Category Archives: The Recruiting Rules

There’s No Free Staffing Option

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I’ve gotten a chance to work both sides of the fence for an extended period of time in the Talent Acquisition/Recruiting/Staffing game. For ten years I ran corporate talent acquisition shops for some very large organizations.  One organization spent over $3M annually on staffing agency fees! Obviously, prior to me getting there!

I’ve spent almost fifeteen years on the agency side, sandwiched in between my corporate experience. What I’ve learned along the way is that there isn’t a “free” option when it comes to hiring great talent.

Frequently, I get asked from clients for discounts to my fees on the agency side.  I get that. When I was on the corporate side, I would never take an agency’s first offer.  Here’s the main problem with all of this:

Corporate talent acquisition pros don’t want any of it. They don’t your 20% direct fee, they don’t want your retained plan, they don’t want your RPO plan. What they want is Free. A free option.

Therein lies everything you need to know about staffing agencies and corporate talent acquisition.  One side wants free. One side needs to get paid.

The reality is, even staffing on your own on the corporate side isn’t free.  Corporate talent acquisition done right, has a ton of costs. Recruitment tools, automation, branding, job boards, applicant tracking, college strategy, recruiter training and hiring, etc. None of that is free.

All of this, though, should be screaming to the agency folks that something isn’t right.  What corporate talent acquisition pros are saying is “we don’t like the options we are getting from agencies”.  This should be of serious concern, because there are companies trying to design other options for corporate talent acquisition pros.  Options where they’ll feel like they are getting the value they want.

These options aren’t free, either, but they are less than all of the traditional options that 99% of staffing agencies are offering.

When I was on the corporate TA side of the desk, here was my decision matrix to when I would use a staffing agency. This matrix made me feel good about my decision to use an agency:

1. Does my team have the capacity to do this search? If Yes, why would I pay to have this done. If No, the cost if justifiable.

2. Does the agency offer me a recruitment expertise and/or pipeline I don’t have on my team?  See #1 for Yes and No options.

3. Is it financially feasible for me to add more capacity to my team, as compared to an agency option? This one took some more work. If I had a need for an agency to fill, let’s say, three positions and it was going to cost me $100K, well, obviously I could hire a pretty good recruiter for $100K. But, would I need that Recruiter in year 2, 3, etc.? Adding headcount isn’t a one time cost for an organization.

Ultimately, for me on the corporate side, it was almost always a capacity issue.  I had the expertise, but we had bubbles of work I needed extra support with.  Too often, I see corporate TA leaders upset over agency spend and it’s based on the fact they don’t have good recruiters on their team, yet there unwilling to change this fact. I’ll pay for additional short term capacity. I won’t pay for expertise I should have on my team everyday. That becomes my issue!

Corporate TA leaders become frustrated over agency spend because ultimately it’s a reflection on the team they have created.

 

The Most Important Question You’ll Ever Ask a Hiring Manager

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How are those hiring manager “intake” meetings going?

You know, those meetings you have with a hiring manager every single time they have an opening.  You sit down with your hiring manager, face to face, and ask them a page full of questions.  Why is this position open? What would make a candidate most successful in this role?  What color of skin would you like this candidate to have? Boobs or no boobs? Whoops! Scratch those last ones, we would never ask those…

The reality is Talent Pros really only have one question they need to ask hiring managers. That question is this:

“Do you trust that I can find the talent you need?”

Ultimately, this is all that really matters for your success.  If they trust you, they’ll give you all the information you need to be successful.  If they don’t trust you can find the talent they need, they tend to hold stuff back.

Yes, I know that doesn’t make sense, but that’s real world talent acquisition stuff! Welcome to corporate America, a lot of stuff doesn’t make sense!

Most hiring manager have no faith you’ll find them great talent.  They have this belief because so many bad Talent Pros before you failed them.  So many before you didn’t really go out and find the best talent, they just delivered whatever warm body came into the ATS.

I just come out and ask the question.  The first answer you’ll get from 99% of hiring manager is a weird, “Well, sure, I do.” If you really dig into this answer, you’ll get the true answer which 90% of the time is, “Hell no! Why would I?  Your department has really never gotten this right!”

Thank you! That’s what I really needed.  I needed to get that out in the open, so now we can really build trust, and make great things happen.  They’re mostly right. Talent Acquisition fails many of our hiring managers for a number of reasons. Right now, your hiring manager doesn’t need to hear those reasons, they need to hear why this time will be different.

Then, you have to live up to ‘different’! You have to be better.  You have to get it right. Getting it right earns trust.

Once they trust you, great things will happen. Earn that trust.

Working for Free – Contingent Search Model Changing

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A funny thing happens when the economy is good. Corporate Talent Acquisition pros believe that agency contingent recruiters should work their job openings like its the most important priority the recruiter has ever had.  There are a couple reasons for this:

1. This opening is the most important priority for the Corporate TA pro, so it should be yours.

2. When the economy was bad, you treated the Corporate TA pro like they were your number one priority.

Then the economy gets good, and the agency folks have choices and now as a Corporate TA pro you find out who your real agency recruiting friends are!  Those who will actually come through for you, when you call on them and tell them you have something urgent.

My Corporate TA friends are the ones who pay me.

Don’t take that wrong.  You see this is the game we all play.  You want me to work your opening, but you ‘really’ don’t want to pay me if you don’t have to.  I get it. You get it. It’s the world of contingency recruitment.  I spend most of my time just trying to truly determine who will pay me for the work I do.  Because most of the work I do is for free.

So, now that the economy is good, way too many Corporate TA pro have unreasonable expectations of their agency counterparts. If I’m working for free, mostly, I’m going to be more picky about who I work for free for.  If you have me work five openings, and you then fill all five on your own, I’m probably not working your ‘urgent’ number six. If you have me work three, and I fill one, I’m helping you out. It’s simple economics.

Something new is being added to the game. This happens when times are good for agency recruiters.  There are two types of recruiting on the agency side:

1. Contingent – see above. Basically, I work for free until I find you someone you want to hire, then you pay me.

2. Retained – You pay me my big fee up front, and I work until I find you the person you want to hire.

Traditionally, retained is really only used for executive search, but when talent is hard to come by, you’ll also see it used in the professional ranks.

Recently, I’ve been seeing a new hybrid model of search show up, called Retained Contingent.  Retained contingent is a mix of both models. It’s still a contingent search, but you’re paying me about 10-20% of the fee up front for me to prioritize your search to the top of the workload.

Let’s say you’re searching for an Engineering Manager for $100K, and signed a 25% fee agreement. The total fee upon placement is $25K. In the Retained Contingent model you would pay me $5K to start the search up front, then $20K upon placement guarantee. If I don’t find the person, after a contracted amount of time, the $5K is for my work, no other fee is owed.

This is a win-win for both the Corporate TA pro and the agency, but only if the Corporate TA pro is sure they want to pay for the search.  If that’s the case, I want the benefit of retained focus and prioritization, without the risk of paying the full fee up front and having the firm not come through with a successful hire.

I don’t want to take you cash and then fail. You’ll make sure everyone knows I failed.  But, I also have limited resources and want to focus those resources on the best clients. We both have skin in the game.  That creates a partnership. That creates success.

Just wait. You’ll see a lot more of this over the next five to ten years.  Corporate TA pros are getting smarter, and so are the agency pros.  In the end, both sides want value for their work.

The Jealous Girlfriend Interview Technique!

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About a year ago Forbes had an article, Top Executive Recruiters Agree There Are Only 3 True Job Interview Questions, that shared the “wisdom” of a handful of Executive  Recruiters on the only things that you should really have to ask a candidate.  There 3 questions where:

  1. Can you do the job?
  2. Will you love the job?
  3. Can we tolerate working with you?

Simple enough.  Straight to the point, and you can assume for the $75,000 you’re paying, this is probably the extent of their screening as well!

In my Recruiting/HR career it’s probably the single most often asked question I get:

“What are your best interview questions?”

Then, you get to hear their questions. About how Google has some really great ones. Even, how I heard once about a company that asked people if they were an animal which animal would they be? Or, if you only pick one vegetable to eat the rest of your life, would it be carrots?  It goes on, and on. Until you want to vomit!

The actual interview questions have very little impact in the success of the interview.

If you are interviewing anyone with some decent smarts, they are going to be able to ace your questions with little effort.  What is important in interviewing is what you allow the candidate to get away with.  I find that most recruiters and hiring managers to be way (I mean WAY!) to easy when it comes to questioning candidates.  See if this example sounds familiar:

Interviewer: “John, looks like you left your last next to last company in May, but didn’t start your current position until July. Can you explain that gap?”

John: “Sure, you know I was doing a great job and I didn’t see myself moving up in that company, so I wanted to go find somewhere I could move up the ladder.”

Bam! At this point, most interviewers move on to the next questions.  When clearly, John deflected, and someone needs to rip into some Gestapo interrogation tactics and find out what’s really going on.  But they don’t, it would be a conflict, he might think we are rude, and well, we’ll move on…

Follow-up questions to original answers during an interview is a skill in itself.  The only interview questions you ever need are the questions a Jealous Girlfriend asks when you come home on a Saturday morning around 3am.  Shoot, just hire Jealous Girlfriends as your interviewers! They’ll get to the bottom of a candidates background!

The hardest interview I ever had was with a woman that was eventually my boss, who was a former U.S. Army interrogator. It was exhausting! It was painful! It was Awesome! I actually lost my voice (after the 7th hour – True Story!).

She was the ultimate Jealous Girlfriend, in fact, I think she trains Jealous Girlfriends in her spare time.  There wasn’t an answer I could give her that she was satisfied with. She just kept at it, until I would slip and say something I really didn’t mean to. Once she smelled the blood, it was over.

The result? She hired the best talent (excluding me) in the entire organization by far!  Bad hired did not make it past here interviewing technique.

So, don’t worry about having the “best” interview questions. Really any will do. Just don’t accept the first answer you get!

 

T3- @Hirabl

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This week on T3 I take a look at the specialized staffing vendor software technology called Hirabl.  Hirabl is designed to help staffing companies catch revenue they missed because a client, or potential client, hired one of of the staffing vendors candidates, but never paid the fee. What!?!

Yep, it’s actually a fairly common occurrence in the staffing and talent acquisition game.  It can happen a number of ways. I don’t want my talent acquisition brother and sisters thinking I’m called them cheats.  99.9% of are completely above board, but .1% are sneaky!

Here’s how it all might go down:

An organization is contacted by a staffing company to help on an opening. A good staffing company will insist on a signed contract.  The get the signature and begin working.  The organization decides not to move forward with any of the staffing companies candidates. Both parties go on their way.  This happens a lot in the staffing world.

Fast forward six months down the road and the organization has the same opening.  They post the opening and a candidate comes into their ATS. The same candidate the staffing company presented six months prior.  By contract, that candidate is still ‘owned’ by the staffing firm. The organization hires the candidate, but never thinks about paying the staffing company. The staffing company has moved on and doesn’t even realize you hired their original candidate.  By contract the organization still owes the fee, but it’s rarely collected, because on one comes asking!

Hirabl has technology that goes out and through social profiles and your internal data, finds these circumstances.  You then get an alert, so you can go ‘remind’ the organization you presented the company to that they indeed owe you some money.  Depending on your volume, Hirabl, on average, is finding hundreds of thousands in lost fees.

You need a couple of things to make this successful: 1. Good, signed contracts; 2. Good data for them to search on. Most staffing companies, using a decent ATS, will have the data.  The contract question might be more difficult for some. In my organization we don’t do anything without signed contracts, so we would be good on that front as well.

I wanted to write about this for a couple of reasons. First, I know a lot of staffing folks who read my blog that can use this and get back some lost revenue. Second, I wanted those corporate talent acquisition folks to know that staffing vendors are getting more sophisticated, and some things that you might have gotten away with years ago, will soon be coming to an end.

Be careful signing a staffing contract. Usually, most staffing vendors are going to ‘own’ candidates they submit to you for at least twelve months.  That means if you hire one of those folks, even if that candidate came to you on their own, you contractually are liable for that fee. That’s why you should be signing a ton of contracts.  Find a few good firms. Work with them closely, and you won’t have any surprises.

You can better believe I’ll be trying Hirabl!  We do a ton of volume, and as much as I would like to think no client hired one of our folks, I know we’ll find some where it happened. Stay tuned!

T3 – Talent Tech Tuesday – is a weekly series here at The Project to educate and inform everyone who stops by on a daily/weekly basis on some great recruiting and sourcing technologies that are on the market.  None of the companies who I highlight are paying me for this promotion.  There are so many really cool things going on in the space and I wanted to educate myself and share what I find.  If you want to be on T3 – send me a note.

Hiring Is About To Get Really Difficult!

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One thing was abundantly clear from speakers and thought leaders at SHRM 2015, hiring is hard, and it’s about to get much harder!

That isn’t good news for any of us in HR and Talent Acquisition. There are two forces that are currently happening that are making hiring more difficult than it has been in over ten years:

  1. Solid economy and job growth.
  1. Baby Boomers leaving the workforce.

This isn’t earth shattering information, we all kind of new this was happening.  The issue is we are now all beginning to feel this in every part of the country and in almost every job category.  This means some things are going to happen, and the top HR and Talent Pros are already preparing for these:

  • Wage Growth: CareerBuilder CEO Matt Ferguson spoke at SHRM on Tuesday and had some great data showing that organizations see wage growth of around 5% in 2015, and similar in years to come. Are you budgeting 5% increases? I’m guessing not!
  • Recruitment Process Challenges: How many steps does it take to apply for a job in your organization?  If it’s more than two, you’ve got problems!  Can someone apply for a job online with your organization without having a resume? Why not?  Matt also showed data from CareerBuilder showing 40% of HR and Talent Pros have never applied for one of their own jobs to better understand the true experience!
  • Technology Challenges: Do you have a way to reengage candidates in your system on a regular basis?  A system that allows you to let great talent know, that you already have in your system, when you have an opening that fits them? It’s called CRM, and only about 20% of companies have technology that can do this important recruitment marketing function!
  • Job Design Challenges: Too many of us are working and designing jobs like we are living in a society that was pre-internet, pre-ultra connected. We still think we need employees sitting in front of us from 8-5pm, Monday thru Friday. If they aren’t sitting in front of us, they must not be working! Indeed shared that 80% of job searches on their site include this single word: “Remote”!  Are you adjusting those jobs that can be flexible?

Those organizations that believe they can recruit and get talent like they have been doing for the last couple of decades are going to fail.  It’s really that simple.  Talent attraction will be a powerful strategic differentiator for organizations over the next decade, like almost no other time in our history.

The good news?  At no other point in our history do have access to the information on how to be successful!  Twenty years ago, doing great talent acquisition was mostly trying stuff and getting lucky.  In today’s world you can learn easily how the best organizations are attracting talent at conferences, on websites, in blogs, webinars, etc.  There are so many sources of this information, that we now have no excuse to improve what we are doing.  We just have to do it!

 

Too Small, Too Slow, To Succeed

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Regular readers of this blog know I’m a huge Michigan State fan, and a basketball fan. So, this week, when the Golden State Warriors won the 2015 NBA Finals I was excited.  Not because I’m a big Warriors fan, although I do love their style of plan, but because former Sparty, Draymond Green, is on the Warriors and played his butt off!

Three years ago Draymond was the National Collegiate Player of the year, then he got drafted in the second round.  Normally, a player reaching that level is a for sure lottery pick, but DayDay was told he was too small, too slow, didn’t have enough skill to play in the NBA.  What they didn’t measure was his ability to lead and his heart to win:

CBSSports.com’s Zach Harper captured Green yelling to his mother, Mary Babers-Green, “Mom, they told me I can’t play in this league!”…”That’s what they said,” Green said postgame. “I won the national player of the year award in college. Consensus all-American. I made every single first-team all-American [team] that you could possibly make. And I was a second-round pick and a lot of people said I could never play in this league. Too slow, too small, can’t shoot well enough, can’t defend nobody, what does he do well? He doesn’t have a skill that stands out. I got heart and that’s what stands out.”

Constantly, throughout the playoffs you heard the Warrior players and coaches say that Draymond was the heart and soul of this team.

That’s the secret sauce to hiring.  You need to hire more employees like Draymond Green.

Employees who appreciate the opportunity they’ve been given.  Want to prove to everyone they are better than other think, but confident in their own abilities.  Willing to work harder than almost everyone else to make it happen.

Sounds easy, right!?!

It’s not, it’s almost impossible to find individuals that have those traits and also fit within your culture!  The Warriors got lucky.  Second round picks in the NBA are throw away picks, most of those players never make an NBA roster.  You can get lucky as well.

Most of the traits you are looking for can be screened if you’re looking for them. The problem is we are usually screening for two or three main criteria when looking at candidates: Do you have the skills for the job? Are you willing to accept the salary we have for this job? Are you ‘hickey’ free? If yes to all three, move forward to hiring manager.

This is where we fail. Things like heart and passion and desire are the differentiators that make someone success. You still need to have the skill, but all skills being close, you then need the intangibles.  Too often we choose someone based on their skill was slightly better.  Once you get to a certain point in skill, a little more skill doesn’t make that much of a difference.

At that point you want to look someone who has a chip on their shoulder. Something to prove. To show the world, yes, I can do it.

“Mom, they told me I couldn’t play in this league!”  Said the man holding the championship trophy.

 

T3 – Recruiter Sidekick

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Today on T3 I take a look at the talent acquisition tool Recruiter Sidekick. Recruiter Sidekick helps take care of one of the biggest issue we all face in Talent Acquisition, regardless whether or not you are agency or corporate.  We do a terrible job a mining our own internal databases!

Your internal database in the most underutilized resource that you have.  I could go into most corporate talent acquisition shops and fill 35-40% of their jobs from their own database, without ever having to use another tool to find and source candidates!  How do I know this?  I’ve done it.

This is the primary idea behind how Recruiter Sidekick was developed.  It runs like an extension to your ATS and acts like a referral engine from your own resume database.  It basically looks at every new requisition being put into your ATS and instantly begins searching, based on their own proprietary algorithm, and sends your recruiters a “top 10” list of candidates that most closely match your requisition, that are already in your database.

Think about this concept for a minute.  Two years ago you were hiring for a specialized position in your company.  You presented a number of candidates to your hiring manager.  She interviewed three, and eventually chose the one.  Two more years pass, and you’re growing, or you had someone on your team retire, and now you need to go hire another person in the same role.

Most organizations – like 99% – just do the same thing they’ve always done. They’ll take the new position, input it into their ATS, it will get posted to your career site, maybe a few others, and you’ll begin the process of looking at those candidates who are ‘now’ available.  But, what about those other two candidates two years ago who wanted to come work for you, but someone just beat them out.  Now they have two more years of experience. Maybe one of them is the ‘one’!

In a nutshell, this is what Recruiter Sidekick helps you with.  Recruiter Sidekick doesn’t let you forget you have unmined gold in your own database.  All of this for $10 per month, per recruiter.  It’s a niche piece of software to be sure, but one that almost all of us can use.  Heck! I’m paying an intern right now to just do this, mine our own internal database for talent!

Check them out. For the price you really can’t go wrong!

T3 – Talent Tech Tuesday – is a weekly series here at The Project to educate and inform everyone who stops by on a daily/weekly basis on some great recruiting and sourcing technologies that are on the market.  None of the companies who I highlight are paying me for this promotion.  There are so many really cool things going on in the space and I wanted to educate myself and share what I find.  If you want to be on T3 – send me a note.

The Biggest Lie HR Tells Candidates

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No one ever wants to admit this but it can be really intimidating working with someone who is way smarter and more talented than you.  This is the basis for the biggest lie HR tells candidates.

You are Overqualified!

Truth be told, no one is ever ‘overqualified’ for a position.  You might have more qualifications than the organization needs for the position you are interviewing for, but that really isn’t the issue.  The issue is the person interviewing is scared that you are better than they are.

Back in the day, HR pros and hiring managers were trained to give the excuse to overqualified people that we won’t hire you because you’re overqualified and we are scared that you won’t stay in this position, and you won’t be satisfied.  Yeah, right! It’s not that we don’t want you! You won’t want us, because you’re so talented that you’ll get bored with this position and leave.

It’s such a lie, and yet, for decades we just accepted it as truth.

Being overqualified isn’t a negative, it’s a blessing! Companies should be bending over backwards to get overqualified hires.  We no longer live in a culture where people are going to stay in the job for 40 years. If you can get a good 3 to 4 years out of hire, you’re doing great.

Take the best most qualified person you can get for every position you have in your organization and let them do great things. Being worried the person will won’t be ‘engaged’ long term is silly.  That’s not for you to worry. Hire great talent and get out of their way.

The bigger reality we face in most organizations is we aren’t hiring ‘overqualified’ people because your hiring managers are intimidated to hire someone who is better, or who could become better than they are.  This is the mentality we must change in our organizations.  You can’t get better if you don’t hire better.  Hiring under the level of talent you have now is a slow slide to becoming an organization no one wants to work for.

T3 – @ZipRecruiter

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This week on T3 I take a look at the Talent Acquisition technology ZipRecruiter.  Unless you’ve been living under a rock the past year, you couldn’t have missed the media and marketing blitz ZipRecruiter has been putting on.  You can’t turn on the radio without hearing one of their ads, so I was intrigued to find out who and what they actually were!

ZipRecruiter is an online job distribution and job board service. The web-based platform aggregates applications from job boards and provides tools for applicant tracking and screening. It is a subscription-based SaaS for employers, recruiting firms, and staffing agencies. They have about 5.2 million resumes in their database. They also have a new product called ZipHire which helps you onboard candidates.  When you post your jobs they go out to over hundred free sites, and you have options to buying up for pay sites like Monster and Careerbuilder at a reduced rate.

For all intensive purposes ZipRecruiter/Hire can act as your ATS and System of Record.  It’s not as functional as those designed to be that, but their goal isn’t to be an enterprise level system. Their goal is to give SMB clients similar technology that the Fortune 500s are getting to play with at a greatly reduced cost, and they seem to be doing it! This is a technology designed to be used by smaller and medium sized shops for folks who might not be as technology savvy as large HR shops. Easy to use. Easy to get started.

5 Things I really like about ZipRecruiter: 

1. Zip is not shy about saying this is who we are, and this is who we aren’t. They do really well with high volume hiring jobs – service level, call centers, skilled trades, etc. They’re inexpensive to use and get your jobs out on the web to hundreds of locations and drive traffic to your postings.

2.  InstaMatch technology which automatically shows the user which candidates within their database is the closest match to their opening. For big shops this is a no brainer, for small shops this is a pretty cool function.

3. Interview type pre-screen filter questions.  For those who don’t have an ATS or don’t have this functionality within their ATS this is another great feature most SMB HR shops don’t have.

4. You can have multiple companies, divisions, locations, etc. all under one account.  Your corporate office can set the account up, then you can allow all of your locations to run their own postings, but it all roles up to the corporate account giving you visibility of who is using it and how it’s going.

5. Zip has a Job Widget you can put right onto your careers page, so people can applying directly to your jobs on Zip from your career site. Again, many SMB companies don’t even have technology to post jobs on their career site/page and this makes it super easy for them to do so.

ZipRecruiter is growing extremely fast and has hundreds of thousands of companies using them, so they are proven to work. The feedback I’m hearing in the industry is that for the price their users are extremely happy with what they are getting, especially on the non-technical/professional level job postings.

Check them out, they are pretty inexpensive and set up under a Saas pricing model where you pay monthly based on how many job you want to post on Zip.  This can also be changed month to month. One month you need to post ten jobs, but the next six months you only need a couple, Zip allows you to flex your plans to meet your needs. Their prices are public, free trial to start, but for posting 1-3 jobs you’ll pay $99 per month.  If you have high volume lower end jobs you almost have to try it for that price!

T3 – Talent Tech Tuesday – is a weekly series here at The Project to educate and inform everyone who stops by on a daily/weekly basis on some great recruiting and sourcing technologies that are on the market.  None of the companies who I highlight are paying me for this promotion.  There are so many really cool things going on in the space and I wanted to educate myself and share what I find.  If you want to be on T3 – send me a note.