Category: Management & Leadership

BY: Ron Proul, CEO

In the last installment of CG Recruitment Trends, we took a look at tactics for maximizing the ROI of your company’s recruitment strategy. This week, we’ll examine a troubling trend I’ve seen emerge in the recruitment industry over the past several years: an epidemic of companies and individual hiring authorities who, to put it simply, try to steal candidates.

With the ready availability of information online, companies have begun to help themselves to candidates after the agency introduction — even when a price and agreement are in place. The direct hire business has a name for this: backdoor hires. In temporary staffing, the American Staffing Association coined the term “tempnapping” in reference to this pervasive trend.

A Likely Story

It always starts the same. The client says we are going in a different direction and the candidate ghosts the agency. Back in the day of fax machines and phone call introductions, tempnapping happened once in a while. You would find out a few months or a year later. The paper trail could be difficult to assemble, but diligent recruiters always got what they were due.

I remember one candidate calling us years later saying, “Remember when I told you that I was leaving my temp assignment for a family emergency? Well, I didn’t. I conspired with your client so that they didn’t have to pay a fee for me.” The candidate intuitively knew it wasn’t right, but the client told the candidate that was the only way they would hire her. The client was a large real estate investment company, but somehow couldn’t afford the recruiting fee. When we asked the candidate the reason she was telling us years later, she said, “I am dying of a brain tumor and I want to have a clean conscience.”

Back in the day of fax machines and phone call introductions, tempnapping happened once in a while. You would find out a few months or a year later. The paper trail could be difficult to assemble, but diligent recruiters always got what they were due.

The Legal and Ethical Ramifications

In the digital age, we don’t need an act of confession because we find out almost immediately. The electronic trail is so easy to follow that when companies do it, I am honestly amazed. In any industry, there is a credit risk. But to have a company outright steal your product or service is shameful. Not only is it strikingly unethical, but as the American Staffing Association attests in their issue paper on tempnapping: in many cases, it is also unlawful.

The ASA points out that, “Merely offering employment to another’s employees is not in itself wrongful…” But if staffing firms are able to show fraud, coercion or other misconduct, the company’s actions can be found to be wrongful in a court of law. In these cases, a company’s efforts to cut costs results in costing them so much more.

Century Group once worked with a national retailer that wanted to hire someone. When we wouldn’t flex on pricing, they took our candidate and referred them to another temp agency that would. Thing is: the company misled the candidate, too. So when her assignment ended, the first thing she did was complain about the company’s ethics, forwarding us the LinkedIn solicitation from the company asking her to go around us. The company’s defense: we could never come to an agreement on pricing for that candidate. Our response: You could always find another candidate on your own. Whatever the justification, this type of behavior by companies is tantamount to shoplifting.

A Typical Defense

Each month, my team at Century Group uncovers one or two of these instances. Many companies don’t deny tempnapping and acknowledge that they owe a fee. But some resort to tactics akin to corporate bullying, threatening: “We won’t use you again if you charge us for this one.” Other familiar defenses we’ve heard: “We hired the candidate for a different position.” Or, my personal favorite, “The person who signed your agreement didn’t have the authority to bind the company.” The candidate doesn’t pay a fee, so it’s very easy for the company to entice them to go along with it in exchange for the benefit of a job.

I still remember the first time this happened to me and how I felt.  A company representative at a large entertainment conglomerate told me, “If you don’t like it, maybe you should get out of the contingency business.” This perception was so prevalent at this particular company that they eventually incorporated a clause in their contract to enable them to backdoor hire. I never worked on another deal there, and I managed to bill millions of dollars without that client.

Knowing Your Value

Ultimately, tempnapping and backdoor hiring are not only unethical — they also can lead to legal proceedings and costly consequences. A respectable recruiting firm will not want to work with a company that condones and entertains unethical behavior. Period. And respectable candidates will not want to work at companies that condone that behavior.

One story illustrates how the best recruiters and the best candidates don’t ever lower their standards. Why? Because they know their inherent value. Years ago we submitted a candidate’s resume for a high-paying investor relations role with a large public company. Upon receiving the resume, the hiring authority said, “I am not paying a fee for this person because someone on my staff knows them.” We let the company and the candidate know this wouldn’t stand, but the company still called the candidate directly to arrange an interview.

A respectable recruiting firm will not want to work with a company that condones and entertains unethical behavior. Period. And respectable candidates will not want to work at companies that condone that behavior.

During the interview, the hiring authority actually used the exact resume we sent them with our recruitment firm’s logo right at the top. When the interview was done and the company extended an offer, the candidate did something so honorable I got choked up when she told me. She said, “Sir, you claim you won’t pay the agency because my former coworker works for you and you already knew about me. But I didn’t know about you until the recruitment agency called me. At first, I didn’t know what to think, but you are actually interviewing me using the agency’s resume with their logo right on top. I can’t, in all honesty, work in investor relations for a company with such an egregious lack of business ethics.” This candidate was very intuitive about the company’s ethics: eventually that company’s CEO ended up in front of Congress for fraudulent lending practices, and his name is still in the news ten years later for the company’s flagrant misconduct.

Bottom Line

The best candidates, as well as the best recruiters, know their worth and never settle for less. In this market, a recruitment professional must select their clients carefully (steering clear of clients with a history of tempnapping and backdoor hiring), explain their value to both clients and candidates and they will be rewarded with a long, prosperous, and fulfilling career.

Competitive compensation is key to attracting and retaining top talent, right? Yes, but it’s not always enough — especially with this new generation of workers.

In a tight labor market, companies must appeal to the candidate on multiple levels. And when it comes to giving millennial employees what they want, a focus on employee development is a must. Take our 2019 Salary Guide, for instance. We found professionals are seeking roles that bring about personal gratification as well as financial, and are more likely to accept a position that provides growth potential and mentorship opportunities.

Here are three reasons why investing in professional development isn’t just a perk for your employees — but can positively impact your company’s success, too.

Increases Engagement and Productivity

This one is obvious: employees who feel stagnant or bored in their role are less likely to be engaged at work. A quick fix is to encourage growth throughout their time with your company. But don’t just take our word for it. According to a 2017 study by Association for Talent Development, companies that invest in professional development “enjoy a 24% higher profit margin” than those that don’t. Another study by the National Center on the Educational Quality of the Workforce showed that a focus on education, rather than equipment, was more effective in increasing workers’ engagement.

Helps Upskill Current Workers

Talent shortage? No problem. A great way employers are sidestepping this issue is by training staff to meet their current needs. Some companies are even letting their employees take the lead on what they’d like to focus on. If you can, include workers on new projects. This provides a challenging change of pace that helps stretch their skill set and inspires new ideas and company strategies.

Reduces Turnover and Attracts Talent

The career game may be all about who you know, but what you know still matters in today’s competitive labor market. And the best way to get ahead? Continue learning. Employers need to invest in professional development or employees will find a company that does. A Deloitte study shows that the millennial workforce is the most interested in professional development, with 71% reporting that they’d leave a company within two years if they’re unsatisfied with how their skills are developing. Employees want to know there’s a path to grow and move up in their role — and highlighting these opportunities when courting a candidate is key.

Brush up on more hiring trends by downloading our 2019 Salary Guide. Need accounting or finance staff? Contact us for your temporary or direct hire hiring needs.

BY: Ron Proul, CEO

Stellar recruiting strategies are key to company growth, but some tactics designed to save on recruitment costs end up undermining your goal of attracting the very best talent.

According to LinkedIn’s Global Recruiting Trends report, 35% of businesses cite “limited budget” as one of the biggest talent acquisition challenges they face. But in implementing cost-saving strategies, many companies are losing sight of what provides the most long-term value and ROI when it comes to talent acquisition. In the last installment of CG Recruitment Trends, we looked at how engaging recruitment firms yields a greater ROI than investing solely in internal talent acquisition. This week, we examine the three ways companies undermine their ROI in recruitment by negotiating reduced fees and markups.

Losing Out on Talent

Let’s talk fees. Because what we do as recruitment professionals is incentive-driven and we work on a contingency basis, negotiating deep discounts is a less-than-effective strategy and counterproductive during a talent shortage. In a highly candidate-driven marketplace, a company deciding to reduce the amount they are paying for talent defies the most basic economic law of supply and demand.

The most talented professionals work on assignments that pay at market rate for services. Lawyers do it, accountants do it and the best recruiters do it. When a company negotiates a deep discount, they move down the food chain, and come out short when it comes to acquiring top-tier talent. In a competitive market, the best candidates are going to go to the highest bidder. Period. Paying less than market value for a candidate takes a toll on the quality of your candidates, as well as your employee retention in the long-run.

The Value of Time

Negotiating lower fees also limits the amount of time that recruiters are able to dedicate to a search, ultimately prolonging the process for the client.
When you work on a contingency basis, you get rewarded based on the hours you put into a job. Put yourself in the recruiter’s shoes for a moment: a work year is 2,080 hours. If a recruiter gives a 20% discount, they have to work 460 more hours to make up that time. And if you find a recruiter that is looking for an extra 460 hours of work at a discounted price, what kind of professional are you hiring?

The only way the discounting argument could logically pass muster is if the client said, “We are going to streamline the hiring process and let you and your firm make our final hiring decisions.” Sound ridiculous? Well, of course it does. So why does a discount seem like an effective way to motivate a recruiter with a fixed amount of time to produce the same volume of work? The math just doesn’t add up.

Recruiters are going to prioritize and invest their time in the searches that will bring the greatest value. When companies negotiate reduced fees, they are inadvertently reducing the amount of time a recruiter can dedicate to a search, undermining the ROI of engaging a recruiting firm.

Discounting Your Search’s Reach

Over-negotiating reduced recruitment fees also diminishes your search’s reach. At recruitment firms like Century Group, recruiters are encouraged to work on placements together, which ultimately magnifies the scope of your search as well as results for the client. When companies try to negotiate deep discounts, it makes it difficult for recruiters to get the whole team to work on an assignment. There isn’t an incentive for other team members to provide candidates — unintentionally shrinking your search’s reach, and making it more difficult to reach passive candidates.

In sum, when companies try to negotiate deep discounts, the return on their investment in recruitment suffers when it comes to talent, time and the reach of a job search. Fee-reducing strategies employed by the client are often the result of a phenomenon we’ll explore in the next installment of CG Recruitment Trends: recruiters not adequately presenting their value proposition.

It’s no secret the role company culture plays in both courting and retaining today’s top talent. In fact, financial professionals surveyed in our 2018 Compensation Report ranked the topic as a leading reason for choosing a new position or staying with a company.

And the key to culture: the people.

Establishing relationships with your coworkers is one of the most significant — and often challenging — aspects of starting a new role. Make the process smoother for recent hires by introducing them to colleagues they’ll frequently collaborate with. Employers should also connect employees with a training buddy who can provide the support they need to successfully transition.

“The first 90 days are going to be the most difficult,” says Century Group’s CEO Ron Proul. “They’ll be establishing a new routine and it’s not unusual for them to feel uncomfortable.”

Think about it: most employed individuals spend the majority of their days at work. Forging working relationships with your colleagues is proven to spur productivity, decrease work-related stress and even positively impact your emotional well-being — an aspect that is especially vulnerable during this period. Alliances can help them gain confidence in their new position, and is critical to securing early wins. But keep in mind that integrating someone into the company is a process, not an event.

“There needs to be a conscious effort on the part of managers and colleagues to check in with new employees and connect with them,” explains Ron Blair, President and COO. “It can take many forms — going to lunch, happy hour, informal check-ins, a phone call or grabbing coffee. It’s little informal moments like these that express the company culture and set up people for success.”

ABOUT “THE FIRST 90 DAYS: SET YOUR NEW HIRE UP FOR SUCCESS”

“The First 90 Days: Set Your New Hire Up for Success,” with concepts adapted from “The First 90 Days” by Michael D. Watkins, is a three-part series designed to help companies onboard their new hires for optimal success. Be sure to lookout for Part 2 and Part 3 in the coming weeks.

Hiring is expensive — why not aim to protect that investment early on? A successful onboarding process provides your new hire with the tools needed to make an impact, as well as saves the organization time and resources by extending their tenure with the company.

Century Group’s Instructional Design and Training Manager Kristen Casalenuovo shares four important topics for employers to cover in their company’s orientation program.

1. MAKE IT PERSONAL

Sure, you expect your new hire to know the basics of their specific position once they accept an offer. But employers should go one step further — giving employees an overview of the company’s mission, vision, values and how their individual role helps achieve those goals.

“Putting the new hire at the center of the company’s success can help propel a person’s productivity and better inform how they can be most impactful to a business’ bottom line,” Casalenuovo says.

2. INCLUDE KEY TEAM MEMBERS

Don’t just identify the leaders and key players that make up your company’s unique landscape — involve them in the onboarding process. Have the heads of the various departments come in to share what they do, Casalenuovo says. Introduce new hires to members outside their team. Not only will this help them learn the business’ structural wiring, but also encourages them to forge beneficial, unconventional working relationships.

3. DISCUSS COMPANY CULTURE AND NORMS

Company culture is a complex thing. Everything from dress code to frequently used terminology are elements that can help your new hire quickly learn and adapt to aspects of the culture. Don’t leave it at that, however. Clue them in to how employees typically engage with one another on a regular basis. Who do they report to when sharing project ideas? What is the goal and tone of company meetings? These are all areas that may take time for a new employee to grasp, but are crucial to the framework of a company’s individual culture.

4. ESTABLISH KEY PERFORMANCE GOALS

The tasks and responsibilities of a specific role are typically discussed during the candidate’s interview process. That doesn’t mean they shouldn’t be highlighted again once they officially sign on with the company.

“Make sure the new hire’s manager works with them to set measurable performance goals within the first week,” Casalenuovo says.

Things change. Perspectives differ. And it’s just better business to review expectations as part of your company’s orientation program, so everyone is on the same page from the start.

ABOUT “THE FIRST 90 DAYS: SET YOUR NEW HIRE UP FOR SUCCESS”

“The First 90 Days: Set Your New Hire Up for Success,” with concepts adapted from “The First 90 Days” by Michael D. Watkins, is a three-part series designed to help companies onboard their new hires for optimal success. Part 1 focused on the importance of helping your new hire establish productive working relationships. Be sure to look out for the final installment in the coming weeks.

Sink or swim. The adage is a common one in the corporate world — a way to distinguish successful employees from the rest. In this tight labor market, however, that type of onboarding experience will most likely backfire.

Today’s talent require a gentler touch.

As discussed in Part 1 and Part 2 of this series, transitioning to an unfamiliar work environment is a challenging time for professionals. Employers should ease their new hires into the company’s unique culture and norms, as well as clearly vocalize the role’s responsibilities and expectations. But it’s important to remember communication goes both ways. And, more importantly, is a fundamental component to creating an open, accessible workplace for employees to meet their full potential.

A 2015 study performed by theEMPLOYEEapp illustrates that 68 percent of employees surveyed believe the frequency of communications with their employer directly impacts their job satisfaction. Why not ace this area during the first 90 days?

Supervisors can start by identifying their new hire’s communication style. Do they prefer email, instant messenger or in-person meetings? Often times, scheduling regular one-on-one sessions encourages employees to share their ideas, challenges and concerns more freely. Try to stay consistent with powwows, so employers can continue to gauge how well their employee is adapting and keep that line of communication open.

Looping them into the company’s review processes for projects or smaller tasks is also something to keep in mind. New hires want to know if there are various check-in points or when they can ask questions and get feedback for particular assignments. Making sure everyone is up to speed limits both stress and frustrations in the long run — helping your team reach its goals more efficiently and effectively.

ABOUT “THE FIRST 90 DAYS: SET YOUR NEW HIRE UP FOR SUCCESS”

“The First 90 Days: Set Your New Hire Up for Success,” with concepts adapted from “The First 90 Days” by Michael D. Watkins, is a three-part series designed to help companies onboard their new hires for optimal success. Part 1 focused on the importance of helping your new hire establish productive working relationships, and Part 2 included a four-step guide to a comprehensive orientation program.

For assistance with your company’s talent needs, contact our team today!

By Ron Proul, CEO

Hiring the right person for a role is one of the most important decisions made by managers. And over the years, I’ve watched managers fall into one or more costly hiring traps. Avoid these five big mistakes and you’ll build a great team.

1. NOT TAKING RESPONSIBILITY FOR THE HIRING DECISION

This is the common mistake of a new manager. If your boss gives you the authority to hire, establish up front whether you have the ability to make the final decision.

Ask the hard questions: Is it my hire? Am I responsible for the decision? Do you need to approve my decision? If you don’t have final authority, find out how much authority you’ve been granted.

This is also a problem for senior executives who delegate hiring authority. In my experience as CEO, it’s best to give subordinates authority over hiring decisions and responsibility for consequences. If the ultimate decision isn’t theirs, you’re merely asking them to screen candidates, and you remain the hiring authority. Make sure everyone knows it.

2. TOO MANY PEOPLE IN THE PROCESS WITHOUT A PURPOSE

There is a high cost to hiring the wrong person and no one wants to be individually responsible for making a poor hiring decision. This mindset often leads to the “safety in numbers” solution. As a result, managers get people involved in the process that don’t have a clear role.

But everyone should have clear criteria for evaluating a candidate and should be aligned using a similar assessment tool. Without any guidance, prospective peers default to using the interview to begin positioning themselves should the candidate ultimately be hired. The problem with this is obvious: If the candidate doesn’t respond to the implicit positioning, they are immediately at a disadvantage.

This is typical of group dynamics — use it to garner insights by setting up the process properly. Liking someone you will work with is important, so figure it out in a way that you can observe objectively as the hiring authority.

3. FORGETTING THE CANDIDATE NEEDS A CHALLENGE

I often see hiring managers focused exclusively on hiring an expert who is currently performing the open role elsewhere. This is a Band-Aid approach to hiring.

To attract the best candidates and reduce self-selected turnover, you need to consider the impact that professional development, challenge, variety, new skill development and an increased scope of responsibility will have on a candidate’s decision making.

Establish the essential skills and leave room for development. This will give you a chance to reward an employee through increased responsibility. If you absolutely require an expert, ask yourself whether you should consider a consultant or interim professional.

4. TREATING SALARY AS AN EXPENSE, NOT AN INVESTMENT

When hiring professionals and executives, you get what you pay for. Investing in competitive compensation for a role and selecting the best candidates independent of salary is the best way to maximize your hiring ROI.

There is a market rate for professionals and most candidates know their value within a general range. When you look for skills and experience at a below-market, bargain rate, your interviewing process will take longer and it will attract less qualified candidates. The end result: paying the market rate in the form of lost productivity and turnover.

5. THINKING THE GOAL IS TO INTERVIEW A LARGE SLATE OF CANDIDATES

When you start the process to fill an open position, the goal is to hire someone — not interview everyone. An interview process that is consistent and decisive helps everyone.

Securing the best candidate shouldn’t be based on how they fared relative to everyone you interviewed, but rather relative to the job. The perpetual interviewer is always surprised when they get a turndown or the candidate is no longer available at the end of the search, only to have to start the entire interview process again. If interviewing is their purpose, they achieved it. But if hiring is, they didn’t.

Contact us today to help with your hiring needs!

Many companies and hiring managers forget that interviewing, making a job offer and getting an acceptance is only half the work when making a successful hire. There is an entire checklist of actions that need to occur in order to complete a successful hire.

“Successful onboarding is the completion of the recruiting process, and if done right, studies show it can increase both the effectiveness and tenure of a new hire,” says Lisa Chang, Century Group’s Director of Talent Acquisition. “The first impression is strategic in successful onboarding.”

PUT THE WELCOME SIGN OUT

In the weeks leading up to a new employee’s first day, the company should continue to foster the developing relationship between themselves and the new employee. This transition is often a formal onboarding process that requires the completion of pre-employment paperwork. However, less formal measures should also be taken, such as communicating with the new hire right up to the first day.

Calling to check-in before a new hire starts is crucial. Sharing valuable information with them, such as where to park, how to gain access to the building, and even inviting them out for an introductory lunch contributes to this personal touch. A new employer needs to both stay in the forefront of the new hire’s mind and help them through this transition. Don’t fall prey to thinking that getting an acceptance is the end of the recruitment process.

Remember, the candidate you have selected is adding valuable skills to your department. They were also valuable to their former employer, and as the notice period ends, the value of the employee and the difficulty in replacing them will become apparent. A counter-offer may upset your best-laid plans, so the more welcoming and accessible you are to the candidate, the less likely they are to accept it.

MAKE THEIR FIRST DAY SPECIAL

Your new hire was excited when they left their final interview, and they were excited when they accepted the job. It’s important to keep that excitement alive right up to and beyond their first day by updating them about the latest company news, introducing them to the company in an upbeat manner, and helping eliminate any first-day anxiety.

Clients should make sure new employees are set up in the company’s system, provide a tour of the facilities and introduce them to the rest of the team. This helps the new employee feel at home in their new space and lets them know you are prepared for their arrival.

The first day is a great day to go over the job expectations and objectives during the transition. You may think you’ve covered everything during the interview, but there is an overload of information when starting any new job. The first day of work can set the tone for a long-term relationship and has a tremendous impact on the new hire’s future success with the company.

GIVE IT A HUMAN TOUCH

Assign your new employee a go-to person who can answer their questions. All employees experience some degree of difficulty in making a transition during the first 90-to-120 days, which is a common period to lose a new hire. Learning about both a new job and a new company culture, as well as creating a new routine in their daily life, can be stressful for anyone.

Anything you can do to help ensure their success is a plus. A candidate who doesn’t feel they have been set up for success at your company is susceptible to returning to a prior job or inquiring about another opportunity they had been pursuing. It could even be the former boss they used for a reference who says, “Let me know how that new job works out, because we may have something coming up for you.” Good candidates are good candidates, period.

KEEP THEM IN THE LOOP

Managers need to let the new hires know when and how they will garner feedback on their job performance. A regular, monthly meeting can let a candidate know they have access to you as a resource, they are important, and they are able to get help. Francesca Brooks, Century Group’s Managing Director of Human Resources, even goes as far as to recommend setting up a schedule for the entire first week. You may think you are providing constant feedback, but having a pre-arranged meeting is always a good policy.

Periodic reviews are also crucial. You would be surprised how many times we hear, “Well, I haven’t had my annual review, so I am not sure what that means.” You think it means they are doing fine. They think it means, “I am (or my job is) not a priority for you.”

Finally, ask for your new hire’s feedback. This is helpful for their assimilation into the organization, and it will help you improve the process for future hires. If you only ask for feedback during a resignation, you are closing the barn after the horse.

You may say, “I am so busy, I am not sure how I will fit this in.” Well, ask yourself… if you are that busy, how are you going to fit in another recruitment process?

Contact us to help you with the hiring process.