Over the past 6 months I have spoken with many CEOs about their business growth strategies. And I have been overwhelmed by the range and scale of the online, digital and social media marketing plans they are developing.

And that’s exciting, but at the risk of being a party-pooper, all this strategy prompts me to offer the reminder that strategy is NOTHING without execution.

The question is, who is going to execute all these the strategies? Where will they come from?

In this short video we outline some current trends in hiring, particularly in the digital age, which you can build into your client conversations.

Your clients will thank you for the insights you offer on the need for fresh recruitment tactics, balancing tight financial management with the need to invest in talent acquisition, and the emergence of a talent churn, where lower performing people, slower to adapt to the new digital reality, are being managed out, and a new skills set being brought in.

The reality is that this hunt for talent is now really global, and as you would expect, retention now becomes critical for all employers.

To be a trusted advisor you will need to coach your clients that “just in time” recruitment will no longer work. They will need a pool of potential candidates that are engaged with long before your vacancy emerges.

In years to come, finding talented people to work for you is going to be much harder than it is to find new clients.

Ask your customers to consider that for a moment and then reflect on where their investment needs to go.

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What do you say to a friend who wants your ‘real’ opinion on a matter of some sensitivity? You know, “Do you think I should marry him?” or showing off a new pair of jeans, “Does my butt look big in this?”

It’s a tricky dilemma. You don’t want to rock the boat. You certainly don’t want to hurt your friends’ feelings.  But on the other hand, being honest, while painful, is almost certainly in their best interests.

To answer these questions well, it takes courage. It takes discretion. It takes a lot of trust between two people.

And guess what?

That is exactly the relationship a good recruiter has with clients and candidates.

Would you tell your client that he is not securing the best candidates because the interview process is too long and too demeaning for the talent? Can you find a way to coach your client on her own interview technique, which is turning candidates away?  Are you a  ‘trusted advisor’? A status that enables you to tell your client that their employer brand is weak, and that there are things they need to do to improve their image in the employer market place?

And do you have the courage to tell your candidate that “their butt looks big” as well?

Do you counsel your candidates on their interpersonal style? Can you advise your candidates to talk less in interviews, to stop using slang, to adjust their interview attire, and maybe (God forbid, but it has to happen sometimes) to use more deodorant?

Do you look your candidate in the eye and calmly explain why their salary aspirations are too high?  That they are not ready to manage staff? That they need more communications polish before they can assume a client-facing role?

This is the recruiting equivalent of telling your friend her butt looks huge in those jeans and she had best stop wearing them. Or telling your best mate that his new mullet haircut is an embarrassment to men everywhere.

It has to be done. You are not a friend if you don’t. And as a recruiter you are not a  ‘consultant ‘ if you don’t.

It takes courage and careful communication.

But mostly it means you have built up trust with that client or candidate.

They wont necessarily like what you say, but they will deeply value the fact that you could tell them.

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Great recruiters need to understand their industry, their company, the competition, and the business environment for the types of people they place. You need to be a mile deep and an inch wide!

I find that recruiters are easily seduced. In fact, truthfully we can be a bit tarty. 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 of working in areas we are unlikely to ever revisit. Interviewing candidates we are never going to place. 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. That is absolutely key if you are serious about this business. This expert status appeals to both prospective clients and candidates. We all want to deal with an “expert” right?

Furthermore, it gives recruiters instant credibility with passive candidates, which will be increasingly crucial. Clients are already seriously questioning the value of our fees. We have to elevate ourselves to a trusted advisor relationship.

And for that to happen we must not dabble.

Don’t allow distractions.

Go deep.

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It’s a fact of recruiting life that clients will push you to negotiate your fees. And with so many recruiters quick to drop fee percentages to secure briefs, that can be a hard discussion to deal with.

The starting point for successful fee negotiations is, strangely enough, to get the conversation off the fee percentage, and on to the question of what it is your fee is actually for.

And of course, bundled up in that conversation, is your ability to sell your differentiator. What have you got and what do you do that gives your client special value? That’s where you want to focus. At Firebrand Talent Search we emphasize our niche focus, our unmatched access to creative, marketing and digital talent, our multiple branches in Asia Pacific and Europe, our specialist knowledge and understanding of clients needs, our proprietary testing software which means we know candidates have the design skills we say they do, and then we wrap all this up in 110% money back guarantee.

But all recruiters will have differentiators, and it’s important you know how to articulate them.

So when a client does ask you to drop your fee, go through your entire recruitment process explaining all the things you do to secure the right person. Take your time. Start at the beginning and don’t miss anything out. Talk about your screening, your interviewing, your talent generation strategies such as social media and networking. Talk about your database and the fact you have several offices tapping into talent. Explain how you act as an advocate for the client, and how you will qualify each candidate in terms of fit, salary and skills. When you drill down on this, you find we do a lot!

That’s the point. Tell your client.

Then, and only then, ask the client why she feels a reduced fee is appropriate. This is important. Get the ball firmly into the client’s court. The client is asking for a discount. She should be squirming – not you. When it comes to fee discounts you don’t have to justify why not – she has to justify why!  It’s a shift in the dynamic and it’s very powerful indeed.

Its not as simple as this of course, many clients will continue to push for a fee discount regardless, and then you have to make a commercial decision. But the starting point is not to haggle over a number. Get the attention of the service you provide.

Talk about what you do, explain your process and your insights and your connections and your value adds.

That’s a far better place to start a discussion on discounts!

Do you accept the fact that your client can reject candidates you present on your shortlist?

Yes? Then you lack ‘Recruiter Equity’.

View video on YouTube

Recruiter equity is the trust, the buy-in, the belief that your clients have in your ability and your judgment. It is the combination of your experience and your knowledge, and it gives you the power to advise clients and truly impact the outcomes of your interaction with them.

Most recruiters lack equity all together. The presenting of a shortlist for a permanent brief is a classic example.

The fact is, that if a client rejects or will not interview any of your shortlisted candidates, it can mean only one of two things — both bad.

1. You misunderstood the brief. You got it wrong.
2. The client does not trust your judgment.

It can mean nothing else.

Both of those outcomes is a disaster. And it means you did not get equity into the relationship with this client. Equity means ownership or a share of ownership. In this case joint ownership of the problem and the solution.  Recruiter equity is the key difference between winners and losers in this business. Do your clients trust your judgment? Do they interview every candidate you refer?

No? Then your recruiter equity is low – maybe non-existent. It takes hard work to build up your equity. It takes determination, study and practice. But it all stems from our attitude. Think about the best recruiters you know. The relationships they have with clients amount to shared equity. Sharing the problem. Sharing the solution. Sharing the rewards.

View the video for more on presenting the shortlist.

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Most of us are told that recruitment is a sales job. And it is.

But the truth of selling is badly misunderstood. Selling in old-style recruitment means volume of calls, pleading for client visits, and pushing people into jobs where maybe the fit is dubious, at best.

But in fact the real selling in staffing is based on an ability to uncover and understand. Uncover and understand our customers needs and motives, that is. So being a great recruiter is going to require many so called ‘soft skills’, like listening, probing, uncovering and questioning.

Successful recruiters will have the interpersonal skills to really get to know their client hiring managers on a person to person level, including their leadership style and knowing the type of employee that responds to that style.

And so as the staffing market recovers, it’s important we start talking about things we never considered before. Like the client mindset.

Let’s think for a moment about the mindset of clients as the market recovers. We need to remember that clients will be bruised from layoffs and cutbacks. They will be under pressure to deliver. They may be confused themselves about the strength of the market and whether it’s time to hire. Their own corporate strategies will have changed, culture will have evolved, management style will have changed, corporate needs will have changed, and indeed there is a good chance that their own manager may have changed under a restructure or a downsizing. So initial hiring will be tentative. There may be some tyre-kicking by clients. Clients will want to get an “exact fit” because they will be terrified of making mistakes.

So that brings us to the importance of asking questions to truly understand client needs. I have been on thousands of visits to clients with recruiters. Most recruiters ‘talk at’ the client. Few really seek to understand. Bear in mind the client may not know themselves what they really need. It may be a journey of joint discovery. We need to take great job orders, be consultative and question clients briefs carefully.

The biggest cause of placements falling through is people making assumptions. Recruiters taking what they are told at face value. You need to develop a relationship with your client and talent where questioning is actually welcome. It’s like a doctor asking questions while  working towards a diagnosis. Why is a candidate really wanting to move jobs? What are her true motivators? What is a client’s real ceiling when it comes to salary they will pay? Why does the job require the candidate to have 10 years experience in a certain environment?

Traditionally recruiters are the best of talkers. But now we have to learn active listening as a core skill, and we have to question everything.

I am writing this on a plane on my way back from a week visiting the Firebrand 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 taught 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 many 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 Tokyo, 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 under-performers 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?  Working exclusively on an assignment with each client is a Firebrand goal. It is in the clients interests, the candidate interests, and of course our interest too. Our recruiters in Japan who do work more orders exclusively, bill exponentially more

• 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

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Last week I blogged on why so many recruiters have a shallow understanding of what ‘competitive’ in our business actually means.

And so how do we thrive in a competitive world? What is the way to differentiate in 2010 and beyond?

Well it’s not cool to say it out loud, but as far as I am concerned it’s what technology cannot do that our clients will continue to pay for.

It’s a source of constant amazement to me how many of us in this industry have been completely seduced by the technology spin doctors. We are terrified that the Internet will wipe out our business. We agonise over social networking and how it will change the talent-sourcing model. We quake at the power of LinkedIn, and we are hypnotised by the thought our competitors will develop a piece of technology that somehow will make our service redundant.
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Don’t get me wrong. Technology is reshaping our business and having leading-edge technology is crucial, in as much as it allows your consultants to compete on an even playing field, and gives them the tools to give clients and talent what they really want.

But technology will not destroy our industry. At least not all of it – and definitely not the part we want!

And here is why.  Finding a job or recruiting a new staff member is not a commodity purchase. We are not dealing with the same psychology which drives i-Tunes, e-trade or amazon.com.

This is important because it means that the real value provided by quality recruiters will still have a market.  That is, screening, evaluating, persuading, assessing, negotiating, advising, consulting and acting, as an advocate for employers will still have tremendous value.

It is on these competencies that we need to compete.

But it’s also more than interpersonal recruiting skills (which by the way were largely lost during the decade-long hiring boom that preceded the GFC). Talent management is where the real battle for recruitment dominance will be fought. Building talent communities and managing effective communications channels with those communities is where the holy grail lies.

And we will need to compete in other ways too. Customers will increasingly call the tune. And by customers I mean talent as well as clients. The customer experience will build or tarnish your brand like never before. This is where social media will be able to destroy your business. Get it wrong and your brand will be brought down at viral speed. That’s where we have to compete. How we deal with customers and manage their expectations and experience with us.

Lack of personal interaction is doing our industry no favours. In fact I consider it one of our deepest flaws. Many recruiters use technology to avoid connecting personally with talent, when in fact the real advantage of technology is to get much closer to many more quality candidates.

So social media and technology generally is a threat to you only if you fail to recognise this fact…

… there will continue to be a market for tailored, personalised, high quality business solutions based on an advisory, consultative model, where access to talent is the differentiator.

Don’t be sucked in to competing on the basis of who can commoditise what we do the best. Don’t play the low margin, process game.

As your competitors claim, “we are bigger, have cooler technology and therefore we can do it faster and cheaper” or technology-driven platforms push to cut out recruiters altogether, your premise for doing business is…

“I can solve your problem because I understand your need and I know where the talent live”

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.

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.