how to work with a recruiting search firm january 14th 2010 for launch summit

LaunchSummit – Conversations on Career Potential

How to Work with a Recruiting/Search Firm

January 14, 2010

Presented by Toby Nathan,Principal at RecruitaStar, LLC, [email protected]

RecruitaStar, LLC, 200 S. Wacker Drive, Suite 3100, Chicago, IL 60606


Co-founder and Principal of RecruitaStar, LLC (www.recruitastar.com), a Chicago based business partner and a recruitment support provider that takes on a company’s upfront part of the hiring process.

Fourteen (14) years retained executive search experience.

Fourteen (14) years experience in the health care industry where I served as a senior human resources manager with a special emphasis on recruitment, compensation and benefits.

I have extensive experience consulting and partnering with organizations and hiring executives to assist them with their recruitment needs using best practices and proven sourcing techniques.

Assisted thousands of people with their career search, developed/enhanced resumes and helped define their personal brand, taught interviewing best practices, and helped develop a customized job search strategy.

Worked with individuals from a variety of industries and functional areas, including, but not limited to human resources, accounting & finance, operations, sales and marketing, technology and management consulting.

BS in Psychology and Business Administration from the University of Illinois at Champaign-Urbana; MS in Industrial Relations from Loyola University. AIRS Certified Internet and Social Sourcing Recruiter.

My Background

Overview/Goals of Session:

◦ Benefits of working with a search consultant.

◦ Provide you with recommended strategies to use to get a recruiter’s attention.

◦ Provide guidelines that a professional and responsible recruiter will always follow.

Purpose: What will you Learn/Gain?


Recruiting/search consultations can be a valuable professional service for candidates to understand themselves and benefit from in the following ways:

Free to job seekers and minimal time investment on your part. Access to a wide variety of job opportunities/and the hidden job market. Know what their client is looking for. Recruiters can provide a wealth of information on resumes, cover letters, interview techniques, for example. They can sell you before the interview. Recruiter’s prep you for the interviews and tell you what to expect. Provide feedback. Help you land a position faster, with better compensation, and with an organization you otherwise might not have been able to get into. Confidentiality in your job search.

Benefits of Working With a Recruiting/Search Firm


Facts you should know about recruiters and their daily job responsibilities:

•They spend about 4-5 hours a day on the phone.•They make contact with hundreds of people every week.•They can receive up to 400+ emails daily.•They rely on their network for current industry information and market trends.•They are compensated for finding the right candidate for their client (companies). •In today’s business environment, recruiters will “Google” you to view your online presence.

Facts About Recruiters and Their Daily Job Responsibilities


Search Firms Predict the High Growth Industries – Top Industries Growth Predictions Based on Search Firm Activity

2007

• Healthcare• High Technology• Business

Services• Pharmaceutical/• Medical/Biotech• Financial

Services/Banking

20

08

2008

• Healthcare• Business

Services• Pharmaceutical/

Medical/Biotech• High Technology• Energy/Utilities

20

092009

• Healthcare• Green

Technology• Pharmaceutical/

Medical/Biotech• Business

Services• Energy/Utilities


Manpower Employment Outlook Survey for Industry Net Employment Changes

Of the more than 28,000 employers surveyed, a significant 73% expect no change in their January through March 2010 hiring plans, the highest in the survey’s history. Twelve percent anticipate an increase in staff levels and 12% expect a decrease in payrolls, resulting in a Net Employment Outlook of 0%. After seasonal adjustment, the Net Employment Outlook becomes +6%. The final 3% of employers indicated they were undecided about their hiring intentions.


Top Reasons Companies Choose to Retain an Executive Search Firm

Source: 2009 AESC Executive Recruiting and Talent Management Report



Companies Choose to Retain an Executive Search Firm for a Shortage of Talent



Retained Executive Search:Search project is exclusively contracted and paid for whether a placement or not has been made. Contingent:Payment is made to the recruiter when a successful placement has been made. There is typically no exclusivity contract – so multiple recruiters can work on the same position.Contract/In-house: Paid by the hour not by placement. Individual typically works with the Human Resources Department.

Understand the Type of Recruiter You Are Working With


Firms working on a contingency basis will only earn a fee if the firm is responsible for identifying and presenting the hired candidate to the client. A contingent search may be structured contractually with the client. Typically, the fee is 100% "back end" loaded based upon a percentage of the hired candidate's first year cash compensation. Without being paid in advance, a contingency recruiter has no assurance of being paid at all.

Typically, the client is free to work with other search firms or source candidates on their own.

Most often a CR cannot afford to invest a great deal of time working on any particular engagement, because a successful outcome may depend on factors beyond the recruiter’s control. CR’s typically work with a large number of job openings using a database of known candidates. They look for matches and send those resumes as soon as possible.

CS to be less oriented toward candidate assessment and "fit" and more about getting the potential candidate's job resume in front of the client so that the client can make his/her own assessment.

CS is geared to identifying qualified candidates, however, not necessarily the most qualified candidates that could be found if significant research and in-person interviewing were to be applied to the hiring company’s particular need.

Recruitment Firm Models –Contingeny/Non-Exclusive


Contingency recruitment is typically applied in the following situations:

•When the salary level of the position is less than $100k.•When many people are likely to be qualified for the position.•When multiple vacancies with the same job description are being filled.•When the hiring organization wants to take more responsibility for screening, interviewing and negotiating with candidates.

Recruitment Firm Models –Contingeny/Non-Exclusive


Recruitment Firm Models – Retained/ExclusiveRetained Search means that the search firm has structured a contract signed by the client defining what will be provided in the way of outcomes and responsibilities for both the search firm and the client. The contract calls for exclusivity for the search firm much the same way a company might expect to experience when retaining an external law firm to handle a particular legal matter. In RS, unless for some reason the project does not stay on the agreed-upon schedule or other defined process steps are missed, or unless the client does not get appropriate candidates, then the full agreed-upon fee is paid by the client. However, these fees are paid in “installments” to match the progress made by the search firm. In that regard, fees are paid only after certain milestones are reached. The final fee can often be paid once the selected candidate (by the client’s standards) is met and hired.The Association of Executive Search Consultants (AESC) is the professional association representing retained executive search consulting firms worldwide. Many retained search firms are members and are bound by a Code of Ethics and Professional Practice Guidelines.


Recruitment Firm Models – Retained/ExclusiveRetained executive search consulting is appropriate when the salary level of the position is above $100,000 and when it is critical to hire the most qualified person available. The client will also want:

A recruiter who will make a dedicated effort on its behalf to filling the position, and who will take into account nuances of the hiring organization’s culture and other critical issues related to the job vacancy. This includes thoroughly screening candidates through in person interviews before finalists are presented.

Evaluation of internal candidates against an external shortlist.

A go-between to help persuade an executive to leave a desirable position for a better opportunity, and to help negotiate the terms of the move.

A high degree of confidentiality in the recruitment process.


Difference in Approach/Process

Key differences between retained and contingency recruiting in the way the process is carried out:

RR’s are expected to evaluate all candidates being considered. As a result, the RR’s will never present a candidate to more than one client at a time. A contingency recruiter usually is in a race against time/other sources to present a winning candidate, and often presents attractive candidates to as many clients as possible.CR’s tend to be more specialized by industry and function. RR also specialize but, because they are driven by original research for each engagement, are willing and able to apply that process across industries and functions, especially when they recruit from outside the client’s industry.Fees for the two kinds of service are similar-typically for RR, 30-35% of guaranteed first-year compensation for the hired candidate. RR’s make an estimate of the fee and bill for a portion of the fee to initiate the engagement, with several subsequent invoices leading to a final bill that makes an adjustment based on the actual compensation package awarded to the hired candidate. CR’s on the other hand, receive one lump sum on hiring and is typically up to 25% of the compensation. In addition to the fee, retained consultants ask clients to reimburse them for out-of-pocket expenses—mainly travel expenses for candidate interviews. This often adds 10% to 15% to the fee. CR’s typically don’t incur these expenses.RR’s are not motivated to sell candidates in the same way; they are being paid for the process of selecting the best candidate, so can be more objective about whether a particular individual is the right choice.


•Who are your client companies?•What level/type of professional(s) do you recruit?•Specialization?•What geographical location?•Length of time in the recruitment field?•Average placement fee?•How many placements last year - 2009?•What percentage (%) do you charge clients?

Questions to Qualify a Recruiter


Safeguarding of Information - a recruiter should always ask for your approval prior to submitting your resume to a prospective employer (R=Y, C=N).Effective Communication - finding a good match between the client and company means the recruiter must be both a good listener as well as providing you with timely verbal status reports.Operate Efficiently – most professionals/executives are generally busy individuals with little free time. An executive recruiter should always respect your valuable time and operate as efficiently as possible.Seek Permission First - once again, the recruiter will always seek your permission prior to contacting any of your job references or reaching out to a company on your behalf. (R=Y, C=N)Disclosure of Information - prior to accepting an offer, the successful candidate should understand the entire compensation package, relocation requirements, as well as the job requirements.Two-Way Trust – First and foremost, there needs to be a trusting relationship between client and recruiter. For example, withholding critical information, such as your current salary, leaves the recruiter with too much guesswork to work effectively.

Guidelines a Professional and Responsible Recruiter Should Follow


Strategies To Use to Get a Recruiter’s Attention


Treat Recruiter as an “EMPLOYER”This means you should understand that recruiters work for their clients. So treat

the first interaction with a recruitment agent as your first round interview. Impress = prospective employer introduction and getting marked as a “good”

candidate and called more often for future opportunities.

Build Long Term Relationships Look at this interaction in a long term perspective. Build rapport with your

recruiter, provide answers to all questions they are asking. Also ask as many questions you have about the prospective position. Give them all the

information on the type of job that you want. Keep interacting with the recruiter on a regular interval.



Be HonestThere are consequences to lying, omissions and misrepresentations made to a

recruiter. First of all, a majority of recruiters use Google, LinkedIn, ZoomInfo and other business and social networking sites to learn more about candidates. Consequently, being dishonest and hiding critical facts are the fastest ways to

ruin a relationship with a recruiter.

Do Not Hide Any Career Related Issues Do not hide any career related issue. Remember although they work for clients -

it is their interest also to get you placed. So never hide any facts from the recruiter will help them in proposing you for just the right position.



Have Specific Job TargetMany recruiters specialize by industry and/or function. A recruiter may only work with healthcare professionals while another may specialize in placing

executives in all industries. If you are unclear about your job target or you are open to any opportunity that comes up, a recruiter is probably not your best

option.

Have a Well-Crafted MessageWhether your first contact with a recruiter is by email or by telephone, you must be able to quickly articulate your core competencies and qualifications, describe

the value you bring to the table and provide evidence of your career achievements. Prepare and practice your 30-second elevator pitch.



Develop a Comprehensive ResumeRecruiters need to know the details. Your resume should have the dates/years identified for every position within the last 10-15 years and the graduation years in the education section despite your age. Top tier degrees can be listed on the first page of the resume and use a bulleted format to highlight your quantifiable

accomplishments.

Branding Yourself OnlineWith the advent of professional/social networking sites (LinkedIn, Facebook,

Twitter, Spoke, Jigsaw, and Ziggs for example), the sourcing stage of the recruiting process has become much easier. The executive search firm’s

support staff uses many sites/searches which provides faster identification of talent in the Web 2.0 space.

Does My Online Brand Really Matter to Recruiters?

•MyBusinessMVP.com states: “77% of executive recruiters use search engines to research applicants”.

•Trackur.com states: “59% of hiring managers are influenced by your online reputation”.

•Careerbuilder.com 2009 Survey states: “the number of employers using social networking sites to screen candidates has more than doubled in the last year. Out of more than 2,600 hiring managers, 45% reported using social networking sites to research job candidates’ backgrounds for information that verified – or supplemented – the information on their resumes”. “One-in-Five Employers Use Social Networking Sites to Research Job Candidates”.

Source: “Social Media Recruiting Starfish” is from Jobs in Pods.




When Responding To a Job Posting When a Recruiter is Listed, Use a Table in the Cover Letter and Key Words

Inserting a table with two columns in a cover letter and using key words will allow the recruiter to quickly scan the document and decide whether you are match. Use one column to list the job's required experience and qualifications and list your corresponding qualifications in a second column. With over 500

candidates competing for the recruiter's eyes, don't leave anything to chances.

Develop a Compelling Subject LineA compelling subject line message will increase your chances of getting the

recruiter to open your e-mail right away. Use something to make an immediate connection - if you were referred by someone or met the recruiter recently at a

networking event, put that in the subject line.



Think Twice About Email BlastsTechnology can be both your friend and enemy in your job search. The high

volume of email received by recruiters has prompted high levels of email filtering and bulk mail settings. While you may have the opportunity to send your resume

and cover letter to 250 recruiters, there is no guarantee that it will be seen. In addition, there are some recruiters may choose to ignore resumes sent through

bulk mail as they view the candidates as being unfocused.

Offer SomethingA relationship with a recruiter is like any other relationship and there needs to be equal give and take. If you have qualified contacts, industry insights or current

market news that the recruiter can use, be the first one to offer a helping hand. You will reap the benefits in the long run.

It is important that you select the recruitment firms that best matches your needs. Some general guidelines:

Ask a FriendDo Your Own Research Look in the trade press for firms advertising or commenting on industry issues, or look online - on, say, Google - for the areas you wish to work in. It’s generally best to use an agency that has the capability to find both temporary and permanent jobs, as it gives you greater flexibility in your job search. Some agencies still only do one or the other.Check WebsitesTalk to the Recruitment ConsultantBe Selective There’s very little point in emailing your resume to every recruiting firm out there. Be focused.

Choosing a Recruiting Firm


Korn/Ferry International released an iPhone application called Korn/Ferry Connect which gives users unprecedented access to their executive recruitment services, including the ability to view job opportunities, contact consultants, review thought leadership and more.

Besides the standard job listings, the application allows you to search for Korn/Ferry's office locations worldwide by integrating with Google maps. You can also search for a consultant by name, office, specialty or practice. There is also functionality to add a consultant to your personal address book with a single click.

Choosing a Recruiting Firm


Directory of Executive and Professional Recruiters 2009-2010 – is the premier junior, senior, and executive-level job seekers guide for researching and contacting recruiting firms that will best facilitate their career goals and is considered the “The Industry Bible” – The Wall Street Journal. - published by Kennedy Information.

Comprehensive firm information13,000+ Retained and Contingency Recruiters6,000+ Locations in the U.S. Canada and MexicoSalary MinimumsDetailed Contact Information for each Firm

Job Seekers Guide to Working with Recruiters- published by Kennedy Information.

The Riley Guide Link - http://www.rileyguide.com/firms.html - lists articles and publications about using executive search and recruiting firms. Also provides a list of companies and descriptions.

Recommended Booksand Resources


Closing Thoughts (Toby Nathan)

Questions

Closing

Contact TobyPlease don’t forget to link with me to grow your network on LinkedIn!

www.linkedin.com/in/[email protected]

http://twitter.com/tobyrnathan312.332.4222

RecruitaStar.com

RecruitaStar, LLC200 S. Wacker, Drive, Suite 3100

Chicago, IL 60606

Contact TobyPlease don’t forget to link with me to grow your network on LinkedIn!

www.linkedin.com/in/[email protected]

http://twitter.com/tobyrnathan312.332.4222

RecruitaStar.com

RecruitaStar, LLC200 S. Wacker, Drive, Suite 3100

Chicago, IL 60606


how to work with a recruiting search firm january 14th 2010 for launch summit

Documents

wacker drive

withretained executive

executive search firmsource

chicagocareer search

search project

search consultant

principal of recruitastar

search firm activity