Hiring a Recruitment Agent - 5 Points to Consider

Employing a recruitment agency to solve your current resourcing needs can be fraught with danger if you do not do your homework. It is important to ensure you know enough about your recruiter so that a simple hiring process doesn't turn into a costly and unrewarding pursuit. In Australia, the recruitment industry includes thousands of agencies - some small, some large, some specialist, some generalist, but all with one purpose: to make money. It is often associated with sales-pressured staff only out to make a quick buck, regardless of the service they provide, and is often viewed in the same light as politicians and used car salesmen in the overall quality of their work and their trustworthiness.

However, there are recruiters out there that do not fit this mould and are there to work to hard to satisfy the clients they are working for. Often this results in success first time every time, with a high level of customer satisfaction. Finding these, though, can be difficult.

Here are five elements that must be present in your recruiter before even thinking of engagement. Some elements may be harder to identify than others, but it is necessary to tick off all these beforehand.

1. Engagement
2. Commitment
3. Costs
4. Trust
5. Value-Add

1. Do they engage with you fully? Has the Recruitment Agency taken time to understand your business, get a feel for the environment, speak about the requirement and basically sat down and talked to you? If not, it is probably worth another look elsewhere.

The best recruiters act as a partner with your business. Their efforts to understand how your business operates, what the successful elements are within the business, how you have hired in the past, and the success rate therein show them to be above the pack. In all cases, the agent must show genuine interest in your business and the hiring needs within.

Ideally, you want to have a recruiter that can be called upon when needed, simply because if they have taken the time to understand your business, you will want to hold on to that knowledge. What better way to ensure you get the right staff every time, then by having an advocate for you in the labour market?

Additionally, a good recruiter, with strong understanding of your business, will constantly be on the lookout for people that would compliment your staff. The net effect of this kind of service is the most appropriate people for your business at any given time as well as the pick of top candidates when they become available.

2. Do they offer a timely commitment? Noted agents set out a plan of attack as to how they are going to complete your requirement, within an agreed time-frame. This agenda could look something like:

i. Post add on job board / start contacting networks
ii. Phone interviews completed
iii. Face-to-face interviews completed
iv. Presentation of short list to the business
v. Arranging of internal interviews with hiring manager(s)
vi. Reference checking / Police record checks / other checks as required.
vii. Confirmation of placement / starting details

Only then will you have a clear idea as to not only what the agent will be doing for you, but the time in which they will do it.

Added to this, is the communication channels that will be opened with your recruiter. You, as the client, can determine how often you would like to hear from your recruiter regarding progress. Make sure you are clear as to when you can be contacted and ensure your recruiter abides by these requests.

3. How much are you going to pay? To some this is the most critical, forget everything, number one reason NOT to bring in recruitment agencies. It has been widely noted by people who are knowledgeable or not of the industry that recruitment agency fees are astronomical for the perceived worth they bring in.

Depending on the size of your business, agencies can charge a premium to offer their services to you. What has become apparent is the smaller the business, the larger the fees. Some recruitment agencies see small businesses as a means to an end. There is generally no major engagement and the effort taken to search, screen and select candidates is not major. If you consider paying anywhere from 15 to 25% of the annual salary of a new candidate in recruitment fees excessive, look around.

There is an axiom in business that you pay for what you need. In this case, I would suggest this to be a fallacy. The justification for excessive rates is simply not there, and as a business owner, you have the power to bargain your way to a lower rate. And should the agency you are talking to refuse to budge? Move on. There are a number of agencies that do not charge anywhere near the excessive amounts mentioned, yet offer a service far better that what you would receive with these more expensive firms.

Consider this: an expanding small or medium-sized business needs to bring on staff whilst maintaining it's efficiencies around cost, time and labour. However, if the time, cost and labour is not effectively utilised in the hiring process, the net cost of a bad hire can exceed twice the annual salary of that staff, when you look at:

i. downtime to write job descriptions and online ads
ii. screening of applicant's resumes
iii. phone interviews
iv. face-to-face interviews (twice, for effective hires)
v. start-up and on-boarding
vi. redoing any mistakes the bad hire committed, by current staff
vii. repeat of the processes i-v

To any small or medium business, this is an excessive - and unwarranted - cost.

The argument to not utilise agencies when put up against the costs of going it alone seems to pale, and given that most managers are not expert HR Managers, enlisting a bit of help could reduce overall expenditure on hiring could be strategically beneficial.

4. Do you trust your recruitment agent? This could be as simple as a gut feeling, or more methodical, but in all cases, if you do not trust your agent, you are not going to get along well with them and it would be a wise decision to look elsewhere.

Trust is something that cannot be determined by the size of the organisation or what the agent says to you - it must be earned.

Don't be afraid to put them on the spot to ensure your comfortable with their skills; ask them what they know of the industry you work in (or if they are not sure, how they will research it), if they have contacts in this area, what they understand of the labour market or the potential issues affecting supply of candidates.

In addition, make sure the agent asks plenty of questions about your business, because it is an informed agent that will ensure an appropriate candidate will be presented.

Finally, when it comes to engaging an agency, ensure you are completely aware of their Terms of Business. All agencies will have some form of agreement they will ask you to sign before beginning the process. Always go over the agreement in detail, as trust can be broken over the smallest issue with contracts. Engage a legal representative if necessary to give you peace of mind.

5. What else can they do for you? To any small or medium business, it is not just down to what person an agency can put in front of them, but what additional assistance can be offered to compliment this service - the value-add.

As mentioned, we have looked at what recruiters do as part of their standard sourcing activities. Typically, though, good recruitment agencies will do a number of the following over and above these:

Help prepare the job description
Assist you with strategies to get the most out of your interviews with candidates, including interview questions and templates, if required
Handle the salary / rate negotiations
Assist with a 'to-do' list to complete on the first day
Prepare new starters for their first day
Offer a guarantee on placement - that is, if the placement does not work out for any reason, and within a certain time-frame, the agency will replace with a new candidate
Assist with preparation of internal recruitment policies and procedures
Look at current recruitment habits and advise on changes, if needed
Information on any aspect of the hiring / recruitment process
Conduct information sessions for you and/or your staff on recruitment issues in small and medium businesses
These value-add functions should be the final tick in the box for the decision making process selecting a recruitment agent, and a measure of a good agency is the willingness to bring those to the negotiating table. Depending on your needs, and the amount of control you want to have in the recruitment process should indicate what impact the value-add will have on your decision making process.

By following these simple points, business owners can be confident in the knowledge their choice of recruitment agency is based on exhaustive information gathering and research.

More importantly, though, it will ensure that you and your recruiter both understand where you are coming from, and what the agent can do for you. Ultimately, the savings in time, money and effort will be significant and the benefit of having another partner working for the goals of your business cannot be underestimated.

The Proper Care & Feeding of Recruiters

Establishing a good working relationship with one recruiter or multiple recruiters is an important tool in furthering your career and even in establishing yourself on the road to employment success. Whether you're on the market now, employed and "testing the water", or you receive the proverbial call out of the blue, a recruiter can hold the key to your career development. Having been a recruiter for over 30 years, let me give you some tips that will pay off for you and the recruiter with whom you interface.

Let me first bust a myth and clear up a misconception. A recruiter is not there to "find you a position". I know that may sound harsh and blunt, and it may even bruise your ego a bit, but it's true. Recruiters have a primary objective and that is to fill the positions entrusted to them by their client, the company which pays their fee. Most recruiters work straight commission (hence, on contingency) so if they don't get a candidate hired by their client, they don't get paid. The client has a need, you are potentially the solution, and the recruiter is the middleman who brings the two together.

Like a matchmaker he is evaluating how good a "marriage" you and his client have the potential of being. Personally, I think a good recruiter will take into account the needs of both the company and the candidate to insure long-term success for both parties rather than focus on the immediate hire alone, but it is always best to remember that the primary allegiance of any recruiter is to his client, the hiring company.

I want to include a word to the wise. If a recruiter calls you, take the call or return it quickly. I can assure you that if a recruiter calls you, it's because he has a reason. Even if you aren't looking currently (besides, how do you know until you see what he has on his plate?) you'll establish a contact that will be of value, if not today then at sometime in the future when you need it.

Here are 7 ways to ensure a mutually beneficial working relationship with a recruiter.

1) LOOK FOR A SPECIALIST. Years ago, when I entered the recruiting industry, being a generalist wasn't uncommon. Today, with the market and competition, recruiters generally specialize. Some work a local market and some work nationally. A specialist in your industry or discipline will have a benefit for you and in turn, your background will be of interest to the recruiter. How a recruiter specializes may vary. Some are industry specific (i.e. insurance, accounting, hospitality, industrial, etc.) and others are position specific (i.e. sales/sales management, marketing, mechanical engineers, chemists, etc.) Many specialize in an industry and functions within that industry. As an example, my recruiting company specializes in sales and sales management within the broad healthcare industry. Don't be afraid to ask a recruiter what he specializes in.

2) PRACTICE FULL DISCLOSURE. Be up front and honest in regard to your current and past employment situation, even if unemployed. Saying you're "currently employed" only to have the recruiter find out you're not will quite possibly end or severely damage your relationship. He is vouching for you to the client and his credibility is impacted by yours. The same applies for your job history, earnings, and where you are in the search process in terms of making a position change. Recruiters like factual information. Even if it may be negative, they need to know. Eating the frog on the front end can keep you from losing the ideal job later in the process. You see, a recruiter represents you to his client. He takes your criteria and theirs and creates the environment for an interview to take place. He can deal effectively with a negative if he knows what it is. If you allow him to be "blindsided", you look bad and so does he. If the negative you fear prevents you from interviewing with that particular client, it would have kept you from getting the offer in the long run.

3) BE ENTHUSIASTIC. Even though the recruiter is an independent entity, he is an extension of the company for which he is recruiting. He is evaluating you for the client, so that first impression is important whether it is in a face to face interview or a phone interview. If you have enthusiasm and excitement in regard to your career, his interest in you, the company he is representing, and the position, it will help him have a positive view of you as a candidate. If he is excited about you, he will look forward to presenting you to his client as a potential solution to their problem. Here is another thing to consider: a recruiter works many assignments at one time, with numerous companies. Not only is he evaluating you for the specific position and company he called you about, but also potentially for other assignments active on his desk.

4) DON'T LEAD, FOLLOW. I know, I know, always better to be a leader than a follower. I agree, but when a recruiter calls, understand this: they have the opportunity and also the discretion of whether they tell you what it is or not. If you understand that they make many, many calls a day (and being commission types, time is money), this pointer will help you. Now, I'm not saying play a game of 20 questions. Do not give yes and no answers unless the question requires one, either. What I am saying is, like when dancing, someone leads and someone follows. Let him lead the discussion and take it where he needs to go as he generates the information needed to ascertain your candidacy for his client. Through the course of the conversation you will have the opportunity to ask questions and often be prompted by the recruiter to do so. It's a two-way street, but he'll take the lead.

5) DO NOT BE A DISTRACTION. All recruiters work differently and knowing the rules of the game will make your life easier. Do not call the recruiter to "check in", believing the squeaky wheel gets the grease. Doing so may quickly divert your intent of being a good candidate to an annoyance and you'll be frustrated that your calls aren't being returned. In your own business, I'd bet you get buried in emails and phone calls, right? A recruiter is not any different and I'd venture to say, has it even worse. With hundreds or thousands of active candidates in the database, many clients and new candidates daily, if he took "check in" calls he'd never get anything done. I reiterate an earlier statement, the recruiter wants to place people, fill his client's needs and make money, so if he needs you, he will call. Trust me.

Ask what he expects in regard to follow up from you and proceed accordingly. If asked to call on a certain day or at a certain time, do so. Once again, if he calls you, he has a reason. Possibly he needs more information for the client, he has an interview scheduled, or another opportunity surfaced. Make the recruiter a priority. It will help you, of course, but also enhance your image in his eyes. The one time you NEED to call the recruiter immediately is after an interview, every interview. To represent you effectively it is a must to debrief you and get your feedback, good, bad, or indifferent. In that way, going to bat for you is easier. It sends a positive impression to the client as well of you as a candidate, demonstrating good follow-up skills and interest in the position and company.

6) BE HONEST. Like point #2, full disclosure, honest communication is essential. When discussing opportunities with a recruiter honesty is appreciated. Subterfuge is not. It's easy to extol the virtues in regard to a company or position but the negatives are important, too. If you have concerns, voice them to the recruiter. He may have the information to alleviate your concern and answer your doubts. If not, he can easily get it. It may be a deal breaker and if so, that's life.

Not every position is ideal for a candidate nor is every candidate ideal for a client. The worst thing you can do in many ways is keep a recruiter "in the dark", attempting to "keep your options open". It is a major waste of time for all parties concerned and you will alienate the recruiter. Recruiters work hard to create a great marriage between their client and the candidate. The last thing they need is for the client to "fall in love" with you and "propose marriage" to hear a "no" or "let me think about it". Any of you who are married and proposed at some point, or have been proposed too, can relate to this. Either one of those answers ruins the moment. Let the recruiter know where you stand at all times and he'll help you get the job or if it isn't the position for you, you can move on and go get the next one.

7) GIVE REFERRALS. Recruiters appreciate referrals of good candidates you know or people of whom you are aware who stand out in the industry. Whether you directly refer someone or pass on a name and company, rest assured that confidentiality is the lifeblood of the recruiting industry. Any information you pass along will be confidential and kept between you and the recruiter if that is your wish. If you know of positions open that don't interest you specifically, pass that information on as well.

Business is relationships. I have candidates I have placed numerous times. Others I have placed only once. Many I knew for a long time before that "perfect" position meant the right situation for them. Some I have never placed but we have enjoyed a great exchange of information over the years. I value them all and always endeavor to assist when I can.

Here is just one more "peek inside the tent". Like a small town where everyone knows everyone and secrets are few, the recruiting industry is very much a society unto its own. If you have been in the recruiting industry awhile, you know other recruiters who know recruiters who know candidates and so on. Often, we co-op with each other to benefit our businesses. Though competitors, we become friends too. Many chat often with each other. By developing a great relationship with one recruiter you may find yourself in demand by others as a result of your on-going relationship. I have even referred a candidate with whom I was impressed but couldn't place to another recruiter on a gratis basis hoping to assist both the recruiter and the candidate. So, being aware of a recruiter you trust and value can be a great networking tool.

The proper care and feeding of "headhunters" can bear fruit in your career garden for many years. Tend them well.

Mark Ste. Marie has 34 years of experience in the recruiting industry. He is president of a national medical sales recruiting firm, SMISearch, [http://smisearch.com] and founder of The Interviewing Edge a company providing training in the art of job search and interviewing. [http://theinterviewingedge.com]

Article Source: http://EzineArticles.com/expert/Mark_Ste._Marie/177257

Why Are Certified Physician Recruiters the Best Choice?

Physician recruiters are responsible for understanding the legal, professional, and technical aspects of the physician recruiting industry, just as with any professional. When a hiring manager begins the search for a new physician, or a physician chooses to embark on a job search, they need to be able to rely on the physician recruiter to have the skills and knowledge to represent them properly. The ability to match a physician with the proper opportunity and to manage hiring and retention issues requires specialized skills and experience. While there are many job search firms and recruiters in the field, not all recruiters are created equal. There are relatively few barriers to entry in becoming a recruiter. With so many choices, how can physicians and organizations find the best recruiter for their job needs? Make sure they are board certified!

The business community, and the industry as a whole, view certifications as a seal of excellence. In Fortune magazine's July 20, 1998 issue, they recommended that one way to choose a recruiter is to ask if they've been certified. Board certifications tell clients and physicians that the recruiter has taken the time to study a body of knowledge that the leaders of the physician recruiting industry have determined to be the crucial knowledge for this profession. The certifications can reassure clients that the recruiter will conduct him or herself professionally; certification provides the knowledge and the guidelines to perform according to the highest professional placement standards. Certifications hold the industry to a higher standard, as well as the individual. "It is imperative that every recruiter understands the laws that govern our industry," says Conrad Taylor, President of the National Association of Personnel Services (NAPS).

Today, more than any other time in the history of the staffing profession, credentials are well-recognized in the industry. The idea of credentialing is being given more credibility. This has come about through recognition of the specialized nature of staffing, as well as recent regulations such as the Sarbanes-Oxley Act.

However, some hiring organizations may not care specifically about using a recruiter with certifications; they are just looking for physicians. They might question why they should use certified recruiters. There are several specific reasons why hiring board-certified recruiters can prevent problems. Hospitals and organizations must be able to answer the question, "Are you using outside sources that are credible?" The rigorous education requirements for certified recruiters ensure that the organization is working with a reliable, credible provider.

Additionally, organizations are taking a risk that their insurance provider might question the staffing or recruiting decisions. They might have provide justification to an insurance provider on who they're using, and being able to show that they've utilized the skills of certified recruiters will help in justifying their choices.

Finally, using certified recruiters will help the entire staffing industry, thus giving clients access to professionals who are held to high standards. Until organizations are accountable for professional standards through regulation and certification, anything goes. It is important for recruiters to adhere to credentials and best practices, but it is also important to become a member of trade association where the recruiters are answerable for their behavior and business practices.

Since 1961, the National Association of Personnel Services has been certifying recruiting and staffing professionals nationally. Today, there are more than 10,000 professionals designated as Certified Personnel Consultants (CPC) or Certified Temporary-Staffing Specialists (CTS). Over 300 professionals hold both certifications, since the market and demand dictates more blended capabilities in recruiters. NAPS also offers the first staffing specialty certification designation, the Physician Recruiting Consultant (PRC). NAPS certification initially provided a vehicle for self-regulation in the staffing profession, helping professionals stay abreast of current legal laws, in addition to providing ongoing training and education. The association now provides the opportunity for professionals to expand the industry knowledge base in employment law, changing regulations, best business practices and the highest standards of ethics.

There are several different certifications offered by NAPS. The CPC certification focuses on direct hire placement, CTS certifications pertain to recruiters specializing in temporary or contract staffing (e.g. locum tenens), and the focus of PRC is the skills on the physician side of the business. The CPC and PRC candidates should be experienced in direct hire physician placements. They might obtain this experience through roles as an owner, partner, manager, recruiter, placement consultant within a private firm, or corporate human resources or employee relations professional within a large corporation. CTS and PRC candidates should be experienced in physician temporary/contract staffing. Roles that provide this experience include owner, partner, manager or staffing professional working full time in a temporary service business.

Individuals seeking the CPC, CTS or PRC designation must display their knowledge of the content of the applicable manual written for the NAPS certification program. After studying the knowledge base for the desired certification, the recruiter must take an exam. The CPC examination will test candidates on employment law and regulations, business situations, standards of business practice and certification program rules. The CTS examination will test candidates on their knowledge of discrimination law, family leave, ADA, drug testing, joint employee, contract issues, standards of business practices and certification program rules. The PRC examination covers such subjects as physician training, licensing, credentialing and referencing of physician recruiting laws, and regulations. Candidates who seek the PRC designation must complete two exams to qualify. They must pass either the CPC or CTS exam, along with the PRC exam.

When a recruiter is certified, he or she must agree to uphold the National Association of Personnel Services (NAPS) Standards of Ethical Practices and certification program rules. In addition, the recruiter must participate in continuing education programs and re-certify every three years. The continuing education requirement helps keep recruiters current with legal, business and related practices. To remain certified, staffing professionals must complete 50 contact hours of professional development or training experiences in each three year period after certification. If the continuing education requirement is not met every three years, the recruiter's certification rights will be revoked until the credits are achieved. The continuing education expectation requires recruiters to complete 50 hours of learning, which can be face-to-face training, conferences, training materials, or even seminars with industry leaders.

Years ago, recruiters were required to work in the industry for two years prior to being certified. Now, recruiters can work toward certification as soon as they begin the job. Anyone can begin learning the knowledge base for certification from day one. This is provides new recruiters with the benefit of credibility from the start, as they can explain to clients that they are going through the certification process developing good habits from the beginning.

As certifications become more common and well-regarded, those recruiters who have become certified can serve as ambassadors for the certification program. "I always let my clients know that I'm a certified recruiter," says Taylor. "It's a symbol of excellence that gives credibility. It also instills the value of personal accountability that you've got to deliver to your clients." Many physician recruiters now designate their certification levels on their business cards or on conference name tags. It's important to note that not all professionals understand a designation such as CPC or CTS, and that the certified recruiter may have to educate clients or colleagues. If a recruiter lists that they are a "Certified Personnel Consultant", he or she is more likely to entertain questions about the certification than if the designation is simply CPC. Board-certified recruiters have a responsibility to help educate others on the certifications of their profession. The entire industry is helped by helping physicians and clients know what to look for in board-certified recruiters, as well as helping other recruiters understand how they can enhance their skills and knowledge to remain at the top of the game.

The future of staffing profession certification will be a time of change. Recruiters must respond to new challenges in the profession as a whole. Retention is a large issue in the physician field; the challenge for talent affects the ability of recruiters to find the best placement for a client. For every ten professionals who leave the workplace, only four or five physicians are replacing them. Certified physician recruiters can help alter outcome if they precipitate discussions with clients on retention issues and best practices, while providing solid advice on managing the workplace to minimize attrition. Those recruiters who are certified through NAPS have the advantage of a wide network of information and resources to remain on top of current issues and trends. To address the retention issue, NAPS has most recently added a fourth certification:Certified Employee Retention Specialist (CERS). This certification is based on the groundbreaking work of Roger Herman, Joyce Gioia and Tom Olivo in the book "Impending Crisis: Too Many Jobs, Too Few People."

Certified recruiters can be a source of guidance and counsel for HR professionals and hospital environments as they work with personnel issues. When a physician leaves one practice to join another, this career decision affects them deeply - especially if they are relocating. By making sure procedures are followed when a physician is hired, and by making sure that no steps are missed during the process, physicians are assured of a smooth transition and a favorable impression of the new organization. Ongoing reviews of the situation, with both the client and the physician, can help uncover problems with the position that are more easily resolved if caught early on. The physician recruiter is a key part of retention and satisfaction in the client/physician relationship.

In fact, board certified recruiters can be seen as the ultimate professionals in the personnel arena. Just as someone would go to an accountant for tax issues or a mechanic for car problems, if someone has staffing questions, they should call their recruiter. By calling a certified recruiter, the caller is assured that they are contacting a professional who has gone the extra mile to learn all he or she can about the profession. The client is working with a true professional with high standards and an up-to-date education about the industry.

Bob is the founder of Eskridge & Associates, a service disability, veteran owned, small business, focusing on the placement of physicians on a nationwide basis both on a permanent and contract basis. Bob began his staffing career at RHI Management Resources in 1999 where he came to register as a contract CFO and left as an account executive. He personally brought in over $1 million dollars in gross revenues his first year. Bob went on to become a Branch Manager with Express Personnel in San Antonio and Professional Services Division Manager in Austin. Bob is one of a handful that has five industry certifications. He is a Certified Personnel Consultant (CPC), Certified Temporary Staffing Specialist (CTS), a Certified Physician Recruiter (PRC) and a Certified Employee Retention Specialist (CERS) through the National Association of Personnel Services (NAPS). He is also a Certified Staffing Professional (CSP) through the American Staffing Association. He has recently published his first book: "So you Always wanted to be a Physician Recruiter and is working on his second book titled, "The ABCs of Black Belt Physician Recruiting."

Bob Eskridge is also President of Eskridge Travel, providing travel services for physicians as well as Eskridge Consulting, a practice helping others to realize their childhood dreams of becoming physician recruiters.

Bob graduated with a MBA from the University of Montana and a BS from Southern Illinois University-Carbondale in Business Education. He started his career in the US Air Force as an officer separating after nine years to start his first company, Intelligent Reasoning Systems, Inc., which was later sold to Photon Dynamics in 2000.

How Do I Select An Executive Recruiter?

a. What are the benefits of utilizing executive recruiters?

Experts in recruitment
Executive recruiters are specialized professionals. They work at the recruitment process exclusively, and survive on their ability to get results in a highly competitive marketplace. Most executive recruiters bring years of experience to their work, and are intimately familiar with every aspect of candidate identification, sourcing and selection.

Executive recruiters are hired to cast a wider net and approach accomplished candidates who are busy working and not looking. Many candidates are invisible from where employers sit, and will not approach a public job opportunity without the safety and confidentiality of third-part representation.

Executive recruiters have the advantage of meeting with candidates outside the interviewing arena where they can build trust and rapport in a neutral and protected environment. They have mastered the delicate art of persuading well-paid, well-treated executives to give up good corporate homes for better ones.

Executive recruiters remove a tremendous recruitment burden from management by presenting a limited number of qualified candidates who are usually prepared to accept an offer. They also are skilled at dealing with counter-offers, and managing candidates until they are safely on board with their new position.

Committed to confidentiality
Executive recruiters understand the privileged relationships they have and are committed to strict confidentiality -- both by professional ethics and common sense.

Many employers want to keep hiring decisions and initiatives confidential from competitors, customers, employees, stockholders or suppliers to protect against unnecessary apprehension. Management resignations are often private matters and require immediate replacements before the resignation becomes public knowledge. Sometimes employees need to be replaced without their knowledge. For these assignments, an executive recruiter is usually the only confidential solution.

Candidates also need the confidentiality which executive recruiters can provide. Many candidates are willing to hear of outstanding opportunities, which could advance their careers, but few are willing to explore those opportunities on their own in fear of jeopardizing their current position. An executive recruiter is a third-party representative that knows how to gain the confidence of nervous candidates.

Objective professional counsel
The objectivity and feedback from an executive recruiter is invaluable to an employers. Recruiters know how to advise and counsel management so that the best hire gets made -- the choice with the longest-range likelihood of mutual benefit and satisfaction. They can help employers evaluate their expectations, and bring industry expertise to assist with the development of job descriptions, reporting relationships and compensation programs. They can also usually provide investigative reports on candidates, third party referencing, personality testing, foreign language proficiency assessment, relocation assistance and other specialized services.

Executive recruiters help balance the emotional reactions and biases of corporate management. Likewise, the recruiter can act as a skilled intermediary -- a diplomat, if you will - to clear up misunderstandings, straighten out miscommunications, and tactfully convey each party's concerns to the other during negotiations.

Cost effective investment
The use of executive recruiters should be viewed as an investment in improving the quality of an organization's managerial might. The right choice can dramatically increase a employer's value; and that value rises exponentially moving up the management chain. The fees associated with any particular search become almost incidental considering the ultimate payback.

A good way to view cost is to measure the cost of a bad hire. When an incompetent new employee makes bad decisions, hundreds of thousands -- even millions -- of dollars may be lost. This employee will have to be replaced and the overall downtime for having the position unproductive can be staggering. Employers often engage executive recruiters to ensure that such trauma and expense are kept to a minimum.

b. Types of Executive Recruiters

There are basically two types of executive recruiters: retained fee and contingency fee. Both retained and contingency fee recruiters perform the same essential service. However, their working relationship with their clients is different, and so is the way these recruiters charge for their service. Retained and contingency fee recruiters each bring certain advantages and disadvantages to particular kinds of executive searches. Cost in fees is basically the same (twenty five percent to thirty five percent of a candidate's first years compensation), with the exception that out-of-pocket expenses are usually reimbursed for retained recruiters.

Retained recruiters
Retained executive recruiters derive their name from the fact that they work "on retainer." Employers pay for their services up front and throughout the recruitment process. Retained recruiters are typically paid for the search process regardless of the outcome of the search, however most retained recruiters allow employers to cancel the search at any time for prorated rates.

Retained recruiters provide a thorough and complete recruitment effort, often involving multiple researchers and recruiters on a single assignment. They usually create detailed reports on the employer, the position, their research and recruitment efforts, candidate resumes, interviews, reference checks and other tangible services that add value to the search process.

They tend to work in partnership with the employer, offering expert counsel throughout the search, and requiring exclusivity and control over the hiring process. The retained recruiter may participate in all client interviews with candidates, all related discussions within the client employer, all negotiations, offers, and settlements. While the process may take three or four months, the hire is typically guaranteed for a year or longer. Because a retained executive recruiter spends so much time on behalf of each client employer, she can only work with a few clients at a time (usually two to six). Retained recruiters will usually present candidates to only one employer at a time and will maintain a two year "candidate hands off" policy.

It is usually best to hire a retained recruiter when an assignment is critical or senior in scope (seventy five thousand dollars or more), when difficult to fill or requires a thorough recruiting effort, when it requires strict confidentiality, or when locating the best candidate is more important than filling the position quickly.

Contingency recruiters
Contingency executive recruiters derive their name from the fact that they work "on contingency." Employers only pay for their services if an employer hires a candidate referred by their firm. If there is no hire, then there is no fee due.

Most contingency recruiters work quickly and uncover many resumes. They tend to provide more of a resume referral service, and spend less time with each client. Because there is no financial commitment from employers to support up front candidate research, contingency recruiters tend to move on to new assignments more quickly once a job opportunity becomes difficult to fill. Contingency recruiters find it is usually more cost effective to market exceptional candidates to locate job opportunities than to recruit for employers and locate difficult-to-find candidates. Most contingency recruiters fill lower to middle management positions where candidate marketing can result in greater chances for success due to the greater number of job opportunities. However some contingency recruiters will not market candidates and will only recruit for employers.

The relationship between contingency recruiters and their clients is usually less intense, with less personal contact and a lower level of mutual commitment. It is not uncommon for an employer to use several contingency recruiters on a single search, while continuing to try and fill the position on their own.

Contingency recruiters usually manage eight to twenty assignments at a time, and maintain a one year "candidate hands off" policy. They will usually present candidates to multiple job assignments, and often face pressure working similar assignments with different fee levels. Contingency recruiters generally guarantee their placements for thirty to ninety days, but some offer no guarantee. Although the placement fees are usually twenty five percent to thirty five percent a candidate's annual compensation, many contingency recruiters are willing to negotiate their fees and some charge as little as fifteen percent.

It is best to utilize a contingency recruiter when the position is entry or mid-level management, when filling the position rapidly is more important than locating the "ideal" candidate, when filling multiple positions for an employer with the same skill set, and when it is important to fill the position at minimum cost.

c. Where to look for an executive recruiter

The best place to find a good recruiter is to begin with an in-house referral. Talk with the human resource department and employer managers to see what experience they have had with executive recruiters. Check with colleagues in other departments, peers at other employers or the local trade associations for additional recommendations. Another place to find comprehensive lists of executive recruiters is to purchase one of the major recruitment directories such as The Directory of Executive Recruiters, by Kennedy Publications, Hunt Scanlon's Executive Recruiters of North America, or visit the many Internet directories of recruiters such as the Recruiter's Online Network at http://www.recruitersonline.com

d. What to look for in selecting an executive recruiter

A proven track record. A good recruiter should have up to seventy five percent in repeat customer business, and completion rates that exceed eighty five percent.

Search results. For each assignment, find out how many candidates will be sourced, contacted and interviewed, and how many finalists will be presented.

Availability. If a recruiter is working on more than three current assignments, you can expect limited attention. Junior associates are no substitute to the quality recruitment offered by an experienced pro.

Performers. Recruiters should be doers not overseers. They should conduct the entire search from initial client discussions to research, recruitment, interviewing and final selection. Many recruiters will send their most accomplished recruiter or "rainmaker" on presentations to secure the assignment, but quickly pass on the work to junior associates. Find out if others will be involved with the assignment and what their roles will be.

A recruiter not a recruitment firm. The recruiter is the one performing the search, not the firm.

Industry specialists, not generalists. Specialty recruiters are more capable of completing an assignment quickly. Knowing where to go to find the best talent, and having the ability to quickly gain their confidence of talent is essential for a timely result. Recruiters that specialize within the employer's unique segment of industry are often more effective.

Appropriate position specialists. Recruiters often specialize in lower, middle or executive level assignments. Find a recruiter that specializes in the level position the employer is looking to fill.

Trade association involvement. Association involvement helps establish a recruiter's reputation and network of contacts. Find out what personal involvement and contributions the recruiter has made through participation in trade committees, writing articles for trade magazines, giving talks at industry events, and other prominent networking avenues.

Twelve month guarantee. Make sure if the new hire resigns or is terminated within twelve months, the recruiter provides a replacement at no professional fee.

Recruiters with good references. Validate recruiter claims of successes and industry involvement. Speak to references that can discuss recent accomplishments, ethical recruiting practices, and prove long-term, repeat business.

Premium service. Cost is usually the lowest factor on any hiring survey when employers are questioned on the most important factors looked for in selecting an executive search. The old adage, "you get what you pay for" is true in most cases when hiring an executive recruiter.

Reasonable blockage. Check "off limit" policies. Find out what firms are "off limits" to the recruiter (protected firms that cannot be recruited from). If those firms are likely sources to fill the position, do not work with a recruiter who cannot touch those executives.

National capability. A national recruiter can often recruit a localized market effectively, but a local recruiter rarely can recruit a national market effectively. It is even far more important to find a successful recruiter who will locate the best candidates than one who happens to be based nearby.