Why Doesn’t Corporate Talent Acquisition Change The Way They Pay Recruiters?

For the most part, Corporate Recruiters are paid a salary. That salary ranges widely from organization to organization, industry, function and location. I’ve seen corporate recruiters who make $40,000 and ones that make $150,000. The $150K corporate recruiters are overpaid, let me just throw that out there right off the bat!

Agency recruiters are usually paid some salary and a combination of commission and bonus. The average goal for an agency recruiter compensation model is 1/3 salary, and 2/3’s bonus and commission. So, if your base agency salary is $30K, the hope is you’ll get to $60K through commission and bonus. It takes some time to get to $90K-ish total, but it’s fairly common for agency recruiters to make six figures. Again, this depends on what kind of agency, location, commission structure, etc.

On average, you’ll see more six figure recruiters working on the agency side, then you’ll see on the corporate side, by a wide margin.

So, are agency recruiters worth more than corporate recruiters?

Worth is defined by those paying! What I’ll say to this question is agency recruiters are more likely to ‘prove’ their worth than you’ll see on the corporate side. Which begs the question why has corporate Talent Acquisition not adapted their pay structure to something similar to that of a recruitment agency?

I’ve run both corporate TA shops and agency shops. I can tell you, realistically, there is no reason, that makes sense, not to at least test different pay structures on the corporate side! My goal in was always how do I get my corporate recruiters to be 2/3’s salary and 1/3 bonus. I wanted to make sure there was some performance-based compensation as part of their total compensation.

Here are some reasons I ran into each time I changed the pay structure of corporate recruiters”

  • “If you change the pay structure the best recruiters will quit!”
  • “We can’t change the salary structure, it’s the law!”
  • “Paying bonuses to recruiters in a corporate setting isn’t fair to the other people in HR!”
  • “The executives will never agree to performance-based pay in a non-sales role!”
  • “We want our recruiters to be hiring manager focused and paying bonuses would change that!”

All of these excuses are complete B.S.!

I did have Recruiters quit everything I came into an organization, but not because of pay. They quit because I made them actually recruit for the first time in their life! They had to pick up a phone, they had hard measures and weekly and monthly goals, they quit because they weren’t recruiters, they were administrators. But, being paid like they were recruiters.

Corporate TA Leaders don’t change their pay structure because they don’t know what to change it to, and change is scary!

I get it. It was the first time I did it as well, but in the long run, we had higher performing recruiters, better hiring manager satisfaction and we flat out performed better as a department, as compared to what we did previously.  Here are some tips to making this change:

– Make sure your high performing recruiters can actually make more money in the new model.

– Make sure low performers make less in the new model.

– Set black and white measurable goals before changing pay, and work with these goals for a while before aligning them with compensation.

– Be flexible to change. The first time I did this I found major holes and had to make some immediate changes that were fair to the recruiters and the organization.

– Communicate with your team and executives through this process.

– Have written outcomes you want to see from this change and watch those metrics closely.

– Paying per hire is never a bad thing, just make sure the pay matches the effort of the hire. Don’t pay the same bonus for hiring an admin as you do to hire a Java Developer. I tried to equalize this by the time and effort it took to fill each position. If it took 1/10 the time and effort, the bonus was 1/10 the amount of a full effort position. Again, you’ll have to test and adjust this for your organization. Don’t write it down in stone, to start!

– You’ll never really have to have a performance management conversation again! Oh, you want to make more money….

Recruiting, even in a corporate setting, is a sales type role and should be paid as such. There is no reason why you can’t have a more effective pay structure in your corporate TA department.

Want some help in getting this off the ground?  Contact me!

 

 

In Recruiting, Content Is NOT King!

Something happened over the past five years. Content marketing, which is a brilliant way to connect with a customer base and build sales, became very fashionable in the recruiting space.  So much so, that I constantly read vendors telling in the trenches Talent Acquisition pros and leaders:

“In Recruiting, content is king!”

No. No, it is not! In recruiting, activity is king.  I think the confusion comes into play with people treating employment branding and recruiting as the same thing. They’re not the same thing. One build’s awareness of who you are and what kind of employer you might be, possibly you can stretch employment branding into awareness of your job openings as well.

Content in employment branding is important if you’re doing content recruitment marketing. Again, you don’t have to do this to do employment branding. Many organizations build their brand without content. If you have a great consumer brand, you are less likely to need content to build your employment brand.

I’m not against producing great content to build your brand, believe me! It can be super helpful, especially if you don’t have a larger consumer brand behind you.

The point is you can be awesome in recruiting and never produce a single piece of content. I see so many TA shops missing this right now. The question is why? Why are TA shops believing that the only way to recruit is to build content and build an audience?

Employer Branding is a huge business right now! Organizations are spending millions of dollars per year to build, maintain and grow their employment brand. For huge organizations, or organizations in highly competitive environments, this is very important. For many organizations, this is a complete waste of time and resources!

The noise in the employment branding space is so loud right now, most organizations are not going to be heard. In that case, why are you spending the resources? You’re doing this because it’s easier than picking up a phone and calling a candidate! That’s recruiting.

Recruiting are the activities you do to hire people for the jobs you have open. Included in those activities are not only candidate attraction but candidate interaction. Candidate interaction, the function of a recruiter interacting with a candidate, might be the most forgotten skill in all of Talent Acquisition.

The skill of interacting with a live person is lost on most talent acquisition shops. Sure you can connect with candidates via email, messaging, text, twitter, Snapchat, etc. Eventually, though, someone has to speak to a live person. Someone has to close this person on coming to work for you. We, the talent acquisition industry, continue to spend less and less time on this side of our business, and it’s showing.

Great recruiting organizations are activity focused and activity driven. Sales funnel. Candidates come in the top, and hires come out the bottom. It’s not difficult. It’s not art. It’s a process. It’s metrics. Teach your recruiters to be able to engage live people on the front side, and you will see a great return on that investment in more hires. No content needed.

 

 

Candidates Actually Want Human Interaction!

TA Leaders and Executives, this is the dirty little secret that your Recruiters and the Talent Acquisition Technology industry does not want you to know!  Candidates actually prefer to have human interaction when searching and applying for a job. From a study done by ASA:

“Three of the top five ways job seekers land a job are “high touch,” according to the survey findings. Word of mouth is the most popular means (43%)—followed by job board websites and employer websites (both at 30%). Contacts or acquaintances with prospective employers (30%) and staffing and recruiting companies (25%) also rank high as resources that led to job offers.

Three in four (77%) actually prefer human interaction when searching for a job, according to the ASA Workforce Monitor.

Recruiters and TA Tech are in bed together to pull the wool over your eyes!  TA Tech wants to sell you automation! Recruiters don’t want to pick up the phone! Put those two groups together and it’s one big circle jerk about to use only technology solutions to recruit and never pick up another phone as long they live!

Seriously! 3 out 4 candidates prefer to have a human contact them and tell them about the job you have open. I bet if you sent out an informal survey to your recruiting team, right now – today, the response from your recruiters would be that they believe only 25% or less actually would prefer a call!

That’s a huge disconnect, and should be very telling about the talent on your team!

So, how do you get your recruiters back on the phone?

1. Measure the amount of outgoing calls by person and post it publicly for all to see. You don’t even have to say one thing about it, the calls will automatically increase! True recruiters hate being on the bottom of any scoreboard!

2. Have fun with it! Run contest and provide incentives for more outgoing calls by your recruiters. For recruiters who grew up in a world where they thought they could just email and message their way to success, the phone is scary! Some will need a kind push!

3. Group call parties. Take one hour of the day and plan for every single recruiter to be on the phones at the same time. Make sure they prepare by sourcing ahead of time and have a number of candidates to reach out to. They should have at least 25-40 to call. Most calls will go to voicemail, if they’re lucky they’ll actually talk to a few people. It will be the fastest hour of their day or week! When everyone is doing this at the same time, you get great energy from the group and it seems less scary!

An average recruiter with 25 openings on their desk should be talking live to around 75-100 people each week on the phone. What I find when I first go into a new shop and measure this, the real number is more like 15-25!  It’s shockingly low! How are you going to fill 25 openings by talking to 25 people per week!? You won’t. That’s why your TA shop is failing.

I love TA Tech! I love TA Tech more than almost anyone I know. What I also know is that all great recruiters spend more time on the phone on average than weaker recruiters. It’s so simple, yet most of us fail as TA leaders not recognizing this.

 

5 Instagram Filters That Will Make HR Better at Recruiting!

You know it’s true—you’re a great HR Pro, but you don’t really like to recruit. That’s okay, because you’re good at a million other things your company values.

But here’s the thing: A recent Deloitte report outlined the need for HR Pros to grow their skills beyond what our functional area is traditionally known for. CEOs and division heads are expecting different things from HR, and one of those areas of need is… you guessed it… Talent Acquisition/Recruiting.

(Cue the lighting, adjust the crop and apply the filter—BAM. Insta-recruiter. There’s nothing that an Instagram filter can’t transform!)

The Fistful of Talent crew is back with the following webinar, Instagramming HR: 5 Filters HR Pros Can Use To Transform Into Better Recruiters (sponsored by the good folks at Jobvite). Join Dawn Burke and Kris Dunn on June 29th at 2pm EST, and they’ll hit you with the following goodies:

–A review of why leaders report the need for HR re-skilling and why recruiting rises to the top of the list for HR pros and generalists at all levels.

–Data on how talent acquisition is a key component to achieving results in the modern workforce—including areas that HR Pros love to talk about (employee engagement, retention, etc).

–A breakdown of how recruiting has become more challenging in the last 5-10 years, and why the methods HR Pros have traditionally used to recruit aren’t as effective today.

–5 key strategies that HR Pros can embrace to modernize their approach to recruiting, get better results for their organizations and be viewed as high potential by the leaders they serve. We’ll go over those strategies and tell you how to get started with each of them.

The HR Pros at FOT know you work hard and are good at what you do. You don’t have to love recruiting as an HR Pro; you just have to be good enough at it to ensure it doesn’t hurt your career. With a little editing and the perfect lighting (Nashville, amIright?) you can bring out your inner recruiter in no time.

Click here to join us for Instagramming HR: 5 Filters HR Pros Can Use To Transform Into Better Recruiters on June 29th at 2pm EST, and we’ll show how to ramp up your recruiting game without giving up the things you love to do as an HR Pro!!

REGISTER TODAY!

The One Way to be Successful at Recruiting

Eight years or so ago I started seriously writing for the first time in my life. The only other times I ever wrote in my life were school papers, a journal that my high school English teacher, Ms. Kemp, made me write in each day and love letters to my wife before we were married and email was not yet widely used and phone calls cost too much!

My good friend Kris Dunn got me to write for Fistful of Talent. He and Jessica Lee, who was the editor at the time, gave me the Friday slot at FOT. It was my job to write something snarky and fun, a piece people would read on a Friday, chuckle and know the week is almost over. That gig turned into this gig, which turned into me writing every single day, now going on five-plus years.

In all of this writing, I discovered what a lot of people discover in becoming successful. If you want to be successful at anything, you need to do it! You need to do it a lot! You need to do it every day.

I still write stuff that is crap. I make errors all the time. But, my writing has improved. Once in a while, I actually write something I think is pretty good!

That’s the secret to becoming really good at recruiting. You need to do it all the time!  I see HR Pros who try and recruit every once in a while. They suck at it and they’ll never be good at it because they don’t do it all the time. You can’t pick up a pencil and be instantly good at writing. You can’t pick up a phone and be instantly good at recruiting.

To be good at recruiting you must recruit every day.  You must always be on.  Everyone you meet. Everyone you talk to. Everyone becomes a potential part of your recruiting pipeline. Maybe as a candidate, or a lead, or a referral, etc. You don’t recruit, then turn it off and not recruit. You recruit always.

I’m, now, constantly writing. I rarely go a day when I don’t email myself ideas about something I want to write about. I think like a writer. How can I take this situation and write about it? My friends, family, and coworkers tease me about it (‘Don’t write about this!’ ‘You’re going to write about this aren’t you?’).  I’m always on.

If you truly want to be successful in anything in life you need to do that thing, always. I see recruiters constantly miss opportunities to recruit. To ask the question that would lead them to their next great hire. To pick up the phone and make one more call before they leave for the day. To take a chance and reach out to someone who they don’t think will be interested, but just maybe they will be interested.

Being good at anything is hard. It’s really hard if you want to be good by not doing it.

 

Tech Companies Should Move To Detroit!

You might have seen this chart recently over at Business Insider:

Screen Shot 2016-06-06 at 11.10.07 AMWe all probably got this. It costs a TON to live in San Fransico! Way too much. You’re crazy if you want to start a tech company in San Fran.  So, what do all those super smart folks do? Yeah, stay west coast and just go a bit more north to Seattle, still expensive, but seemingly cheap in comparison to San Fransico!

It’s one of the main reasons Austin, TX became a hotbed of tech startups and headquarters about a decade ago. Relatively cheap to place to live. Access to a major university (Univ. of Texas), which gives you young, talented, tech savvy folks. Nice weather.

Here’s the magical formula to picking a place to house your tech company:

  1. Access to talent.
  2. Place people want to live.
    1. Good weather.
    2. Hip vibe.
    3. Affordable. (not necessarily an important factor – but increasing in importance!)

Give this magical formula, I’ll give you the number 1 destination of new tech startups!

DETROIT!!!!

Well, actually it’s Ann Arbor, which is about a 15-minute drive from Detroit’s International Airport, a Delta hub and one of the nicest airports around. Which means direct flights to almost everywhere. Home to the University of Michigan and great talent pipeline (Michigan State is also 50 minutes away). So, you have two Giant universities and roughly 80,000 students within easy driving distance.  A ton of other smaller universities within a 50-mile radius as well (Eastern Michigan, Wayne State, Oakland Univ., Univ. of Toledo, etc.).

It’s super cheap to live. Ann Arbor is a great college city, with access to the bigger Metro Detroit area within a thirty-minute drive. Access to someone of the world’s largest freshwater lakes. Toronto is an easy, cheap flight, or 4-hour drive away.

Okay, you won’t get super nice weather. You’ll get four seasons, midwestern work ethic and so much more for your money you won’t understand why anyone ever went west to begin with!

Oh, I hear you. What about the talent?  The Detroit Metro Area is one of the world’s largest engineering centers in the world! You know about all the auto companies, but what you don’t know is that Google has been growing an empire in Ann Arbor for years, and doing it quietly because they don’t want others hoarding in on the secret!

So, yeah, Seattle is way cheaper than San Fransico. You only have to pay 35% of pay towards rent. In Detroit, you only have to pay about 15% of your pay towards rent!

Detroit! The new San Fransico! We even have a bridge!

True or False: Corp Recruiters Fear Agency Recruiters

True or False?  It’s a common belief, in most Talent and HR circles, that most corporate recruiters fear agency recruiters.  Go ahead and argue if you would like, but it seems a little silly.

The reality is, true recruiting professionals don’t fear amateurs.

It’s like a really great professional Photographer.  They charge money because they offer something someone is willing to pay for.  Professional photographers don’t fear the mom at the soccer game with her $2,000 dollar camera and $5,000 dollar lens.  Who cares that you have the equipment if you don’t know how to use it!?  Pros don’t fear amateurs.

So, if you are a really good corporate recruiter who knows how to really recruit, agency recruiters don’t scare you, because you know your stuff!  That’s the problem, though, right?  The reason so many people feel the title of this post is true is because we all know so many corporate recruiters, who really don’t know how to recruit.  They aren’t pros, they’re amateurs.  Amateurs fear professionals when it comes to meeting head to head in competition.

The best professionals love it when a talented amateur tries to play at their level.  These types of individuals help to push both parties to do the best work they can.  Or, at least, they should!  A great agency recruiter should push an average corporate recruiter to want to get better.  An amateur agency recruiter will starve, that’s why you only see amateurs in the agency ranks for a very short period of time.  If they aren’t good, they don’t eat! That is why on average, agency recruiters tend to have more recruiting skills than corporate recruiters.  Agency folks aren’t full salary. How they have compensated forces them to have better skills, on average.

So, how do corporate recruiters ensure they become professionals?  Well, I love Malcolm Gladwell, so I’ll steal a little of his 10,000-hour concept.  You must make yourself a true recruiting professional!  You need to invest time and development in yourself, in the recruiting industry, to become a pro.   That means as a corporate recruiter, you focus on recruiting, not becoming an HR Pros. What?!  Most corporate recruiters are corporate recruiters because that’s their path to get into a straight HR position.  Their endgame is not recruiting, it’s HR.  That’s a problem because they are not fully vested in the recruiting game.  This is an amateur move.

Your reality is, those who get promoted are usually professional at something.  Become a great recruiting pro and the powers-that-be will take notice, and you’ll find yourself in positions you never thought possible.  True professionals don’t worry about promotions, they worry about becoming a better pro at their craft.

The next time you start feeling yourself pushed by an agency recruiter, don’t curse them for what they do, embrace them for what they push you to become — a better recruiter.

7 Words Mathematically Proven to Get You More Hires!

Wired recently worked with OkCupid and Match.com to find out which words were used on the most popular dating profiles on their sites.  Millions of data points were done for this data analysis and they came up with the most popular 1000 words.  What they came up with were the exact words to use in your profile descriptions to get the most clicks.

I’m going to take this one step further and say if these words attract singles to another single, I’m quite certain they would attract a job seeker to a job.  My theory being singles are also job seekers.  Okay, I hear you, just because some words might attract one person to another person doesn’t mean those same words will attract a person to a job – but it might.

It is my belief that we can totally re-write Job Descriptions in a way that is a lot less HR’ish, and much more real, which will make more people want to work in the jobs you have.  Here is one I put together for hiring a Recruiter for my staff.   The positive is, it lets us in HR get our ‘creative on’.

Let ‘s give it a shot. I’ll give you 7 categories of words that were mathematically proven to get more dates hires:

1. Active Words: Yoga, Surfing, Surf, hiking, athlete, etc. These words were popular because people want to be associated with things that are good for them. Do you highlight active things you do at your organization in your job descriptions?

2. Pop Culture Words: 30 Rock, The Great Gatsby, Homeland, Arrested Development, The Matrix, The Big Bang Theory, The Hunger Games, etc.  People want to work with an organization that has a personality.  Pop culture references in your JD give you a personality.

3. Music Words: (FYI – some of these could also be considered Pop Culture) – Radiohead, Nirvana, live music, guitar, instruments, etc .Does your organization have a musical preference? Why not?  Maybe you’re a little country, maybe you’re a little rock and roll, either way, it’s alright to let candidates know!

4. Calm Words: Ocean, meditation, beach, trust, respect, enjoy, planning, dedication, openness, etc. Words that project a feeling of safety and security. In today’s employment marketplace, don’t discount the value of your jobs based on how calm and secure the work is.  Anxiety is at an all-time high.  Having the ability to say “we’ve never laid off in our history!” could pay you huge dividends.

5. Food Words: Chocolate, cooking, foodie, pizza, sushi, breakfast, etc. Food is a gathering and sharing point in most cultures.  If you do food related things in your work environment it brings all of your people together. Everyone eats. Not everyone will do Yoga or want to watch movies.  Chili cook-offs, company happy hours, Donut Fridays, etc.

6. Descriptive Words: Creative, motivated, confident, driven, passion, awareness, etc. Most HR pros see JDs as a means to an end.  They’re a legal necessity.  We should be looking at them as mini-commercials for our jobs.  I would love to see a company go full video JD – nothing written, just watch our Job Description. 60 seconds of someone telling you what this job is.

7. Spontaneous Words: Tattoos, F*ck, wasted, kissing, puppies, sucking, lucky, etc.  Words that most people would never expect to see in a JD.  This word has absolutely no usefulness in a JD – that’s exactly why we put it in there.  It might not attract an older conservative candidate, but it might be just what a newer generation is looking for.

I’ve never met a senior executive that had a problem with any job description I wanted to write – not matter how bland or how crazy.  That being the case, why do we continue to write JDs that put people to sleep?

The Best Recruiters are Competitive, A Hypothesis

I’ve worked in recruiting and HR for about twenty years. At this point in my career, I estimate that I’ve hired about 100 Recruiters.

I’ve hired recruiters that come from almost every environment and education. I’ve gone the Enterprise Rent A Car route and hired college athletes. I’ve gone to colleges and hired HR graduates. I’ve hired seasoned recruiting veterans from both agency and corporate. I’ve hired uneducated individuals from service backgrounds. I’ve hired specific practitioners who have deep knowledge of what they’re recruiting – nurses, IT pros, etc.

None of these things made one bit of difference when it came to performance as a recruiter, in either environment, corporate or agency.

The only thing I’ve found to be a differentiator of true recruiting performance is the level of competitiveness an individual has internally. This is why it’s so popular to hire former athletes as recruiters, we assume since they are athletic, that they must be competitive. But, this also fails, many times.

You see, you don’t have to play sports to be competitive.  You might just be that kid you threw the Monopoly board across the room when you lost to your sister. You might be that person who can’t stand that your neighbor’s lawn looks better than yours. Who knows why and what you’re competitive with, but it’s the key to being great a recruiting.

Many will wrongly assume that males are more competitive than females. In my experience, I’ve found this not to be true. Both sexes can be very competitive, it’s finding which ones are competitive that becomes the difficult thing.

So, why does being competitive help make you a great recruiter?

I believe competitiveness is a great trait for recruiters because it leads them to want to ‘win’.  What’s the win in recruiting? It’s filling the position! Recruiting is just one small game, after another. Each one that is slightly different, with new complexities to complete.  Each time you fill an opening, that is like making a point on your scoreboard.

If you put a group of these people together, even though they’re all working on separate openings, they see each other making placements and they want to do this as well. This competitive drive, alone, makes an individual succeed or fail at recruiting.

This becomes the main issue of why selecting non-proven recruiters is such a crap shoot. It’s very difficult to measure someone’s competitive drive accurately, and interview questioning is unreliable. In my 100 hires, I would say I’m 50/50 in getting it right. When I talk to other agency executives and TA Leaders, many share the same ratio.

Want to hire better recruiters?

Focus completely on finding ultra competitive people, who love keeping score, and throw them into the game.  I like to say Recruiting isn’t hard, but I know that it is.  Recruiting is easy if you’ve got the right people, who will do whatever it takes to win. That’s the competitive difference!

The Big Reference Check Scam!

I remember when I started my first job in Talent Acquisition and HR, I totally believed checking references was going to lead me to better, higher quality hires. My HR university program practically drilled into me the belief that “past performance predicts future performance.”

For all I knew those words were delivered on tablets from Moses himself!

After all, what better way is there to predict a candidate’s future success than to speak with individuals who knew this person the best?

And it’s not just anybody: It’s former managers or colleagues who have previously worked with this person – directly or indirectly – and have a deep understanding of how they have performed, and now telling me how they will perform in the future.

Grand design at its finest.

About 13 seconds into my HR career I started questioning this wisdom. Call me an HR atheist if you must, but something wasn’t adding up to me.

It was probably around the hundredth reference check when I started wondering either I was the best recruiter of all time and only find rock stars (which was mostly true) or this reference check thing is one giant scam!

Everyone knows the set up: The candidate wants the job, so they want to make sure they provide good references. The candidate provides three references that will tell HR the candidate walks on water. HR accepts them and actually goes through the process of calling these three perfect references.

When I find out that an organization still does reference checks, I love to ask this one question: When was the last time you didn’t hire someone based on their reference check?

Most organizations can’t come up with one example of this happening. We hire based on references 100% of the time.

Does that sound like a good system? Now, I’m asking you, when was the last time your organization didn’t hire a candidate based on their references?

If you can’t find an answer, or the answer is ‘never’, you need to stop checking references because it’s a big fat waste of time and resources! There’s no “HR law” that says you have to check references. Just stop it. It won’t change any of your hiring decisions.

New ways of checking references that checkout

So, how should you do reference checks? Here are three ideas:

1. Source your own references

Stop accepting references candidates give you. Instead, during the interview ask for names of their direct supervisors at every position they’ve had. Then call into those companies and talk to those people. Even with HR telling everyone “we don’t give out references,” I’ve found you can engage in some meaningful conversations off the record.

2. Automate the process

New reference checking technology asks questions in a way that doesn’t lead the reference to believe they are giving the person a ‘bad’ reference, but just honestly telling what the person’s work preferences are. The information gathered will then tell you if the candidate is a good fit for your organization or a bad fit — but the reference has no idea.

3. Use fact checking software

Google, Facebook, LinkedIn, etc. have made it so candidates who lie can get caught. There is technology being developed that allows organizations to fact-check a person’s background and verify if they are actually who they tell you they are. Estimates show that 53% of people lie on their resume. Technology makes it easy to find out who is.

Great Talent Acquisition and HR pros need to start questioning a process that is designed to push through 99.9% of hires. Catching less than .1% of hires isn’t better quality. It’s just flat out lazy.

Start thinking about what you can do to source better quality hires and your organization might just think you can walk on water.

Your turn: What are your tips for checking references?