Recruiternomics 2.0 2.0
How to Work Your Job Search Commandos
Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.
-SUN TZU
FIRST LAW OF RECRUITERNOMICS.
In a knowledge-based economy and society, the employers with the best talent win.
More than ever in our history, huge value is being leveraged from smart ideas-and the winning technology and business models they create: the people who can deliver on them are becoming invaluable, and the methods of employing and managing them are being transformed. Today, demographics on a broader scale are radically altering the recruiting landscape. An aging workforce of 65 million baby boomers was poised to retire by the end of this decade. The "market correction" in 2008 caused many to rethink their plans. No one yet knows how this will affect the supply of people, but it will make it more difficult to locate and keep the best talent.
Do not mistake today"s, "War for Talent Talent" with, the "War for Any Talent Any Talent" prevalent in the late 1990s. People and talent are mutually exclusive. While everyone has some talent, TV shows like American Idol American Idol have proven that some should not yet quit their day jobs. have proven that some should not yet quit their day jobs.
SECOND LAW OF RECRUITERNOMICS.
Regardless of the unemployment rate, the market for talent is always strong and extremely compet.i.tive. Employers will pay to hire the best of the best.
For those with talent, the fast track inside the hidden job market is through recruiters-in any economic climate.
RECRUITERNOMICS 101 101
I"m going to give you an overview of the recruiting industry and a framework to guide you in working with the industry by explaining: * The third-party recruiting industry* Four major categories of recruiters* Behind-the-scenes of the recruiting process* Rules of engagement* Frequently asked questions (and their answers)
If you know the game ahead of time, you"re odds of winning are greatly increased.
The Third-Party Recruiting Industry
Human resources people use the generic term third-party recruiter third-party recruiter to describe individuals or companies that help them fill their recruiting needs. You are probably more familiar with the term to describe individuals or companies that help them fill their recruiting needs. You are probably more familiar with the term recruiter, recruiter, also a generic term that encompa.s.ses the many flavors of recruiters including executive search professionals, headhunters, and temporary staffing agencies. also a generic term that encompa.s.ses the many flavors of recruiters including executive search professionals, headhunters, and temporary staffing agencies.
The industry is characterized by both huge revenues and enormous fragmentation. Estimates show revenues of more than $410 billion globally, with nearly half coming from the United States with more than 20,000 staffing firms and 174,532 professional recruiters. Here"s what you need to know to incorporate recruiters into your Force Multiplier: * The industry is completely fragmented.* Recruiters rarely talk to each other (professional paranoia).* Recruiters are in business for themselves-not you.* There are no educational or training prerequisites.* There is no official code of conduct governing the industry.* Licensing is nearly nonexistent.* Little training is required to make a lot of money.
Business maturity is what differentiates recruiters. There are 2 broad camps: the highly educated inexperienced recruiters who tend to cl.u.s.ter in the large firms or franchises and the seasoned business executives entering their second career-most often found in boutique firms. Each has their place. This explains why some recruiters understand the fine points of your industry or profession and others need to be educated. Understanding how to distinguish between the two is the key to your success. Recruiters can be the single biggest a.s.set to your career.
Four Major Categories of Recruiters
Companies have come to recognize that, when a position requires a somewhat unique set of skills and experience, or is surrounded by specific political or cultural circ.u.mstances, pa.s.sively advertising a position makes a good hire difficult, if not impossible. More and more companies are turning to professional recruiters outside their company to deliver talent because successful people don"t voluntarily raise their hand and say, "Here I am!"
There are 4 broad categories, and you lever each for a different outcome. By understanding the differences, you will know which ones can help you and which ones you shouldn"t hold your breath waiting for a return call. The 4 major categories are: 1. Executive search firms2. Headhunters3. Temporary employment agencies4. Contract placement recruiters
Executive Search Firms
It"s not unusual for job hunters to mistakenly regard the "don"t call us, we"ll call you" mentality of most executive search firms with contempt. Rule 1: It"s not about you. Employers retain Executive Search Professionals (ESPs for short) to find candidates to fit a specific role the company has identified. This is common with executive level hires, especially where the position is highly visible and critical to the organization"s mission. As a rule of thumb, the greater the need and the more complex the search, the more likely an executive search firm will be retained. The ESP is paid handsomely regardless of the outcome.
When the position to be filled is a CEO, president, vice president, or board member, an ESP will be working with an employer"s search committee and a target list of potential candidates who were identified by a researcher. A candidate must meet rigid requirements to receive consideration. The job of the ESP is to convince the targeted candidates to look at the opportunity and to then a.s.sess their fit. Search firms are not really interested in job seekers, other than to fatten their databases. There is little to be gained by stalking them when you"re already knee-deep in your job search. You are better off to wait for them to discover you. If you excel at your job, they will find you-without prompting.
You can accelerate the process by increasing your visibility in the community through board memberships and civic organizations. In the meantime, send them your resume electronically and mail them a hard copy. Do not call them to see if they received it-it brands you as light and desperate. If they have a suitable opening, they will call you. That"s how they make money. Do send a resume to every executive search firm executive search firm in your vicinity or niche that deals with your skill set and/or industry. Research your niche through Kennedy Information ( in your vicinity or niche that deals with your skill set and/or industry. Research your niche through Kennedy Information (kennedyinfo.com).
* Tools of their trade: Tools of their trade: In-house databases, In-house databases, ZoomInfo.com, LinkedIn.com, ExecuNet.com, a.s.sociation directories, Who"s Who, bizjournals.com, and a fulltime researcher. Make sure you can be found. Read more about this in Chapters 4 and 5.* How to reach them: How to reach them: Ask for a referral from a college, kennedy Ask for a referral from a college, kennedy info.com, or ExecuNet.com.
Headhunters
Headhunters come in 2 basic flavors: retained and contingency. Both offer you benefits: 1. Retained: Retained: The firm has a financial relationship with the client company much like that of an executive search firm. Retained recruiters are paid an up-front fee and a further success fee for completing the a.s.signment. Completing an a.s.signment requires the recruiter to match a candidate to a job specification. Retained recruiters usually have an exclusive relationship with the employer and may even be their unofficial talent scout. The firm has a financial relationship with the client company much like that of an executive search firm. Retained recruiters are paid an up-front fee and a further success fee for completing the a.s.signment. Completing an a.s.signment requires the recruiter to match a candidate to a job specification. Retained recruiters usually have an exclusive relationship with the employer and may even be their unofficial talent scout.2. Contingency: Contingency: The recruiter can present candidates but is only paid if the company likes and hires that candidate. Often many contingency recruiters compete to fill the same position. Time is of the essence, so if you want to be considered, you have to be available for interviews on a moment"s notice. The recruiter can present candidates but is only paid if the company likes and hires that candidate. Often many contingency recruiters compete to fill the same position. Time is of the essence, so if you want to be considered, you have to be available for interviews on a moment"s notice.
Sometimes a headhunter is also a good "promoter" and will play both sides of the employer/job hunter equation. Find a recruiter who specializes in your industry or the industry you want to enter. If possible, find a recruiter at least 6 months before you need to because it will take the recruiter a while to hunt through the market for possible opportunities. Do not work with more than one recruiter at a time in the same city without discussing this up front with the recruiter. Do not try to circ.u.mvent recruiters who already have a relationship with a firm. Money is at stake. They don"t get paid if you approach the company without them, and they will have no incentive to ever talk to you again.
While you may be trying to save the employer a few dollars, circ.u.mventing the recruiter shows that neither the recruiter nor the employer can trust you. The employer understands that using the newspaper or job boards will not necessarily deliver the results they want. The recruiter"s fees are part of the hiring cost, which has been budgeted for already. It is not coming out of your paycheck. I have heard about several candidates who tried this, only to have the recruiter blow up the bridge to ensure that the candidate was definitely not considered. Headhunters have a "one-strike-and-you"re-out" mentality. You don"t write the headhunter"s paycheck directly: the client company does.
Headhunters don"t work for you; they work for themselves. You are just the product. They a.s.sume all the risk and costs in marketing you. Make sure you know what you are looking for before you contact them. Make sure they understand what you are looking for and keep them informed about your progress on the interviews they arrange for you. If you are looking for a good recruiter because your job search is stalled, ask your friends to refer one. Treat them with respect and don"t bother them unnecessarily for frequent updates.
* Tools of their trade: Tools of their trade: In-house databases, ZoomInfo, Linked In-house databases, ZoomInfo, Linked In.com, referrals, split networks, national and regional niche job boards, bizjournals.com, and a contract Sourcer. Make sure you can be found. Read more about this in Chapters 4 and 5.* How to reach them: How to reach them: Ask for a referral from a college, kennedy-info. com, Ask for a referral from a college, kennedy-info. com, ExecuNet.com, the recruitinganimal.com blog, RecruitingBlogers. com, The Fordyce Letter, LinkedIn, blog, RecruitingBlogers. com, The Fordyce Letter, LinkedIn, TheLadders.com.
Temporary Employment Agencies
Temp agencies do exactly what their name suggests. They provide employers with temporary help on a day-by-day temporary or contract basis. The industry is huge-upward of $100 billion per year in the United States.
Because human capital is now easily expensed away or treated as a variable cost, there is a built-in incentive for an employer to hire people on a project basis for only as long as the company needs them. In most cases, the temp agency will pay you and invoice the company separately. Many agencies supply benefits that are equal to those provided to full-time employees by major corporations.
Temp agencies are a great place to get your foot in the door of an industry or a particular company. Starting as a temp can mean you are the first in line when a permanent position opens up. Temp agencies normally work with hourly employees or those earning less than $30,000 per year. The exceptions are specialty agencies for techies or senior executives, for example, where salaries can run from $15 to $400 per hour, or more.
Each agency will have different corporate clients. Register with as many as you can that are specific to your skill set or represent the industry you want to work in. Then keep in touch with them on a biweekly basis. Every time you go out on a project, take pains to overperform and build a reputation for being reliable and honest. By doing this, you will ensure that the agencies are fighting to represent you and keep you busy. It is not unusual for a temp agency to have 100 or more clients. By registering with the top 10 agencies, you will have your finger on the pulse of more than 1,000 employers. Little if any effort is required on your part-beyond doing a great job.
* Tools they use: Tools they use: In-house database, In-house database, bizjournals.com, LinkedIn for specialized skills, referrals, networking, regional and/or niche job boards, newspaper cla.s.sifieds.
Contract Placement Recruiters
This type of recruiter places people into companies to carry out special projects or to staff a department and to get around corporate (salary/benefits) budget constraints. Simply stated, full-time employees of a company are paid out of a separate pot of money from contract employees. It is not unusual for a company to freeze hiring yet still bring on contract employees. A contract employee is actually an employee of the contract placement firm.