A “Recruiter” By Any Other Name… (Understanding the difference in recruiting philosophies will help you know what you’re paying for)

Hiring is on the upswing again, and many small and mid-sized businesses are evaluating their hiring needs. This means plenty of recruiters are circling, asking for your business and pledging to help you find “the one.”

Here is my advice to help you understand what kind of recruiter you’re signing on with and what this means for your business. 

In my business travels, I am frequently asked to explain what it means to be a retained search recruiter (which is how I work) as opposed to a contingent search recruiter.

As a retained search recruiter, I am hired by companies as a business partner and consultant. My compensation is earned in three parts: at the start of a new search, at the midpoint of a search and once a candidate has been successfully placed.  I intentionally take on only a few searches at a time, focusing on quality over quantity and drawing upon my extensive network to find the right candidate for the position. My client is assured that I will personally meet with each candidate (on local searches) and there will be a successful conclusion to the search with a great hire,

By comparison, contingent search recruiters are paid only when a candidate is placed. Because some hiring managers give the same search to a few contingent search recruiters, they are often in hot competition to make a placement; as a result, they may tend to focus on quantity over quality and speed is of the essence.

There is no right or wrong method for recruiting—and both methodologies have their place. But I do think it’s essential that you know what you’re getting when choosing a recruiter to conduct a search for your company.

I speak from experience. Early in my career, I worked for many years as a contingent recruiter for a well-respected local staffing agency. In this environment, I was one of many recruiters filling positions to meet monthly and annual quotas. For meeting our sales goals, we were rewarded with vacations, jewelry, cash bonuses—even mink coats!

Meeting sales quotas and earning “spiffs” are standard operating procedures in a commission-based environment. But….do they really incent the right behavior that is in the best interest of the customer? It’s not hard to imagine that some recruiters may be more concerned with meeting quota to earn spiffs (or keep their job, ) rather than actually concentrating and focusing on what you had to say about your company, your hiring needs and the ideal candidate you want them to recruit for you.

Unfortunately, this business model, left unchecked, can lend itself to what I call “the ugly side of recruiting.” I witnessed—and continue hearing about  today in similar recruiting firms—how the SALES QUOTA SYSTEM may lead to unethical and questionable business practices. Candidates and hiring managers regularly complain about the high pressure from some recruiters to hire a candidate that isn’t right for the job, or to take a job that isn’t the right career move. That type of behavior can give our industry a bad name. I often wonder: Do you really want to get your business caught up in all of that?

When I hung out my own search firm shingle in 2002, I was relieved to get out from under the sales quota thumb and shift my business model from contingent to retained search. I do not have quotas, and, in fact, I intentionally only take on a few searches at a time because I know that’s in my clients’ best interests.

Gone are the days of being pressured by my sales manager at the end of the month to make the placement, regardless of whether it was in the best interest of the candidate and/or client. I don’t believe that a calendar or a recruiter’s job security should dictate the timing of a placement.

The only right time to make a hire is when all the pieces come together—and not because it’s the end of the month or quarter. Pressuring recruiters to make a placement happen prematurely  to make a quota  is a business practice that many clients are unaware of. If you are feeling pressure….look at the calendar and ask your recruiter: “Why the rush?”

I’m all for a sales person meeting quota….but not if it adversely affects the life of a human being or the dynamics of a company.

Whether you are a hiring company or a job seeker being wooed for a new opportunity, understand what’s motivating your recruiter. Is your recruiter a partner with you, motivated by finding that “perfect match” for all parties?

Or, is your recruiter instead motivated by quantity over quality, more interested in earning that trip to Hawaii than in finding you that ideal candidate?

My Advice to Companies

When you are  considering hiring a recruiter to help you fill important positions, you will probably ask them standard questions about their experience, successes, recruitment processes, etc., as part of your vetting process.  But have you thought about asking about quotas? These tips will help you know just what you’re getting.

Carefully scrutinize staffing and recruiting firms, especially those who have sales quotas.
At month-end, recruiters are scrambling to meet or exceed their quota to earn their bonus or other incentives (vacations, jewelry, you name it)-and sometimes even to keep their job. This means some (not all) recruiters may be chiefly motivated to close the deal, even if it means sending unqualified candidates your way. The best advice is to ask around-the best recruiters in the area have a solid reputation and a success track record to match.

If you’ve already hired a staffing firm, be wary if the recruiter exhibits these behaviors:

• Pushing you to make a hiring decision before you’re ready.
• Skimming over the details, which may indicate you’re not getting the full story about a candidate. (This is called “gilding the lily” in some insider recruiter circles.)
• Falsely tells you that the candidate has another offer pending.
• Threatening to take away a top candidate if you don’t make an offer right now.

When interviewing recruiters, ask these core questions: 

–          Tell me about your business model.

–          Do you have a personal sales quota at your company?

–          How often do you make your quota?

–          What happens if you don’t meet the quota?

–          Tell me about a time when you tried to make a placement work just to make your quota, even though you knew that it wasn’t in the best interest of your client and/or candidate.  (Then look how uncomfortable the recruiter is when being asked and while answering this question.)

My Advice to Job Seekers

If you’re a job seeker working with a recruiter, be sure this person is working with your best interests in mind. You don’t want to start a new position only to discover that it’s a terrible match.

Fortunately, there are a few warning signs. Be wary if the recruiter:

• Pushes you toward a job opportunity that doesn’t feel like the right fit.
• Warns you that “you’ll never find anything else” if you don’t take this job.
• Knowingly misrepresents any aspects of the job, including salary, culture, why the job is open,  and other important details.
• Pushes you to make a decision  within an unreasonable time frame after receiving an employment offer.

By being mindful of the various types of recruiters out there, you’ll be positioned to avoid making costly mistakes in that next hiring decision. As the old saying goes, an ounce of prevention is worth a pound of cure.

When a Recruiter Calls, Will You Be Ready? (Hint: You should be! We recruiters are busy now, and your phone could ring!)

Hockenberg Search offers strategic tips to prepare so you can respond to recruiters quickly—and with confidence.

It’s 1:20 p.m. on a Tuesday afternoon, and you’re sitting at your desk putting the finishing touches on that marketing report. The phone rings, but it’s not a number you recognize. “Hmmm,” you think, “it could be the new customer that is having issues with delivery – better pick it up…”

“Hello, this is Bob.”

“Hi, Bob, this is Mary, and I’m a recruiter with XYZ Search company. Please excuse me for calling you out of the blue. I’m currently working on a search that might be a great career opportunity for you, and we can find out in a short phone call. Would you be open to learning about another position if it were clearly superior to what you have now?”

You stumble and fumble around. It’s been a tough year at the company and there are murmurs of “changes” that don’t sound good. Should you take the call now? Ask to call her back? Hang up? What is a “passive” candidate to do?

These types of phone calls are occurring more and more frequently as the job market picks up steam and companies are once again competing for top talent. Companies are investing in recruiters to bring them the best people to move their business forward. Now that we are growing in some sectors, companies realize that they need the right talent to make it happen.

You might be that “top talent”…but you’ve never worked with a recruiter. Perhaps you’ve even worked for only one or two companies during your entire career and are satisfied in your current job. Of course, these phone calls don’t come around every day, and if you have been in job search in the last three years you would have paid good money to get one of those recruiter calls.

As I’ve been known to say: “When opportunity knocks, open the door!”

Before the Recruiter Calls:
One day a recruiter might call you-perhaps when you are least expecting it. And, he or she may want to speak with you about a position that could very well be your “dream job.” If you are not prepared for this moment, the opportunity could easily slip right through your fingers. It pays to prepare yourself to you are ready to respond quickly, professionally and decisively.

Here are a few things to consider today, so that you are ready when the phone rings. (It’s also wise to review these things as part of your regular and ongoing career planning efforts, anyway.)

What do you want in your next career move?
Do you aspire to the next level of leadership? Are you seeking a specific title or portfolio of responsibility? Spend time considering “what’s next” on your career map.

Evaluate your current employment situation.
Do you want to leave (and if so, why)? Do you like it enough to stay (and, if so, under what circumstances and for how long)?

Make sure your LinkedIn profile and your resume are updated.
Even if you are not actively seeking a new job, you should develop a regular discipline to ensure that your professional profiles are up to date and in a state of “constant readiness.” By last count, nearly 60% of all recruiters use LinkedIn as a first stop for searching for and screening potential job candidates. Subsequently, when a recruiter does call, you simply won’t have the luxury of delaying by days, or even weeks, to get your resume up to date.

What are your compensation requirements?
What was your compensation last year, and if you are up for a bonus this year, how much will it be and when will you receive it?

In addition, if the job opportunity presented to you is a good move, are you willing to decrease your compensation in exchange for advancing your career with a new title, increased responsibilities, or experience in a new field or industry—and, therefore, eventually making more money? No one likes to leave money on the table, but sometimes there is more potential to an opportunity than strictly a sum of money.

When the Recruiter Calls:

Suggest a good time to talk.
Recruiters will almost always contact you while you are at work, but we understand that you may not be in a position to speak candidly at that time. A respectful recruiter should be flexible and arrange for a phone “meeting time” to fully discuss the opportunity. Beware of recruiters that make a high-pressure, now-or-never sales pitch, especially if it puts you in a difficult or compromising position.

Ask the recruiter about his/her relationship with the hiring company—and whether the recruiter is working on a retained or a contingent basis.
The answer will help you understand the nature of the relationship that the recruiter has with the hiring company and will likely have with you.

Understand that retained recruiters are essentially an extension of the hiring company and are exclusively representing the career opportunity to the candidate community. As a result, a retained recruiter will likely have a close relationship with the company that will provide you with more insight and information so you can make an informed decision. If a recruiter has worked with the company before or has visited with the key decision makers at the company, they can help you assess whether or not this position will be a fit. As a recruited candidate who is evaluating a potential career move, you need to have solid and truthful information in which to avoid making a career mistake. 

By contrast, contingent-fee recruiters will be paid by the hiring company only if they are the first to deliver a candidate resume who is eventually hired. There may be multiple, unrelated recruiters working on the search, each playing a game of “race the clock” to be first to send in a resume, and it’s likely that the recruiter may have never set foot in the door to meet the key employees and truly understand the culture and what the company needs to hire. The companies’ internal recruiters may also be working on the search. Make sure that all parties involved understand and respect the confidential nature of your candidacy if you are currently employed.

Ask the recruiter where his role ends.
A good recruiter will stay in touch with you through the interview process and will offer tips and suggestions to prepare you. He also will stay in touch with you even after you are hired, to ensure a smooth and effective transition.

If you are a company looking to partner with a retained-search recruiter to fill those important positions, learn more by visiting the “Resources for Companies” section of my Web site.

And, if you are a “top talent” employee anticipating a call from a recruiter, learn more about the recruiting process and  how to prepare for the interview by visiting the “Understanding the Recruiting Process” and “Resources for Candidates” section of my Web site.

Third-Party Recruiting: Expense or Investment?

Don’t be Penny Wise and Pound Foolish in Your Recruiting Efforts

An interesting trend is emerging in the Twin Cities employment market right now. With the economy improving and with companies consequently loosening their purse strings,  a number of businesses are now choosing to staff up their internal recruiting teams.

On first blush, this sounds like a great thing. After all, companies are hiring again. Recruiting is happening. The employment market is moving forward. Companies think that building a robust internal recruiting team will save thousands of dollars in third-party search fees.

But, wait just a minute. Just because internal recruiting is ramping up and finding candidates doesn’t mean these searches are netting the right candidates. 

South Carolina-based recruiter Frank Risalvato talks about this very phenomenon in his recently released recruiting handbook, A Manager’s Guide to Maximizing Search Firm Success. Many companies make a huge mistake, he says, by viewing third-party recruiting as an expense rather than an investment. As a result, this leads companies to take shortcuts, to seek out the least expensive methods of recruiting. Unfortunately, these shortcuts can also lead companies to come up empty-handed.

I’ve experienced this phenomenon in my own practice—probably more times than I can count. Recently, for example, I was contacted by a mid-sized company to help with a senior-level search that had gone on for months and months. The company, hoping to save a few dollars, had gone about the recruiting and hiring process using internal resources and job postings. After significant time and energy, they found an active candidate and offered her the job—only to learn that she had accepted an offer from another company. The upshot? After all that time, energy, expense and effort, the “big fish got away.” By the time the hiring company contacted me, they were exhausted and weary. They were under extraordinary pressure to fill such a critical role, and they had come up empty-handed. If the internal recruiter had spent more time developing a relationship with the candidate and keeping in close contact during the lengthy interview process, they might have known about the competing job offer before she was off the market. But…that takes time, and internal recruiters are busy with tens and even hundreds of job requisitions. Fortunately, I was plugged into that market and recruited a top-notch working candidate in a month. If they had contacted me from the beginning, they probably would have saved more money than they paid in a search fee. Not to mention the aggravation and lost productivity. Again, expense or investment?

Rather than think of recruiting as an expense, think of it as an investment, argues Risalvato. You get what you pay for. When you invest in working with an executive recruiter on a retained search, your investment will buy you a lot of value, including:

A network of candidates larger than the eye can see.
Networking is what retained search recruiters do. Unlike internal recruiters who typically are desk-bound all day, we spend our professional lives “out there,” meeting people, discerning their skills and interests, and making connections. (One of the reasons my logo depicts “running Marni” is because much of my time is spent meeting, meeting, meeting people—in their offices, at coffee shops, at networking events, through social networking, at parties and social functions.) I’m a ‘talent scout’ for my client companies!

Serving as your “soldiers” in the war to attract top talent.
There is a huge misperception among businesses that there are “lots of good people out there.” While it’s true that it’s still somewhat an employer’s market for unskilled and entry-level positions, it’s also true that top-performing talent is hard to find. These are the people who are consistently snapped up immediately. They most likely not out there actively seeking employment right now. An experienced executive recruiter can help you find those high-caliber executives who are currently employed elsewhere, are not actively looking and may not even be as much as a “blip” on your radar screen.

Selling your company to the right candidate.
Remember the story about the company that lost their top candidate when she accepted another offer? Working with an executive recruiter can help you avoid this embarrassing and frustrating situation. That’s because we are the ambassadors and salespeople for your company. We “sell” candidates on the benefits of joining your company. We stick with them through the entire interview process until the hire has been made and even during the weeks leading up to the candidate’s first day on the job. We help them get—and stay—excited about working for your company, and we stay in touch during the first few months to make sure things are going well.  

Contact Hockenberg Search today if you are frustrated with finding the right hire! I can show you the value you’ll receive when you invest in your recruiting efforts through the benefit of a retained search.