary and contract employment drops precipitously during recessions. In the last recession, for example, staffing employment began to fall several months before the recession actually began. Over the course of a year and a half, the industry lost 29% of its jobs, according to the quarterly ASA staffing employment and sales survey. In year-to-year comparisons of employment data during that period, there were four consecutive quarters of double-digit rates of decline.
So far in this recession, the pattern has been different. Unlike with previous recessions, staffing employment remained relatively unchanged for 10 months. For example, staffing employment declined only 2.5% from the first quarter through the third quarter of this year, according to the ASA employment and sales survey. And the ASA Staffing Index, which measures changes in temporary and contact employment, had been flat for most of the year, until it started showing sustained weekly declines in late September.
The November employment situation report from the U.S. Bureau of Labor Statistics suggests that precipitous declines in employment may now be upon the staffing industry. How long those sharp declines persist will depend in part on how long the recession lasts.
This recession is already longer than the last one. The 2001 recession lasted eight months. The U.S. economy, according to NBER, is currently in the 12th month of contraction. Until now, there had been 10 recessions since World War II, and they lasted an average of 10 months each. The longest recession in that period, in 1981–82, lasted 16 months. Even if this recession becomes the longest since World War II, it is probably more than half over. Many economists predict that the economy will begin to pull out of this downturn by the middle of next year.
Steve Berchem
Staffing Week December 8, 2008
American Staffing Association
Friday, November 28, 2008
Market Conditions Change - Good Advice Doesn't
SPECIAL REPORT
'Greatest economic challenge'
Obama sets sights on economy - vows to confront global financial crisis
NEW YORK (CNNMoney.com) -- President-elect Barack Obama said Friday that the United States is "facing the greatest economic challenge of our lifetime."
The economy ranked as the top concern among voters. The issue...Jobs.
Layoffs and hiring freezes announced by Companies in the broader economy can ripple throughout the Staffing Industry by causing management to cut back on their costs by "making do" with less staff, and this can make it harder for these companies to maintain market share, fueling the ongoing decline in revenues and profits.
Given the weak labor market, only the most skilled, talented and motivated employees will uncover and leverage opportunities to contribute. The economy may be weak, but it is not without prospects.
Staffing Industry employers might be well served by taking a hard look at the capabilities of their employees and how they are deployed. To preserve a place in the market and prosper for longer term benefit, only the best and brightest should be "on the team," so to speak, in revenue generating assignments.
Tolerating mediocrity is risky. Finding talent is difficult with the unemployment rate increasing. As the numbers of candidates on the market increases it becomes increasingly difficult to “separate the wheat from the chaff” and choose the people that are of high quality from a group of mixed quality.
Does it make sense then to continue to employ the services of a search firm to find talent for your organization? Consider that a professional executive search firm is in constant contact with candidates. This “constant contact” is with “passive” candidates who, when facing economic instability, are more likely to entertain a new opportunity if presented by a known, trusted advisor.
The bottom line, great people are hard to find in even the best “employer's market” circumstances, and only great people are a good investment when resources are dear. An investment in a search fee pays dividends when a new employee not only joins your organization, but contributes with the high level of skill, talent and character commonly found with employed “passive” candidates who “fly under your radar.”
We can help make an investment in finding and hiring talent produce sustaining, material results. Recognizing that in times like these, cost is a factor, we are offering cost-savings options to initiate the search for top talent.
1. Stretch Your Budget with Extended Payment Terms
Have the option to make that critical hire in the near-term and spread payment over time. This "layaway" plan allows you to manage the impact on your budget and begin to realize a return on the investment in talent before making the full investment. Pay in 3-equal payments after the start date: 10-days, 45-days and 90-days.
Extended payment terms do not apply with any other discounts.
2. Take advantage of our Search Sale
Make a hire and receive 25% off the search fee. Even in a challenging economic market, customer-facing, revenue-generating and leadership talent are essential. If you have to make that one great hire, make it at a deep discount.
25% off applies only with standard payment terms of net 10-days.
3. Choose the Best of Both Time & Money
Focus on your core business and let us find you a top performer. Take a 15% discount off the search fee, pay only half the fee 10-days after the start and hold on to the balance for 60-days. Manage your cash and benefit from revenue-producing productivity.
Direct Search Alliance is a Search and Talent Consultancy specializing in the Staffing, Professional Services and Outsourcing Industries. I invite you to visit our website and blog to learn more about our company. Click the links below to download online brochures.
Tuesday, November 4, 2008
Barack Obama Becomes the 44th U.S. President
The issue...Jobs.
A total of $100,032,604 was spent to broadcast 52 ads related to the presidential campaign on the issue of jobs from April 3 to Oct. 27, 2008, according to statistics compiled by Campaign Media Analysis Group, which tracks political advertising expenditures.
Layoffs and hiring freezes announced by Companies in the broader economy can ripple throughout the Staffing Industry by causing management to cut back on their costs by "making do" with less staff, and this can make it harder for these companies to maintain market share, fueling the ongoing decline in revenues and profits.
Given the weak labor market, only the most skilled, talented and motivated employees will uncover, discover and leverage opportunities to contribute. The economy may be weak, but it is not without prospects.
Staffing Industry employers might be well served by taking a hard look at the capabilities of their employees and how they are deployed. To preserve a place in the market and prosper for longer term benefit, only the best and brightest should be "on the team," so to speak, in revenue generating assignments. Tolerating mediocrity is risky. Finding talent is difficult with the unemployment rate increasing.
We can help make an investment in finding and hiring talent produce sustaining, material results.
Direct Search Alliance was established by Staffing Industry leaders to provide an alliance between America's best employers and executive, management and professional people already successful in their role and area of specialization.
Our organizational mission is to represent, serve and inspire talented individuals to nurture and propel business performance.
Sunday, October 26, 2008
Selling in a Down Economy
Here are a few thoughts for growing your sales organization in these challenging times.
First, stop accepting excuses for lack of performance… even if they have a basis in truth. It’s always easier for someone to blame the economy, the competition, the lousy sales leads, or even their own company than it is to accept responsibility. The fact is that successful people find a way to succeed regardless of the circumstances. Hardly anybody actually likes to prospect, but hungry successful salespeople who need to generate revenue will become prospecting animals. Are your salespeople making enough calls to generate the business you need? Are they doing everything possible to succeed?
In better times, many salespeople focused on telling prospects about the benefits and advantages of their company’s products or services. They sent lots of proposals and followed up consistently. Business was good. But as soon as the economy slowed, this approach stopped working. The reaction was often to cut price and to add extra value (often by throwing in extra functionality) in an attempt to close deals. Margins eroded and the sales pipeline slowed to a trickle. The very salespeople who seemed like Supermen in the good times now act like kryptonite is in their office.
There are two basic questions that need to be addressed in order to turn around a languishing sales organization.
First: do you have the right people?
Many successful “salespeople” really were more like account managers who farmed their existing client base very effectively. These “farmers” are patient and will say, “Wait until the economy turns around”, or “Nobody is buying right now”. Salespeople who are excellent account managers are not necessarily willing and able to prospect for new business (i.e. become hunters). Find those who have both a strong desire for success and a commitment to do whatever it takes, then get rid of the rest!
The second question is: do your people have the abilities and skills to compete in a tough selling environment?
Many sales organizations, especially those selling technology during the boom times, failed to develop the selling skills of their sales team. Some salespeople were functioning too much as order takers and simply didn’t need to prospect in order to meet their targets. Marketing generated an abundance of leads so the biggest challenge salespeople faced was simply following-up on what was handed to them. Everything was wonderful until the economy took a turn for the worse. Many formerly successful salespeople simply don’t have the skills to compete in this new economy, or they aren’t willing to do what it will take to be successful.
In order to answer the above two questions, consider evaluating your existing organization using some sort of objective assessment methodology. Like any good change process, establishing the current condition is essential in determining an action plan for future change. Knowing strengths and weaknesses of the sales team allows for an action plan to be developed. It is entirely possible that some on the team simply will not be effective in this new economy, so making personnel changes may be the first step. If training is needed, it should be targeted to address those issues that will have the greatest return on investment. For instance, if salespeople are too easily cutting price, then some intensive focus on a good budget step would be prudent. If they send out lots of proposals but don’t close enough, developing their questioning skills and closing strategies would be appropriate.
Additionally, a growing organization should look to systematize the selling process. Determine your best sales practices and then make sure the whole organization consistently follows those practices. What are the best ways to find new leads? How do they get qualified quickly? How are budgets determined? When and how will the decision be made? Answer all these questions BEFORE you spend a fortune on software. Contact management, sales automation, and customer relationship management (CRM) software is abundant and readily available for virtually any size sales organization. Unfortunately, software alone will not fix a weak sales process or a weak sales team.
Lastly, take the time and energy to hire salespeople who not only can sell, but WILL SELL for your company. When looking at those impressive resumes be sure to ask lots of questions about how much prospecting the salesperson did in the past. Many top salespeople inherited accounts and grew an existing base. If that’s what you’re offering them, then they may be a good fit, but don’t expect this former superstar to necessarily cold call and prospect consistently for new business. Again, use good evaluation tools to screen for those attributes that will insure success in your organization. Never hire based strictly upon your “gut”.
Put it all together and you’ll probably find that selling in a down economy really isn’t much different than selling in a good economy. Hire the right people, provide them with great training and tools, and don’t accept excuses. So when the economy picks up again don’t forget the fundamentals. Winners succeed because they are prepared more than others and are committed to be the best. Good Selling!
-- by Kevin Hallenbeck
Sunday, October 12, 2008
Bringing it Back
Confidence comes with action and it is an amalgamation of doing basic "right things" that work together to make business come around.
INTERVIEWS
it seems silly to interview when you have more candidates than jobs, but continue to do so in numbers and dig in a little deeper--where has the candidate interviewed, with whom have they been out on assignment, what employers have contacted them, who do they report to and to whom does their boss report? These are names, names that might be hiring. In times like these when the instance of hiring or needing supplemental staffing is less common, you must increase the number of chances to sell by increasing the number of potential hiring authorities on your prospect list. When you use interviewing as a means to gather market intelligence, you can, at the same time, cross reference the name to the profile of the candidate which can be used to target your marketing efforts on a go forward basis.
Going back to the files and pulling old applications is a target-rich source for names that were passed over when business was too brisk to pay attention to the details.
REFERENCES
Everyone hates to check references - they seem like an annoying obstacle to placing a candidate. But in reality, every professional reference is not only another name, but a person you have a good reason to engage in conversation. Grab up a pile of unchecked references and get busy dialing. Your "connection" ratio will increase multi fold when you are calling about a professional reference. It is an easy transition to turn a call like this to the business of learning about the individual, their organization's needs and prospective opportunities. Go back through old checked references, and voila...more names.
MARKETING CANDIDATES
Once you have a long list of prospective hiring authority names, cross referenced with the kinds of skill classifications that they hire, you can market great candidates on a more macro, but targeted, basis and reach a large number of prospective clients. Do a thorough job writing a profile of the candidate to market and what they can offer an employer, along with a compelling and persuasive overview of your experience and your firm's area of specialization. You will find that if you "hit the bulls eye," you will generate a business opportunity and if you present yourself in the right light, you might generate interest in your services for an alternate opportunity.
The adage - "It is a numbers game" has never been more true. The survivors of this downturn are the individuals and companies who leverage high volumes of data with high levels of activity to touch prospects on a frequency that "makes your own luck" by increasing your chances of being "in the right place and the right time."
Tuesday, September 23, 2008
Talent Surplus – Not!
Does this mean that the scarcity of talent has become less and talent is readily available for the few openings employers have come up in this uncertain economy? To answer this question, first answer these questions:
1. With declining revenues and fewer opportunities on the horizon, is every employee’s contribution even more important to the success of your business and to justifying the role in your organization?
2. If you have made reductions in staff, have you considered performance as one of the deciding factors respecting who to let go, and released the lesser producing employees first?
If you answered yes to either question, take pause as you contemplate hiring from the pool of available “active” candidates. Likely, these candidates are “first wavers” who in a robust economy “flew under the radar” and now find themselves “redundant” in an economy that requires top talent to produce results. This doesn’t mean all unemployed or job-seeking candidates are bad or mediocre, but for many it is indeed the fact.
As the numbers of candidates on the market increases it becomes increasingly difficult to “separate the wheat from the chaffe” and choose the people that are of high quality from a group of mixed quality.
Does it make sense then to continue to employ the services of a search firm to find talent for your organization? Consider that a professional executive search firm is in constant contact with candidates and hiring managers across the segments in which they specialize. This “constant contact” is with “passive” candidates who, when facing economic instability, are more likely to entertain a new opportunity if presented by a known, trusted advisor.
The bottom line…great people are hard to find in even the best “employer's market” circumstances, and only great people are a good investment when resources are dear. An investment in a search fee pays dividends when a new employee not only joins your organization, but contributes with the high level of skill, talent and character commonly found with employed “passive” candidates who “fly under your radar.”
Sunday, September 7, 2008
STAFFING INDUSTRY ANALYSTS BRIEFING
BRIEFING - Economic indicators August 2008
ECRI weekly leading index contracts
Manufacturing and nonmanufacturing indices running flat
Four-week jobless claims up 11.5% from July
Craig Johnson
Event
August was a tough month for economic indicators. Several indicators fell and others posted little change.
Background and analysis
The Economic Cycle Research Institute's weekly leading index contracted in August. The index declined 11.7% in the week ended Aug. 29 versus the year earlier. This is 360 basis points worse than the comparable number of a month ago.
In the U.S. manufacturing sector, economic activity in August was about the same as in July, the Institute for Supply Management reported. The ISM's key purchasing managers' index for manufacturing registered 49.9 in August, nearly unchanged from 50.0 in July. Readings of more than 50 indicate expansion.
"This continues the 2008 trend toward negligible growth or contraction each month, but ultimately results in very little overall change in the sector," said Norbert Ore, chair of the ISM's manufacturing business survey committee.
Economic activity in the U.S. service sector edged up slightly in August after contracting in July, according to the ISM's nonmanufacturing index. The index rose to 50.6 in August from 49.5 in July with readings above 50 indicate expansion.
The employment portion of the nonmanufacturing index fell to a reading of 45.4 in August from 47.1 in the previous month.
In the week ended Aug. 30, the advance figure for seasonally adjusted initial unemployment claims was 444,000, the U.S. Department of Labor reported. The four-week moving average was 438,000, an increase of 45,000, or 11.5% from the previous month's average 393,000. A Department of Labor program to locate those who may be eligible for jobless benefits may have contributed to the recent rise in these numbers.
Meanwhile, The Conference Board's U.S. leading index of economic indicators fell 0.7% in July, its most recent reading. It now stands at 101.2. The organization said weaknesses among leading indicators continue to be widespread.
However, one bright spot in the economic picture was the upward revision of second-quarter growth in real gross domestic product by the U.S. Department of Commerce on Aug. 28. Real GDP grew at a rate of 3.3% in the second quarter, according to the revision, up from an earlier estimate of only 1.9%.
Staffing Industry Analysts' perspective
Overall, there appeared little good forward-looking news from the economic indicators in August.
Both the manufacturing and non-manufacturing indices are at about 50, meaning flat performance, neither growth nor contraction. Jobless claims rose 11.5% from the previous month, but it's unclear whether the increase is real or simply reflects a new program on the part of the Department of Labor to aggressively seek applications for unemployment claims by locating those unemployed. More troubling is the consistently negative character of two forward-looking indices, the ECRI and the leading index.
Monday, August 25, 2008
It is Not the Market, it is Your Competitors
Profiling Your Competitors
by BNET Editorial
To pull ahead of your business competitors, you need to build a detailed profile of their strengths, weaknesses, and relationships with customers. With that information, you can compare the performance of your business with that of your main competitors, measuring factors that are important to quality of service, and use the comparison as the basis for performance improvement.
Competitor information can be obtained from many different sources, starting with what your competitors say on their own Web sites and in their brochures and annual reports about their capabilities, resources, and plans. You can find information about competitors in the press, trade publications, industry surveys, and on the Internet.
What You Need to Know
Who are my competitors?
Depending on the size of your company and the products or services you offer, you probably already know your competition—from advertising, trade shows, or even your customers. Never assume, however, that you know everything you should know about the competition. Who else is offering what you offer? Many products and services could be classed as non-essential and so customers may be choosing to spend their discretionary budget between two very different market sectors. Are you losing business that way? Is a larger company hurting your business by giving away a competing service as a promotion device? Always be alert to the different ways that others could be taking business away.
Why is competitor intelligence so important?
You need to understand what competitors are offering so you can offer at least as much to customers. Your marketing campaigns or product launches can be affected by what your competitors may be doing at the same time, so learning what you can about their plans is important. You also need to be aware if a competitor is threatening to take away your important accounts. Unless you monitor competitor activity and take appropriate action, your business faces an unknown risk.
Should we use an independent research company, or conduct the research internally?
You can conduct the research internally, provided you or your staff has the time. Much of the source material is in the public domain, so you should be able to obtain it yourself. Don’t overlook the wealth of information you already have in your company or can gain through your own contacts. If you wish to research customer attitudes toward your company versus your competition, you may need to use an independent research organization. Customers may not be completely honest with your own representatives.
How reliable is published competitor information?
Use your critical thinking skills to assess the accuracy and quality of any published information that is used for research. Make sure the information you find is current and that it comes from reliable sources.
What to Do
Identify Your Competitors
Competitor information helps you to identify how you can gain a larger share of the business from your competitors and how to protect the business you have.
Ask yourself:
Quantifying the threat helps you to prioritize your own activities.
Compare Your Key Competitive Factors
Listed below are a number of factors that are important to meeting customer needs. On a scale of 1 to 10 (where 10 is the best in the market), how does your company rate? Consider each factor carefully, then use your results as the basis for a program of performance improvement. Emphasize the things that matter to your customers rather than to your own opinions:
Make Use of Your Sales Force
By talking to customers, your company’s sales representatives can find out about competitors’ direct sales calls, marketing campaigns, special offers, and new developments. They can obtain similar information from retailers or distributors. Crucially, they can get a feel for the customers’ awareness and attitude toward your competitors.
Monitor a Variety of Public Sources
You can learn a great deal about your competitors from their own public information: corporate brochures, annual reports, and exhibitions. Check your competitors’ Web sites frequently for updates on their products, plans, and capabilities as well as any customer case studies or news releases that may be posted on the site.
Monitor trade publications (many are available on the Internet) and the general press for useful information about your competitors. You may have the staff resources to maintain a file of press clippings on your competition, or you may wish to hire a clipping service to gather material for you.
Look for published results of industry surveys, which can provide useful insights into your entire market as well as your competitors.
Analyze Competitors’ Promotional Activities
By monitoring your competitors’ advertising, promotions, exhibition presence, press activities, and Internet information, you can assess their strategies. These are some of the possible scenarios:
Hire a Research Company
If you do not have the internal resources to monitor competitive activity, you can hire an independent research company to perform all the tasks outlined above. You can also ask the company to survey customers to reveal their attitudes toward your company versus your competitors. Customers may be more willing to discuss their attitudes with an independent researcher than they are with someone from your company.
Consider Benchmarking
Once you have assembled detailed information about your competitors, you can benchmark your performance against theirs. Competently done, benchmarking will give you a baseline assessment of your company’s effectiveness in the marketplace and some insight into where competitors may be gaining the advantage over you.
What to Avoid
You Overlook the Obvious Sources
Some competitor intelligence is freely available from the Internet, the press, and other public sources and—most important—from your staff, your customers, and your competitors themselves. Information from these sources can provide a valuable starting point for developing detailed competitor profiles.
You Fail to Make Use of Competitor Information
Competitor information is valuable only if you use it to refine your own strategies or take defensive action to protect your business. Simply gathering information without analysis or action is wasteful.
You Act on Incomplete or Out-of-date Information
Be cautious about acting on competitor intelligence until you have as much complete, accurate, up-to-date information as possible. Published sources can provide only a partial picture, and more strategic information is likely to be confidential. This means that you may make incorrect assumptions in planning your response to competitor action.
Wednesday, July 9, 2008
"What Can I Do to Help You Now"?
There is market share for this period of “flatness," economic “correction” or “downturn,” but not for the cowardly. Those who take on the market’s sluggishness with energy and good judgment, leading actively and by example will prosper even in trying times.
Building a strong growth-sustaining team calls for the time and attention of the business unit manager to maintain a sense of urgency and establish solid work plans that will leverage each team member’s strength. Guidance, support and direction is essential to maximizing team members’ contributions and lift up the capacity of the team. A high level of engagement in training and development, as well as in guiding territory management and lead development is essential to bringing about results.
Business unit managers with the most success in developing strong teams and arranging talents of team members to the discipline in which they belong, direct and support the work flow collectively and individually, as well as contribute personally.
What then are the core best practices of a successful business unit manager?
1. Manage with twice daily meetings to communicate, set responsibilities and priorities. It is wrong to think that stopping “work” to meet as a team is a waste of time. A team with clear priorities and shared information is much more effective than a team “figuring it out on their own.” These are 30-minute meetings – everyone in attendance – with the following agenda items:
2. Manage the market, inventory and match. The leader must act as the first source of what is “hot” for follow-up to pick up the pace of all team members. The relationship and interplay between oversight of sales and service is leveraged when you can “see” a branch candidate and “match” the candidate to companies the sales team are engaging.
3. Manage business development purposefully. Who else but the manager should know the marketplace? Work with self and sales staff at the beginning and the end of the week to review target lists/lead lists/task lists for content, activity and next activity to do. Other sales driving best practices include:
4. Manage the business of the business. It is up to the leader to plan for maximizing the recruiting team at the beginning of the week to:
5. Great managers look inward. They look inside the company, into each individual, into the differences in style, goals, needs and motivation of each person. These differences are small, subtle, but great managers need to pay attention to them. These subtle differences guide them toward the right way to release each person's unique talents into performance. Recruit for talent, manage to strengths, hire expeditiously. Manage learning and development at least weekly, if not daily.
6. Do not delegate tasks that are not revenue-generating. Support the team with meaningful contributions so they can do their jobs more effectively—individual activity to generate personal production for the good of the branch is useful, but equally important is preparing and focusing each team member by taking responsibility for administrative and operational support to enable the team to expand the business. This is not “lending a hand,” this is “doing” a task completely so the collective bandwidth of the branch team is actively engaged in work that generates gross margin dollars.
Saturday, May 10, 2008
Don't Be a "Hater" - Be a Celebrator!
As the economy slows, a new challenge emerges. No knocking. This introduces a new business challenge, how to create "something' from "nothing" - making sales in an increasingly competitive environment. For most teams, this brings about collective confusion, procrastination and fear in the face of declining results. These stresses turn camaraderie to antagonism, resulting in a loser's pessimism. A work team's synchronicity is compromised, begging motivation and direction.
What to do?
Talk to each other. Really, that's what I suggest as a starting point. Ask about the following - What are your career goals? Why did you decide you wanted to work here? What would you like to accomplish while you are here? What are you truly good at? What "out of your comfort zone" work are you willing to do? Are there any suggestions you would make if you had the ability to improve the way you did your particular job? Are there any suggestions you would make if you had the ability to improve the way other staff did their particular job?
Out of this simple process comes volumes of information - most of it useful and relevant. This information enables teams to recommend a transformation in the way they, as individual contributors, and supporters of each other, work collectively in the new economic climate.
Get into Line With What Are the Objectives. Continue the conversation and set specific outcomes aligned with desired results. Generally, this will be centered around developing new business and the who, what, when, what and how to go about it.
Make a Plan. It is not a top-down plan, it is the plan developed from hours of conversations with co-workers. They developed it, put it together. And, with my each team member's strong assistance, encouragement, and support, it can be implemented.
Celebrate the Results. This is the part that brings back "winners" camaraderie. Recognize brave actions, continuing attempts in the face of failures, small achievements, ease with changing daily tasks, new skill with unfamiliar activities, and when a coworker "steps up" to "lift up" the team.
So there you have it - communicate and build alignment, fall in with the objectives and celebrate your achievements. In doing so, you just might find that this encourages good people and business behavior that sustains and uplifts top-performing teams, even in uncertain economic times.
Tuesday, April 29, 2008
Motivation Tips for Success
So the economy is a bit down, orders are slowing down and the pressure is on to meet your revenue goals. Strategizing with your sales team is certainly a good idea. Coming up with creative ways to motivate your sales team is definitely the right way to go. The right amount of nudging might just be what a crestfallen sales person or recruiter might need reinvigorate and start their efforts anew.
Many people and companies think that the only method of motivating sales people is to give them an opportunity to make more money. Salespeople are certainly motivated by money, but other factors come into play. You need to take some of these factors into consideration when working to motivate your sales people.
When trying to motivate sales people it is important to insure that your salespeople understand the vision of the company. Whether you are an individual selling on your own, or you are motivating sales people in a large sales force, it is important that salespeople are able to move toward an empowering vision. The head of the company (or you, if you own the company) must have a strong vision and communicate it to the sales people in a clear and concise manner.
Another important factor in motivating sales people is the culture of the company or organization. Sales people are often motivated by being part of a very strong and a very well understood cultural environment. The vision for the culture of the company must be clearly communicated and demonstrated from the top of the company. If sales people are clearly involved in the company’s culture, it will motivate them more than big paychecks.
Sales people are also strongly motivated by recognition. Public recognition can be a very powerful motivator for sales people. In my company, we motivate our sales people by giving them recognition at events that the whole company attends. This type of recognition can be very powerful in motivating sales people and making them feel more connected to your company.
Regardless, at the end of the day, all motivation is essentially self-motivation. Here are seven very practical, easy-to-follow and helpful self motivation tips and techniques you can use and share to withstand even the most difficult times:
1. Identify and Set Short-term Goals That "Move the Ball” in the Right Direction
Figure out your most pressing and specific goals - reaching established budgets or recovering recent business milestones may seem too far reaching. Focus energies on immediate action and outcomes - once achieved, then celebrate progress and set new objectives. Set, achieve, celebrate and repeat.
2. Create Realistic Timelines
The next logical step is to create deadlines. Even if they are not exact, it gives you a rough timeframe and helps you keep your eye on the prize.
3. Make a Plan
Now that you have your goals clearly stated and timelines appointed, there must be a plan of action for how you will get it all done.
4. Overcome Procrastination
Many people have a hard time with self motivation simply because of their bad habit of procrastination. A major cause of procrastination is usually just feeling overwhelmed, which keeps you from beginning. A buddy-system or networking venue may help coworkers help each other stay motivated.
5. Accept Obstacles
On the road to completing your goals, you will undoubtedly come across obstacles. Though challenges can cause people to lose motivation and quit, if you learn to see them as your teacher, the obstacles will begin to work for you rather than against you.
6. Positive Attitude
Envision yourself reaching goals, even if they are only for the end of the day. As Henry Ford once said, “If you think you can or think you can not—you are probably right.” A positive attitude almost always breeds positive results, but a negative attitude will do just the opposite.
7. Enjoy yourself
Finally, enjoy yourself. While this tip may seem more common sense than other self motivation tips, it is essential.
Times are getting tougher, and you don't want to lose your A players for sure – especially during a slowing economy. There is always need for top talent in a weak economy. When times are hard and average performers are not doing so well, staffing firms seek good performers to weather the downturn.
Monday, March 3, 2008
Moving to a Small Company Can Lead to Big Rewards
By SARAH E. NEEDLEMAN
The Wall Street Journal
March 3, 2008 9:14 p.m.
With the U.S. economy under duress, a growing number of experienced workers may find themselves moving away from large companies toward smaller professional firms. In recent weeks, several large employers announced plans to trim their work forces while small companies hungry for top-talent are happy to take in corporate exiles.
There is a significant upside for professionals moving from a big pond to a smaller one. Senior managers at small and midsize firms often find opportunities to take on more responsibility, earn greater recognition for successes, gain ample exposure to new practice areas and have a more direct impact on a company's bottom line.
To be sure, small firms seeking to attract big fish still have to prove they're a stable alternative that offers competitive pay, but for some, the tradeoff is worth it.
More Impact
Before joining Internet company LinkedIn Corp. in July, Patrick Crane was one of five marketing vice presidents at Yahoo!. He's now the sole vice president of marketing at LinkedIn, which has roughly 220 workers.
"At Yahoo I shook [CEO Jerry Yang's] hand twice and had maybe less than five conversations with him in four years," he says. "Now I meet with our CEO [at LinkedIn] several times a day."
That close proximity to upper management often leads to quicker action. Mr. Macdonald, the former Bristol-Myers worker, says he has the power to get things done more expeditiously at his new employer, Acorda Therapeutics Inc. in Hawthorne, N.Y. "There's less bureaucracy," he says. "Decisions are made without having to go through a number of layers of approval."
Being able to influence a company's bottom line is what led Scott Ruthfield to join WhitePages.com Inc. in April as vice president of engineering and technology. "Everybody plays a core role, so if you do a good job, you are directly contributing to way the business is going to succeed," says the former Amazon.com Inc. manager.
That can also mean more ready recognition. "Every success you have in a small business is magnified by a hundred," says Dean Medley, senior vice president of recruiting at Medical Methods Inc., a staffing firm in Jacksonville, Fla., with 50 employees. "When you land a new account, it's a huge deal."
Small-company converts also mention the room to gain experience in new practice areas—or to return to the heart of a business—as another plus. "You get divorced from the nuts and bolts of operating a business when you work for large companies," says Mike Barnes, a newly hired logistics executive at Halton Co., a provider of construction equipment in Portland, Ore. Mr.
Barnes says the depth of involvement he has at his new firm has another upside: A level of job satisfaction he says he hasn't felt in a long time. Mr. Barnes also says his peers at Halton are less competitive than his former colleagues at larger firms
"People aren't climbing over each other attempting to reach the next level," he says.
That doesn't mean there aren't drawbacks to going small. For one, blunders are magnified. "When you have a setback, it's extremely painful," says Mr. Medley, who joined Medical Methods in 2004 after being laid off from Bank of America Corp.
Small businesses often have fewer support systems than large firms. "You might not have a legal team looking at everything you do," notes Mr. Rich. "There may not be a [human-resources] department." Office perks like free coffee and catered meetings might also be absent, he adds.
Recruiting Challenges
Bringing in brand-name talent can be a challenge for small companies, though. Some senior-level job hunters eschew such firms because they're typically perceived to offer less stability.
Tighter budgets mean smaller companies sometimes can't afford to pay salaries equal to those of big firms. Case in point: This year, chief financial officers at companies with $500 million or more in sales are projected to earn between $257,500 and $370,500 in average annual base pay, CFOs at firms with up to $50 million in sales are expected to receive between $91,000 and $122,250.
Many small employers provide alluring trade-offs such as shorter workweeks, less travel and work-life balance incentives including telecommuting arrangements and flexible schedules.
Employees who trek long distances to get to work at Rising Medical Solutions Inc.'s offices in Chicago and Milwaukee, for example, are given laptop computers with wireless Internet access, says Jason Beans, chief executive officer of the 115-person management-consulting firm. "They can leave at 4 (p.m.) and do work on the train," he says, adding that he plans to recruit about a dozen senior professionals this year, along with 40 others.
To be sure, some small employers eager to take advantage of the wider big-company labor pool say they're willing to compensate new hires more competitively. "If we want super stars, we have to be able to pay appropriate salaries," says Robyn Marcotte, senior vice president of talent at ePrize LLC, an interactive-promotions company. The Detroit-based 35-person firm wants to add 30 senior-level employees and 20 others by the end of next month, she says.
And, niche firms that compete with brand-names are more likely to offer salaries that are similar to big companies—and, perhaps, other ownership incentives. Tom Ryan, founder and co-chief executive officer or ICR LLC, a small financial-communications consulting firm, says he offers consultants a base salary he calls "competitive, even by Wall Street standards." Consultants also earn a percentage of their billings, "so there's no income cap," he adds. A performance-based pay model is critical for enticing top talent, notes Mr. Ryan. "Historically it's been difficult to get the right people," he explains. "You've had an incredible bull market since the tail end of the Internet bubble and the commissions these people generated have been really good." The Westport, Conn.-based firm, which services more than 200 publicly traded businesses, employs roughly 100 people and plans to add 10 more consultants this year.
Mr. Ryan's plans to bulk up may be a sign of the times for small and midsize professional firms. A recent survey of 500 firms with annual revenue ranging from $100,000 to $25 million (with average revenue between $5 and $9 million) shows that 57% plan to add workers this year, reports The Alternative Board, a small-business advisory board based in Denver.
"This is definitely a great opportunity for us to recruit talent from big companies," says Kaity Benedicto, human-resources director at Travelzoo Inc., an online media company with roughly 150 employees. "We've noticed more individuals are willing to talk to us now than ever." The New York-based firm plans to grow its staff by 40% this year, mainly with senior-level technology hires