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	<title>Core Competencies</title>
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		<title>Inseparable &#8211; Ethics in the Workplace and Recruiting</title>
		<link>http://www.corecompllc.com/News/?p=73</link>
		<comments>http://www.corecompllc.com/News/?p=73#respond</comments>
		<pubDate>Mon, 09 Jul 2012 13:29:33 +0000</pubDate>
		<dc:creator><![CDATA[Mike Pfirrman]]></dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[Alternative / Renewable Energy]]></category>
		<category><![CDATA[Cleantech]]></category>
		<category><![CDATA[Curtainwall]]></category>
		<category><![CDATA[Engineering Executive Search]]></category>
		<category><![CDATA[technical executive search]]></category>

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		<description><![CDATA[Core Values and Success in Business, Can they Co-Exist? I recently had a situation related to business development that got me thinking about this topic. You can hardly turn on the news at night without hearing something about ethics (or &#8230; <a href="http://www.corecompllc.com/News/?p=73">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
				<content:encoded><![CDATA[<p>Core Values and Success in Business, Can they Co-Exist?</p>
<p>I recently had a situation related to business development that got me thinking about this topic. You can hardly turn on the news at night without hearing something about ethics (or lack of) in business anymore. “JPMorgan Loss now 9 Billion”, “Whistle Blowers Win 225 Million in Court” (and good for them) and various other headlines that remind you, there are those in the workplace that lose sight of what’s important and sometimes what’s right. Where did we lose sight of that? It seems to me that the businesses that forget there is a way that things should and shouldn’t be done are the ones that don’t have an unwavering commitment to their Core Values. I recently had one of my New Business Development people ask me about the possibility of going after companies involved in the Natural Gas extraction process known as “fracking”. While this is not, per se, unethical, it goes against the grain of everything I believe in, in terms of potentially harming the environment. I personally believe that, eventually, we’ll find that “fracking” is indeed a very potentially dangerous practice and can pollute groundwater if not done properly (and right now it’s still in the very early stages of its evolution). These uncertain times beg the question, “Can it be profitable to be ethical or to have social conscious by sticking to your Core Values?” I would argue, vehemently, that YES, you can have the best of both worlds and make money as well as sleep soundly and conscious-free at night as a CEO or business owner.<br />
Some of the best organizations define what it is they believe in. They have built their businesses on a code of ethics and beliefs, or Core Values, which define not only what they believe in, but how they will conduct business. IBM, for instance, recently took a long hard look at their core values and committed themselves to three tenants – Dedication to every client, innovation that matters and “trust and personal responsibility in every relationship”. IBM has also launched its incredibly successful “I’m an IBMer” ad campaign to reflect that rededicated focus on its corporate Core Values. As a result, they had a 10% increase in share price and are outperforming all expectations in recent business reporting. Southwest Airlines has defined the practice of holding strong on their Core Values. From day one, they decided that the “customer experience” would drive every business decision. For every 100K applicants they receive, only 2,000 are deemed strong enough to deliver that customer service they demand. Google was founded on primarily one principle – “Don’t be Evil”. Google encourages employees every week to include 20% of their time to projects “that matter”. Starbucks, a company known for going against the grain to provide healthcare to their employees, has long been known to be as environmentally conscious as they can be. And who doesn’t like a good Chipotle burrito? Chipotle is committed to working with only environmentally conscious (and animal cruelty-free) suppliers. The list goes on and on. The common theme is, these companies defined and decided what their Core Values were as an organization and, just as importantly, clearly and purposely communicated those Core Values to each and every employee and hire employees whose personalities match those same values.<br />
Another way your Core Values define your company, indirectly, and less obviously, are through your reputation. This is an area I’m all too familiar with in the work I do as an executive search consultant. When I recruit for a new client, the first question I ask perspective candidates (who are passive and employed) is “what do you think about my client, ___________”. You would not believe the candid responses this question elicits. If there was EVER a time that the organization treated someone less than respectful, or did something unethical or unfair to a supplier or business partner, it usually is well known in the industry. These “blemishes” on a company’s reputation make it incredibly hard, even if a company does not openly see it, to recruit and land good talent. Potential candidates won’t respond to ads, they won’t go through an interview processes and they won’t allow themselves to be recruited. Because of this, I examine, very closely, the reputation of each and every client I work with because their reputation is an extension of mine.<br />
These lessons are hard sometimes but can be learned and corporate cultures can be changed. Core Values can be defined and communicated to all levels of employees, even prior to being hired. <a href="http://www.corecompllc.com">Core Competencies LLC</a> is hardly an IBM or a Starbucks, but I’ve ensured before any employee is hired that our Core Values are communicated and each candidate believes in similar values. If the leadership at the top commits to never losing track of those Core Values a business is built upon, everyone else will help instill that culture internally. We’ve been very successful in implementing our Core Values and our best clients have been as well. It not only is the right thing to do, it helps position you to be the employer of choice for top-tier candidates. That’s something in this economy you simply can’t ignore.</p>
<p>About the Author                                   <a href="http://www.corecompllc.com/News/wp-content/uploads/2012/07/DSCF0919.jpg"><img class="alignnone size-medium wp-image-76" title="DSCF0919" src="http://www.corecompllc.com/News/wp-content/uploads/2012/07/DSCF0919-215x300.jpg" alt="" width="99" height="126" /></a></p>
<p><a href="http://www.corecompllc.com/About_Core_Competenies.htm">Mike Pfirrman</a> has been a leading Executive Search consultant working with Fortune 500s as well as over a dozen Venture Capital / Angel Investor backed start-ups over a seventeen year career. His focus has been technical recruiting and technical sales recruiting for salaried to C-Suites. After a twelve year career with one of the country’s leading boutique Executive Search firms, Mike founded <a href="http://www.corecompllc.com">Core Competencies LLC</a> to reflect his specific interest in working with companies involved in Cleantech and Alternative / Renewable Energy. Having been one of the first in the US to work with the “pioneers” of Cleantech and Renewable Energy, Mike is now expanding his work in that market space by adding new and innovative clients to his client portfolio with <a href="http://www.corecompllc.com">Core Competencies LLC</a> (as well as hiring top-tier talent to assist him as he grows the business).<br />
If you need assistance with a very specific hiring need (technical or technical sales), feel free to call Mike Pfirrman at (513) 445-3409 to confidentially discuss.</p>
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		<title>&#8220;It&#8217;s an Employer-Driven Market&#8221; &#8211; THINK AGAIN!</title>
		<link>http://www.corecompllc.com/News/?p=61</link>
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		<pubDate>Tue, 06 Mar 2012 15:48:37 +0000</pubDate>
		<dc:creator><![CDATA[Mike Pfirrman]]></dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[alternative energy]]></category>
		<category><![CDATA[cleantech executive search]]></category>
		<category><![CDATA[renewable energy]]></category>
		<category><![CDATA[technical executive search]]></category>
		<category><![CDATA[technical recruiting]]></category>

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		<description><![CDATA[Perhaps it’s because I’ve always been somewhat of a cynic myself about when I read articles from so-called “experts” on different topics on news shows or on websites like Yahoo and others.  Half the time, to me, it seems like &#8230; <a href="http://www.corecompllc.com/News/?p=61">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
				<content:encoded><![CDATA[<p>Perhaps it’s because I’ve always been somewhat of a cynic myself about when I read articles from so-called “experts” on different topics on news shows or on websites like Yahoo and others.  Half the time, to me, it seems like the person writing the article is simply basing a lot of the information on opinion and hear-say.   I usually look at the information and just shrug my shoulders and think, “OK,…whatever”.</p>
<p>What has me bothered recently is that I continue to hear alleged “experts” in the field of personnel writing articles or comments such as “it’s still an employer market” or “it’s still the best time to hire ever”.   WHOEVER WRITES THIS STUFF NEEDS TO WAKE UP AND GET A CLUE!  The tide of the market turned about last quarter.  There has been a significant change in hiring since fourth quarter of last year.  I know top executive search consultants from all over the US (in industries as diverse as construction, manufacturing, cleantech and finance) that have told me they’ve experienced the same thing.   Companies are hiring again.  They’re not just hiring for “topgrading” or upgrading purposes anymore (to replace non-performers).  Companies are hiring newly created positions as well.   Despite government jobs being down 250,000 in the last year, unemployment among adult men and women now stands at about 7.7% (teenagers it was 23.2%) for a total of around 8.3%.  Growth in the fourth quarter was around 2.8 or 2.9% (up from previous estimates).   In January along, 33,000 people have been hired in “employment services” in the service sector.   I would assume many of those hired would have been hired to help support recruiting functions for adding staff.</p>
<p>Over the last three or so years, in the midst of the worst recession that our economy has seen since the 1920’s, I’ve had more than 1000 calls (many of them extremely depressing) from people that have found themselves laid off or facing a company going out of business (many still recently).   What I’m seeing today is that if someone is talented, they aren’t out of work long.  I’m seeing even long-term unemployed candidates (those that have been out of work for longer than one year in really down industries) having multiple interviews and sometimes multiple offers.  It’s like a damn broke loose in the fourth quarter of 2011.  Despite all this evidence (statistics, other recruiters and ample first hand evidence I see every day), I still hear these so-called experts telling companies, “It’s your time to find incredible employees at a bargain basement price”.   That is so inaccurate, it’s reprehensible.</p>
<p>Here’s the current false dichotomy challenge for executive search firms.  Employees (passive candidates we recruit) are hearing this drivel too (from the inaccurate experts) and feel as if it’s too “risky” to make a change in jobs.  I have employers on one hand that think they can take advantage of people because no one else wants them and “where else are they gonna go?”, while on the other hand I have candidates that don’t realize (unless they’re actually smart enough to consider their options if they’re in a bad situation) that it’s quickly shifted toward an EMPLOYEE driven market again.  The surprised candidates I have with multiple options are the ones closest to the current reality (along with executive search firms).   This lends itself to really tough recruiting currently with very few talented candidates willing to make a change and when they do, the employers don’t have the correct perception of things that would cause them to react accordingly.</p>
<p>Why do I bring this all up?   The lesson to be learned is most of my clients have forgotten (despite my constant attempts at reminding them) that candidates want to be “wined and dined” and feel wanted.   We’ve gotten into a pattern of seeing candidates just thrilled to have one other option other than where they’re at, especially if it’s a less than attractive employment circumstance.  We’ve also been telling employees so long that they had “better produce” or the company is not going to survive.  This stay above water mode has clouded how we recruit.  Remember back to five years ago when you actually had to “court” top prospects?  It’s still easy to do so.   It doesn’t cost you anything.  All you have to do is simply start over again in your mindset toward candidates.  If you have a candidate in que that you just can’t “pull the trigger” on, realize that another firm will (assuming they’re good).  I’ve had four clients lose out on candidates they wanted to hire by waiting too long in the last three months.  Afterward, they state they were “surprised” or “shocked” that the person took another position.  I just wanted to scream, “you took three months to make a decision!”</p>
<p>Realize this.  In this turnaround economy, you have to again approach candidates you like with an obvious expressed interest in them.  Today, we’re seeing an evened out the playing field again.  No longer should it all be about “what can you do for me”( the employer) but “here’s how I think we could benefit each other”.  Making offers to attractive unemployed candidates that are 20% below what they made at their last company in some cases works still, but many times it doesn’t.   Making lateral offers to passive candidates does not work at all.  Make attractive offers to candidates you really like or don’t hire them.   If you do make an offer (and it’s not an attractive or you’re too slow at doing it), don’t say I didn’t warn you about what might happen.   It’s not an employer driven market, it’s not an employee driven market either.  It’s just back to being fair.  In the long run, that’s probably a better situation for all.</p>
<p>&nbsp;</p>
<p><a title="Mike Pfirrman" href="http://www.corecompllc.com/About_Core_Competenies.htm">Mike Pfirrman</a> is the President of <a title="Core Competencies LLC" href="http://www.corecompllc.com">Core Competencies LLC</a>, an national executive search firm that specializes in technical recruiting for a wide variety of industries, including Cleantech, Alternative / Renewable Energy, R&amp;D, Engineering, Manufacturing and Construction &amp; Building Products.  Mike has worked with Fortune 500 companies as well as assisted at least a dozen start-ups (early to late stage) set up their executive and technical teams.   He can be reached at (513) 445-3409 or by email at <a href="mailto:mikep@corecompllc.com">mikep@corecompllc.com</a>.</p>
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		<title>Opportunity for Retention You Should NEVER Miss at Year&#8217;s End</title>
		<link>http://www.corecompllc.com/News/?p=49</link>
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		<pubDate>Fri, 18 Nov 2011 20:09:43 +0000</pubDate>
		<dc:creator><![CDATA[Mike Pfirrman]]></dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[employee retention executive search renewable energy cleantech power construction curtain wall building products R&D]]></category>

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		<description><![CDATA[Golden Year End Opportunity Missed by Most Companies for Retention As an Executive Search consultant for nearly 20 years, I would say I’m more qualified than about anyone I know of (our industry in general is) when it comes to &#8230; <a href="http://www.corecompllc.com/News/?p=49">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
				<content:encoded><![CDATA[<p style="text-align: center;">Golden Year End Opportunity Missed by Most Companies for Retention</p>
<p style="text-align: left;">As an Executive Search consultant for nearly 20 years, I would say I’m more qualified than about anyone I know of (our industry in general is) when it comes to understanding reasons people leave their jobs. I’m not talking layoffs or retirement, I’m talking quitting. Contrary to the view of some senior management I’ve spoken with over the years (or ones that have called me to tell me “stop recruiting my people”), <strong>money is not the main motivating factor in employees leaving their jobs.</strong> Hopefully, that won’t come as a shock to you. Here are the historical reasons people leave their jobs, in order of importance:<br />
<strong>1) Lack of Appreciation / Understanding of their Contribution or Importance</strong><br />
<strong> 2) Lack of Advancement Potential / Opportunity</strong><br />
<strong> 3) Bad / Mismanagement / Bad Communication</strong><br />
<strong> 4) Pay / Benefits / Pay Freezes, Cuts</strong><br />
<strong> 5) Overworked / Environment / Quality of Life</strong></p>
<p>If you track this on exit interviews (which few companies do), this should come as no surprise to you. I will say, however, that <strong>over the last few years, I have noticed a dynamic change in this, due in part mostly to the economy</strong>. I would say, if the truth were told, that when I’ve talked to people this year (and the last two), it’s more been something like this:</p>
<p><strong>1) Lack of Appreciation / Understanding Contribution or Importance</strong><br />
<strong> 2) Pay / Benefits / Pay Cuts / Freezes (freezes or cuts being primary)</strong><br />
<strong> 3) Bad Management or Communication TIED with Overworked / Quality of Life Issues</strong><br />
<strong> 4) Opportunity for Advancement</strong></p>
<p>While Pay / Benefits if not the primary reason still that employees leave their current job, it’s been creeping up there recently. Couple that with a few other issues inherent in this economy and it can combine with other reasons that should seriously concern senior management. <strong>The value placed on career opportunity has been replaced with stability in importance in recent shifts</strong>. Workers are more flexible and appreciative of their job, overall (to a degree), but there are limits.<br />
Bear in mind, I talk with nearly 10,000 people a year. I don’t just ask people that are a “dead on fit” for position why they would consider making a change, I ASK EVERYONE I TALK TO IF AND WHY THEY WOULD CONSIDER MAKING A CHANGE. I find out a lot by simply asking, “do you keep an open ear to opportunities?” and follow that up with, “What do you like best and least about your current situation?” If nothing else, I’m the biggest sounding board I know. People can’t wait to vent to someone that isn’t in HR for their employer and let me tell you, I hear it all.<br />
<strong>The dynamics of the economy have changed worker’s loyalty, though.</strong> They feel as if their employers have the attitude, <em>“you should just be lucky to be employed”</em>. <em>“Oh, and also, if we want you to do the work of three people, keep quiet and do it without complaining”. “Oh, one more thing, you won’t get a raise or a bonus for the inevitable future”.</em> Is it any wonder <strong>employee satisfaction is AT AN ALL TIME HISTORIC LOW?</strong>  They are working their tails off, feeling like they aren’t contributing because they’re not being told they are.<br />
This brings up my point for writing the article. You have an opportunity coming up soon that you shouldn’t take for granted. Year-end bonuses, for the majority of my clients, are a thing of the past (at least for the indefinite future. This DOESN’T MEAN YOU CAN’T SHOW YOUR APPRECIATION OF A JOB WELL DONE. Many of my larger clients are still doing employee performance reviews, but many mid-sized and smaller firms have just kind of, for lack of better phrases, brushed off performance appraisals because they’re concerned about employee morale regarding no annual bonuses. If you brush off performance appraisals or year-end reviews, YOU ARE COMPOUNDING THE PROBLEM. I read a recent survey of over 1000 employees (that didn’t receive bonuses) what they would like to see from their employers. The resounding majority wanted a simple, “Thank You” or a special recognition. Even if it’s tiny award they would be thrilled to know their work is being noticed. Another creative alternative I’ve heard is Paid Time Off. Give them the day after Thanksgiving off, or possibly in the Spring, the first day of the NCAA tournament. It’s not the $10,000 bonus they used to get, but it’s certainly something.<br />
<strong>Communication here also is key.</strong> Being that bad management (or the perception of it) is often tied to bad communication or communication of company goals or direction; at least communicate with your work force. If you can’t give bonuses, try to be more open about profitability or perhaps how they’ve significantly impacted your P&amp;L (even if that means they’ve limited losses). If they can see the light at the end of the tunnel, they’ll be more likely to stay with you through this rough patch. If there have been layoffs, don’t assume your “A Players” know their jobs are safe. Instead, TELL THEM. Stability is the number one thing that employees look for in deciding on a new employer (even more than pay and benefits these days).  <strong>If they feel their job is secure, perhaps they’ll stay with you</strong>.  I can’t tell you how many times I’ve heard “I want to leave because I see the writing on the wall”.  Many times, it’s not writing they see or notice, it’s lack of communication and fear of the unknown.  Look, no one wants an “iron clad” guarantee, but they do want to know they’re certainly one of the last on the list that would be laid off and that there’s a very strong probability they won’t.  This is as important as appreciation, if not more important.<br />
<strong>This is a dynamic time but one thing hasn’t changed, and that is that key employees drive any business</strong>. If you don’t have them or lose them, it costs much more to replace them than keeping them happy and motivated. Don’t take them for granted even if monetary consideration isn’t possible in this economy. It’s more critical now that you keep them than ever before because this economy will turn around (We’re seeing signs of it already in my industry). When it does, those with the most key players still intact will come out on top.<br />
<em>About the Author</em>: <a href="http://www.corecompllc.com/About_Core_Competenies.htm"><strong>Mike Pfirrman</strong></a> is Principal of <strong><a href="http://www.corecompllc.com">Core Competencies LLC</a>,</strong> an executive search firm based in Cincinnati, Ohio that specializes in technical and technical sales recruiting. He’s worked with hundreds of companies from Fortune 100 to innovative start-ups in fields as diverse as Construction &amp; Building Products to Cleantech, Renewable Energy, Emerging Technologies and R&amp;D.<br />
If you’re interested in finding out how <a href="http://www.corecompllc.com">Core Competencies LLC</a> can help you with your difficult to fill personnel needs, give Mike a call at <strong>(513) 445-3409</strong> or email him at <strong>mikep@corecompllc.com</strong></p>
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		<title>This Article is VITAL when Considering your Manpower / Succession Planning</title>
		<link>http://www.corecompllc.com/News/?p=39</link>
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		<pubDate>Wed, 19 Oct 2011 18:46:15 +0000</pubDate>
		<dc:creator><![CDATA[Mike Pfirrman]]></dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[technical executive search manpower planning recruiting cost considerations internal versus external recruiters cleantech]]></category>

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		<description><![CDATA[The Debate Continues – An Executive Search Veteran’s Take on Internal vs. External Recruiters Most of my corporate friends would be surprised to hear me say that I’m not opposed to internal recruiters. Actually, some internal recruiters are the most &#8230; <a href="http://www.corecompllc.com/News/?p=39">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
				<content:encoded><![CDATA[<p><em><strong>The Debate Continues – An Executive Search Veteran’s Take on Internal vs. External Recruiters</strong></em><br />
Most of my corporate friends would be surprised to hear me say that I’m not opposed to internal recruiters. Actually, some internal recruiters are the most professional individuals I’ve had the pleasure to work with during my nearly two decades of executive search experience. I don&#8217;t see internal recruiting teams as &#8220;the enemy&#8221; as do most independent executive search consultants. On the contrary, they can be valuable allies in critical candidate selection.<br />
How do you assess your company&#8217;s need for an internal recruiter or team?<br />
I’ve recently consulted on this topic, which prompted me to write this article. In the competitive world of talent recruiting, every company wants the very best available personnel for their team. There are multiple considerations to factor into your approach to filling openings.<br />
<strong>Performance</strong> is by far the most important factor.  While speed is a concern, long term performance, retention and ROI are more critical considerations.  If you lack metrics to track internal versus external recruiters, you certainly need to start here.  Are the majority of your positions filled by Operations, HR and internal recruiters, or by external placement firms?  One Fortune 100 company was surprised when their Executive VP of Operations tracked the metrics of a low-priced fixed-fee recruiting service versus the professional firm for whom I worked back then (an established Executive Search firm with over 30 years in the business).  The EVP determined that the low cost company used Monster board exclusively and ended up with a roughly 30% first year retention rate.  In contrast, our established company had well over an 80% first year retention rate (this was a management training program with heavy first year turnover), and furthermore, placements that didn&#8217;t last a year brought the company a free placement.  Though the initial placement fee was significantly higher, the cost of training and rehiring far exceeded the company&#8217;s initial upfront cost.<br />
The same concept can be applied to internal vs. external recruiting. If your internal recruiter is a trained professional, you will see stronger retention results.  But if your internal recruiter relies exclusively on Monster, CareerBuilder and LinkedIn candidates, you’re encountering the best of the unemployed or the disgruntled.  Passive, successful candidates need to be attracted by actively RECRUITING them.  Recruiting successful passive candidates is an art form.  Successful candidates don&#8217;t have time to search for jobs on LinkedIn &#8212; they’re too busy being good at what they do.  Great internal and professional external recruiters realize this fact.  Some of the best internal recruiting departments can actually “steal” employees from other companies.  As an organization, you just have decide if you have the &#8220;stomach&#8221; to do this or if the consequences deter you from doing it.   If all your internal recruiters are doing is placing ads, I will tell you that operations people can place ads.  Pay your internal recruiters what they’re worth and train them how to recruit.  If not, hire an external vendor who can &#8220;poach&#8221; talent.  Use your internal recruiters to actively recruit, not simply be administrators.   Again, track results with metrics for performance.   As an aside, a great tip is SAVE ADS from previous searches.  Many times the inability of an ops person to write an ad is the reason a company keeps internal recruiters (which is a silly and EXPENSIVE reason).<br />
<strong>Cost Analysis</strong> – Aside from the costs alluded to above (costs of retention, training, performance), there is an obvious actual cost to using either a preferred external recruiting partner vs. an internal recruiter or recruiting team.  In my professional opinion, having worked with hundreds of companies from start-ups to Fortune 100 HR and recruiting departments, you don&#8217;t need an internal recruiter if you fill fewer than 12 to 15 key salaried positions per year.  I’m stunned when I see a company that hasn’t made an executive hire within six months maintaining an internal team of 3 or 4 recruiters.  Why bear this operational cost?  I suspect senior management takes comfort in the fact that, IF they suddenly get busy and the economy abruptly shifts into overdrive, they will be positioned to ramp up hiring.  Their other fear, I believe, is they won’t be able to find an experienced, professional external partner that can deliver when that need arises.<br />
The math is simple.  A good quality internal recruiter should be making around 50K plus benefits.  If they’re making less than that, let’s face it &#8212; they’re probably not a very good recruiter (remember the administrator conversation above?).   Your recruiting staff is “on the cheap” and this means you are getting inferior talent pools for every opening.  With benefits, your internal recruiter&#8217;s cost to your company (along with training, recruiting support and a professional Candidate Tracking System) equals around 100K or more, depending on what ads are placed and what subscription fees your company pays to LinkedIn, Monster, CareerBuilder, etc.  Depending on the level of your hires, that would equal the cost of approximately 4 to 5 recruiting fees to an external recruiter, which brings me to my next point:<br />
<strong> Recruiting Fees</strong> &#8211; Of the positions I see filled by internal recruiters, many times 40% to 50% are filled by doing nothing more than prescreening resumes submitted in response to an advertised opening and arranging for interviews.  Now this is an important function, but it&#8217;s an administrative task, not active recruiting.  Screening candidates responding to an ad can easily be accomplished by Operations or HR (assuming HR isn&#8217;t overworked, which most are).   That leaves 5 to 6 critical position needs per year that your internal recruiter has a hard time trying to fill.  If this recruiter is not up to the task, you likely end up paying an external recruiter anyway. That’s why I say the “magic number” to justify an internal recruiter is 12 KEY salaried hires per year. I’m not talking about techs or administrative assistants, I’m talking from significant individual contributors making over 70K, through management level, up to C-Suites.<br />
Let&#8217;s take this to the next logical step. Say you have 24 or more critical openings in a year. You need two internal recruiters. Have 36 openings or more? You need a 3-person team.<br />
<strong>Long-Term Considerations and Internal Culture</strong> &#8211; Not only must you consider the internal cost versus external cost per annum, but you also have to take into account your 3-year and 5-year business plan. If this is the only year in which your hiring plan calls for rapid expansion, you may save money with an internal recruiter for now. However, next year you may end up paying more by carrying the expense of this recruiter, or having to pay out unemployment if you lay off an internal team.<br />
Another consideration for working with external recruiting firms is rapid internal turnover. I&#8217;ve seen some of my long term clients experience complete turnover in their HR and recruiting teams every 3 years. West Coast start-ups are notorious for having high HR turnover. HR personnel in some sectors are more like contract employees; perhaps it’s because there is less stability and loyalty in the high tech¸ start-up environment. In addition, companies that fill their internal recruiting department with hires directly out of college (to save on the budget) will invariably lose these trainees as they gain in skill and knowledge. They will soon accept a position in the 50K to 60K range from a company that will pay an experienced recruiter or leave the recruiting industry all together if not compensated fairly. Does this rapid turnover really mean understanding the company’s goals or visions? Unfortunately, I know way too many examples of when the Executive Search firm partnered with a client is much more dedicated and loyal to the client than the client’s own internal team (who is looking for employment elsewhere). I can’t even count how many times I’ve presented qualified candidates operations are screaming for to internal recruiters that won’t return my call. Then, two weeks later, I’m dealing a new recruiter because the old one “moved on”. In these situations, hiring an external search partner makes sense. Also, to prevent this from happening, allow your external partners to directly copy the hiring manager (so the operations person isn’t kept out of the loop by an internal recruiter that has “checked out”.<br />
While there are certainly some advantages to having an internal team, I just wanted to cover some issues regarding internal vs. external recruiters. Yes, EEOC can be more stringently tracked to avoid potential litigation with an internal team combined with a solid Applicant Tracking Software (as long as it’s used properly), but some external firms even offer this now to clients. Larger companies, though, won’t feel comfortable having potential liabilities in the hands of an external partner, so this option is mostly for mid-sized and smaller companies.<br />
<strong> A Final Word</strong> &#8212; I hope I gave you food for thought. Going into the fourth quarter where everyone (including myself) is cutting costs, you may benefit from having an internal team. But all too often I see these recruiting functions treated as an afterthought by upper management. I liken it to (if you’re old enough) to Y2K. Remember that? We had hoards of IT people on staff to prevent planes from falling out of the sky. In all reality, IT people were probably chatting away on Yahoo doing nothing and laughing all the way to the bank because operations had no clue about the industry. Recruiting is a lot like that. If you don’t understand the industry from the inside, it’s hard to evaluate your internal team effectively. I hope I’ve enlightened you a little in this regard. Please, use metrics to give you a little more insight into upcoming expansions or contractions in your workforce, and help you adjust your recruiting strategies accordingly.</p>
<p><strong>ABOUT THE AUTHOR</strong><br />
<a title="Mike Pfirrman" href="http://www.corecompllc.com/About_Core_Competenies.htm">Michael Pfirrman</a>, Principal, founded <a title="Core Competencies LLC" href="http://www.corecompllc.com">Core Competencies LLC</a>, a professional recruiting and placement firm.   With 15+ years in technical and executive recruiting, Mike partners with many alternative energy and clean tech start-ups.   Companies who have engaged Mike to hire key personnel span industries from solar and wind power to biomass, geothermal and traditional technologies.   Core Competencies recruiters specialize in actively locating, recruiting and presenting the well-qualified candidates for your company&#8217;s specific R&amp;D, Operations and Engineering openings.  If you’re interested in finding out how <a href="../../">Core Competencies LLC</a> can help you with your difficult to fill personnel needs, give Mike a call at <strong>(513) 445-3409</strong> or email him at <strong>mikep@corecompllc.com</strong><br />
<em><strong>Core Competencies LLC – “Matching Critical Needs with Exceptional Personnel”</strong></em></p>
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		<title>Core Competencies LLC Introduces Revolutionary Client Referral Fee Program – You can Earn up to $1000.</title>
		<link>http://www.corecompllc.com/News/?p=7</link>
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		<pubDate>Tue, 12 Jul 2011 14:22:34 +0000</pubDate>
		<dc:creator><![CDATA[Mike Pfirrman]]></dc:creator>
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		<description><![CDATA[As many of you are aware, at Core Competencies LLC, we do executive search a little different than our competitors.   That’s why our success rates in filling positions are significantly higher than the industry average.   One of the creative ways &#8230; <a href="http://www.corecompllc.com/News/?p=7">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
				<content:encoded><![CDATA[<p>As many of you are aware, at Core Competencies LLC, we do executive search a little different than our competitors.   That’s why our success rates in filling positions are significantly higher than the industry average.   One of the creative ways we find people, unlike our competitors (who mostly just place an ad and send you the backgrounds to screen), is to offer our Candidate Referral Fee to anyone in the market who identifies a candidate who we then place with our client.  <span id="more-7"></span> We then pay the person who gave us the name $500.  This program has been so successful in our first year (we have paid out referral fees on over 50% of our successful placements) that we are now introducing a CLIENT referral program.  It has set Core Competencies LLC apart from our competitors and added another way to fulfill our motto, “Matching Critical Needs with Exceptional Personnel”.</p>
<p>Here’s how our new Client Referral Program works.    If you get a lead on a new position that is being filled by a company (other than your own firm), let us know how you heard about the position and who the contact person from that company would be.     For example, if you have another “headhunter” that calls you and tries to sell you on a position that is perhaps not right for you personally,   you then call us and inform us about the opening.    If we then contact the company and get the search and subsequently fill it, you earn $1000.    There is no way easier out there for you to earn $1000 than this program.   All you have to do is tell us about a position that is a critical need you are aware of and we do the rest.   Ideally, this should be a very critical, salaried position that takes a very specialized candidate to fulfill.   This is type of role that Core Competencies LLC specializes in filling.  Your name won’t be tied to our call we make to the company unless you want it to be.   It can all be done discreetly and confidentially (just like our Candidate Referral Program is conducted).      We have just rolled out this program and announced it on Linkedin.   Already, we are receiving qualified leads on companies who need a great recruiter and can’t find one.   Many companies appreciate us calling them and introducing our services to them.   Many clients tell us they wish they knew about Core Competencies LLC much sooner because they have wasted valuable time with inexperienced or incompetent recruiting firms.</p>
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