Life of the Third Party: The Business Case for Recruiting Firms.
Companies are often reluctant to hire outside recruiting help when they have in-house HR resources or dedicated in-house recruiting teams, especially when a company is in a growth stage and cash is tight.
But if your company is trying to quickly scale up your revenue-producing talent, the many rewards of hiring outside recruiting firms make the decision a no-brainer.
The truth is, there are a lot of costs involved with not hiring the right people at the right time. Instead of focusing on the cost of hiring a recruiting firm, give some thought to what it’s costing your company to not have the right employees on board.
Time is money, and every month that goes by without hiring the right talent is costing your company in ways that you might not expect.
3 Reasons Using A Recruiting Firm Pays For Itself
Here are a few specific examples of why it doesn’t actually cost you money to hire a recruiting firm – it pays for itself, and then some:
1. Good Hires Make Money. Every employee at your company needs to deliver a return on the investment in hiring them, and this is especially evident with revenue-producing positions like sales and marketing.
When your company has reached the point where you know you need to hire in order to capitalize on growth opportunities, it’s worth your effort and investment to get as many of the right people on board as quickly as possible.
By not hiring, you effectively are missing out on opportunities – there is an opportunity cost to leaving those positions vacant for every additional month that they could have been filled with people working and making revenue for the company.
2. Recruiting Firms Help Hire More Efficiently. Why do people hire recruiting firms? There are lots of reasons – recruiting firms often have access to a better network or a proprietary database of candidates than the company can access via in-house resources alone.
Recruiting firms often bring a consultative approach where they create a comprehensive hiring strategy and offer additional bandwidth to help companies scale up their staff in periods of high growth; and recruiting firms often excel at finding talent for specific niches and high-value positions where it’s of mission-critical importance to hire the right people for the right jobs.
Simply put: recruiting firms can help your company hire the right people faster and more efficiently than you probably could handle on your own.
When you need an “all hands on deck” approach to a big hiring challenge, recruiting firms offer extra hands (and extra brainpower) to create solutions.
3. The Benefits of Hiring a Recruiting Firm Are Much Greater Than the Costs. Just like any other business expenditure, if you’re considering hiring a recruiting firm, you want to know that you’re getting a positive return on investment.
A sample ROI calculation illustrates some of the key principles of why it’s worth hiring a recruiting firm, especially for revenue-producing positions like sales and business development – and how the real ROI of recruiting firms lies in an incredibly important, but often overlooked competitive differentiator: hiring time advantage.
Hiring Time Advantage: The Real ROI of Recruiting Firms
Hiring a recruiting firm gives you what we call a “Hiring Time Advantage”: the number of weeks that the recruiting firm can source a new hire faster than an internal hiring process could have accomplished.
This Hiring Time Advantage produces Incremental Revenue – the additional money that your company makes by getting the new hire onboard sooner (thanks to the recruiting firm’s quick work).
As long as your new employees are generating revenue and earning their keep (by making more money than their salary and benefits cost), you are almost guaranteed to make a positive ROI by hiring a recruiting firm.
For example: let’s assume that your company wants to hire a top-performing sales person with a monthly quota of $100,000 and an average monthly salary of $10,000. If you can hire that sales person 2 weeks faster with a recruiting firm than you would have on your own, and assuming 4.3 weeks per month, that means your hire is on board 46.5% of a month sooner than would have happened if you had hired via internal resources alone.
The Incremental Revenue from this hire equals the Hiring Time Advantage (46.5% of a month) x Monthly Quota ($100,000 per month) = $46,511.
The Incremental Cost of having that salesperson on board sooner equals the Hiring Time Advantage (46.5% of a month) x Monthly Salary ($10,000) = $4,651. Subtract the Incremental Cost ($4,651) from the Incremental Revenue ($46,511) and you get your Incremental Net Profit from hiring this sales person faster: $41,860 (before placement fee).
This is only one example; some hires happen faster than others, and when companies are scaling up quickly, the Incremental Net Profit can be substantial when hiring multiple people. But when you consider how much your company stands to gain by hiring a recruiting firm – even for hiring a single employee – it’s clear that the ROI is quite compelling.
The opportunity costs of a slow hiring process are potentially huge, but often overlooked. A good recruiting firm will work with your company to understand your unique culture and develop a solid strategy to hire the right people for the right jobs – faster and more efficiently than you could have managed to do on your own.
Especially when you are hiring top, in-demand talent, it’s critical to get the right people on board as quickly as possible so that they can immediately go to work producing revenue and creating opportunities for your company.
How to Ask for Job—Without Asking for a Job
How to Ask for Job—Without Asking for a Job
Whoever came up with the old saying “searching for a job is a full-time job” wasn’t kidding around.
For most job seekers, finding employment means submitting applications until your fingers ache from typing and your brain hurts from churning out search terms. It means job fairs, countless applications disappearing into cyberspace, and listening to hours of unsolicited advice from friends and family, many of whom probably tell you that you need to be more aggressive in your networking.
But does that mean you’re supposed to come right out and ask anyone and everyone you meet to hire you? Absolutely not. Networking at its core is about building mutually beneficial relationships with companies and individuals that can help you reach your career goals. So most of your efforts should be spent laying the groundwork for these relationships—or, more specifically, going on informational interviews with people who are already doing what you want to be doing.
All too often, people dismiss the value of the informational interview because they feel it’s a waste of time. After all, who has time to chase jobs that don’t exist when there are posted jobs that need to be applied for?
The truth is, 80% of jobs don’t get posted—they’re filled via word of mouth—so expanding the people in your network can drastically increase the number of opportunities that come across your radar. Even if there’s not a job on the line now, the informational interview empowers you to establish yourself as a candidate and a savvy networker who understands the importance of meaningful professional connections. When a job becomes available, the people you’ve talked to won’t post it publically—they’ll email you.
Here are the steps you can take to secure that informational interview that enables you to score job opportunities—without even having to ask about them.
Reach High Up
Your first step is identifying who to talk to. You can use tools such as LinkedIn’s advanced search to identify exactly who is in a hiring role, ideally who could be your potential boss. Employees at your level may perceive you as a threat to their promotions, so direct your networking efforts to land informational interviews with people who have jobs in their pockets for you, or people who know people who can hire you. For example, if you are looking for an entry-level position, you should be contacting managers; if you’re aiming for a mid-level position, think senior managers and directors. (In most cases, employees above the vice president level are too high up and probably won’t respond.)
You should also look for meetings with people who can give you unbiased career-specific advice, even if they aren’t in a position to hire you or help you meet your immediate goals. This could mean meeting with someone who has had a long career in your field of interest but has since moved on to a new position or even retired, or a person who doesn’t work in the field at all but is well connected to industry insiders. Mentors are key.
Email serves as a great channel for this, unless you can find someone in your network who can broker an introduction. Don’t worry about the fact that the people you’re emailing won’t recognize your name—just be sure to let them know you’re interested in learning more about them as people—their careers, their growth, their insights. Good networking is not about using them as a resume mill!
Know Your Elevator Pitch
As soon as your emails and networking efforts land you that coveted meeting, it’s time to start polishing your elevator pitch. After all, your new contact is bound to ask you about yourself, and your response is the easiest way to quickly get across who you are and why you’re worth staying in touch with.
To build a stunning elevator pitch, practice the three steps I shared here on how to build an effective pitch that creates career miracles.
The “tell me about yourself” prompt also provides a unique opportunity to ease any doubts that may be looming in the mind of the person with whom you’re meeting. For example, if your resume says you’ve been working for an accounting firm but you’re meeting with a PR executive, use your pitch to explain why you want to make the transition.
Ask Passive Questions
Before the meeting, you’ll want to give some thought to what you want to get out of it, as well as what you have to give, so that you can walk out with more than just a laundry list of the person’s reflections and opinions. Devise some strategic questions that can help you get the insights and offers you want (and make it clear that the person will benefit from helping you).
For example, if you are meeting with someone who has close ties to a company where you’re dying to get a job, try asking: “Do you have any advice for how I can stand out as a candidate?” If you’re lucky, your contact will see this question as an invitation to offer to pass your resume along to HR.
Another great question to follow up with is, “Do you have any suggestions on other companies I should be looking into?” Again, your contact may offer to connect you with friends who work in your industry of interest. Asking for recommendations about other possibilities often opens the door to introductions—all without asking for them.
Don’t Forget Your Goal
Finally, go into the meeting with a clear idea on how others can support you, whether that means keeping an eye out for open positions or making connections to other companies. Done right, this isn’t pushy—by letting people know your goals, you’re allowing them the space to decide if they want to step up to the plate.
For example, one of my clients, Alex, needed to secure media coverage for her company. She successfully networked her way over to a meeting with a TODAY show anchor, and at the end of the meeting, Alex said, “At the moment, I’m looking to connect with more journalists and secure press coverage.” It was concise, specific, and aligned with the anchor’s network and interests. Needless to say, he offered to connect Alex to some of his colleagues.
The old saying “finding a job is a full-time job” isn’t without merit. Finding meaningful employment is a lot of work. In the interest of getting what you want and deserve, take the time to identify the people you want to know, and commit to nurturing your relationship for the long-term. Use the informational interview to establish yourself as a serious networker and reassure people that you aren’t going to disappear once you get what you want by being a helpful person to them, too.
But the informational interview isn’t just for people who need a job. Great networkers understand that making powerful connections is a way of life, not just an activity reserved for times of desperation. In fact, the very worst time to schedule them is when your career is in distress. So, start now. The relationships you build in these meetings will form the foundation of your professional network and ensure that you land the jobs you truly want—without ever having to ask.
Now officially a Certified Minority Supplier!
We are happy to announce that The Mice Groups, Inc. is now a WRMSDC certified Minority Business Enterprise.