Four Lessons We Should Have Learned This Year

by Kevin Wheeler - Dec 9, 2009, 5:07 pm ET

Adversity is a great teacher, and the past year will certainly be one of the most adverse and professionally difficult that we will ever experience.

It has been a year of paradoxes and contradictions: unemployment is soaring, but many organizations cannot find the qualified people they need. Rather than restructure work or rethink how work gets done in order to find people, we continue to seek people to work in traditional ways. More people are looking for part-time, temporary, or contract work, yet only a tiny percentage of companies are looking for these type of people. We know that being discourteous to people creates negative branding and is morally questionable especially when so many are unemployed, but we have perhaps never been as discourteous to applicants are we are now. Energy costs have fluctuated wildly and global warming is a topic on every agenda, yet most organizations and people prefer face-to-face relationships rather than asking people to save energy by working from home.

Here are four lessons we should have learned this year.

Lesson #1: Building and maintaining candidate relationships and generating referrals are keys to survival.

Job descriptions should be dead, but I have no doubt that they will live on for a long time. We should all agree that they are not the best, cheapest, or fastest way to attract good people.

In general, you are not going to find the people you need by posting on job boards. The most successful recruiters use social networks, ask employees (and others) for referrals and focus on building talent communities of potential candidates.

Learn from product and service marketing how to do a better job. Watch how IBM or Deloitte advertise and market their professional services. Go for targeted messaging and quality, not volume. Generate candidates from relationships you form using tools such as LinkedIn, Facebook, and Twitter and by asking for referrals. Make it a rule of thumb that if you are generating hundreds of responses to a job posting, you are doing something terribly wrong.

Lesson #2: Use targeted, bold marketing and branding to appeal to the types of candidates you want.

Don’t try to appeal to everyone. Focus your marketing messages and media on the type of candidate you are most in need of. KPMG and other organizations target college-age candidates with videos and other media designed to appeal to that age group and to the personalities of the type of candidates who usually want to work for them.

They don’t spend any time or money on marketing that is generic or that appeals to older potential candidates.

The best marketing is always targeted to a specific audience and discourages, although subtly, those who don’t fit the target. Partly this is done through words and pictures and partly by placing the information where the people you are targeting are most likely to see it.

For example, Mercedes advertises on television at the times and on programs where their research shows that highly successful and well off people watch. They place print advertisements in magazines that these types of people read. They do not advertise on Super Bowl nor do they advertise in Reader’s Digest. Targeted marketing requires research, focus, carefully thought-out graphics, and tested writing.

Wording is also key; what you say makes all the difference. If you say and imply that you are seeking only those with very specific backgrounds and qualifications, you will reduce the numbers who apply and improve quality. Even your recruiting web site needs to be worded in a way that is attractive to those you are most anxious to have apply. Cisco Systems has a web site that is appealing to technical professionals but less so to others.

Lesson #3: Do not just use, but embrace, emerging technology

Social networks, video, YouTube, candidate relationship management products, Web 3.0 websites, and SecondLife are all tools that can potentially enlarge your candidate pools, screen candidates, and build relationships.

Facebook, Twitter, and YouTube are perhaps the most effective recruiting tools in your arsenal. Video has become king in attracting people, and YouTube is the second-most used search engine after Google itself. If your organization has a recruiting page and/or video, it’s a good start.

Once you start attracting potential candidates, there are many tools to help screen them and communicate with them. CRM tools (Avature is a good example) let you track and communicate with groups of candidates. The most current ATS vendors are also offering this capability and even allow you to link to online profiles in LinkedIn and Facebook. This means candidates do not need a resume.

There are countless email programs, newsletter distribution programs, and other free or inexpensive communication aids that recruiters can use to do a better job letting candidates know where they stand. Even automatic bounce-back responses can be more intelligently written and distributed. A follow-up email could follow the bounce-back and automatically provide the candidate with another touch point.

Lesson #4: Accept change as a way of life

We will not be heading back to the more traditional ways of recruiting, and the contradictions and paradoxes I outlined at the beginning of this article will be with us for a long time. Traditional recruiting skills will be liabilities and will generate little profit.

Everything from face-to-face interviews to onboarding new employees will be more automated and will be done using the Internet. Software applications and mobile technology will dominate the recruiting space. Video interviewing and simulations for selection will become normal within five years.

To be a thriving recruiter you need to focus on building a new mindset that is centered on the acceptance of change as a constant and on taking advantage of technology.

Perhaps the greatest lesson of this year is that we are now at the place where we can use this technology to target our marketing, focus on a smaller number of candidates, allow more direct communication between candidates and hiring managers, and spend more time on raising awareness and marketing key positions using the various technical platforms we have available.

The ability to do this will be seen as strength and will generate returning profit for years to come.

Celebrating 2-Years of Bringing People Together!

In July 2007 we started Direct Search Alliance to set a new standard in the "Recruiting for Recruiters" segment, which is largely made up of fragmented independent executive recruiters who are former industry professionals working on their own.

Leveraging best-in-class database management and communications technology, as well as the rapid growth of premier business information search engines and businesses-oriented social networking websites, we have built the largest confidential network of Staffing and Human Capital Industry professionals in North America.

How we provide this new standard is centered on making new and sustaining valued relationships with working professionals day after day. We might leverage "information technology" to create a platform from which we work, but what makes our approach truly unique to the industry is in our collective efforts to reach out to top performers directly by phone or with personal correspondence to develop relationships over time with industry talent, both broadly coast-to-coast and deeply within local markets.

We bypass the typical employment sites and find people who aren't looking for a job, but are interested in hearing about new opportunities and welcome a career partner with connections inside the top employers to work for.

In the Staffing & Human Capital Services Industry, we have multidisciplinary depth and breadth across Commercial and Professional Staffing, Place & Search, Outplacement, Human Capital Management Services and Outsourcing segments.

Our organizational mission is to represent, serve and inspire talented individuals in connection with business performance as well as career progression. We believe that it is people who drive business success, and it is our job to bring people together.

Join us in celebrating our anniversary. Cheers to our team: Leslie, Kisa, Craig, Lisa, Carrie, Jen, and Amy! A heartfelt thank you to our clients who have supported our growth with exciting and challenging opportunities, and sincere appreciation to our candidates who have brought us diverse skills and talents, making us proud and more knowledgeable.

Physician, heal thyself

This saying, that dates back to biblical times, means attend to one's own faults, in preference to pointing out the faults of others. The phrase alludes to the readiness and ability of physicians to heal sickness in others while sometimes not being able or willing to heal themselves. This suggests something of 'the cobbler always wears the worst shoes', i.e. cobblers are too poor and busy to attend to their own footwear. It also suggests that physicians, while often being able to help the sick, cannot always do so and, when sick themselves, are no better placed than anyone else.

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.

Passive Job Seeker Recruitment

Guess what? All the good candidates are working. Luckily though, you’re not limited to just the 4-5 percent of Americans who are currently unemployed. Which is good, since only 20 percent of the unemployed are actively seeking jobs. The rest of the unemployed are truly unemployable. So where do you turn? Passive candidates.

Passive candidates are those individuals gainfully employed by your competitors. They are likely loyal, happy experienced employees that are not necessarily looking to change companies and would need a solid reason to leave. And if you get their attention, you’ll have to work fast. They’re not willing to spend much time in the interview and hiring process (though they may take their sweet time making a decision).

Why specifically target passive candidates in the first place? Why not keep with your traditional recruiting through mediums such as classified listings and job postings, and assume it will reach the best candidates? First of all, 80 percent of any company’s recruiting budget is spent on traditional activities – meaning there are a lot of companies reaching out to candidates in the same fashion. Each minute of every day there are about 294,000 recruiters logged into online job boards grabbing active candidates and battling for the ever shrinking labor pool. Those who are in the market for a job may or may not notice those ads and apply with your company.

Those who aren’t in the market – passive candidates – aren’t looking and are thus completely unaware of your presence in these traditional outlets. It’s similar to being in the market for a new car. All of a sudden you start looking and noticing cars on the road. If you are not in the market for a new car, you’re not “aware” of advertising. The same goes with job hunting. If you’re in the market for a new job – you’re aware. Reaching passive candidates takes a different approach.

The first step is having a quality recruiter who will be able to make a positive and lasting impression. You need someone who not only understands your industry and what competitors are offering, but also has a keen understanding of what the passive candidate wants. A good recruiter for passive candidates needs to have the ability to sell the position, and outsell their current employer. Part of this is the ability to build strong relationships so the candidate not only remembers you and your company, but also trusts you and will refer others to you in the future.

Speaking of referrals, this is one of the best sources for passive candidates. Who do your internal associates know? What about your vendors and customers? Chances are someone you know has a business or personal relationship with the ideal candidate for your company. Establish an incentive program for referrals and see your candidate pool expand.

Another great recruiting method is encouraging your employees to attend networking events and association meetings. While picking up sales leads, have them keep their eyes open for potential associates for your open roles. This builds direct contacts in your industry or one very closely related, and breaks the ice of unfamiliarity. Remember that even event speakers and experts are not off limits for recruitment. While you’re at it, don’t be afraid to go after the employees of your competitors. Fact is, they’re doing the very same thing. Finally, utilize online networking sources such as LinkedIn or Pulse.

You know who to target and where to find them, but how do you reach them? Approach it with the knowledge that they’re not looking to move. Be sure to avoid asking why they’re interested in working for your company – they’re not. Do discovery first. What would potentially motivate them to move? What professional needs do they have that are not being met? What are their future goals? Then sell the opportunity based on how your position and the company culture fulfill those initiatives.

Next, be flexible. You want this person but he or she does not have to give you the time of day. Lose the tailored process, avoid assessments and applications, and bend over backwards to schedule convenient interview times. Now is not the time for reference checks either. Confidentiality is of utmost importance if you want a chance at securing this candidate.

Once you decide you want them, make an offer quickly. Encourage their potential manager and peers to make follow-up calls. The decision to change jobs when they’re not unhappy is a difficult one. Help make their decision to leave easier. Follow these practices, and the quality of your new hires will improve.

The source of this article is Pro Staff - Special Advertising Supplement to Workƒorce MANAGEMENT

Do the Math - Why Recruiters Are Worth What They Charge

Why are hiring managers so tightfisted when dealing with what is so commonly thought of as the “heartbeat” of their companies ... top-talent?

Companies think very little about paying the often excessive fees charged by their outside accounting and legal firms ... or even to the gaggle of consultants who promise cost-cutting and streamlining miracles in other areas of operations.

Yet, when faced with brain drains, talent deficiencies or the need to replace one employee with a better one, their thoughts too often turn to frugality. This belies and contradicts their stated objectives to "hire the best." Of course recruiting fees can vary from firm to firm but, when they do, you will almost always find that those on the low side are sure to exclude some very key ingredients of the process all of which are vital to providing the indispensable services necessary to satisfy the needs of the employer.

So why are recruiters worth what they charge? Just a few of the often unspoken reasons are:

Expertise
Nobody knows the employment marketplace better than a professional recruiter. . . nobody! In house human resources, no matter how effective (or Internet-savvy), view the marketplace through an imperfect or misrepresentative prism and tunnel vision is a frequent occupational hazard.

Just as physicians are cautioned against treating members of their own families, so too is it folly for an in-house H/R professional to believe that they have an undistorted and unbiased picture of the employment landscape. They are vulnerable to the pressures of internal politics and cultural dimensions which do not hinder the outsider.

Street-smart recruiters already know the neighborhood, including the unlisted addresses so often overlooked by the insiders.

Cast a wider net
A professional fisherman will always have more to show than a weekend angler. Recruiters are in the marketplace day in and day out. They know the unfished coves, reefs and inlets that are unknown to others. The job-hunter bookshelves are filled with lore about the “hidden job market.” The same holds true for professional recruiters who have a detailed roadmap to the hidden talent sources which will never be accessed by newspaper ads, alumni associations, applicant databases, the Internet or any of the other more familiar sources of people.

There are occasional pearls through these sources (and someone inevitably wins the Publisher’s Clearinghouse Sweepstakes too) but you have to shuck an awful lot of smelly oysters to find them. Recruiters only give you oysters proven to contain pearls. Your only job is to determine which pearl is the best. Want to catch what you’re fishing for? Hire a guide!

Cost
There is a misconception among employers that the cost of a hire equals the cost of the ads run or postings on the Internet designed to attract the person hired. Nothing could be further from reality.

Try adding these to the true cost and you’ll see just how cost effective an outside recruiter can be:

Salaries and benefits of the employment/recruiting staffs plus those of the line managers involved in the hiring activity (who are not productive in their normal job pursuits when they’re out recruiting); travel, lodging and entertainment expenses of in-house recruiters; source development costs; overhead expenses including (but not limited to) telephone, office space, postage, PR literature, applicant database maintenance, website costs, reference checking, clerical costs to correspond with the hundreds of unqualified respondents and more.

Unbiased third party input
Contrary to what some believe, recruiters don’t try to put square pegs into round holes. A recruiter’s stock-in-trade is their integrity and their reputation for finding someone better than a company could have found for themselves.

For a mid to senior-level executive, the average recruiter may develop a long list” of a hundred or more possibilities. Each must be called and evaluated against the position specifications as well as the personality “fit” with the company and the people with whom they will ultimately work.

Once this is winnowed down to the “short list” an even more intensive interviewing process begins to narrow the search to a panel of finalists for review by the client...

It is highly unlikely that a professional recruiter will be plowing new ground with your opening.

They deal within spheres of influence far more familiar with your needs than any internal recruiter and, more often than not, view the finalists as people who are competent to solve client problems rather than just fill an open slot in the organizational chart.

Because they want to do business with you again and again, they are looking for (and challenging you to excellence by hiring) the “truly exceptional” rather than the “just satisfactory” so often settled for by in-house hirers.

Confidentiality
Advertising or otherwise publicly proclaiming an opening, aside from its cost and demonstrated ineffectiveness for sensitive senior level openings, often creates anxiety and apprehension among the advertiser’s current employees who wonder why they aren’t being considered or worry about newcomer transition problems. Just as often it alerts competitors to a current weakness or void within the company.

Speed
The recruiting process is always faster through a search professional who is continually tapped into the talent marketplace than one having to start the process from scratch,. For every day that a key opening remains unfilled, a company’s other employees must grudgingly do double duty. And this doesn’t factor in the profit opportunities or competitive advantages lost to a company because a position remains unfilled or is done on a part-time basis by others less qualified.

Post-Hire Downtime - Not only is speed an essential part of the professional recruiter’s process, the ability to locate a person who can immediately “hit the ground running” with a minimum of “ramp-up time” saves time after the hire. All too often, a hire selected through less effective sources offering a smaller talent pool requires several months of expensive training and orientation.

Reality
Professional recruiters often recognize and have a duty to inform clients that they may be mistaken as to the type of person sought, the salary required to attract them or the possibilities that the solution might just lie in areas outside the traditional target industries.., something an internal recruiter is politically disinclined to do. Too many hirers fail to understand that a professional recruiter’s primary function is not necessary to fill a slot but to provide the right candidate to solve a problem.

Negotiation
As a buffer and informed intermediary, the professional recruiter is better able to blend the needs and wants of both parties to arrive at a mutually beneficial arrangement without the polarizing roadblocks which too frequently materialize in face-to-face dealings, especially in this “show me the money” economy.

Prioritizing company resources
It is often amazing to see how much of a company’s revenues are squandered on non-productive perks while penny-pinching on what is every company’s lifeblood. . . talent acquisition. Enlightened executives learned long ago that the fee paid to a recruiter is a shrewd strategic investment, not an extraneous expense.

Do the Math
Here is a good example:If your company has A territory vacant for 2 months and this territory produces 1.2 Million dollars per year, your company has lost $200,000 during the time the position has been vacant

Ex. $1,200,000/12 months = $100,000 per month. If the territory is open for 2-months you have lost $200,000!

So, the investment that you would make to a recruiter for quickly finding top qualified individuals is far, far less compared to allowing the territory to remain open. It becomes even more apparent when you factor in the amount of time, energy and money spent on all the in house efforts.

Content thanks to Porter Group, Inc.

Moving to a Small Company Can Lead to Big Rewards

Leaving behind a brand-name firm is a growing alternative for professionals.
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

How Much Does it Really Cost to Hire - or not to Hire?

In a recent article in 'The Interbiznet Bugler', it is stated that the Saratoga Institute, often seen as the ultimate source of HR thinking, typically describes "cost per hire" as the sum of administrative costs and expenses, and Infomart-USA, a hiring practices auditing company, estimates the national average at about $4,400. They consider the elements of cost per hire to be the following:

• Advertising
• Agency fees
• Employment fairs
• Employment office salary expense
• Employment office facility expense
• Estimate of time spent in training
• Recruiter travel expense
• Internal recruiter expense
• Internal recruiter labor expense
• Referral Bonus
• Recruiting & Training expense
• Uniforms

The means used to calculate the administrative cost per hire is deeply understated. So what is the real cost per hire - or more importantly, per not hiring?

Opportunity Costs

The cost of a hire is the money lost because the hire wasn't made. Well recognized in MBA programs and broadly understood throughout the rest of the organization, the simple concept is "opportunity costs."

At its most basic, the opportunity cost associated with a particular hire is the productive revenue lost because the hire wasn't made. Here's an easy way to get your arms around the real cost per hire in your organization.

1. Take the annual sales of your company (or division) and divide it by the number of employees. This is the annual revenue per employee.
2. Divide that number by 250 to get the daily revenue per employee.
3. Multiply daily revenue per employee by the number of days it takes to hire an employee.
4. If you want, add the dollars spent by the Recruiting Department (it's a minor fraction).

This is the real cost per hire. Generally it's 5 to 10 times the administrative costs.

Using an outside recruiter to fast-track hiring of sales talent is good business as it costs far less than not hiring and is an investment in your organization’s growth. When economic times are challenging, sales-focused employees are the resource best leveraged to protect market share—in a shrinking market, taking share away from your competitors is priority one, superseding cost containment measures. Fielding sales talent is an initial success that lays the groundwork for achieving growth objectives. Tapping into a network of industry sales professionals puts growth-minded managers on the offensive.

It's January 2, 2008 - Where is Your Sales Talent?

With reports of workers losing faith in the economy and employers forecasting flat or reduced hiring in the New Year, it is that time of year when we ask the question..."What is the economic forecast for the Staffing industry next year"?

Considering the Staffing industry market is near to $90B, I ask..."Isn't it really about how we approach the marketplace"? When an industry is growing it is easy to increase your business, just jump on the economic escalator and focus on delivery. When the market is retreating it is not so easy, but with a multi-billion market at hand, it should be with the right strategy and tactics.

Many staffing firms leveraged the "escalator effect" to boost profits by leaving revenue-generating field positions open for extended periods or not investing in sales talent in all territories to reduce the cost base against market-driven revenue increases. This works in the economy that is now in our rear view mirror; however, in 2008 the pleasant escalator ride will fast become more like an unpleasant battleground for the firms caught with gaping revenue-generating vacancies.

The battle will be over market "share" and the strategy for 2008 will center on influencing hiring managers, human resources and procurement to change providers - in other words, the growth leaders of 2008 will take away business from their competitors.

The tactics are simple, yet difficult for most companies to execute. To win, the participants must have on the field a well-trained, prepared, and talented sales force before their competitors. To do so, companies must step back from cost management at the expense of deploying a business development workforce. With demand declining, cost containment on the personnel expense line will neither offset the revenue downturns, nor spur increases that have vaporized in the changing economy.

Investment in revenue-generating people is risky in an organization where headcount management, productivity per headcount metrics, compliance and delivery solutions has dominated profit-making strategies. But, as I will explore further in the New Year, there are some leverage points to mitigating the risk of playing to win in 2008:

Reduce "time to hire" for open revenue-generating positions- If you measure the total number of days selling branch management and/or sales representative, executive recruiting, blended-desk positions remained unfilled in 2007, you will likely be quite shocked. Count the markets that you have poor, limited or no sales representation and you will likely become frightened at your prospects for the New Year.

Consider additional sales representation in hot segments/markets- Deployment does not have to be uniform, focusing resources in "hot spots" proves to be cost-effective. You can plan for hiring sales talent in waves to spread out costs against results, but don’t wait too long—the economy changes quickly for the leading-edge Staffing industry—you are already “behind the 8-Ball” so to speak.

Make people the metric- Start holding field managers accountable for filling revenue-generating positions with a sense of urgency by measuring days open, averaging-in open slots with current productivity measures to detect lost opportunities, and recognize the tactical leaders who field a team in play early on in 2008.

Reduce on-boarding time- Revamp your hiring process in terms of steps and priority to cut by half the time it takes to recruit, assess background/fit and make an offer. Use internal, corporate and external resources to grab up talent before your competitors acquire the best of a limited pool of top-performers.

Accelerate training time- Compress training for revenue-generating roles to a boot-camp, immersion-style of delivery to reduce by two-thirds the time it takes to make a new hire ready and competent to face customers persuasively.

Create networks for sales talent- Promote a sales culture with newsletters, chat rooms, blogs, meetings, conference calls, webinars, contests, rankings, and recognitions to bring together the sales team for motivation, further development and peer mentoring.

The greatest challenge to overcome in a retreating economy is not whether a company can grow against prior-year economic-driven benchmarks (which it can). The greater challenge is can industry leaders operationally turnaround their laissez-faire attitude regarding fielding sales talent and make the necessary shifts to strengthen their company’s sales culture, sales-support platform and scope of sales “coverage” across their market footprint before it is too late for cost reductions to protect earnings and shareholder value.

The Secrets of Recruiting and Motivating Talent

Do employees want fun, work-life balance, a pleasant office environment, or a boss with an iron will? The exact formula for a truly motivated team remains elusive, but new research out yesterday from consulting firm Watson Wyatt suggests managers add another ingredient: clarity.

The survey of over 14,000 employees across Europe found that the most important factor for employee motivation was a clear sense of the company’s strategic direction. Andrew Cocks, a senior consultant at the firm, explains: “Business leaders who articulate the business strategy give employees a clear ‘line of sight’ to how they can best contribute to the performance of their company, but the benefit goes beyond this. It helps to build trust in the company and its management and creates a positive environment where all employees have well understood shared goals.”

If clarity is key for engaging and motivating employees, your company’s brand may be the biggest factor in recruiting them in the first place. Irish branding strategist, Krishna De, uses recent research from Jobs.as.uk as a jumping off point for a blog post on the topic. The research found that 86 percent of job seekers rate the strength of a potential employer’s brand as an important factor when considering whether to apply.

Krishna De comments: Think about it - can you remember a time when an executive search firm or recruitment consultant contacted you about what sounded like a great opportunity, but your heart sank when you heard what the company was?… You already had a mental and emotional picture of what that company stood for - both in terms of their reputation and their employer brand. It doesn’t matter how you came to your conclusion or if it was correct - you came to a conclusion.

She goes on to suggest that companies who are facing difficulties recruiting, start by doing a little research as to what potential candidates think of their employer brand. Listen carefully, even if you hear some less than positive things. What can we conclude if we put the two studies together? Employer brand is key for attracting talent. Clarity of vision is necessary to keep them engaged. By Jessica Stillman

How to Work With Contingency Recruiters

Assuming you’ve spoken to a few recruiters or agencies you feel are best suited to meet your needs, the most important piece is keeping their interest in filling your open jobs. The top-tier of recruiters isn’t struggling to find job orders or clients with whom they’ll work. Instead, they tend to focus their recruiting efforts on clients they enjoy working with and where they have the highest likelihood of success. How can you make your positions a top priority? Here are some tips on how you can ensure that your openings are a priority to the contingency recruiters you'd most like to work with:

Sell it; don’t just tell it: When you are discussing your hiring needs with a good recruiter, don’t forget that you need to sell them on you, your company, and your hiring process. Be sure to stress your urgency level, the speed and efficiency of your hiring process, and the selling points as to why candidates they present will want to work at your company. Provide recruiters with electronic copies of internal job descriptions, incentive program documents and benefits summaries--these are selling tools for recruiters.

Choose recruiters based on ability and experience rather than solely on cost: Otherwise, you may end up working with a lower echelon recruiter. Recruiters who charge rock-bottom fees may be good for some job orders, but if you are highly selective or have difficult positions to fill, you might have to ‘sweeten the pot’ to make it more appealing. Top performing recruiters don’t work for bargain basement fees and they have little incentive to work on a job order when the payment terms are not advantageous or adhered to.

Responsiveness and feedback are essential: The ‘A’ list recruiters require feedback from you for candidates that are off the mark, and not just for the candidates that are the right fit. Failure to give feedback on submittals is the number one reason that top contingency recruiters stop working on behalf of any given client. These recruiters need to know how far off target they are in order to better hone their aim. Be sure your feedback is detailed and specific. If you’ve given this level of feedback repeatedly and you still aren’t getting candidates that are a fit, it’s time to evaluate whether you are truly working with an ‘A’ list recruiter, or if there is some other problem or issue in your expectations or hiring process.

Follow-up with your best recruiters on a regular basis: You need not wait until they send you a candidate for you to contact them. In fact, a proactive call from you to your top recruiters asking what you can do to help them is one of your strongest tools to keep outside recruiters motivated to work for you, even if they aren’t making placements yet. Your call to them shows that you have a sense of urgency and that you value their time and effort. In this call, you can give examples of candidates you’ve interviewed, or any other information that will help them hone-in on the ideal candidate.

The most important lesson is that there are great recruiters in the market. Your goal is to proactively locate them through any means necessary, sell them on why they should work for you, and continue to engage with them. And, throughout your candidate search, make sure to keep them in the loop on any changes and updates, as well as to subtly ‘sell’ them on working your job orders.

Hiring in all niche markets is getting tougher in this tightening candidate market. Make sure your company has the reputation of being good to work with in the outside recruiter community so you can attract and retain the best third-party, or contingency recruiters, to help you meet all your hiring needs with the best talent in the market.

Recruiting Tidbits from Recruiting Veterans

Great recruiters have proven techniques and processes they consistently use because they work. These include where they source, how they begin every conversation, how they listen, gather information, close, etc. If you have special ways of taking candidates and clients through the recruiting process and they work, congratulations — use them. But it does help sometimes to compare notes, and maybe even more so in today's changing market and economic climate.

Read on, it might be interesting. Remember, I'm not telling you how to recruit — just sharing a few ideas that work.

It's in the Numbers
And whether you're an internal, external, or contract recruiter, knowing the activity metrics it takes to be successful and measuring daily is very important.

Number of daily candidate sourcing calls

Call results

Number of position interviews

Daily interview feedback by position

Number of client interface meetings, by phone or in person

Number of new requisitions to be filled

Time to fill

Daily measurement of quality performance metrics leads to knowledge and success. Whether recruiting for a company or agency, understanding your activity will help you understand your business in sophisticated and strategic ways. Agree on activity to be measured and then put a process in place to understand daily performance. It works.

I Need Your Help
If you have not asked a source, prospect, candidate or client for help recently, get back to it. If you're stuck, or you're not working at the pace you're accustomed to, try asking for help. A door to an incredible and successful adventure may be opened.

It's All About Relationships
Great relationships can be built inside companies or out. It depends on you and your desire to do it. Think about your market, your internal hiring customers. Do they like your results? Do they like you? Have you gone out of your way to help them recently? Don't forget--get results, but be a friend.

What About You?
There are more than just these few recruiting tidbits that ensure one's success. When you ask the best how they characterize their success, common themes emerge:

Passion

Confidence

Listening skills

Hands-on Recruiting

Recruiting technology skills

Business knowledge

All of these are important. I believe we all agree that if you measure your activity, ask questions, show no fear, and work to build relationships, you will create a foundation of recruitment success. It's important we understand, remember, and practice these recruitment skills, especially as we take the convergence of recruitment process and technology to the next level.

Thanks for selected excerpts from Some Recruiting Tidbits from Recruiting Veterans by Hank Stringer

How to Avoid the Counter-Offer Trap

Counter-offers may be flattering, but what do they truly represent? A sincere renewed commitment to a resigning employee? Not exactly--they are no more than an employer’s attempt to minimize loss. Loss is significant when even the average employee resigns, so it is important that employees see through the manipulation and make an educated decision based on their own interests and professional development.

Labeling a counter-offer as a means of manipulation is arguably a strong accusation, but after years of seeing candidates reject great opportunities, only to succumb to false flattery, no other description seems adequate. The majority of employees are keen to receive the attention of their employer, despite there being times when their work and personal needs have gone unrecognized during their tenure. This makes a counter-offer an even more attractive option as it appears to be the acknowledgment that had previously been so conspicuously absent. The problem, of course, is that it is not the real recognition they seek and is not on a par with accolades and promised that are offered without the pressure of a resignation letter on the table.

Seeking new opportunities should never be used as a means of increasing salary. Despite any apparent improvement in working conditions and salary, the real battle is lost as ultimately, the employer’s hand has been forced and thus loyalties have been compromised. Employees desiring better professional prospects or higher pay should fight on the merits of their contributions to the business without resorting to threats of departure. If this is not possible and career development opportunities are not enough to offset an employee’s wants, needs and career objectives, then they need to work towards finding new employment with a determination not to look back. Making this decision closes the door to counter-offers and ensures that new opportunities are sought for the right reasons and without secondary motivations.

Regardless of their intentions, some find it too difficult, both emotionally and practically, to turn down the rewards a counter-offer may bring. For many this may be increased salary, better benefits, improved working conditions, or even stock holdings in the company. It is only by seeing these perks as a mitigator of loss and not as a recognition of achievement or gesture of understanding that they can be viewed in the correct light.

Expect a counter-offer: any good candidate is sure to attract the attention of their employer and therefore be offered more favorable employment than their current circumstance. By learning to expect this beforehand, surprises can be avoided later and candidates are able to recognize that these benefits would have been offered upfront if the employer truly wanted to recognize their contributions and them as a person.

Why can employers offer so much when faced with a resignation? The main reason is that the cost of hiring a new employee is so prohibitively high. To determine the cost, one needs to add: the loss of opportunity and output of the former employee; those of the staff needed to interview new candidates; and the price of a recruitment agency or advertising platform to solicit new applications. This equation often generates a cost in excess of $20,000, and this is only for lower level positions and under conditions when the position is filled quickly. In situations where the employee is senior or has a large influence on the organization, costs mount quickly with added factors such as the impact on morale, training costs and temporary coverage costs. If you were the manager, a couple of grand pay rise seems cheap – doesn’t it?

With such loaded motivation, employees should never consider a counter-offer as a sign of recognition. They should also consider carefully what life will be like for them in the company after their attempted resignation. Will they still be considered loyal? Will their manager feel forced to make concessions and be bitter as a result? How will this effect career development prospects? Has anything really changed?

Accepting a counter-offer does not only have an effect on professional development opportunities within the company, but may also cause ill feelings on the part of the company originating the offer, as well as with the recruiter. Recruiters lose face when candidates pull out of accepted engagements at the last minute. This can affect an employee’s reputation in the marketplace and future access to new opportunities.

By seeing a counter-offer as a tool of manipulation, employees see through the machinations of an employer that is desperate to keep their costs in line. Praise, development, accommodation, rewards and bonuses are given during an employee’s tenure with an organization and not because of resignation. Employees who interpret a counter-offer as praise are missing important career development opportunities, negatively affecting their future with their present employer and potentially compromising their job opportunities in the future.

To avoid this dilemma, be clear about your reasons for seeking alternative employment in the first place. Expect a counter-offer and be determined to turn it down, regardless of the salary. Be proud of yourself for making employment decisions in a calm and logical manner, looking out for your own personal development opportunities and career growth. No one else will, nor will they start to simply because of your decision to leave.