The 10% Question

Can You Reduce Agency Fees

A recent questioner on www.ere.net posed an interesting question. After identifying advertising and recruiting firms as their major sources of referrals, they asked whether they might benefit by reducing fees from 25% or 29% to 10%, This question surfaces from time to time but it surprised me given the strong labor market where firms are having difficulty finding people.

Of course you a company can lower fees. . . but you will need to lower your expectations.

Let me ask this:

Do you expect to receive the same attention to detail?

Do you expect to receive the same level of serice.

Do you expect to get as many targeted referrals?

Do you expect to work with someone as experienced?

There are a lot more questions I could pose, but these are basic questions. If you answer yes to any of these questions, you're being unrealistic.

Why?

An experienced search professional invests a lot of time and resources and effort to complete a search. Why should they work for a half or a third of what they could earn in the current climate (a hot market with labor shortages)?

And the successful recruiter wants to be paid for their efforts and experience, just as your company does.

Let me pose this question--If your company is approached today about selling its product or service for a half or a third of what it charges, would it sell it and support it for that?

Why should a recruiter do that unless they were selling you the best of what was left after they sold it to their normal paying clients? To say it another way, they will send their best applicants to the company that will pay them a normal fee. After all, if you referred someone who is hired at a $100000 salary, don’t you think they want to $20000, $250000 or $30000 instead of $10000?

But, I’ll offer them volume and exclusivity!

Experience says that isn’t the case and that you’ll expect them to work as hard as they do now for their higher fee.

The fact is, I know search firms who accept a flat fee of $3500 per hire for a generic staff person . . . and the experience is very generic and they require very little effort or pre-screening.

Jeff Altman
The Big Game Hunter
Concepts in Staffing
jeffaltman@cisny.com

© 2006 all rights reserved.

Jeff Altman, The Big Game Hunter, is Managing Director with Concepts in Staffing, a New York search firm, He has successfully assisted many corporations identify management leaders and staff in technology, accounting, finance, sales, marketing and other disciplines since 1971. He is a certified leader of the ManKind Project, a not for profit organization that assists men with life issues, and a practicing psychotherapist..

To learn more about his search services for employers, go to www.thebiggamehunter.net

To subscribe to Jeff’s free job search ezine, Head Hunt Your Next Job, go to www.headhuntyournextjob.com. To receive a daily digest of positions emailed to you or search for openings, go to http://www.jeffaltman.com. For information about personal search services, go to www.vippersonalsearch.com.

If you would like Jeff and his firm to assist you with hiring staff, or if you would like help with a strategic job change, send an email to him at jeffaltman@cisny.com (If you’re looking for a new position, include your resume).

What's Your Website Like?

I have looked at a lot of corporate websites over the years and found that they help me a lot because they generally do a poor job of representing firma and opportunities.

I have found listings out of date.

Cumbersome to navigate

Do nothing to present what it's like to work at the firm

Are inconsistent wigth the firm's marketing message

Do nothing to sell.

Don't treat the reader as a customer.

A recent article on ere.net, College Graduates Criticize Outdated Career Websites, focused on the experience of college graduates.

Let me add one more issue:

Who receives the responses anyway and how are they handled? Too many organizations put responses into the hands of administrative assistants or the least experienced recruiter to discern value--and often they aren't experienced enough to actually decide.

Jeff Altman

The Big Game Hunter
Concepts in Staffing
jeffaltman@cisny.com

© 2006 all rights reserved.

Jeff Altman, The Big Game Hunter, is Managing Director with Concepts in Staffing, a New York search firm, He has successfully assisted many corporations identify management leaders and staff in technology, accounting, finance, sales, marketing and other disciplines since 1971. He is a certified leader of the ManKind Project, a not for profit organization that assists men with life issues, and a practicing psychotherapist.

If you would like Jeff and his firm to assist you with hiring staff, or if you would like help with a strategic job change, send an email to him at jeffaltman@cisny.com (If you’re looking for a new position, include your resume).

The Prime Directive

Does Your Company’s HR Function Lead or Fail to Lead?

The July 17 issue of Businessweek carried a terrific column from Jack and Suzy Welsh entitled, “So Many CEO’s Get This Wrong” that describes how HR should function and the mistakes that corporate HR makes.

Responding to a question that points out the HR is often felt in a negative way vs. The Welsh’s claim that it is the most powerful part of any organization, they acknowledge that HR is often marginalized in organizations into the people who issue the newsletter, plan the company picnic or, at the other extreme, “the cloak-and-dagger society.”

They then call for HR to be “the killer app” within a company but acknowledge it seldom is, laying the blame squarely upon the CEO who does not put HR at the table the same way as the CFO.

They recount a story of speaking to 5000 HR executives in Mexico City and asking how many of their organizations were on the same footing as the CFO and getting fewer than 50 hands to go up. They then ask whether the Boston Red Sox would be better run by the CFO or the Director of Player Personnel (as a Yankee fan, I encourage the Red Sox to try the Welsh’s suggestion and report back in a decade or two).

So what do they suggest?

Part pastor (who can hear all sins and complaints without recrimination) and part parent (loving and caring but giving it to you straight when you get off track), they are men and women with stature and substance.

Their job is not to make people warm and fuzzy. The job is to create ways to motivate and retain people; they create review and appraisal systems that let’s people know where they stand and monitor it with the rigor that is invested in SOX compliance. Third of all, they need to be able to confront charged relationships like those with unions, people no longer delivering the goods, or those with egos as large as all outdoors but who have stopped growing.

They exhort CEO’s to elevate HR to the same level of professionalism as is expected of their CFO’s while acknowledging that few organizations are currently pointed in this direction. They ask, “. Since people are the whole game, what could be more important?”

So, what’s the focus of your work? Is it attracting and retaining great people? What are you doing to put systems in place that motivate, inspire and reward (yes, reward) talent. You know, the people you say are at the crux of the organization and its achievements and success.

And what are you doing to support people when they stop growing or stop performing. How do you get them on track or get them out?

Jeff Altman
The Big Game Hunter
Concepts in Staffing
jeffaltman@cisny.com

© 2006 all rights reserved.

Jeff Altman, The Big Game Hunter, is Managing Director with Concepts in Staffing, a New York search firm, He has successfully assisted many corporations identify management leaders and staff in technology, accounting, finance, sales, marketing and other disciplines since 1971. He is a certified leader of the ManKind Project, a not for profit organization that assists men with life issues, and a practicing psychotherapist.

To subscribe to Jeff’s free job search ezine, Head Hunt Your Next Job, or receive a daily digest of positions emailed to you, go to http://www.jeffaltman.com

If you would like Jeff and his firm to assist you with hiring staff, or if you would like help with a strategic job change, send an email to him at jeffaltman@cisny.com (If you’re looking for a new position, include your resume).

Look around. Half your tech staff might be leaving

According to a survey commissioned by Spherion and published by InformationWeek http://www.informationweek.com/showArticle.jhtml;jsessionid=I402CMM3J25ZEQSNDLPCKH0CJUNN2JVN?articleID=188700321
more than half the IT professionals surveyed were planning on looking for work.

According to a survey done by InformationWeek Research, 41% of IT staff and 37% of IT managers admitted to be currently "somewhat" or "actively" looking for a new job.