I get the question from candidates occasionally whether my firm is Retained or Contingent. It is a legitimate qualifying question by a someone who is seeking credibility in a search firm. Although the perception is that being on a retained search would validate the legitimacy of my firm; the reality is that there are many advantages as a small business owner to work on a contingent basis. Obviously there is something to be said for being paid in advance of putting time and resources into a filling a search. It demonstrates urgency of the hire if a company is willing to spend money up front to fill a position. Also, you get the money now! No negotiating time frame of payment on invoices, calls to accounts payable, employees hounding me for commissions, etc. These are some of the pros for working on retained searches, however, there are many factors that go along with a retained search that can affect my company’s ability to produce maximum revenue.
A huge positive in working contingent searches is autonomy, especially since we are a smaller, niche firm. As anyone working in a sales capacity knows, time management is one of the most important keys to success and maximizing revenue. A retained search can be very limiting to your ability to manage where you are prioritizing your time and resources. There are around a dozen variables to each new client and search that indicate whether it is a good use (or waste) of your time to work on filling roles with that company. Any solid Headhunter will evaluate all of these closely while deciding how much of his or her time to spend on a particular client. Probably the most important factor in this decision process is how excited candidates get to go work there, which is right away half the battle of closing deals in Executive Search. Other factors are the product/platform, scalability, the engineers and team support, senior leadership, interview process, compensation, commission structure, benefits, and the list goes on. With a new client, it is impossible to evaluate up front how good or bad they will end up being. On a retained search, the ability to prioritize is eliminated, because once you accept the retainer you are obligated to work on that search until it is filled. I can easily fill five roles with an established, proven contingent client in the same time it takes me to fill one retained search with a new client. Having the ability to prioritize which clients I choose to spend my company’s time and resources with is invaluable. It gives me the ability to have a direct impact on sales, billings and success.
So I would rather have the ability to walk away from a search and prioritize where I spend my time. In my experience, having that flexibility is much more important than the security of getting paid in advance. The confidence to fill any search within my industry before the competition plays a good part in this thinking as well.

Since moving to Milford, Connecticut (from NYC and Brooklyn, basically to the suburbs) I’ve been looking for a good tailor (summer / fall weddings and all), but instead of Googling, I decide to first ask my co-workers and friends to see if they know a good tailor; when that turned up empty I went to Yelp and read the reviews of various tailors which only perpetuated my confusion because I didn’t know who’s opinion I could trust. So, instead of getting my suits tailored I still bring it up in conversations occasionally and I found myself asking people I just met to see what they thought. Then it came to me, I will never find a tailor unless I try a few out and made an opinion for myself. This got me thinking about the hiring world and how referrals are generally considered as the “in” candidates are looking for to get into a new position.

Referrals as a Filter

As a hiring manager, you often rely on referrals as a filter. An outside connection from someone on your team, someone you were introduced to by a friend, a referral from someone outside your team to a candidate or even a recruiter that a colleague of yours used in the past to find candidates.

In other words, you are using your own network as a filter to add similar connections into your network – thus, really not expanding your network in the first place. The stronger the connection that introduces you to the candidate, the higher the likelihood that you will hire the candidate and ignore red flags that could surface in the interview process. I trust “Joe” (no subliminal context intended), therefore I trust you.

As much as everyone talks about the value of referrals, you should also look at the possible damage you might be doing. How much better will you and your team get if they’re working with the same people that they’ve worked with in the past?

Group Cohesion

This is called group cohesion. Independent thinking and creativity are completely lost in group cohesiveness. The positive of group cohesion is that they are generally safe and/or balanced decisions. The negative is that you’re not forcing yourself outside your comfort zone. This just screams that you’re caught up in trying to not make the wrong hire as opposed to making the best hire.

And what happens when you get introduced to a candidate or a recruiter calls you without a prior introduction from a trusted source? You do some research on the person to see if there is anything out there that will help you make a decision on whether to move forward or to kill the relationship before it starts. The world of social networking makes it easy to find this information out. Again, the days of making a decision without consulting the masses are over. I always check Yelp before trying a new restaurant to see if I’m making the right reservation but reading the reviews just lists a few different, isolated opinions that end up causing confusion to the whole thing.

Be a Leader

If you’re a hiring manager, be a leader – trust your instincts before anyone else’s. I’m not saying to discount referrals, I’m simply stating that when evaluating how to fill your position, try to add something new to your network. You might be pleasantly surprised by the outcome and in turn, grow your skills as a leader.

In my case, I might just run across the best tailor in Milford CT or it may come to me if I keep my eyes, mind and ears open.

So you have been looking for a new gig for a while and finally you find one that is worth checking out. You get on LinkedIn and see if you know anyone in your network working there now or even in the past. You find out the company is indeed a place you could see yourself in the future and continue to take the next steps. You ask your agency to make an introduction for you with the hiring manager.
All of this assumes of course you actually HAVE a LinkedIn profile which you have been building as well as the fact you are utilizing the relationships you have been cultivating and have stayed in close contact with your recruiter and agency.
Well your agency makes the introduction for you and your previous experiences lands you a telephone interview with the hiring manager. It’s only 30-45 minutes, but you are certain you will wow her and she will want you to come in and meet the rest of the team right away. As with most telephone interviews, this is just to screen you to see if you would be a fit with the team, your skills on your resume all match up and what type of personality you have. This is often done by an internal recruiter, HR, or someone else, but since you’re working with an agency with access to the hiring manager she decides to perform the phone screen herself.
Right away you know you are moving on to the next stage in the process. You did your research and aside from the agency making the initial introduction, you tell the manager about the multiple similarities the two of you share which you found out by following her on Twitter or LinkedIn. You tell her how your background is a perfect match for what they are looking for and how you would be able to come in right away and make a difference and how much value you bring and this and that and everything else. And on and on and on.
While all of this is ok in moderation, that is the magic word at this stage of the game. MODERATION. You may be very well suited to have an immediate impact. But how do you know exactly what this organization is looking for or even this particular group? More than likely you know what they do and what they are looking for by the job description, but all too often even the hiring manager doesn’t TRULY know what is needed so chances are slim you have any clue at all!
Again, I am not against selling yourself to some degree, but just make sure you don’t overdo it. In fact, I encourage you to sell yourself! Interviewing is about you selling yourself and your skills while the company sells themselves and the opportunity. IN THEORY. And while many have the misconception that a great salesperson is someone that talks a lot, that couldn’t be further from the truth. They DO talk a lot, but if they are doing it properly, they are asking questions or if they are answering questions, they are keeping it brief. When you are talking the entire interview of course you think it went well. As humans we love nothing more than to hear our own name and our own voice. So if YOU are doing all of the talking you think everything is going well and you are a shoe in for the job. Again, this is wrong.
Almost 100% of the time when someone calls me after their interview and tells me they aced it and they are certain it will go to the next level or they will get the job I know I need to find someone else to fill the position. There are times where that isn’t the case, but it’s rare. Confidence is great and all, but you spent the whole time talking and didn’t give the manager the chance to get to really know you and build rapport. In sales (and interviews which is nothing more than another type of sale in essence) building trust and rapport is so important that you can toss everything else out the window if you don’t have it. That is why I say it’s great in moderation, but just make sure you are having a conversation, not a monologue. Ask how she progressed to the current position. What drew her to the company when she first started? Something! ANYTHING! When you actually converse it allows you to uncover some of the needs possibly not mentioned on the job description which will allow you to speak of your unique attributes and how they relate to the position.
One of the main, if not THE main reason for speaking too much is being excited and/or nervous. Trust me, I am quite guilty of this. This is why the importance of practice interviews is a constant subject when performing searches on interview preparation. By knowing what you are going to say, you are able to listen more and when the time is right sell your skills which will in turn enhance your chances to beat out the competition.
So next time you finish up an interview, look back and ask yourself if you did all of the talking. If your answer is “yes,” it may not be the best idea to start writing your two weeks’ notice. If the answer is “no,” it’s still not the best idea to start writing your two weeks’ notice, but the odds will be stacked higher in your favor and you may be that much closer to your next great opportunity!

You did it! You successfully found someone you want to extend an offer to. The hard part is over… Or is it?

I’ve been working in the recruiting field for some time now, and I’ve found that the average hiring manager takes his foot off the gas right before extending an offer, sometimes messing up the entire process by explaining sloppily that they want the candidate to join the team.

Here are some pointers to remember once you’ve identified the right candidate for the job, to ensure that you don’t screw it all up at the end.

What Is the Candidate Worth?
Before you find out what the candidate wants you must first figure out what the candidate’s really worth to you. You’ve established that you would like to work with the candidate, but what is the cost? What is the rest of the team making and what skills does this person have? Keep in mind that you’ll think your team has more experience using a particular technology, simply because they’ve been using it under your supervision. Also be sure that you’re compensating your existing team appropriately and competitively with the current market conditions. It’s better for you to find out before they do, because they will eventually.

Know the Candidate’s Expectations
A candidate’s desired compensation is made up of three numbers: their “bottom line” number, their “happy” number and their “thrilled” number. The candidate would obviously like to get their thrilled number, but there’s only so much you can do with your budget and, let’s face it, their thrilled number might be completely unrealistic and could set the wrong dynamic. They might come in with a large ego and not respect anyone else’s decisions.

You’ll face a similar problem if you offer their “bottom line” number. The candidate knows you know their bottom line, so to offer that number implies you’re being cheap and aren’t willing to beat their bottom line, even by a small amount. How a company hires is usually an indication of how they will manage and is this how you want to set the stage before someone even starts with you? If the bottom line number is really is the best you can do, give the candidate some reasons why you made that offer.

The ideal salary, the candidate’s “happy” number, is somewhere in-between. The number that says, “I want to give you more than your bottom line, but you’ll need to work up to your thrilled number and here’s how we can get you there.” The happy number can be only marginally above their bottom line number; but that increase will make the candidate a little more excited to come on board and it will make them work harder and, more importantly, happier on day one.

DO Make an Offer This Way
When arriving at a number always make a verbal offer before putting together an offer package. The last thing you want to do is to send a candidate off with a package they’ll take a week to consider when the core numbers might not even work. If you’re working with an agency this process is ideal because the agent will deliver the “bottom line,” “happy,” and “thrilled” numbers to you and prepare the candidate to accept any of the three numbers when you come out with the verbal offer.

If you’re not using an agency, engage the candidate in a conversation to discover what salary will make the most sense. You don’t want to directly ask the candidate what their “bottom line” is, but you can usually gauge those numbers if you ask what they’re looking for and compare it to their most recent salary. Usually a 5%-7% increase will be a “happy” number, but circumstances are different based on who you’re making an offer to.

Always explain your offer to the candidate and what your short and long term vision for them is. People don’t choose to stay long term just because they’re getting an extra $100 slapped onto their paychecks. They skip to work because of what they’re doing on a daily basis, how they’re challenged and how their role contributes to a shared company vision.

DON’T Make an Offer This Way
Don’t ask what the candidate is looking for and what they’re currently making, and then make an offer below both numbers. You’ll run the risk of insulting the candidate even if you’re ready to come back with a higher counteroffer.

Always make your best offer first. Counteroffers rarely work.

Don’t Be a Loser
Any start date longer than two weeks from the hire date should be a red flag. When a start date is extended that far out without good reason you should question it. After all, you’re running a big risk by shutting down the position for three weeks while the candidate is getting counteroffers and tempting recruiting calls from your competitors every day. For some reason, once a candidate gets an offer, other opportunities tend to surface out of the woodwork. Don’t take any chances; candidates who start later than three weeks after accepting an offer are 20% less likely to stick with that job offer than candidates who start within two weeks.

I recently said this to a hiring manager who had told a candidate to start four weeks after accepting an offer. He replied, “If they end up accepting another position after accepting mine then I don’t want them anyway.” That’s like losing a basketball game and saying you weren’t trying to win anyway, or not going the extra mile to get the girl of your dreams and blaming it on destiny. If you want something, go get it! Don’t give excuses that are just a mental parachute to your disappointment when you lose. More importantly, don’t be a loser!

I spent some time with a client in the Digital Advertising Technology world in NYC recently and had a conversation that was centered around the topic of Innovation, in particular, Disrupting the current way they do things currently to figure out how to do it better.

“Disruption is when you change the known to the unknown,” said my client. “You have to learn how to reboot! Seek an opportunity to redefine yourself at any point.”

This is very relevant to where the marketplace is today. Right now, we’re in the midst of a technology revolution, specifically on how we communicate and stay connected. There are more products emerging that take advantage of a global infrastructure that’s projected to increase from $500 Billion (’08) to $950 Billion (’13).

So if you’re a hiring manager, you have a particular need to find talent that will deliver on a current project that needs to be completed. The question is: when you hire, do you look at people that have done it before or people that have the potential to do it better?

One thing my client warned in his conversation with my team was to not bring on people who have tackled a similar problem in the past but to seek out people who haven’t faced that problem before. Find fresh talent that look at things differently, the issue with finding people who have done it before is that they know what “can’t” be done and therefore limit themselves to what “can”.
When you’re looking to bring on talent, be open minded that it might be a better idea to hire someone that sees your opportunity as a step in the right direction as opposed to a lateral move. It’s a dangerous way to go about hiring, because eventually everyone’s looking for a step in the right direction and you might be replacing your “no ramp up time needed” candidate shortly after hiring them.

Hire with an eye for potential and not just experience. You’ll have a team that will surpass your expectations because you don’t establish limits to them.

With the demand for technical and sales talent in digital advertising these days I wonder why, after completing many rounds of interviews and deciding to hire a candidate, it takes more than three days to come out with an offer. Why wait? You lose momentum from the last interview with every minute that goes by. Take advantage of the moment and make the offer you intend to make within 24 hours of the candidate’s final interview. Otherwise you run the risk of stunting the momentum you’ve worked so hard to create and souring the experience for the job seeker.

Everyone has been in this situation: you go to a restaurant, you have a great meal, the experience and vibe of the place is amazing and the wait staff is very friendly, timely and informative. Then you finish your meal and your cocktail and you wonder where that wonderful waiter went. It’s obvious that the server is busy with other tables, but all they need to do is get the check for you and you’ll be out the door! As time goes on, the great dining experience you had turns sour and while it won’t completely ruin the experience it will stick in your mind and be the last thing you remember about the place. All that hard work the server put in at the beginning is forgotten and his tip will, no doubt, be drastically reduced.

Similarly, while the job seeker reflects on the interviewing experience and wonders why it’s taking so long to make a decision, they start resenting how long they’re being made to wait. Put yourself in the shoes of a job seeker after a final round interview. Imagine that you felt it went very well and maybe the hiring manager even said that they will be getting back to you shortly with an offer or a positive decision. A day passes, then two days, then the weekend.

Here’s the job seeker’s thought process:

• They’re interviewing other candidates so I should check out other options to see if there’s anything better out there.
• Did I say something that put them off in the final interview? It wasn’t a technical interview so maybe they just didn’t like me and were putting on a fake façade.
• I have an offer already from my #2 choice. Since my #1 choice is taking so long I had better accept the offer from my #2. After all, a bird in hand is better than two in the bush!
• If they take this long to make a decision, how do they make other decisions?
• Do I want to work for someone that can’t make up their mind?

Ultimately you can see that letting a candidate sit for too long is not a good thing. Job seekers are not wine or cheese! They’re people who want to be hired. I understand that larger companies have processes in place for a reason and an approval strategy must be gone through before any offers are extended, but you can get all of that done before the final round interview. You can get ready to go so you can make a timely decision.

Here are some other tips:

• Allow your agency to get verbal acceptance (compensation aside) and let the job seeker know that once you get verbal acceptance you will generate the offer letter.
• Alert your hiring “party” that you have a candidate that you’re strongly considering, in order to get the necessary paperwork out of the way before the final round interview.
• If you’re working with an agency make sure that they set the proper expectations with the job seeker ahead of time so it doesn’t become a frustrating “hurry up and wait” scenario. Stay in close communication with your recruiters.
• Follow up with the job seeker and/or their agent every day to update them on what’s happening. The worst thing you can do is let the job seeker simmer without any updates.

In a perfect world you’d find a job seeker that you want to hire and you’d make them an offer. There are certain procedures for doing things that you must adhere to but don’t let them stand in the way of hiring the right candidate. The market is, once again, incredibly competitive for good candidates and sometimes the only thing that keeps you from getting the candidate you want is the slowness of your hiring process.