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.

Showing posts with label Strategy. Show all posts
Showing posts with label Strategy. Show all posts

Saturday, April 18, 2009

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.

Friday, December 19, 2008

Season's Greetings

To our Client and Candidate Business Partners and Friends, all of us at Direct Search Alliance extend our sincerest best wishes for a happy Holiday Season.

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.

Sunday, November 16, 2008

The upside of recession

Instead of cutting back and cowering, why not see it as an opportunity?

COMMENTARY
By G. Michael Maddock and Raphael Louis Vitón
BusinessWeek.com
Tues., March. 18, 2008


Pop quiz, hot shot: What do MTV, Trader Joe's, and the iPod have in common? Yes, of course, they're all now ubiquitous and make our lives much more agreeable.

But to us, the most interesting thing about all three is that these great brands were born during recessions. (Trader Joe's: 1958; MTV: 1981; iPod: 2001, if you are scoring at home.)

And therein lies a point everyone seems to be forgetting in the midst of the current economic slowdown. If handled correctly, a downturn can be a good thing for your company. It can give you the opportunity — and the funds — to innovate and get a substantial leg up on the competition. But only if handled correctly.

It is never going to happen if your company — or your department — goes into the recession saying, "We have to tighten our proverbial belts; let's cut spending 22.73% across the board." People are going to be demoralized. And even worse, that is what most firms are doing, and you are never going to gain a competitive edge doing the same thing as everyone else.

A catalyst for innovation
Cutting across the board is the coward's way of dealing with a downturn. It assures that no one is going to yell — how could anyone possibly object to sharing the pain equally — and it gives the timid a built-in excuse to fail. ("Gee, I know no one liked our new product, but they slashed our budget 22.73% right before launch, so, it wasn't my fault.")

But suppose you use the recession not as an excuse or a reason for hiding under your desk but rather as a catalyst for innovation? Instead of cutting everything by 22.73%, why not see the downturn as a chance to whack 90% (or the whole darn thing) out of stuff that isn't working well?

Cutting off funding to your laggards would free up a lot of money to back the one, or possibly two, big ideas you have been working on, ideas that have a chance to become breakthrough brands. If you want to be less aggressive, you could place more resources behind the existing ideas/programs/products that are already working well.

A two-pronged approach
Two key assumptions are necessary to make this possible: First, you should already have in a place a solid strategy, one that has identified your company's competitive advantage, so you know where to place your relatively big bets. If you don't have a sound strategy, you are at a huge disadvantage. And two, it assumes you have the intestinal fortitude to react to the recession in a way that is not like everyone else.

It is never going to happen if your company — or your department — goes into the recession saying, "We have to tighten our proverbial belts; let's cut spending 22.73% across the board." People are going to be demoralized. And even worse, that is what most firms are doing, and you are never going to gain a competitive edge doing the same thing as everyone else.

If you are the chief executive officer, you can make this gutsy call on your own — assuming, of course, you get the board to go along. The rest of us probably need to take a two-pronged approach.

First, when the word comes down from on high that you need to belt-tighten, go through the usual drill. Explain you probably can fly everyone in for a meeting three times a year instead of four, and why you can get by with 12 people in the department as opposed to 13.

Increase advertising while others cut back
But then go to your boss, and say, "Instead of dealing with the need to cut like everyone else, why don't we use these hard times as an opportunity," and then outline how you plan to create an MTV, a Trader Joe's, or an iPod of your own, complete with an aggressive launch timeline to ensure it is firmly established in the marketplace when the recession ends.

As Harvard Business School professor John A. Quelch noted recently, "It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times."

Time to attack
You can also point out that what you are advocating will leave your company perfectly positioned once the recession ends. While your competition is withdrawing, you will be charging ahead, taking market share. Maybe neither argument will carry the day. But if it does nothing else, this kind of innovative thinking gives the boss another reason to keep you around, no small thing when the phrase "reducing headcount" is in the air.

Recessions by definition are temporary. Great companies and great executives don't abandon their growth strategies in light of temporary setbacks. They attack aggressively, while everyone else is pulling back.

G. Michael Maddock is founding partner, and Raphael Louis Vitón is president, of Maddock Douglas, a company that invents, brands, and markets products "for companies driven by innovation."

Copyright © 2008 The McGraw-Hill Companies Inc. All rights reserved.

Sunday, October 12, 2008

Bringing it Back

Intuitively, you know that something must be done to offset the steep decline in revenues as demand lessens for new or interim staff. You want to do something, but are confounded as to what to do - it seems insurmountable and that any one thing won't be enough to turn circumstances around. Thus far, staring at the computer screen hasn't worked. Talking about how bad is the economy hasn't either, although it makes for a good excuse and makes one feel nervously better.

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."

Monday, August 25, 2008

It is Not the Market, it is Your Competitors

With demand for staffing, executive search and services/solutions in decline, growth cannot be achieved by growing "on pace with the market." To retain market share and grow, even in a difficult economy, taking business from competitors is essential. To sell effectively against competitors, you may find the following article interesting and helpful.

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:
  • How many competitors do you have?
  • Do they compete directly or indirectly?
  • Who are your major competitors—those that threaten to take away your most important customers?
  • How much of your business do these competitors threaten?

    Quantifying the threat helps you to prioritize your own activities.
  • Where are your main competitors located?
  • How do they compare in size (to your company and to one another)?
  • Are they growing?
  • How do your products compare with your competitors’ offerings? Think about price, methods and quality of distribution, brand image and reputation, service quality etc.
  • What are customers’ attitudes toward your competitors and toward your own company?
  • Can you (or your customers) identify any weaknesses in your competitors?
  • Who are your competitors’ main customers?
  • Which of your customers might switch to your competitors, and why?
  • Which of your competitors’ customers do you want to win?
  • How strong are your competitors’ relationships with key customers or key decision makers?
  • How long have they been dealing with them?
  • Have your competitors invested in links with customers that would make it difficult for other suppliers to make inroads?
  • Does your company have the skills and resources to overcome the competitive threat?

    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:
  • Evidence of an excellent service culture, for example, problems quickly resolved by frontline staff rather than referring customers to higher-level managers
  • High levels of after-sales service and support offered
  • Product adapted readily to meet customer specifications
  • Evidence of commitment to quality measurements, for example, measurements from your industry
  • Commitments made to customers—for example, offering money-back guarantees or precise delivery schedules
  • Evidence of feedback encouraged—for example, comment forms or toll-free telephone number made widely available
  • Flexible approach to pricing, such as the use of price incentives or financing plans to appeal to different types of customers
  • Willingness to negotiate prices for important customers
  • Staff knowledgeable about the product and willing to use knowledge to help customers
  • Good reputation with agents, distributors, and other intermediaries
  • Overall good reputation with employees as well as customers

    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:
  • Heavy advertising expenditure could indicate a competitor trying to win greater share or attempting to remedy losses in that market
  • Price promotions may indicate that your competitors want to be perceived as value-for-money suppliers, or they may be an emergency response to declining sales
  • Press announcements about new production facilities could indicate that your competitors are trying to increase their business significantly
  • They may become more cost-effective and able to offer lower prices, or may be taking on additional overhead that they must finance
  • Announcements about new branch or dealership openings could mean that competitors are expanding into new territories
  • Recruitment drives may signal a change in direction, a growth strategy, or a sudden loss of staff
  • To gain a better idea of your competitors’ financial health, you may be able to obtain information from credit reference agencies

    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.
  • Monday, May 26, 2008

    Managing Middlescence

    Key ideas from the Harvard Business Review article by Robert Morison, Tamara Erickson, Ken Dychtwald

    Burned out. Bottlenecked. Bored. That’s the current lot of many midcareer employees—those 35 to 54 years of age. Thirty percent of these middlescents work 50+ hours per week, while only 33% feel energized by their jobs. And many lament that their workplace offers few opportunities to try new things.

    If your company’s like most, midcareer managers and employees make up half your workforce. Neglect their discontent, and you risk losing valued performers who seek exciting work elsewhere. This is a dangerous development—considering the brain drain that’ll soon hit when the vanguard of baby boomers retires. Disaffected middlescents who stay because they need the money take an even worse toll: Their lack of energy, innovation, and focus erodes your firm’s productivity.

    How to avoid these losses? Tap into your middlescents’ hunger for renewal by helping them launch into new, more productive, more meaningful roles and careers. Fresh assignments enable middlescents to acquire new skills. Job changes help them develop new specialties. And training expands their business knowledge and stokes their desire to learn more.

    You’re probably already using such simple and inexpensive career revitalization techniques on your stars. Extend them to all your midcareer employees: They’ll reward you with renewed commitment and productivity, as well as reduced replacement costs—immediately.

    The Idea in Practice
    Use these strategies to revitalize middlescents’ careers:

    Fresh Assignments
    Offer new assignments in different locations or parts of your organization to leverage middlescents’ existing skills and contacts while helping them acquire new ones. General Electric taps experienced managers to integrate new acquisitions—giving them a change of scene and bringing to bear their extensive organizational know-how.

    Career Changes
    Provide attractive internal career changes to help middlescents develop new specialties. Early in his 30+ years with Pitney Bowes, Dave Nassef served as a factory personnel manager and then marketer. When the company centralized HR, he was one of the few HR managers with manufacturing and marketing experience. At 40, he took on HR responsibility for half the company. Nassef’s additional careers within Pitney Bowes include corporate ombudsman and company representative in Washington.

    Mentoring
    Encourage middlescents to mentor less-seasoned employees. Your midcareer managers will relish giving back to their organization and making new social connections in the workplace. At Intel, a companywide employee database tracks skills attained and needed and matches employees with mentors—even if they’re in a different country. Both mentors and protégés take classes to learn ways to maximize the mutual benefit of their relationship.

    Fresh Training
    Don’t assume your middlescents don’t need training. Provide brief introductions to new business areas to expand their perspectives and trigger their interest in learning more. Use refresher courses and in-depth education to help them strengthen or develop their skills. The U.K.’s National Health Service is responding to a chronic nursing shortage by training seasoned aides to become nurses.

    Sabbaticals
    Provide paid sabbaticals: They cost less than replacing disaffected middlescents, and most people return from sabbaticals more committed than ever. At Wells Fargo, employees with five or more years of service and qualifying performance ratings can work in community service settings of their choosing for up to four months while receiving full pay and benefits. One employee traveled to Armenia to help women establish businesses. The company reaped good publicity, and the employee returned to work highly energized and recommitted.

    Leadership Development
    Just because midcareer workers are older doesn’t mean they don’t aspire to higher roles. Give them access to leadership development programs to rejuvenate them and stock your leadership pipeline. Health insurer Independence Blue Cross has put one-third of its top 600 people—most of them middlescents—through a leadership program. It includes a weeklong session at the Wharton School, individual coaching and career planning, and work on important business projects.

    Copyright 2006 Harvard Business School Publishing Corporation. All rights reserved.

    Friday, March 28, 2008

    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.

    Saturday, March 22, 2008

    How to Build and Motivate a Sales Team

    Hiring good sales people is only half the battle. Motivating sales people is the other half of the battle.

    To succeed in business, your company needs a quality sales team. Developing a capable and effective sales force might be one of your most difficult jobs.

    Here are five tips to help you get started:

    Hire Quality, Not Quantity
    The number of salespeople on your staff isn't nearly as important as their ability to set up and close a sale. A few skilled and proven sales reps will not only outsell a fleet of novices, but also form a solid core for future staff expansion. If geographic coverage is a concern, consider leveraging technology to help a smaller, more competent sales team cover a wider area.

    Communicate Expectations
    Many sales teams fail to meet their leader's expectations simply because they never knew what was expected of them in the first place. Don't make the same mistake! Your sales team should have a clear understanding about what you expect from them. They should also feel free to voice their concerns and seek assistance should problems or unexpected setbacks arise. Team meetings, group e-mails, and status reports are essential, but it never hurts to meet with team members individually, too, particularly if a team member is falling short of the goals you have established.

    Offer Sales Incentives
    It is common for sales reps to be compensated on commission. But commissions can't be the only incentives you offer your sales team. There are lots of other ways to motivate your sales team that are just as important. Remember: Your goal is to build a first-rate sales team. In addition to individual incentives like commissions, consider offering team-based motivators like group bonuses, event tickets, or special merchandise when the team reaches its goals.

    Sales Training
    It's easy to overlook training as a resource for building and motivating a sales team. However, training provides your sales team with the tools they need to reach their goals as well as much-needed confidence for the sales process. Consider scheduling regular training sessions with your entire staff, covering not only sales technique, but also team-building strategies and exercises.

    Motivate by Example
    One of the best ways to motivate your team is to lead by example. A positive, can-do attitude is contagious, but so is a negative one. Since your team will follow your lead, it's important to maintain an upbeat presence with your staff. If sales is your forte, you might even want to lead the charge by assigning yourself sales calls and mentoring new sales staff.

    Source: http://www.gaebler.com/How-to-Build-and-Motivate-a-Sales-Team.htm

    Monday, January 28, 2008

    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.

    Tuesday, January 22, 2008

    Should Sales Run the Company?

    This question keeps coming up, so I’m going to answer it. Let’s start with the basics:

    The only reason a for-profit business exists is to make profitable sales.

    Read that last sentence three times, because there’s an entire MBA’s worth of business wisdom in it. If you believe that statement is true, then the follow must also be true:

    In a for-profit business, every job has a single purpose — to help profitable sales take place.

    Therefore, the value of EVERY activity inside EVERY for-profit business can be assessed by two criteria:
    1. Does it generate qualified leads, resulting in more sales, thereby increasing revenue?
    2. Does it reduce the cost of sales or cost of goods, thereby making the average sale more profitable?

    Considering all of the above, the four major “non-sales” functions can therefore be defined as follows:

    Marketing — Every marketing activity should either attract new customers (generate qualified leads) or make it easier for sales to close business (reduce the cost of sales.) For example, a direct mail campaign is wasted money unless it attracts new customers, thereby potentially increasing revenue. Similarly, a “branding” exercise is stupid and pointless unless it creates credibility that makes it easier for sales to close business, thereby reducing the cost of sales.

    Development — Every activity that’s funded should be to design new products and services that existing and future customers want, thereby making it easier to attract new customers, thereby increasing the revenue stream. New ideas that results in products and services that can’t be sold or that nobody wants to buy is wasted effort.

    Operations — Every activity should be focused on delivering high quality products and services that attract new customers, while reducing costs. While those costs aren’t traditionally counted as a “cost of sales”, they are really the same thing, because both cost of sales and cost of goods are only meaningful concepts if a sale actually takes place.

    Management
    — Despite all the blah-blah-blah about “leadership,” in the end a CEO’s only important jobs are to 1) sell the company to the public as a spokesperson, and 2) make sure that every other department in the company serves the needs of the Sales group. And don’t try to tell me that the CEO has an important job representing the company to investors. What investors want are more revenue and more profit.

    Does this mean that the Sales group should be performing all these functions? The answer is no. Not because they couldn’t do it, but because it’s a waste of selling talent. People who can sell — really sell — have got no business pushing pencils in the back office.

    Instead, the Sales group should be telling these other groups what they must do, at least in a general sense, in order to ensure that profitable sales continue to happen. More importantly, all activity in all those groups must be measured and compensated based upon whether those profitable sales eventually take place.

    So let’s restate the question:
    Q: Should the Sales function drive the entire company?
    A: Absolutely.

    Excerpted from an article by By Geoffrey James

    Sunday, January 13, 2008

    Don't be Slow, be Strategic in Hiring Talent

    Why is it taking longer than ever to find, and land, revenue-generating professionals with the skills and talents to drive results? In a recent hiring survey, more than two-thirds of the respondents said they expect their companies to be bringing on new revenue-generating staff additions within the next 12 months, and 88% said their employers were experiencing a skills shortage.

    The demand is there, but where are the candidates? Only 9% of revenue-generating workers polled said that they’re actively looking for a job, and 63% reported feeling secure or very secure in their current position.

    Even when candidates are available, a lack of preparation by hiring managers or a disconnect between business drivers and internal processes can compromise company performance.

    For any industry which is currently facing talent shortages in revenue-generating positions, the pertinent question remains: does the time-to-hire make a difference to the quality of talent being inducted into an organization?

    Recruitment experts agree that the hiring time is critical for finding the right candidate. The reason is obvious. Often because of undue time lags between identification of candidates and making the selection, a good candidate may lose interest in that specific role and take up another opportunity.

    SPEED (or the lack thereof) is a strategic factor in the competition for talent. When talent acquisition is an organizational strength, you start by overwhelming candidates with responsiveness.

    Here are the spots in the recruiting process where the need to manage speed is critical:

    1. Solicit candidates only when you have the time to and interest in screening them. For prospects that fit your general position requirements, set the initial step within 48-hours of submission.

    2. Organize process steps to fast-track internal bottlenecks. Once the initial screen is completed and you decide to move the candidate to the next stage—momentum is on your side! Plot steps to the final interview and schedule these all at once, within 24-hours of the initial step.

    Example: if the initial step is a telephone screen, and the final step is an interview with the senior manager; but in-between there is an interview with 1) the hiring manager, 2) a peer, and 3) a next-level manager—book set times for all of the 3 “middle steps” in this example, within 2-days of each other. You can always cancel if the candidate proves to be less than anticipated, but you cannot regain lost time between steps tying to schedule “on the fly” as the process unfolds.

    3. Manage expectations as you move to the offer stage. Give timely and honest feedback to, or about, candidates following each step. Ideally, you want to do a blitz round of interviews and get to the final stage shortly thereafter. If there is any holdup in the process, you have to sell the candidate on the company and the fact that you still love them as the right fit for the job in question.

    4. Anticipate administrative and/or organizational requirements to get to the offer stage. Don’t wait until after the final interview to initiate administrivia like reference checks, pre-employment screenings, approval forms, offer letter/new hire paperwork turnaround, etc. At the same time you schedule the final interview, start the organizational wheels turning to ensure a minimal lag time before you can make a firm offer.

    Interested candidates are a perishable resource – start the process too soon or have a delay after a phone interview or a face-to-face meeting, and you have problems. Candidates start having confidence issues in you as an employer of choice, and even if you eventually hire them, the delays can cost you negotiation leverage as you go through the offer stage.

    Learn how to juggle the timing needs of the company and the candidate in the hiring process, and you'll get better talent than you deserve.

    Friday, December 14, 2007

    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

    Sunday, December 9, 2007

    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.

    Tuesday, November 20, 2007

    Motivation: The Gurus Speak!

    I’ve been talking about motivation lately, with some really positive results in my own life and hopefully elsewhere too. To round out the discussion, I thought I’d add some “quick hits” — short suggestions about motivation lifted from the conversations I’ve had with various motivation gurus, including Jeff Keller, Omar Periu, and Tony Robbins:

  • Always act with a purpose — your purpose.
  • Take responsibility for your own results.
  • Stretch yourself past your limits on a daily basis.
  • Don’t wait for perfection, just do it now!
  • Be careful of what you eat; it takes energy to succeed.
  • Hang around people who are as motivated as yourself.
  • Don’t live a life of quiet desperation. Take action! Now!
  • When you learn from failure, it’s not really failure.
  • Don’t get complacent because you’re successful today.
  • Always say “I must” rather than “I’ll try” when seeing goals.
  • Don’t avoid a decision; that’s always a decision to fail.
  • Keep quiet if you can’t say something positive.
  • Respond to “How are you?” with “Terrific!” not “Hangin’ in there.”
  • Don’t spout negative talk; it programs you for negative results.
  • Stop complaining about that over which you have no control.
  • Stop griping about your personal problems and illnesses.
  • Expunge negative, de-motivating words in your speech.
  • Focus on purpose and goals, not obstacles and problems.
  • Start each day with at least 15 minutes of positive input.
  • Reduce your exposure to depressing news media.

    By Geoffrey James
    BNET November 20th, 2007 @ 5:30 am
  • Saturday, November 10, 2007

    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
  • Monday, September 17, 2007

    Empowering Your Employees

    by BNET Editorial

    The word “empowerment” has received a lot of bad press in the business world. Too often, it has been used as a gesture to appease discontented employees and as a means of abdicating responsibility on the part of managers: if you can get employees to adopt a sense of ownership and power, your own load is less onerous!

    Empowerment, however, is a good thing. Research tells us that individuals experience increased initiative and motivation when they are empowered. This also affects their self-confidence and the level of tenacity they display when faced with setbacks. Empowered people take responsibility for making decisions and following them through to completion; they feel energized and excited by what they do; and are prepared to make a commitment to achieve mutually agreed goals. Genuinely empowered people often find themselves completely involved in their lives and work and have boundless energy for what they do.

    Being able to imagine what an empowered organization would feel like and the heights of success it could achieve, may give you some sense of the amount of disempowerment that exists in modern organizational structures.

    What You Need to Know
    I have tried to empower members of my team, but they still seem to be dependent on being told what to do. How can I get them to re-engage with their work?
    It sounds as if they are not motivated to contribute their brain- or brawn-power to your collective efforts. This means that you have to carry the load on your own and probably feel exhausted and somewhat demoralized. Try asking them what motivates and energizes them and see if you can entice them with something that interests and excites them.

    I work in a technically specialized area where mistakes are just not an option. I’d like to empower my direct reports, but when I emphasize the limited margin for error that exists, they just seem to give up trying. What can I do?
    You may be controlling your direct reports too much. Try giving them the resources they need to do their job and the discretion to use those in the way they feel is appropriate—within critical bounds of course. They may make a few mistakes but if they feel truly empowered, they will take responsibility for dealing with these.

    I have managed to empower my team but I feel usurped and out of control. I need to call them back but I don’t know how. What can I do?
    You may need to remind them that your role is to set the course and direction in the context of the organizational objectives. Praise them for their initiative; find some concrete examples of where this has made a real difference; encourage them to do more; AND ask that you be kept informed so that you can help to guide their activities. State the importance of needing to know what is happening in order to present their achievements to members of the senior executive team.

    I’m not sure how to go about empowering my direct reports. What is the best way to start?
    Have you ever thought of creating a coaching culture within your team? Effective delegation is a good way to lead up to empowerment. You could try using the GROW model as a framework for your coaching conversations: G-Goal (What is the SMART goal?) R-Reality (Where are you starting from?) O-Options (What ideas have you got to get you from R to G?) and W-Way (Which option will you select and what is your plan to get you there?)

    What to Do

    Take Responsibility
    In our current business environment, much is unknown, untried, or unexpected. In an ideas-based economy, we no longer experience predictable problems, nor can we anticipate what our competitors will do based on a mutual understanding of the market or a shared technology. Ambiguity presents itself over and over again to employees who are beginning to suspect it is the “norm,” and they probably feel ill-equipped to deal with it. This is why it is so important to allow people to take responsibility for managing their way through uncertainty. By using their ingenuity, curiosity, and spontaneity, employees can meet the business challenges head-on, instead of waiting to be told what to do, how to do it, and when to do it.

    Although threatening to some managers (because the gateway for good ideas is no longer governed by them) it is important to make use of every vestige of enterprise that exists in the business. To do this, managers must move from being a governor to being a channel; promoting the flow of energy and power so that people can add value and the business can benefit.

    Empower People

    ~Create the vision. If you want to empower people, you need to harness their enthusiasm and their creativity. This means painting a meaningful picture for them of what the future could look like and how they could contribute to it. Even if it seems beyond credibility or beyond reach, try to create a sense of “we’re in this together” and invite people to add their efforts to the collective goal. If they accept your invitation, you can strengthen their commitment by allowing them to use their discretion and talent in the way that they feel is most fitting.
    ~Motivate. You will need to understand the values, goals, and motivations of the people who are critical to your success. By understanding their passions and motivations, you can align their energy with what you feel needs to be done in the business. If you do not know what these are, ask them to share their aspirations in the context of the business and what and how they wish to contribute in order to achieve this personal vision.
    ~Root out the blockages. Organizations, unwittingly, often ask for one set of behaviors while systematically encouraging another. For instance, if an organization wants to achieve its goals through team work, it is no good putting in an incentive scheme that rewards individual achievement. If an organization wants to be known for its responsiveness to customers, it is no good creating rules that prevent members of the customer service team from using their initiative. Have a look at the processes that exist in your business and see if there are any contradictory messages that are being sent out through the existing systems and processes.
    ~Ensure the resources are in place. If you are going to empower people, you need to make sure they are properly resourced and supported. Ask yourself what resources are needed in terms of information, knowledge and skills. You may think that members of your team or organization have sufficient internal capability to make the transition to empowerment, but perhaps they could do with some concrete encouragement to release this.
    ~Provide encouragement and support. Think about how you can support empowered behavior. Try to identify the existing channels of communication that allow the necessary information to be shared. Are these channels clear and free flowing or are they blocked by organizational politics or etiquette? You may need to be proactive in asking your team what provisions they would like you to make to ensure the change to empowered behavior is possible. You may also need to act as a sounding board so that concerns, frustrations, and disappointments can be fielded positively rather than leak into the social culture of the organization as negative stories.
    ~Eliminate fear. Most people find behavioral change threatening. They are being asked to do something that they have never done before and they are likely to feel exposed and vulnerable. They may be asking themselves what will happen if they “get it wrong.” When things fail to go according to plan, you will need to manage your response consciously. It is important not to deny the existence of problems, but do debrief them appropriately and create a sense of positive learning rather than of criticism.
    ~Monitor and celebrate success. When things go well and you see good examples of empowered behavior, make sure it is rewarded and celebrated. This sends a message of seriousness and encourages more of the same. Try circulating some successful stories so that they join the ongoing legend of the business. Theater and drama, effectively done, can emphasize a point well, so there is room for some imaginative celebrations and rewards.

    Think about the Bigger Picture
    Empowering people does not necessarily stop at the office door. Some companies empower their customers. Think of the “self-service” revolution, the helplines, and the choices that can be made on the Internet. Think of the products that have brought about the mobile technology revolution and have enabled less naturally resourced or privileged countries to compete in the world economy. Of course, some people think it has gone a step too far and that organizations are abdicating their responsibilities to customers, but if you identify with those on your market interface, you will soon root out the contradictions in your interactions.

    What to Avoid

    You Fear You Will Lose Control
    Some managers fear losing control by empowering their teams and, therefore, keep them on a tight leash with very little discretion to make decisions when they meet new challenges. If this describes you, be careful that you are not creating a “job’s worth” environment in which team members rescind responsibility and say “It’s more than my job’s worth to use my initiative and break the rules.” Meet with your team to see if you can root out these susceptibilities by asking them to share the challenges they have encountered and the way they would have preferred to have dealt with them.

    You Do Not Know When to Let Go
    Knowing when to get involved and when to let go is a difficult call. Sometimes it is necessary to let people learn from their mistakes, even if you think you could have prevented them from happening. Perhaps you could intervene only in “business-critical” situations and be there to debrief and distill the learning when the time comes. Hersey and Blanchard’s situational leadership model may help you to determine what level of support and direction is needed at any time.

    You Fail to Understand the Nature of Empowerment
    Mistaking “empowerment” as a goal for the business or as a tool to manage behaviors is not helpful. The business goal remains the same. The tools and techniques required to reach it probably remain largely the same. “Empowerment” is a management philosophy that must imbue the organizational culture if it is to be successful. Make sure it is present from the employment contracts to the level of autonomy you give to each individual.

    You See Empowerment As a Substitute for Engagement
    Seeing empowerment as “an easy way out” is not what it is about. Empowerment still requires interest and involvement. Although empowerment gives people a sense of ownership and autonomy, it is not a substitute for engagement from the managerial level; rather it acts as a conduit for purposeful and fruitful conversations and actions.

    Monday, July 16, 2007

    Do You Really Have a Recruiting Strategy?

    Most leaders in the Staffing Industry in search of management talent for their organizations:

    • Can't even define the term "strategy" as it relates to their needs
    • Don't know the available strategies in recruiting
    • Don't have a name for their own recruiting strategy
    • Don't know the steps involved in preparing a recruiting strategy
    • Have never written down their strategy so that others can follow it
    • Have never compared their strategy in recruiting to their competitors' recruiting strategies in order to ensure that theirs is superior
    • Measure the effectiveness of their recruiting strategy

    What Exactly Is a Strategy?
    The basic premise of having a clearly defined strategy is that by focusing your efforts and looking at the big picture, recruiting activities will produce results aligned with needs and have a significantly larger economic impact on the business.

    Having a clearly defined strategy sets up an architecture to focus your efforts and planning beyond basic tactical recruiting and towards establishing a competitive advantage in recruiting. A strategy focuses the actions of a recruiting professional, or group, telling everyone what to concentrate on and what is unimportant.

    From a practical standpoint, being strategic includes these elements:

    Establishing a competitive advantage. The primary goal of a strategy is to drive actions that gain your office a sustainable competitive advantage in your industry. It demands an ongoing competitive analysis of major "talent competitors" and adjusting of strategy to keep competitors from mirroring or gaining an advantage over current recruiting efforts.
    Demonstrating economic impact. Strategic impact is measured in profit, return on investment (ROI), increased revenue, higher market share and increased margins. They rely on extensive information gathering and forecasting of the business environment.
    Continually evolving. Being strategic means continually evolving and reacting to any change in the environment. It requires you be proactive and aggressive. If requires that you seek out problems and opportunities.
    Data driven. Strategic functions rely heavily on the analysis of data and the measurement of outcomes.
    A way of thinking. Being strategic is as much a way of thinking as it is a way of managing.

    What Are the Available Recruiting Strategies?
    Depending upon your resources, marketplace, lines of business, and company objectives the right recruiting strategy for your organization is unique. In fact, strategies cannot be “generalized” from company to company. Recruiting strategies are complex and individual to the organization. A solid strategy, does, however, contain up to 12 distinct elements. In order to develop a complete recruiting strategy, select one or more items from each of the twelve elements. These elements include:

    • The primary goals of recruiting
    • The prioritization of jobs
    • The performance level to target
    • The experience level to target
    • The employment status of the candidate to target
    • When to search
    • Where to search
    • Who does the recruiting
    • Primary sourcing tools
    • What skills to assess
    • How to assess skills
    • Primary selling points to offer

    Comprehensive recruiting strategies cannot be accurately covered in with a single word or even a simple phrase. Before you can put a name on your strategy, you first need to make a variety of decisions within each of the 12 different strategy elements.

    The net result is a strategy that might, for example, sound something like this:

    An external, hire-to-learn strategy targeting top performers: Our strategy is a skill-building, "hire to learn" strategy focusing on hiring experienced top performers (who are currently employed by competitors) into pre-identified key jobs. Our strategy employs a pre-need, external "within the industry" search that primarily utilizes sourcing and recruiting specialists. A branding strategy and employee referral program are utilized to attract candidates. Candidates are selected primarily through interviews that screen candidates for pre-identified corporate competencies. The primary "candidates selling" approach is a great culture and proven learning and growth opportunities.

    With a strategy in hand, you can not only focus your internal resources to the task of attracting top talent, you can bring into line outside resources to your company’s distinctive strategy to ensure consistent messaging in the candidate marketplace regardless of the spokesperson.