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The Return of Recruiters - SHRM
The Return of Recruiters
Will staffing professionals be the first or last to be hired as the economy recovers?

Amid accumulating signs that the Great Recession is moderating, companies that believe their core business is improving may begin to restore the employee positions they shed over the last several months.

Has the hiring begun? More to the point, are these companies building up their depleted cadres of staffing professionals in anticipation of employee hiring? Could the hiring of recruiters be, in the terminology of The Conference Board’s monthly national report, a leading economic indicator?

Experts’ opinions vary, but taken together their answers present a vision of workplace recruiting operations after the recession that will be quite different from the staffing models of a few years ago.


Help Wanted?

Angie Salmon, senior vice president of the executive recruiting firm EFL Associates in Leawood, Kan., says some organizations are starting to hire "because they feel more confident about the market and their businesses."

A recent survey by recruitment consulting company DoubleStar of West Chester, Pa., bears this out. Asked late last year whether they planned to increase hiring activity in the first quarter of 2010, 27 percent of respondents—representing organizations in the Mid-Atlantic states—said yes. This represented "a pretty good bump" over the 13 percent who indicated such plans for the fourth quarter of 2009, according to CEO Harry Griendling.

And the Society for Human Resource Management’s latest Leading Indicators of National Employment (LINE) report, released in March, revealed that hiring was up on an annual basis for the fifth straight month. The percentage of companies hiring in manufacturing will reach a level not seen since June 2008, according to the report, and the percentage of companies hiring in the service sector is the highest since July 2007. The LINE report is based on a monthly survey of private-sector HR professionals at more than 500 manufacturing and 500 service-sector companies.

Mitch Beck, president of Crossroads Consulting in Monroe, Conn., has seen hiring pick up but notes that some companies are keeping quiet about it. "What I’m finding is that more companies are starting to hire back but don’t want people to know they’re hiring back, because they don’t want to get inundated" with applications, he says.

Not everyone is optimistic, however, that economic recovery will translate into more jobs. Scott Craighead, general manager, Americas, of Bluesky Executive Search in Fairfield, Conn., says that, in general, "Economic recovery has occurred without hiring increases, as companies have focused on staff cuts to yield profits."

Even if they aren’t cutting staff, companies may not be bringing new hires on board. For example, "Smaller hedge funds that need to hire are standing on the sidelines," says Ev Nucci, owner of Nucci Consulting Group of Gwynedd Valley, Pa., a retained search firm serving the hard-hit asset management industry. "A friend of mine who owns a hedge fund needs four or five people but is holding off" because of concerns about the economy, she explains.

Still, companies with skeleton crews can’t operate that way much longer, says executive search consultant Kevin Palisi of Norwalk, Conn. "You’re going to see more hiring because [companies] can’t squeeze any more blood out of the [surviving] workforce, from a productivity standpoint."


Leading or Lagging Indicator?

"This recession has decimated HR departments and, along with it, recruiting departments," Griendling observes.

Are reinforcements on the way?

Those who think companies plan to increase overall hiring in the near term believe so. For example, Mark Mehler, principal of CareerXroads, a staffing strategy consultancy in Kendall Park, N.J., says certain online companies "are hiring in volume." Those companies—and others wishing to add to employment rolls—must first hire recruiters, he explains, noting that "Recruiting is a bellwether for the economy."

Palisi also believes that organizations "are interested in bringing in recruiters in the near term, the anticipation being they will hire more staff in 2010." He adds that companies "need to hire recruiters six months ahead of the curve."

Others say companies will continue to make do with the resources they have on hand for a while and that an increase in recruiter hiring could actually be a lagging indicator of recovery.

"Usually the first person to get fired and last person to get hired back in a recession is the recruiter," says Dan Finnigan, CEO of Jobvite, a Burlingame, Calif.-based marketer of technology for recruiting via online social networks. "Many companies will actually not hire recruiters right away and be forced to recruit with a smaller recruiting team."

He cites a client—an online retailer—that hired 60 employees in six months during 2009. "They tripled [the workforce] and did it with one recruiter," he says.

Griendling notes that after a recession, companies tend to test the waters by hiring temporary workers as opposed to regular full- or part-time employees. And, in fact, the U.S. Bureau of Labor Statistics reported that 284,000 temporary-help jobs have been added nationwide since September 2009, including 48,000 in February. According to Griendling, it isn’t until later in a recovery, when companies start hiring non-temporary workers, that recruiters are brought on board.

Lisa Rowan, program director, HR, learning and talent strategies, for advisory services provider IDC in Framingham, Mass., expects hiring of temporary workers "to come up further before we see any surge in permanent employment."


Get in Line

Companies looking to grow their workforces may turn to transitional help, such as staffing agencies and freelancers, before hiring recruiters.

As piles of resumes roll into their headquarters, companies find it "easier to inundate an outside recruiter" such as an agency, according to Beck.

Staffing firms and consulting firms confirm the trend. Tracy Cutone, partner and general manager, Human Resources Divisions, of the staffing firm Winter, Wyman Cos. in Waltham, Mass., says demand for contract recruiters from its clients was up more than 85 percent between the third and fourth quarters of 2009.

Griendling adds that his company, DoubleStar, was hired by four new clients in a recent 60-day period, and it has its "largest new business pipeline in the last year and a half."

Freelancers may be in line ahead of staff recruiters, too. "Small to mid-size firms are bringing the search function in-house [by] hiring ex-search consultants to be their in-house recruiter on a contract basis," Nucci says.


A New Model

Another strategy being used as companies try to do more with less: Many are asking hiring managers and employees to take on more staffing responsibilities. Some experts believe this trend could continue for some time, so even after some semblance of a professional recruiting operation is restored, veteran staffing professionals may not recognize it.

"The hiring manager will no longer just be the end of the road for hiring decisions, but also the person identifying talent," Finnigan says.

"Hiring managers, although not experts in recruiting, will be forced to be," Salmon agrees.

Also taking on more recruiting tasks, according to Salmon, are ordinary employees in other departments. "Responsibility for recruiting has been pushed out into the organization," she says.

Finnigan calls it a whole-company approach to recruitment. "Employees will be called upon to make referrals and publicize jobs. Even executives will need to be on the front lines. … Referral hiring is the nirvana of recruiting," but it’s not easy. So, he says, companies are asking employees to tap into their personal online social networks. Instead of posting and advertising job listings, businesses are seeing if they can get their first round of applicants through referrals.

What is lost with this strategy, Salmon notes, "is the expertise in recruiting, particularly the recruiting of passive candidates" by staffing experts who have built their own, focused networks and developed the skills to manipulate them efficiently.

Using professional recruiters is still "the best way to find the right people," Salmon says.


Recruiting Recruiters, Finally

Eventually, organizations will become too lean. "Once it gets to that point, companies are going to realize that their people are working 24/7 and are maxed out on productivity," Craighead says. "When people scream and say, ‘I can’t take it anymore,’ they will have to hire."

He adds, however, that businesses are unlikely to rehire experienced recruiters back to pre-recession levels. "Companies will act cautiously in rehiring them," he says.

Finnigan concludes that companies are going to hire recruiters eventually, but not until after a lot of other things happen. "When you see that spike, you’ll know we’re in a recovery," he says.

In recovery, Finnigan predicts, the recession will leave a sharpened emphasis on the bottom line. "Before companies are going to build up recruiting staffs, they’re going to ask for the [return on investment] in doing so. … Before HR will get approval to hire more recruiters, they will have to answer the question, how much money must we spend?"

______________________________________

Steve Taylor’s most recent article for Staffing Management magazine, “Sometimes More Is More,” appeared in the October-December 2009 issue.
______________________________________

Reprinted with permission from the Society of Human Resource Management (SHRM) for inclusion July 15 - September 15, 2010. Taylor, Steve. "The Return of Recruiters". May 5, 2010. Accessed online at http://www.shrm.org/Publications/StaffingManagementMagazine/EditorialContent/Pages/0410taylor.aspx on July 15, 2010.

How to Recruit Passive Candidates and Early Birds


Author: Lou Adler | Lou Adler | ERE Articles
Date: C
Views: 2

h6520piMaximizing your use of time is the key to hiring more top performers. In a recent webinar with Jobs2Web, I described the sourcing sweet-spot. This is the point just before and just after a fully employed person decides to consider looking for another position. This time-frame represents the window of opportunity to hire the best passive candidates and early-birds with less effort and salary premiums than any other point.


If you get to these top people first, you'll have no competition, and they'll be much easier to recruit since they've already made the decision to pursue a new job. However, it's what you do when you first connect that will determine whether you're successful or not in hiring them. This involves a number of critical recruiting key skills. These are described below.


If you're a recruiting manager, evaluate your current crop of recruiters and any new hires to determine whether they have these skills or the ability to learn them. If you're a recruiter and you want to hire more top performers, you need to be exceptional in these areas. As you'll see, hiring top performers without paying unnecessary compensation premiums requires great recruiters, great opportunities, and great hiring managers. Without these, it just becomes a numbers game. But as Chicken Little, or some other similar authority, once said, "the early bird catches the worm, as long as you have a good fishing pole."


Passive candidates and those just entering the job market — the early-birds — are a different breed of prospect. For one thing, they're not desperate. This changes the game entirely from those who have been looking for more extended periods of time. More important, if they're good, they'll be very choosy and they will get multiple offers. But since you're first, and if you play your cards well, you should be able to reel in these top performers in greater numbers than those recruiters who find them after you do. In this case, your competition has to play catch-up. This is a great position to be in. But to pull it off you have to be an exceptional recruiter. Here are the key recruiting skills needed to turn these top candidates and prospects into great hires.


Recruiting Skills Required to Turn Hot Prospects Into Great Employees



  1. You must be able to walk very slowly, not run. People who are fully employed and very strong always have options, even when you get to them first. Most important, they will not move fast. They want to evaluate the situation and compare it to others that will come along. They will give more value to the long-term career growth opportunities than the short-term issues. Good recruiters know they must move slowly, not selling the job, but selling the idea of a staged series of steps where information is mutually shared, all leading toward the best career move among competing alternatives. Moving too fast is a turn-off. It's equivalent to making a passive candidate complete an application before you talk to the person.

  2. You must be able to instantly convert your job into a career move. Passive candidates and early-birds don't need another job; they want a better job, generally some type of significant career move. If you don't know the job at a detailed level, you'll sound like a used-car salesman selling smoke and mirrors. Knowing the job allows you to ask a few questions early in your conversation to see if there are any gaps or voids in the person's background that your job fills. If you can fill enough of them, your job becomes a career move. For example, if the budget or team the person has managed in the past isn't as big as your opening, you have a tremendous chance to excite the hot prospect. Doing this with flair, sophistication, and aplomb is essential, but it all starts by preparing a performance profile with the hiring manager. Without this, assume you won't be hiring too many great people.

  3. You must have exceptional verbal and written skills. Top people need to see the recruiter they're using to advise them as someone credible. This means you need to speak well, have a complete understanding of the job (the performance profile), your company, and your industry including the competition. This includes preparing well-written emails and professional advertising copy. If you're not comfortable speaking to people you don't know who are more senior to you organizationally, you'll not be able to influence them to consider what you have to offer.

  4. You must understand human behavior. Candidates' job requirements change depending on how long they've been looking and how desperate they are. You need to find this out right away. If a candidate is not looking, but open-minded, or has just started looking, you need to recognize that the person wants career-oriented information, not detailed job specific information. I wrote a few articles on Maslow a while back that provide some insight on how to adjust what you say and what you do based on where the person is in their job-hunting process. If you don't modify your approach with this in mind, it's comparable to selling a hammer to a plumber, or a laptop to someone who wants a smart phone.

  5. You must be a partner with your hiring manager client. Good hiring managers — those who can attract and hire strong people to work for them — are an essential element in hiring more talented people. Good recruiters come next. Eliminating job descriptions is number three on the prerequisite list. Four is recruiters and managers working together, both having a completing understanding of real job needs, trusting each other to accurately assess candidates and jointly working through the recruiting process. If you don't have all of these elements in place, you won't be able to hire stronger people unless you have a great brand, an excess supply of top talent, and a willingness to spend more than necessary to convince people to accept your offers.

  6. You must break some rules. If you want to hire top performers who you've found in the sourcing sweet-spot, expect to break from tradition and aggravate some people. For one thing, ignore the job description. For another, ask for forgiveness, not permission, from the comp department. Top people are not part of the average population. They make more money, have less experience, and won't play by the rules. So you can't either, if you want to hire them. If you're uncomfortable with this, you need to only handle candidates who have responded to your ads. You won't find many top people this way, but you'll sleep better at night.

  7. You must get the candidate to sell you. Selling isn't recruiting. Paying salary premiums isn't either, or playing hard-to-get with a person who's desperate. Anyone can do this. Presenting a career move in a persuasive manner in order to get a top person who's fully employed and/or has multiple offers excited enough to tell you why he or she is a perfect fit is recruiting. Being able to pull this off is the key to hiring more top performers. It requires that you know the job, use the interview to look for career gaps, and ask respectful, but challenging questions, that encourage candidates to present in-depth insight into what they've accomplished. By staying the buyer this way, you're able to establish and maintain applicant control.

  8. You must determine if you're interested in the prospect, not the other way around. Most recruiters waste so much time calling up top people — both active and passive — making a bumbling pitch about a job opening, hoping for a statement of interest from the prospect. If not, they move to the next name on the list. If the person says yes, they then qualify the person and hope the person is reasonably good enough to send to the hiring manager for an interview. This is a very low yield and time-consuming process. By presenting your opening as a career move, you'll be able to get the candidate to describe his/her background before you give too many details. Done properly, you'll be in a position to determine if you're interested in the candidate for the opening, rather than the candidate making this decision. This is one of a number of critical steps involved in maintaining applicant control.


You know you're getting better at maximizing the use of time when top prospects tell you they just started looking or are not looking. If you're determining interest, you can either then decide to move forward at a slow-but-steady pace, or obtain two to three great referrals if you decide they're not qualified. Since you're a partner with your hiring manager clients, 100% of your candidates will get interviewed. Since managers are using performance profiles, not job descriptions, to determine competency and fit, fewer candidates will be excluded for bad reasons or superficial interviews. Since you're offering career moves, rather than non-descript jobs, fewer candidates will voluntarily opt-out of the process along the way.


On top of this, with a career move as the focus, fewer candidates will be screened out at the beginning and fewer offers will be rejected due to monetary reasons. Collectively, this is how you hire twice as many top performers in half the time. Of course, these are rules you must not break.


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