Small business owners often find themselves wearing many different hats. But when it comes time to hire executive and managerial talent, human resources experts say owners should seek professional help.
“It makes good sense for small businesses to hire an executive search firm to work with especially if they are in a growth mode,†says Eral Burks, president and CEO of Minority Executive Search, a human resources recruitment firm in business since 1985. “It takes human capital to build a business and you want the best individuals in those positions to help you grow.â€
Executive search firms, also known as headhunters, are paid a percentage of the new hire’s salary, and standard industry fees range from 25% to 33.5%. “While you will spend a little bit more using a headhunter, you will get quality candidates and quality hires that will add to your bottom line,†says Adrienne Graham, CEO and owner of Hues Consulting and Management Inc., an executive search firm.
Recruiters are usually contracted by larger businesses, universities, and non-profit organizations to hire employees for positions that are management level or above. For small businesses, these search firms can reduce the HR workload so that owners can pay more attention to running the day-to day aspect of their businesses.
Oftentimes, small business owners don’t have the time to put in the necessary work to find suitable employees, says Graham, author of her self-published book, “Go Ahead Talk to Strangers: The Modern Girls Guide To Fearless Networking (Empower Me! Corp.; $19.99). They look in the wrong places and search on generalist job boards like Jobster.com or CareerBuilder.com because they are unfamiliar with niche job boards. “Those are good for what they provide, but job boards period are not something business owners need to [solely] rely on,†Graham says. A headhunter can do what the small business owner doesn’t have time to do–network over the phone and face to face by cultivating relationships at trade association events.
One main advantage of hiring a recruiter is the anonymity that they provide, Graham says. Anonymity protects the recruiting company from being inundated with
inquiries from unqualified applicants. A professional recruiter won’t tell the candidate what company they are recruiting for until the day of the interview. Also, a headhunter can search for candidates within a competitor’s company for talent, something that the business owner himself cannot do.If your company is searching for a recruiter or headhunter, ask these questions to find out if he can has what it takes to get the job done:
What are your areas of expertise?
Recruiters should have training in a variety of industries. Find out if the companies they’ve worked with are comparable to your own. Ask if anyone in the company is licensed or has experience working in your industry. You don’t want a finance recruiter searching for a marine scientist position, says Graham.
Are you a retained search or contingency search firm?
Contingency recruiters work on a commission basis. If they find a candidate for your position, they get paid. Otherwise they don’t. On the other hand, a retained search firm is paid a predetermined fee for a specified amount of time to fill a specific position. They are paid whether the position is filled or not. Retained search firms have more specialized expertise, but “you have to really do your homework when engaging a retained search firm,†Graham says. If the firm is unscrupulous they will require you to pay a fee even if they are not exhausting their resources to fill the position.
How long will it take you to fill the position?
If a recruiter says they can fill positions immediately, that should be a red flag. If they tell you it will take 60 to 90 days, that is a bad sign, too. Unless it is a complicated, high level, top secret position, such as the CFO at NASA, the average position should be filled in 30 to 60 days, Graham says. “You want someone who will work the contract and not drag it on.â€
What is the retention rate for the candidates you’ve placed? What is your placement rate?
Find out a recruiter’s track record. Burks says that a company’s retention rate will let you know
if the placements they’ve made are good matches. “You don’t want to hire someone today and then 10 months from now the company needs to fill the position again,†he says. The placement rate will warn you about recruiters who are hired to do 90 searches a year, but only fill 20 positions in that year.What is your guarantee period and refund policy?
Some retained search firms offer a 90-day guarantee. Ask the recruiter within what time period will they replace a candidate for free if the candidate quits or is fired under extenuating circumstances. Alternatively, will they provide a full or partial refund or credit towards that position or another position in the future?
To learn more about the skills a recruiter should have or to find a recruiter for your small business check the following Websites below:
Resources
Ere.net — A social networking community for recruiters.
Recruitinglife.com — National Association of Personnel Services
NRCSIP.com — National Registry of Certified Staffing Industry Professionals
NAAAHR.org — The National Association of African Americans in Human Resources.