I work on the basis of TWO types of searches. One is an Engagement Search (often called a Container Fee); the other is Retained Search. I won’t do contingency based search, although if I am marketing a candidate to a potential client who is interested, that referral is on a contingency basis. It is not a search assignment. The type of search is dependent upon the confidentiality, urgency, and time/resources factor relating to the difficulty of the search. An Engagement Search requires a simple deposit - a commitment from the client that they are serious about the need and with “skin in the game” I have their attention in timely feedback and in working with my process. A Client may instead use me on a Retained Search which is unlike most retained fee agreements. Ours is Performance Driven, in that I get ¼ of the estimated fee as a deposit to begin the search and I earn the remainder of the fee in ¼ increments defined by solidifying a short list of candidates for client phone interviews, scheduling 2-3 finalists candidates for face-to-face interviews, the acceptance of an offer, and then 30 days after start date. If I don’t perform - I don’t get ¾ of the fee. Worse than that, it could damage my reputation.
HR folks call me every day about performing a contingency based search. I am an expert in my field as defined by my longevity, colleagues, reputation, billings, and domain knowledge in the mobile wireless industry. To me, contingency is quite frankly a pimp/prostitute relationship. The employer is the pimp and he/she would like to have me as one of their many prostitutes to do their bidding. How else can you possibly define it? When so many Hiring Managers are wearing multiple hats with continual deadlines, often it is easier to have HR do the work for them. Many HR/corporate recruiters want to play gatekeeper and want to re-interview MY candidates and/or make decisions/review of the search process I use and the candidates I want to present. Hello out there - I am not recruiting inexperienced or undereducated or even active job seekers. Over 90% of the time, I am recruiting from a direct/indirect competitor who is NOT on the job market. I am expected to recruit and bring forward Top Talent. That is what I do.
Performance driven search fees work because both the Client and Recruiter have a commitment that cannot be gained from a contingency search.
Charles Moore, Chief Mobile Wireless Talent Finder
Mobile Wireless Recruiting Blog
- Like everyone else, I began recruiting and working with companies’ Hiring Managers and HR managers primarily at the Manager or Sr. Manager level. As time progressed and I honed my skills, I was strictly working with CXOs and VPs. As a rule of thumb, I am courteous with HR when it comes to arranging travel and info on benefits/relocation specifics and offer letters. However, when a company insists that I work with HR on submitting candidates and coordinate the search with HR, I will decline the search.
My job when I take on a search is to identify, recruit, and close on Top Talent that is in the Top 15% of that client’s vertical market. When it comes to identifying candidates, I don’t care what their title is now; neither am I concerned with what their current compensation is. IF they can do the job, does it better than 85% of everyone else, the candidate is excited about the opportunity, and it is the right position at this time, we have a go.
Hiring Managers are very busy folks and sometimes they do things that irritate executive recruiters. Some of these common mistakes are:
1. What’s the candidate making now? This happens frequently before an initial interview with the candidate by the Hiring Manager is done or a pre-requisite question to scheduling a face-to-face interview. It makes me wonder – where is the trust factor? I already know the compensation range you have budgeted. Do you really believe I will submit a candidate that is way above your budget? You loved the candidate on the phone interview and deiced he/she is the top of the list. I am recruiting a passive candidate for you, not an active job seeker.
2. They assume I will send several (5-7) candidates. Why? I usually bring forward only 2 candidates, sometime 3; generally the one I rated #1 and submitted 1st gets the offer. Do you really want to see candidates who did not measure up to the top two I brought forth? (Okay so we can definitely blame the “quota sendouts happy” bad recruiters for the resume flypaper mindset).
3. Where’s the resume? I often don’t submit a resume. Great candidates are not job seekers and often their resume needs updating. In addition, most resumes are poorly written and much generalized. Rather, through extensive interviews and screening, I build a complete profile of the candidate. It includes not only the tangible proof, but also the intangibles (personality type, leadership style, execution and project management style, planning and organizational style, and problem-solving techniques). Trust me, it has all the info you want to know. If you still want a resume AFTER reviewing the profile and are interested in pursuing, great. This last point is significantly where Venture Capitalist and Hiring Manager differ.
VCs are more interested in Top Talent than they are in just “filling a position”. I have several VCs I work with. Sometimes they retain me for a search (usually a replacement for a CXO or VP). But I have made more placements with these guys by simply bringing them the Top 15% Talent. Smart VCs know talent when they see it and they will look to put a candidate they really like in a role; sometimes right way. Sometimes 6 months or a year from now. VCs got to be where they are at by identifying with and recruiting top talent. Hiring managers and CXOs that work for VCs/BoDs often don’t get that.
When I am marketing an MPC (most Placeable candidate), I am surprised at how often CXOs cannot see beyond the immediate. I often do get a new search of a different position based upon the quality of the types of candidates and the process I recruit by. However, you really like this candidate, but don’t have a position for him right now. Have you considered using the candidate in a consulting or outsourcing role? Or perhaps bringing this candidate profile to one of your BoD or VC members who represent and fund other companies? Have you considered they may have a need you are not aware of?
Charles Moore, Mobile Wireless Talent FinderJuly 31st, 2008 - I work mostly Sales and Business Development searches so the bulk of my thoughts will relate to strong sales and biz dev candidates. I receive resumes all day long from candidates that are sure they are an exact fit for an opportunity I am working on. Infortunately, 80%+ dont meet the basic requirements that my client is looking for. It has been my experience that when a hiring manager retains a professional recruiter to locate a good fit for a position, he expects to see canddates that meet 90% or better of the skills and experience that he considers the ideal candidate to possess. I remember being on the candidate side of the process. I know that since I had great sales skills and had been successful in all my career ventures, that I felt that I was a perfect candidate for any sales position. This actually worked for me quite often moving from industry to industry and learning the market specifics as I went. These were opportunities where I was able to get in front of the hiring manager and convince him to take a chance on me based on my past successes. I run into REALLY strong candiates every day that just dont have the required experience for me to ask my client to consider them. This usually pertains to the vertical market. It's difficult for a recruiter to bring a candidate that has been selling semiconductor devices to the OEM market into a position to sell apps or content to the Tier 1 wireless carriers, no matter how good he is. The ideal candidate is sometimes the one who is doing the exact same job for my client's competitor. My goal is to present to my client the "PERFECT" candidate that meets ALL of his requirements. This is what makes me look good. This is why the client is paying me to do the job. My point being, dont be offended when a recruiter does not feel you are a good fit for a certain position. The recruiter is the one that knows what the hiring manager is looking for. You may be a stellar candidate for another position. A smart recruiter will stay in touch with those great candiates even when he doesn't want something from them. Mark Walton.. Sr. Recruiter. Abba Wireless Executive Search Group.July 10th, 2008
- I am quite certain this will cause some to be ticked off, others to perhaps rethink, and still others to wonder whay I even discuss some of these issues out loud.
Today a SVP called me (I was referred by another SVP) from a publicly traded mobile content vendor. He is looking for a Director to handle content and carrier alliances and partnerships. We talk about the specific reason for the need, what he expects the candidate to accomplish in the near-term, competitors I noted to target (and which to stay away from), and general compensation range. I then proceed to explain that we are performance driven and I need a commitment of his time to coordinate and complete the search. Then out of the blue, he hesitates......and here it comes...."Gee, I thought you worked on a contingency basis". My reply: Hhhmmm, I have four questions for you.
First, has your HR department been able to fill this position. His answer: NO. Second, have other recruiting forms you work with filled this position? His answer: NO. Third, have you been receiving resumes with few interview notes and unqualified/un-vetted candidates? His answer: YES. Fourth: Do you prefer a short list of Candidate Profiles complete with extensive interview notes and already fully vetted? His answer: Yes. Okay...so let me understand this...filling this position is important to you and you want me to provide a commitment on my end from myself and my staff, to do what others have been unable to do? And you want all that without any commitment from YOU?????
It amazes me that many senior executives and Hiring Managers have not yet figured out the "dirty little secret" about HOW many contingency based search firms’ work. It is simple economics, folks. These firms work on an "x number of send-outs per day" requirement. The contingency-based recruiter works on a MINIMUM of between 10-15 job orders at the same time. They make their required daily numbers and monthly quotas based on the number of sendouts; therefore having 2 or more clients interviewing the same candidate means the % of a placement is greater. The resumes you receive from them often have no detailed interview notes and don't match your particular need. See the picture here? You are competing for the same candidates as other clients they have. In their mind, it does not matter who pays the fee, as long a fee is collected.
So next time you reach out to a recruiter for a KEY position that you need filled, bear in mind that recruiters who work on Performance Driven retained or engagement (also called container) method are actually only working on 2-3 job orders at the same time. They know that they can take on the search and complete it on a timely basis. And let's not forget that executive recruiters who work on a performance driven basis for EVERY search in the end cost the EXACT same as a contingency recruiter.
In the next blog post, I’ll talk about the different POVs of VCs and Hiring Managers in how they judge candidates and recruiting. Charles Moore, Mobile Wireless Talent FinderJuly 9th, 2008
