client-focused search: elevate your insight, influence, and income

WELCOME

Presented by

Recruiting Best Practices Online | Just-‐In-‐Time | Customized

Jeff Kaye President & CEO

Client Focused Search™

Karen Schmidt Managing Partner

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•  Originally 100% applicant-‐paid •  Employer-‐paid fees emerged and two paths began to form:

Retained Search:

v  Positives: Professional, thorough, consultative, and knowledgeable

v  Negatives: Lengthy processes, no or low performance requirements, high fees and expenses, and only senior level

Contingency Recruiting:

v  Positives: Fast, specialists, results based, and multi-‐level

v  Negatives: Transactional, greater ethical issues, less expertise, and negative image of flesh peddlers

HISTORY OF SEARCH www.nextlevelexchange.com

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•  Die was cast and the lines were drawn: v  Contingency = low levels v  Retained = more senior levels

•  Why is it not the urgency and critical nature of the position more important?

•  Why are search firms classified on the basis of our fee structures? This is not true in legal, CPA, consulting, etc.


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•  In the competitive landscape we live in and with those experiences behind us, companies more than ever are most concerned with results and performance, with cost a close second.

v  Quality, timeliness, and cost •  The lines of Retained, Contingency, Container, Retingency, etc.

continue to blur. •  Companies seek client-‐focused search firms which necessitates

organizations that can work in a variety of ways, each reflecting the specific needs and circumstances of that client for a specific search.


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When best for a client: •  Client already has many viable candidates but wants to make

sure they hire the best individual •  Client not committed enough to warrant a full search •  Opening only for an MPC, or if it is an easier agreement to

execute in order to expedite a conversation with your candidate

•  Need is less urgent and critical •  You can’t, and won’t, dedicate sufficient time •  Blockage issues will hurt client (high volume of hires needed,

and need multiple firms in order to manage the volume of hires

CONTINGENCY RECRUITING www.nextlevelexchange.com

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When best for a client: •  Need is urgent and critical •  Wants extensive coverage of market •  Want to ensure a truly consultative approach

•  Want someone accountable who is an expert in search and their market (era of knowledge)

•  Need lots of documentation or market research performed •  They want to compare outside candidates to their internal ones,

but want all vested interests removed The client understands they are paying you for the conducting of a search as a

management consulting function that may or may not result in a hire. The payment at end or even on short list assumes results required, and this becomes a contingent payment and thus performance based and no longer fully retained.

RETAINED SEARCH www.nextlevelexchange.com

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The world in between the bookends of “pay me when the candidate shows up” and “pay me regardless of any results”: •  Dedicated Search, Container, Retingency, Priority, etc.

(Hybrids all have a mutual risk and performance module) •  The first payment is due upon the initiation of this

agreement and additional payments will be due upon the achievement of specific performance milestones.

•  What are those milestones? (You are now negotiating terms but have agreed to a financially committed/dedicated search!)

FINANCIALLY COMMITTED SEARCH www.nextlevelexchange.com

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FINANCIALLY COMMITTED SEARCH www.nextlevelexchange.com

When best for a client: •  Need is urgent and critical •  Need to ensure that someone is held accountable to fully

covering the market on their behalf •  Perhaps have had bad experiences with past recruiters,

and would prefer performance milestones be put in place •  Because of the shared risk, they may receive more

favorable contractual terms •  Tremendous amount of “free press” when their story is

told in the marketplace

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When best for a client: •  Multiple needs for the same position •  Wants you in the marketplace on a proactive basis but

not for any specific need •  Client is okay with financial commitment but does not

want to commit on a specific search and it is for a legitimate reason

•  Client wants market feedback in addition to search (weekly or monthly summaries or market analytics)

•  Client can authorize consulting fee but not retainer

CONSULTING AGREEMENT www.nextlevelexchange.com

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What it can look like: •  Go into the market and search for X, contact (___ #) of

people doing what you want done •  Present anyone interested •  Provide monthly progress report of position/company

called and categorized feedback •  All candidates hired on a contingent agreement and apply

all or most of payments against fee

CONSULTING AGREEMENT www.nextlevelexchange.com

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When best for a client: •  Expedite delivery of service •  Expand array of services offered •  Enhance quality of service •  Lower cost of service

ANNUALIZED AGREEMENTS www.nextlevelexchange.com

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What it can look like: •  Instead, pay us 12 monthly payments of $20,000 each or $240,000

total (all comp is >$80,000 – 25%) •  Going to hire 30 people, give us 12. Each search is $24,000 x 12 or

$288,000 ($80,000 compensation) •  Instead, pay us 12 monthly payments of $20,000 each or $240,000

total (all comp is >$80,000 – 25%) •  Lowered fee 5% and saved $48,000 •  Extend replacement to 6 months or 1 year prorated (enhance)

•  Offer additional services (expand) •  Dedicate full time resources to account (expedite) •  This is gateway to Recruitment Process Outsourcing

ANNUALIZED AGREEMENTS www.nextlevelexchange.com

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One opening for Client’s urgent

and critical need

Identify, attract, evaluate, land, and help retain

1 hired

3 interviewed

Presented 4-‐5

Which would you choose without any reference to agreement terms? Risk and fear? (solve through education)

Multiple openings

w/ multiple clients

SINALOA

Agent of

Candidate *Then another candidate to same places and so on

Recruit from a large pool

FROM CLIENT VIEW www.nextlevelexchange.com

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FROM OUR VIEW www.nextlevelexchange.com

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•  Educating the Client •  We have identified three areas that best illustrate the

differences between dedicated search and contingency recruiting

•  These areas are search process, style of relationship, and contractual terms

•  Rarely will you have that much time to educate the client of the process, relationship, and terms differences between a contingent and dedicated approach. So recruiters must master these differences, and fuse qualifying questions into the needs analysis profile to ensure an appropriate professional recommendation

CLIENT FOCUSED SEARCH www.nextlevelexchange.com

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Area of Focus Dedicated Contingency1. Candidate

Identification

• All candidates, regardless of source, put through homogenous screen with the recruiter acting as the filter and exclusiv ely directing the search

2. Screening • Potentially presenting some candidates as quick as possible with client bearing responsibility to direct ov erall search and handle various source contacts

3. Presentation of Candidates

4. Search Updates

5. Interviewing

6. Negotiations

7. Resignation, Counteroffer/ Follow-up

• Mutual commitment to achievement of target dates for these various steps with shared accountability

Commitment • The steps occur as needed when candidate is identified and accountability is 100% with hiring manager

• Thorough, constant, continuous search with myopic focus, a dedicated search utilizing a variety of resources to identify, attract and hire the best possible talent for the client

Summary • Less urgent and critical needs without commitment or obligation on either party, solely an “if you happen to find it, then we will pay ”mindset

• Customized search plan with a comprehensive and continuous search until project is completed

• Contacting existing network of candidates previously recruited, then keeping “eyes open”

1. VISUAL PROCESS – DIFFERENCES OF FINANCIALLY COMMITTED SEARCH (DEDICATED) VS. CONTINGENCY

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•  Market Mastery Process Questions: 1.  How many companies have this role? 2.  How many, on average, at each? 3.  How many in your compensation range willing to relocate to, or currently in, your city? 4.  If search has been open ______ business days, and only _____ people, and a recruiter

can talk with _____ a day, why hasn’t everyone been contacted? •  Have you ever experienced the Start/Stop phenomenon? (A flood of resumes at the

beginning and then it tapers off…the horserace vs. truly searching and getting you the best.) Why do you think that is?

•  Do you know how many candidates were contacted about the opportunity? Do you know what their response was?

•  How do you know that you will have hired the best possible qualified candidate vs. a possible qualified candidate? (MJ)

•  How important is it to know that all potential candidates were called about your opportunity?

•  How much time a day is being specifically dedicated to your search? •  How much of the market do you think has been penetrated at this point and time?

CANDIDATE IDENTIFICATION QUESTIONS www.nextlevelexchange.com

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•  How vital is it that a recruiter thoroughly qualify candidate’s qualifications and interests before presenting them to you?

•  Have you ever had two firms present the same candidate? How did you handle it and which referral did you recognize? (Horserace)

•  How often do recruiters present people where issues, that would have prevented you from considering the candidate otherwise, arise after you have already exhausted time and resources on the interview?

CANDIDATE SCREENING QUESTIONS www.nextlevelexchange.com

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1. Label

2. Operating Framework

3. Candidate Perception

• Recruit openly with objective to widen the “recruiting net”and serve as “PR” for firm

4. Recruiting Approach

• Recruit solely in confidence to prevent other candidates from calling directly

5. Presentation of Candidates

Area of Focus Dedicated Contingency

• Truly understand culture as it relates to need for appropriate personality profiles and match on appropriate quantifiable qualifications

7. Search Consultant Understanding of Need

• Utilize job description to match candidates with appropriate skills

6. Search Consultant Advice

2. RELATIONSHIP – DIFFERENCES OF FINANCIALLY COMMITTED SEARCH (DEDICATED) VS. CONTINGENCY

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•  When you yourself have been contacted by recruiters, have they mentioned the company’s name to you? Why do you think that is?

•  How do you feel when the recruiter wants to know everything about you (housing, family, career, etc.) but won’t disclose something as simple as the name of the company they are presenting to you?

•  Do you feel that you would be presented with more viable candidates if candidates knew the company they were being contacted about in the initial call?

RECRUITING APPROACH QUESTIONS www.nextlevelexchange.com

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1. The Cost

2. Time Allocation

Area of Focus Dedicated Contingency

• Clients are given a right of first refusal on candidates, once a candidate is interviewed, he/she will not be presented to a competing organization until client has determined that there is no interest in pursuing the relationship (within specific time frame)

3. Competition • Candidates can be presented to any organization looking for a similar person and potential competition for candidate could ensue

4. Accountability of Hire: Replacement Guarantee

5. Performance Guarantee

6. Search Tools and Procedures

3. TERMS – DIFFERENCES OF FINANCIALLY COMMITTED SEARCH (DEDICATED) VS. CONTINGENCY

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•  Have you often found yourself competing with other companies for the same candidate?

•  How would you feel about the possibility that the candidates being recruited for your opportunity are being presented to your competitors simultaneously?

•  Have you ever experienced recruiters that seem to represent candidates more than you? How do you feel about that?

COMPETITION QUESTIONS www.nextlevelexchange.com

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•  The professional recommendation can be a combination of what you have scripted and what you modify based on what you have picked up.

•  It is in the Professional Recommendation that you weave your findings together from the search assignment.

•  Based on the information you shared, I would like to make a professional recommendation regarding our service charge

Sample professional recommendation:

Intro: Based on what you want, I feel confident in my ability to fill this search in a timely manner with an excellent candidate. (I have no doubt we can knock this out in short order and get you a superstar.)

PROFESSIONAL RECOMMENDATION www.nextlevelexchange.com

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To do this: My professional recommendation is to initiate a dedicated search where I will create an extensive search plan customized for this search (process: identification) to ensure that we don’t simply fill your position with a qualified candidate but to identify, evaluate, attract, and secure the very best talent available in a timely, yet thorough (process: screening), manner. I will offer you a right of refusal where I will not present candidates recruited for you to any other company until you have made a decision on each candidate. (terms: competition) I will create a straightforward and compelling presentation about your opportunity and deliver it openly to every possible candidate in hopes of widening our net spreading the positive story about you, your department, your company, and this opportunity. (relationship: recruiting approach) The service charge for this search will be based on 35% / one-‐third of the candidate’s estimated first year’s compensation. The service charge will be divided into three installments based on the achievement of specific performance milestones. The first installment of one third of the estimated service charge will be due upon the submission of the search plan and position presentation. A second installment of one-‐third of the estimated service charge will be due upon your agreement to interview a minimum of two candidates for the position. The final installment will be due upon the completion of the search and will be adjusted to reflect the final compensation offered. What needs to happen to initiate this agreement and commence our search efforts? (Installments can be customized)

PROFESSIONAL RECOMMENDATION www.nextlevelexchange.com

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•  Gives you a real assessment of client’s orientation and can more appropriately allocate time. Much time is spent covering the assignment: what the client needs and what he/she can offer. An equal amount of time needs to be spent on the agenda/process, relationship, and terms. This way, at least the search consultant will know what to expect on the project.

•  You will better understand the role you will play in the project and potentially have a positive impact on enhancing it.

•  Covering these issues is commensurate with what a professional consultant does and consequently, you will be seen as such in the client’s eyes or at least they will elevate their opinions or partially shift their orientation or preconceived notions.

BENFITS OF CLIENT FOCUSED SEARCH PRESENTATION

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•  The probability of financially committed search is enhanced and an exclusive contingency recruiting project becomes the “fallback” position.

•  You will have a better understanding of the client’s philosophy, culture, and orientation, which will in turn provide for better representation of him/her to the marketplace.

•  Fee negotiation is less likely to result and, consequently, quoted fees are more likely to be accepted, especially, if a contingency arrangement is seen as an accommodation on a certain project.

•  Conversion to different terms is more likely on current or future projects as awareness is enhanced and neither party is “type cast”.

BENFITS OF CLIENT FOCUSED SEARCH PRESENTATION

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1.  If I am only going to use you and you know you can deliver, then why do I need to pay up front?

2.  What if I find a candidate on my own? 3.  What if I pay you and you can’t find suitable candidates? 4.  What if I hire one of the candidates already under consideration? 5.  That is the nature of your business. 6.  I am not sure if I can authorize this and will have to check with a

higher authority, and that could be a long process. What can we do??

(Take offensive approach and ask what if you do 99% then how are you paid?)

RESISTANCE TO DEDICATED SEARCH www.nextlevelexchange.com

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Jeff Kaye President & CEO [email protected] www.nextlevelexchange.com

CONTACT www.nextlevelexchange.com

client-focused search: elevate your insight, influence, and income

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