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For over two decades, I have seen what the addition of “A+” players that match a company’s culture can do for its success. While the results are extraordinary, getting there is nothing short of heroic. In this series, I’ll be exploring the hero’s journey to finding talent and ensuring that a new hire is the right fit for your company culture.
The number one, all-time best practice for finding talent is to ask the talent you already have to refer candidates. Your current team members are immersed in your culture and will have the best understanding of who will be a match for your organization. They are also more likely to candidly share the values and approach of your organization with friends —these are friends you want to recruit. What’s more, offering a referral fee to your team members is a great incentive. Recruitment referral fees typically range anywhere from $500 – $2,000 for an existing employee that refers a new hire. There are a few alternative ways you can structure this type of offering:
The concept here is that you want candidate flow or “at bats.” If your employees keep talking up your company, it will build momentum and draw applicants. The more applicants you have, the higher the probability you will find a candidate that will become a successful hire. I recommend a smaller referral fee for this approach—perhaps $50 per face-to-face interview.
A bonus is given to an existing employee once their referred new hire achieves a six, nine or 12-month anniversary, e.g. a $2,000 bonus for a new hire that hits their 90-day anniversary.
LinkedIn is the 500-pound gorilla of job search, but a posting there can get lost in the noise easily. Try to locate a group within LinkedIn that is more targeted but still large enough to leverage economies of scale to ensure a lot of people see your posting. For example, if you are recruiting a new head of quality, post in the APQP (Advanced Product Quality Planning) group on LinkedIn. If you are recruiting a sales person, perhaps look in the MSED (Marketing and Sales Executives of Detroit) Group. Being very selective about where you post will ensure the biggest bang for your buck. By definition of the 80/20 rule, 80% of the content and activity on LinkedIn is coming from 20% of the participants. So, in a group of 2,000 people, you are really marketing your position to about 400 people. Ideally, groups that have 2,000 + members offer the greatest chances of success.
Dedicated job posting websites are hit or miss, but worth considering— the more targeted you can get with your posting, the better. The Indeed platform aggregates many different websites, and candidates can set up a job search “robot” that sends new job postings directly to their inbox. Monster, Dice, and CareerBuilder can also be worthwhile places to post. And, believe it or not, I’ve had success posting administrative positions on Craigslist.
Of course, recruiters can be helpful in your search for talent. There are two main types of recruiters: contingency recruiters and retained recruiters. Contingency recruiters are often highly specialized in a specific industry, occupation, or skill set. Their fees are paid when, and only when, their candidate is hired. You can use multiple contingency firms to hire one position, but I recommend being clear with your recruiting partners. Let them know they will not be the only firm working on a project. Motivate one tried, true and tested firm by giving them an exclusive for 2 to 4 weeks. If they know they are the only recruiters on the project, or that a deadline is looming, that may motivate them to produce.
Retained recruiters are typically used for executive positions. Exclusive rights to the project are given to a retained recruiter and some of their fee (a portion of the candidates’ first year’s compensation) is paid at the onset of the project to “retain” their services. Contract terms vary on percentage (20 to 33%), guarantee (90 days, six months, one year, etc.), expenses, etc. Retained recruiters typically offer additional consulting within their process, spanning from cultural assessment and matching to behavioral assessments (DISC, Myers Briggs, etc.) on finalists.
What recruiting tools have worked for your organization? To continue the conversation, join the Harvey Hohauser & Associates Group on LinkedIn. This forum is dedicated to your discussions, ideas and questions about career-building, recruiting, networking, and more.
Todd Hohauser is an Endeavor Mentor and is currently CEO of Harvey Hohauser & Associates and Chairman of IIC Partners, an affiliate of the 8th largest retained executive search partnership in the world. For 18 years, he has guided family and privately held businesses in their efforts to locate, recruit and retain top-grade leadership. An acknowledged expert in the assessment, identification and placement of leaders, Todd is a specialist in the coordination and recruitment of exceptional executive talent in the following areas: executive leadership, operations, information technology, engineering, financial management, retail, and manufacturing.
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