Know Why Recruiters Are Worth What They Charge !!

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“When I need a heart by-pass, rest assured that I won’t select my surgeon on the basis of what he charges.”

That’s what an ailing executive recently opined when he was informed by his doctor about his arterial blockage problems.

Why then are corporate executives 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 parsimony. This K-mart mentality belies and contradicts their stated objectives to “hire the best,” especially at pecking order levels below the “big picture” executive suite inhabitants.

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 resourcers, no matter how effective, view the marketplace through an imperfect or misrepresentative prism and tunnel vision is their 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, job boards 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 or Internet postings run 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, reference checking, clerical costs to correspond with the hundreds of unqualified respondents, etc.

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.

This process is not, as some believe, simply romping through the file cabinets, harvesting from the Monster lookalikes or putting the job opening out to others on the recruiter’s network with crossed fingers that someone good will show up.

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 Master negotiator Herb Cohen had says that, “negotiation is the analysis of information, time and power to affect behavior . . . the meeting of needs (yours and others’) to make things happen the way you want them to.” 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.

Prioritizing company resources - It is often amazing to see how much of a company’s revenues are squandered on non-productive perks for existing high-level employees while they penny-pinch on what is every company’s lifeblood . . . talent acquisition.

Club memberships and the like may be fine, but no one with an IQ higher than Forrest Gump’s believes that these expenditures substantially contribute to a company’s profit margin. But one well-placed employee can be the cause of a company’s profits skyrocketing. And the fee for having hired these people pales to insignificance when compared to the contributions they make to the bottom line.

The next time you think a recruiter’s fees are too high, put them in the proper perspective before asking for that Blue Light special or spinning your wheels thrashing about trying to fill vital openings with less effective (but not necessarily less expensive) pedestrian methods. Savvy executives learned long ago that the fee paid to a recruiter is a shrewd strategic investment, not an extraneous expense. They also know that the “best” is far different from the “best available.”

Once you have a handle on these ?closes’ you’ll have a much better chance of turning a prospect into a paying client.

Courtesy: Fordyce Letter

I find this wonderful article (by Paul Hawkinson) and thought to share it with u all.
Thanks!!!

Headhunting - Learning the Game.

Headhunting - Learning the Game

Headhunters are often thought to be the kind of people who can go out and acquire excellent job candidates for their clients, just at the drop of a hat. We all know it’s not that easy but it is the common perception of people outside the human resource field.

Behind these apparently effortless hiring results are literally years of developing and maintaining relationships with successful professionals. A determination to succeed is a pre-requisite for ongoing recruiting success and true headhunters do not work in the business for a few years and move on.

Most HR people will never work in the headhunting field but there is advantage to be found in looking at the basic skills and techniques that headhunters use, and how internal HR can take advantage of them and apply them in their own work.

    

It’s All Relationships

The key issue with true headhunters, as opposed to those who just put the title on the bottom right of their business card, is that their relationships with prospective candidates are long-term. Headhunters don’t mine databases for skills, and they have to keep momentum in their candidate relationship over long periods of time. This has to be done without going into any deep relationships until a suitable position has come up.

For this reason true headhunters are likely to be in a relationship with many potential candidates, even when they have no position to offer. This is the part that many recruiters never master.

The reasons for this are quite varied. Internal recruiters are often targeting a job as Human Resources Manager and don’t stay long enough in recruiting to develop any real depth in their relationships. The are often introverts and prefer deep relationships with a small number of people, to what they would she as the shallowness of multiple ‘friends’.

Turnover of recruiters is also high and a network of telecommunications people is quickly lost when the recruiter moves into industrial parts. In a War for Talent market like in our country there is a strong requirement to put ‘bums on seats’ and this precludes a long-term relationship approach.

To my mind only a few people and a few companies in the world have actually achieved a sufficient number of candidate relationships that qualifies them to call themselves Headhunters. They know who they are. Funnily enough, most of them prefer the word Search Consultants, as the expression Headhunter can have negative connotations.

  

   

Give To Receive

A cynical view of all this would lead us to believe that headhunters maintain false, shallow relationships that are based on purely selfish motivations. 

But reciprocation is one of the tools that I believe is essential to their success. Giving something away is good business because in most cases you can rely on the other person to give back when you need them to. People don’t like to have too much debit on the relationship balance sheet. It’s makes them feel uncomfortable, and that feeling can only be alleviated when the favour is returned.

I’m not a big fan of the ‘Guanxi’ network where you calculate the value of what you are owed, and expect it to be given it’s equivalent in return. These are shallow relationships that just happens to take a long time to work themselves out. True giving is done without the expectation of anything in return.

A good example is social networking, where the ethos is that members are required to give before they receive. Headhunters often have large connections bases on social networking sites and they are an obvious person to choose if you want to connect with someone else. Their inbox will be filled with requests to connect two individuals together.

Their natual tendency might be to refuse these connection requests, but if they think long-term they will oblige, even if it means the loss of a potential search fee. In the long run the obligations they build will be returned in the form of a basic trust, and this trust will eventually result in business relationships that will last a long time. Admittedly, it’s a long chain of causal connections but results will accrue to those who commit to their career, and who tough it out in the beginning.

This is a much different world from that of the internal company recruiter who used to spends his day as a PC-jockey, searching for skills in a Job Portal's search box.

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What is your People Strategy?

A strong team is often the result of a recruitment strategy that goes well beyond HR.

A people strategy is a well-thought-out plan of attack that will help your firm attract, hire, develop, retain and grow your workforce. It consists of five areas: culture marketing; recruitment and selection; orientation and training; communication and feedback; and compensation and benefits. This article is designed to provide a brief overview of each element within a people strategy.

Culture Marketing: Attract the best people
In order to attract the type of people that you need to grow your organization and add value to your open positions, you need to identify the attributes that make your organization unique. Following are a few questions you need to consider.

- Who are your best performers and why do they like working at your firm?
- What attracts candidates to your firm?
- What words would you use to describe your firm? (i.e. entrepreneurial, energetic, professional, team-oriented)

Organizations typically have marketing strategies designed to create demand in the market through creative messages about the unique attributes of their products. However, with the changing and competitive job market beginning to heat up, organizations need to consider developing marketing campaigns to attract talent. Culture Marketing is the process of identifying the distinguishing characteristics that make an organization a great place to work and packaging these in an intriguing and appealing message.

Recruiting and Selection : Find the people
The key to a successful recruitment process is the ability to understand the skills, talents and personality traits needed for your firm. For each hour you spend developing and defining the role and responsibilities of an open position, you reduce your length of time to fill the position by eight days! A well-written and accurate position description can dramatically increase recruitment success as well as improve performance reviews, career development planning and even succession planning.

How creative are you with sourcing candidates? What type of tools do you use to attract candidates? Your goal should be to cultivate an organization of recruiters. Everyone in your organization should have a vested interest in hiring the best and brightest. Many of today's successful firms leverage multiple recruitment tools such as employee referral programs, agency partnerships, college scholarships, electronic job boards and even open houses.

How skilled are your interviewers? Now that you have creatively attracted the best candidates, you cannot afford to lose them. The interviewing step should focus on identifying the skills, knowledge, education, experience and personality of each candidate. Your interviewers should understand the company's culture as well as the specific roles and responsibilities of the position. They should also use this opportunity to sell the unique attributes of your firm. Be sure they make a positive impression on each candidate, even if the applicant is not a fit for the position. Finally, select the candidate that is best suited for the role and focus your efforts on bringing him/her into your organization. An effective recruitment process should measure the quality of new hires, days to fill, cost per hire, and strategic impact to the organization.

Much has been written about the recruitment process over the years. However, the evolving job market forces firms to rethink how they attract, find, and hire talent. My objective is to challenge the status quo and develop and implement recruitment practices that will help you find your next strategic hire.

Orientation and Training: Develop your people
What type of orientation program does your company offer? Did you know that the turnover of employees who have been with the firm one to two years could have been avoided through an effective orientation program? Based on my research, I found that new hires leave after one to two years because they never felt they were a part of the organization.

An effective orientation program will help cultivate employee loyalty as well as increase individual productivity by providing the new employee with the specific tools to help them succeed. An effective people strategy also addresses personal and professional growth. How do you plan to grow your staff and provide opportunity? Your strategy should include a career development process, leadership development tools, as well as succession planning. This section will delve into cost-effective ways to develop your staff and dramatically increase employee commitment while at the same time reduce employee turnover.

Communication and Feedback : Listen to your people
I am not referring to the suggestion box in the break room. Your people strategy should encourage knowledge and information sharing throughout your organization. In addition, communication and feedback programs should solicit ideas and thoughts from your staff that could grow the business and improve productivity as well as provide your staff with an opportunity to make a difference. You pride yourself in hiring the best people; now leverage their skills, talents and abilities beyond their title or position. I will explore effective feedback programs that could replace traditional performance reviews and provide tools that you can use to actively engage your workforce while positively affecting your firm's profitability.

Compensation and Benefits : Reward your people
Compensation administration is often viewed as a necessary evil that all of us have to deal with. However, if approached from a holistic perspective, a compensation and benefit program can attract and retain your best performers. Your people strategy should approach compensation and benefit administration from an employee's point of view. Your staff is interested in receiving a fair market wage and benefits with an opportunity for financial rewards.

As part of your compensation analysis, you should consider base salary or wage, as well as variable compensation such as company bonuses and individual performance. Your analysis should be based on market research, employee performance levels, value to the firm, and individual productivity.

Your benefits should be tailored to your staff's needs and based on market research and employee feedback. Many firms overlook this area of their people strategy and miss an opportunity to add value to an employee's overall life, while also positively influencing the firm's bottom line. With the rising costs of health care, creative benefit programs are beginning to become mainstream and provide the employee with individualized coverage while saving the organization time and money.

As your firm strives to become an employer of choice, you will need to address all areas outlined in this article. By developing a detailed strategy, you will be able to help your firm dramatically improve the way it attracts hires, develops and retains people.

Honing Talent

Retail wants employees with the right soft skills

Sanjay Jog, HR head, Pantaloon Retail
“ Recruitment is no problem. The problem is the necessary attitude.”


The cash registers are ringing, but it’s har-dly music to the man behind the counter. The annual entry-level median salary in the sector ranges from Rs 1.5 lakh in the South to Rs 3.11 lakh in the North. If we count out the salaries in the North, the entry-level median salary in the sector is the lowests among all the 12 sectors in the survey. The wide variance between the South and the North can be attributed to the higher number of lifestyle stores in the North where front-end employees need more spit and polish, and, hence, are paid higher.

As in manufacturing, 80 per cent of the employees in retail work on the front-end and get paid low salaries. The sector is considered the last refuge of the unemployed, since a high educational qualification is not a necessary precondition; in fact, most of the employees currently in retail are not graduates.

Recruitment is not a problem for the sector; most of the brands in the sector are well known, so walk-in interviews are the norm. “Recruitment is no problem,” says Sanjay Jog, chief people officer at Pantaloon Retail. “We get enough people. The problem is the attitude which is a necessary thing in a service industry like ours.” Employees require rigorous training, particularly in soft skills, given their poor education and low socio-economic background. This creates some unique problems for the companies. “Most of the employees in the sector come from a lower socio-economic background, and their encounter with consumption economy creates a problem of self-esteem,” says the human resources (HR) head of a large retail group.



Since most companies in the sector are doubling their employee strength every year, training becomes a key HR operation in a company. As retail is a new industry, it is investing a fair amount to provide diplomas and degrees in retail management to its management staff.

For retail, expansion is an opportunity as well as a challenge. Currently, a substantial part of the revenues of the retail chains is coming from the top 10 cities, but they are slowly and steadily moving towards tier II and tier III towns. Here they will face a new challenge of training their employees. Companies also have to recruit employees from the local community, as they want their employees to reflect the language skills of the community being served by the stores.

The sector is generous with its benefits but it does not provide stock options across all levels, nor does it provide leave travel allowance or house rent across the industry.