Last week I was honoured to present a keynote address to the RCSA National Conference in Hobart.

All subscribers to ‘The Savage Truth’, will receive the digital version of my presentation over the next few days (subscribe here to ensure you receive it).

In that speech I laid out 10 trends that I believe will impact the recruiting profession and which we need to factor into our strategies and business planning.

1. Expectations of clients are rising and will continue to rise. Clients want insights, not just résumés. They want better service. They want specialist level consulting advice. And they want it faster and globally.
2. Clients and talent are savvier, more discerning, and more sensitive to quality. Right now, publicly listed recruiters are reporting rising revenues and profits. But at the same time we see increasing numbers of small recruiters going into liquidation. Big firm or smaller player, clients will not accept the second rate, the cumbersome or the old-fashioned.
3. Employers will continue to aggressively build their in-house capacity to recruit staff.  Clients will develop corporate in-house recruitment teams, build recruitment technology, enhance employer branding, and use social media. And all of these will be used to cut recruiters out of the process. It’s a major issue for our industry and we have to offer something measurably different to be seen to be providing value.
4. An increasing majority of vacant jobs will not be advertised anywhere. Forget web advertising vs. print media. More and more jobs just won’t get announced at all. Networking, social media, and skilled, specialised recruiters will fill most jobs before they ever hit the mainstream media. That has huge implications for us in the way we develop business, access talent and make the match. And also for the skill-set of our recruiting staff.
5. Talent will become smarter and wiser to the way our industry works. They will be far more discerning about the recruiter they work with. They will take charge of their job search and of their employee brand. Technology has made things so much more transparent for job seekers and the pathway for them to connect with employers is now wide open, potentially leaving third-party recruiters out in the cold. This raises massive questions around the way we engage with candidates and our entire talent acquisition strategies.
6. Reputation and Brand – of recruiters – will become our most valuable asset. And we will not be able to influence brand via traditional PR and media anymore, because social media is so viral, so transparent and so powerful, that your business can be destroyed or made by it at lightening speed. Our brands are being defined by the voices of strangers.
7. Referrals will become the primary sourcing channel for all levels of positions. Not print, not job boards – but word of mouth, reputation, networking and referral programs.
8. Customers’ loyalty will become key. And by customers I mean both clients and talent. Churn and burn will not work. We need to retain what we have, and develop it intelligently and consistently.
9. On top of all this, there will be increasing pressure on price. Clients will not pay the same for what they used to get.
10. To sum it all up, yesterday’s “delivery” market will become tomorrow’s relationship market with both clients and talent.

Yes, the staffing market may be recovering, but every day we read of recruitment companies going into liquidation. And even in the best of times, I know plenty of recruitment business owners are frustrated by how hard they work for such modest returns.

And the tendency is to blame clients, or the market or the government.

But often the real culprit is much closer to home. Profitability of a recruitment business is totally dependent on recruiter productivity. And more to the point, poor returns are usually a result of long-term acceptance of mediocre performers.

And plenty of business owners are naïve when it comes to the real cost of their staff. They talk of accepting people billing a modest multiple of their salary as being sufficient. I have often heard such statements as “Well, I only paid her $60,000 a year and she billed $70,000, so she covered her cost”. Total nonsense, that was a loss making hire, make no mistake.

What is often forgotten is the opportunity cost of having a serial under performer in your company when you could have a high performer, covering overhead and contributing to profit.

This short video above explains a quick, rough and ready way to work out what recruiters cost you – even before you pay their salary!

For alerts on new postings, recruiting information, free training videos and more, please subscribe to ‘The Savage Truth’.

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Not so long ago, I ran the Sydney Half Marathon.

That’s 21.1 kilometres around the streets of Sydney. Took just over two hours for me to do it too.

But running a Half Marathon is no big deal. Even at my age, and with my drinking habits. Thousands do it regularly. In the Aquent business we have plenty of real athletes, some of whom comfortably run full marathons!

So why tell you this? Well, running this marathon reminded me of a very important life lesson. And it’s a lesson that has huge significance for anyone who wants to be a great recruiter and make a long-term career in this industry.

The story goes like this.

I suspected I might be a little unfit, so I went for a jog around my neighborhood. Problem was that after three kilometres I had to stop as I was out of breath and felt dizzy. Bad news. I was seriously unfit! As I hobbled home, I made a rash promise to myself. It was 9 weeks until the Sydney Half Marathon, and I decided I would get fit enough to run it.

So easy to say. So hard to follow through.

But I was determined, and I started training. Gym. Road running. Running on a treadmill. It hurt. I hated every second. The gym was full of smug dudes who looked like models from Men’s Health magazine. Running the streets was cold, and friends of mine would honk and laugh as they drove past.

One week into my programme, I got home from a run and I started to waver. “This is ridiculous,” I thought. “I am too old for this rubbish,” I reasoned. “I don’t need to actually run a marathon to get fit,” I persuaded myself. “I am far too busy. I have travel coming up. There is no time to get fit for this,” I tried to convince myself.

By the time I got into my warm living room I had decided to give up the stupid half marathon idea, and I was on my way to the fridge to grab a beer (which I had given up for 9 weeks too by the way!)

Suddenly an image flashed into my mind. I was sharply reminded of a conversation I had had that very afternoon with a recruiter in our Sydney team. This person was a good recruiter, but young and relatively inexperienced. He was going through a rough time. Two bad months. Offers turned down. He was despondent and was telling me he was not sure “if recruiting was right for him”.

During that conversation I did not hold back. I talked about persistence. I spoke of the fact that nothing worth having ever came easy. I spoke of courage and character. I told him stories about bad patches I had had, and how determination had turned things around.  I examined how building a reputation and a real business took time. I shared my opinion that often you feel as though you are getting no traction, but that all the work he was doing would pay off in time, and when it did he would feel pride and self-esteem and a sense of achievement.

And every word I told him is true. But as I hesitated at the fridge door, about to grab the beer, I realised what a hypocrite I was being. How could I tell this guy to knuckle down? To persevere in the face of something he found difficult, when I was giving up on my half-marathon after only 6 days training?

I closed the fridge and the next day hit the road again. Over the next two months I trained four or five times a week and I hated almost every session. I got a calf injury and came so close to giving up. I made so little progress for the first month that I felt I was getting less fit instead of more fit. I had to travel overseas for work and the temptation to give up training was overwhelming. But I held firm and I trained in hotel gyms and I jogged along the murky Singapore River in 90% humidity, when I could have been in the cool bar of the Marriott hotel.

School holidays came around and I took the family on a holiday to Borneo and with only two weeks to go until race itself, I resisted the hotel in-pool bar and jogged down the main street of Kota Kinabalu instead – to the utter amazement of the locals who were sensibly resting under shady trees, or sitting under fans drinking iced tea.

But that conversation with the Sydney recruiter kept coming back to me. Don’t give up. This will pay off. You have to put in the hard work before the rewards come.

One week out from the race I went to the Sydney Botanical Gardens and ran 15 kilometers. I did the distance, but it hurt so much I wanted to lie down under one of the giant Port Jackson fig trees that line Sydney Harbour. I truly came so close to giving up on the race there and then.

On the day of the race I nearly didn’t get out of bed. It was cold. I knew that 15 km had nearly floored me. How could I run 21 kilometers? At the event itself were 10,000 runners. And trust me this was no fun-run. No one was pushing prams or dressed in Superman outfits. These guys were serious!  They all looked like East African Olympians. Skinny with all the right gear. I felt well out of place and half felt like slinking off and going home.

But I did the race. And I was pumped and sped through the first 15 kms as though it was a stroll in the park. It got harder after that, but I finished, ran every step and I did it in a better time than I expected.

And it felt great.

No doubt it was worth all the hassle and the pain.

And so is it with our jobs. It’s true that often people have early success in our job. A good match, a bit of good fortune, a client or two inherited.  It can make you look good and there is nothing wrong with taking wins when they come around.

But real success? Building reputation that will last? Developing sophisticated skills? Building a portfolio of loyal clients? Evolving into a trusted advisor? Generating referrals and word of mouth talent? Generating repeat business? Securing clients who use you exclusively?

That takes time, perseverance and effort.

It takes consistent activity. It takes moral courage to do difficult things like cold calling. It takes ego strength to withstand rejection and poor results. It takes an open mind to learn new skills and work at the things you are not good at.

And slowly but surely the rewards will come.

Recruitment or running. The only place success comes before work is in the dictionary.

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This is the fifth blog in my series on great coaching for managers of recruiter teams.

Previously I expanded on the importance of ‘live feedback’, ‘real life coaching’, as well as the tactic of ‘plugging in’ new recruits.

Today we look at ‘role swapping’.

Many managers I have worked with feel that if they are not doing the talking or showing the consultant how the job is done, then they are not providing valuable input.

This is not always true. From time to time, it is highly effective for the manager or coach to reverse roles, providing feedback after the event.

For example, once you have a consultant up to a certain level of competence, or even with your more experienced people, take them on a client visit with you where they lead the discussion, where they take in the job, where they do the selling and you play a secondary role.

You may be surprised how difficult this is to do! Many managers simply cannot help themselves on a client meeting and leap in to take control. I understand why, but look at the bigger picture. When is the recruiter ever going to learn if you always take control? In fact you are setting that person up for disaster because the first time they actually get to run a client meeting, they really will be on their own. i.e. when you are not there.

So sure, be ready to leap in if it goes totally off the rails, but otherwise let the recruiter run it.

Then afterwards in the cab back to the office, or in a coffee shop, do a full, immediate de-brief, pointing out missed opportunities or where things could be handled differently.

The same role swapping should be applied to interviewing candidates. Your consultant interviews, you observe and feedback afterwards.

The most powerful coaching you will ever do.

Please subscribe to ‘The Savage Truth’ for alerts on new postings, recruiting information and more. It’s free and takes no more than 20 seconds to do. Subscribe now

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This is the fourth blog in my series on great coaching for managers of recruiter teams.

Previously I expanded on the importance of ‘Live Feedback’ as well as the ‘Real Life’ approach to consultant coaching. Today we talk about effectively inducting new hires through clever coaching.

If you spend all your time training consultants in a one-on-one situation, your own productivity will suffer dramatically, plus we agree ‘classroom learning’ has limited effectiveness. A neat solution to this problem is to plug new recruits into your own desk.

Assign one or even two new people to literally follow you around and listen to every conversation you have for an entire morning. Let them listen to you taking job descriptions, let them come with you on client visits, let them sit in on interviews with you.

This way you expose new people to the full variety of consulting situations, they absorb your style and ethos, and after all they are getting it from the best consultant in the team (hopefully).

You can also plug new recruits into other senior members of your team. One word of warning. If you do plug consultants into yourself or your colleagues, it is very important to have regular debriefs where you ensure that they understand what has been happening and they have the opportunity to ask questions. Three or four times a day, stop and ask them to tell you what they have heard and learned. Then refine their perceptions and explain dynamics they have missed. Maybe set them follow up tasks. At the very least it tells you where they need more input.

You can’t limit your new hire training to this technique, but you can certainly liberally plug new recruits in during their early weeks. It’s much better than have them sit there and read a training manual!

Plugging people in is a highly effective way of getting on with your job, while at the same time providing exposure to the fundamentals of the role.

Please subscribe to ‘The Savage Truth’ for alerts on new postings, recruiting information and more. It’s free and takes no more than 20 seconds to do. Subscribe now

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As anyone who has been in recruitment for a while knows, the subtle and varied skills of our industry are best learned ‘on the job’, and they are always best communicated with the help of a mentor or coach, usually your manager, who can show how things work in real life.

There are stats on this you can dig up I am sure, but experience has shown me that people learn by doing things, seeing things done and being coached in real time. Sure, classroom-style training has a place, but coaching is often more powerful as a real learning method.

People often ask me, what exactly is ‘coaching,’ and how can we learn to coach our teams more effectively? Well, the way I understand it is that there are two primary functions of the ‘coach’.

Firstly a good coach focuses a great deal on the positive. In fact, I believe recognition – for things done well – is a highly effective way to reinforce behaviours you want to see repeated. What’s more, that recognition should come publicly and as soon after the behaviour actually happens as possible. Funnily enough, although this aspect of coaching is the easiest and the most positive, I notice many managers find recognition hard to give. It’s as if we are not a ‘real’ manager unless we are always pointing out fault and deficiency in people. In my view, that could not be more wrong.

The second primary function of a great mentor or coach (which is what every leader needs to be) is of course correction of behaviours and deficient activity levels. Importantly though, this guidance can and should be given in small bite-size chunks, in real-time and often ‘on the run’. There’s no need in most cases for a ‘meeting’ or ’special training session’. Often this correction is as simple as a two minute debrief when the recruiter puts down the phone to a client or candidate. How could we have promoted that candidate more effectively? When the client said this, did you think of saying that?

My next four posts over the coming weeks will drill down on some great ‘on the job’ coaching tactics that I have learned and used over the years, and from which I have seen fantastic outcomes in terms of professional development of the teams I have run.

First topic up next week will be ‘Coaching via live feedback’.

Until then…

I am writing this on a plane on my way back from a week visiting the Aquent offices in Japan. It was a great week, and the business is tracking well, but as I had not been to Japan for a while, I spent my time meeting with virtually every recruiter, looking at activities and shining the light on efficiency and productivity shortfalls.

People often ask me about staffing in Japan, and how “different “ it must be to the rest of the recruiting world. Well of course Japan can be a perplexing place to an outsider, but 10 years of running a staffing business there has tought me that, at the very core, success in staffing in Japan depends on exactly the same skills, metrics and activities that drive success anywhere else.

As you would expect, across a team of 30 or so recruiters we have a blend of exceptionally high performers, some solid fee generators, and a handful who are struggling to meet targets and objectives. Just before I left Osaka, I debriefed with the local Regional Director, and it became clear that once again we had been reminded that a few very clear basics are what drive success in this business, and we agreed to refocus everyone back on to these priorities.

I have blogged previously on my core belief in what drives recruiting success

Activity X Quality X Target Market

And certainly that formula holds true in Japan as much as anywhere else. However I found that underperformers in Japan were falling short in one or more of three specific key areas. As I jotted up my notes from the weeks work, I reflected that these ‘Three Commandments’ could well serve as a blueprint for staffing success, anywhere, anytime

. • Specialisation

Recruiters are easily seduced. A client wants help with a hire that’s outside our area of expertise and we jump right in. And then we find we don’t have the skills, knowledge, or connections to do a good job. We waste time, we get frustrated and we actually risk damaging our client relationship when actually we were trying to go “above and beyond”. And think of the opportunity cost working in areas we are unlikely to ever revisit. Successful recruiters are specialists. They know a niche and they work that niche. Specialisation is critical because it creates a perception that the recruiter is a recognised industry expert. This status appeals to both prospective clients and candidates. Furthermore, it gives recruiters instant credibility with passive candidates, which will be increasingly crucial. Don’t dabble. Don’t allow distractions. Go deep.

• Order qualification

This is just so critical. Most of us work a contingent business model. We only get paid if we fill the job. Yet so many recruiters try to fill every order that hits their desk. This is patently a mistake because all orders are not equal and nor are all clients. The most successful recruiters in our Japan business, as everywhere else, are brutal order qualifiers. Is the client serious about hiring? Is the order fillable? Are the hiring criteria reasonable? Salary appropriate? In fact Aquent has move to an “exclusive only” business model for our permanent business. It’s a work in progress, but in markets where we are doing this well, we have seen numbers of job orders fall (because we will only work with a client if the order is exclusive with Aquent) but the ratio of orders filled skyrocket, with recruiters productivity (revenue generated as a multiple of salary) at the highest levels we have ever achieved.

• Talent selection

In financial markets they talk about canny investors being “stock-pickers” which refers to an ability to select ‘diamonds in rough’, investments that will outperform over time. Great recruiters are “talent-pickers”. We would love to place every person who approaches us or who we interview. But that’s not going to happen. In fact spreading your talent activity too thin will dilute your ability to find people work. Candidate selection is key. Selecting the best ones will be an art, developing relationship with them will be a skill that many of today’s transactional recruiters will find hard to adapt to. We have to be nimble enough to understand the trends in clients needs and adjust our candidate activities to meet that need

There are many, many things that make for a successful recruiter, but the “Three Commandments” (which may as be almost as old as the original ten!) still hold true, and I am finding it’s those recruiters who are applying age old, proven strategies to their work, who are flourishing most in the recovery

There is one word you will always find in any analysis or even casual discussion about the recruitment industry.

Competition

Get two recruiters or more together, in any setting, and I bet that 90 % of the conversation will be about how competitive its all become and how to beat the competition.

A few years ago my office was at 275 George Street in Sydney. That building has 12 floors, and at that time it housed 14 recruitment companies! Seriously. We used to loose candidates on the way up in the elevator!

But what does competitive really mean?  And if we competed effectively in the past, will the same tactics work for us going forward?

Well I first started to compete as a recruiter in Australia in January 1980. Since then I have been able to get first hand experience of what the very best our industry has had to offer in terms of competition here and all over the world. And many of those recruiters have built superior businesses through quality service, innovation and exceeding customer expectations

…but the vast majority have not!

For almost all my recruitment life in Australia in New Zealand, as well as my exposure to the industry in the UK, Europe and Asia, “competition” for most recruiters has meant one or more of these things…

Speed: Urgency is good. It’s what clients want. But for many recruiters what “speed’ means is how quickly we can respond to requests for help from clients. And that usually leads to competition based on how fast we can work – not on the quality of what we do. So “competition” in that case leads to shortcuts, sloppy process and often results in unseemly resume races and squabbles over who represented candidates first. Ugly, unproductive and damaging to our reputations

Volume: This is the form of “competition “ where recruiters are being exhorted by desperate managers, totally bereft of new ideas, to do more sales calls, send out more spam, make more unwelcome visits. And yes, activity is crucial to recruiting success, but it needs to be quality, targeted activities, not volume of intrusive approaches which means we actually end up competing on who can annoy our clients the most!

Price:  The final competitive weapon of he or she who has nothing else to offer, resulting in the very essence of what we do as an industry being devalued in the eyes of our clients. And of course selling on price alone means our own margins are relentlessly squeezed to the point where we are all working harder and harder for less and less return – and how smart is that when you really think about it? Competitive pricing is key, sure. But value is the issue we should be competing on.  No matter what you charge you will always find someone who will charge less. And that is a slippery slope none of us want to risk.

Aggression: Truthfully, I like the word “aggression” when it comes to business, just as I encourage my sons to be aggressive on the rugby field. But my type of aggression is the healthy type. Passionate, committed, loving to win more than loose.  Always within the rules and never malicious. But too often recruiters think aggression means rubbishing your competition to clients and candidates, and bullying customers into decisions they don’t really want or need to make, all for the sake of closing the deal at all costs. And that is exactly the type of behavior that perpetuates the poor image our industry currently suffers with many of our customers using us begrudgingly  – and in some cases with undisguised resentment.

Dishonesty: And here I am using the softest word I can think of for competition based on lying, manipulation, and withholding of information. And it’s rife in our industry and I have commented on it more than once before (Integrity. It’s a bit like virginity. Either you have it…or you don’t!)

I can write fifty blogs highlighting outrageously deceitful behavior I have encountered from recruiters over the years, and maybe one day I will tell those tales.

But for now I guess the point is that it’s this kind of activity, that plenty of people in our industry believe “competitive” means.

Many of us in recruitment today are like pin-balls in a pin-ball machine. We bounce around without pattern desperately trying to hit the jackpot.

We are not sure we have the tools to compete, so we live in fear of every new development and then we try to copy it or do it faster or do it cheaper. But those old tactics are no longer working. In fact they are sending many of us out of business. Please note, “competing” does not mean copying.

So how do we thrive in a competitive world?

Well, stay tuned to next week’s blog entry where I will try and pin some of that down.

Over the past week I have committed to presenting at two RCSA conferences in Australia, which by the sound of the program and the quality of the other speakers, will be well worth attending.

Below are details of the two presentations I will be giving, in Sydney and in Hobart, as well as links to the Conference programs

RCSA Sydney Consultant Forum 2010

Tuesday 1st June 2010

“Recruiting Skills for the New Era”

Greg Savage MRCSA (Life) AQUENT
“Restocking the Skills Briefcase”

The fact is that the skills and tactics that got you where you are today, will NOT be good enough to take you where you
want to go! The market has shifted,technology has evolved and client and candidate expectations have risen. This session will uncover the key skills many recruiters lost during the boom years, which now need to be relearned,and will also highlight brand new approaches to client and candidate interaction. Full of practical takeaways and immediately useable tips and tactics, this is session for all would-be top performers

For details Click here to download the event brochure for more information.

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RCSA Conference  – Hobart, Tasmania

25-27th August 2010

“Bridging Connections”

Featured Key Note Speaker

Greg Savage-CEO Aquent International

“New engagement for a new world – A case study in changing the recruitment conversation”

Apart from his reputation as a business leader, Greg Savage is known throughout our industry as a recruiting trainer and coach. His management and consultant skills session sell out all over the Australia and New Zealand. But this session is different. Designed for recruiting leadership, and presented exclusively at the RCSA leadership conference, Greg will share exactly what he is doing at Aquent to change the way his business engages with clients, relates to talent and builds loyalty from their own staff. It’s happening to Greg right now so you will hear the strategy as well as how some of the plans are working out..or not! Few recruitment leaders would share such strategic imperatives, and fewer still will divulge the results, but Greg will outline the Aquent social media strategy, the new customer service charter and a brave new way Aquent are dealing with client commitment — amongst much else.

for details  visit the website  bridgingconnections

As the market recovers, one of the first impacts on our industry will be a revival of the temp and contract market. Temp-to-perm will be huge. Employers will see increased work volumes as the economy recovers, but will “dip their toes” into the labour market at first, hiring flexible solutions initially. But then, as momentum is gained and confidence returns, they will start to hire permanently. But the first place they will go for their permanent hires will be to transition tried and tested contractors onto their permanent payrolls. The big issue for us in the staffing industry will be talent management. It’s important we strategise and behave as if we are thinking years ahead when it comes to talent – because candidates will become a short resource again very soon.

Invest not only in adding talent to your database, but also ensuring relationships are built with them and that your systems allow you to access them fast. Find a way to shift the consultants’ mindset from running job board ads after they have taken an order – to a fully integrated talent strategy where your company and your staff are interacting with candidates and potential candidates, in their communities, all the time.

It’s going to be a whole new talent world going forward. The other issue is to think hard about the type of talent companies will be hiring in the recovery. Your tactics need to be based around building a relationship with the 10% that will be in demand and able to be placed, so that as the market rises you will be ready with the right stock at the right time.

It’s not about lots of talent, it’s about the right talent.