Neil Hernandez's Blog

Cash Flow and Your Recruiting Business

They say that 9 out of 10 new businesses fail within the first 5 years. The number one reason for this is that the business does not provide enough cash flow to keep the business running and to pay for the entrepreneur's personal expenses.

Thus, one of the key focuses for any recruting business or for that matter a self-employed recruiting specialist is to have cash flow. That is why a job and that is why an hourly contract recruiting situations are so appealing becuase they provide cash flow.

That is the inhrent danger of setting up a contingency recruiting business only. There is lot's of uncertainty in it. If someone does not produce, then they are out of money and will be out in the streets looking for a new gig. At the same time, a contingency recruiting situation can work, but only if the clients are great and there is a proven path to money. On the other hand, adding a component of an hourly or a pay per interview model to the business may be a key. Why? Because of the cash flow component.

If you are searching for a way to enhance your management and analytical skills for your recruiting business, business management classes can help.

A recruiter must make money. The recruiting business must show that they can make money- fast or else recruiters will drop out fast. Thus, any recruiting business must show that path to money right away.

Fishing Net Recruiting for Hard to Fill Positions

FNB photo

Let's face it not all recruiting is easy. Recruiting is like fishing. And there is a reason why they call it fishing and not catching.

When fishing there are two ways to fish passive and active. When the fishing is hard, it is probably wise to do both methods. In the passive method, you set up a net or your bait out there and hope something bites or swims by and gets stuck in it. In the active method, you agressive go out there and hunt for fish.

Recruiting for a hard to fill position or positions works the same way. You have to use both an active and a passive methods. I'd advise setting up the passive methods first and then wait for a bite. At the same time, you cna be agressive and do some active measures at the same time.

The obvious passive method is doing a job posting.

The obvious active methon is sourcing resumes and then calling the candidates.

Your Recruiting Website

Your website is one of the biggest marketing pieces you can have. At any time a potential client can view your website and decide or not decide to contact you.

Thus, if you are looking to be an RPO. Companies will google to search for an RPO. You have to make your recruiting website friendly and marketable so they will contact you.

Here is a good article that gives a little more insight in this:

Selecting a Recruiting Process Vendor

How to Approach Recruiting for a Comission Only or High Comission Job

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There is no one recruiting method for all types of positions. Each positions requires a different strategy. In the case of a job that is high comission or or only comission, you generally want people calling you - not the other way around.

A comission only job is one of those jobs where only a certain type of person is looking for. A person that wants salary or hourly may or may not be open to a comission job. But a person that wants a comission job wants a comission job and is thus a more likely candidate.

Here are some of my quick thoughts on this type of recruiting:

1) Place ads in a lot of free/inexpensive places- Post ads whereever you can. If you do not have a budget. Then hit the free places first. Goto Craigslist, eBay Classifieds, Indeed, and all the other sites that you can think of that you cna post jobs for free. Generally, you want people calling you or you want people sending resumes to you.

2) Be very direct in the ad- People do not like to get decceived. If it is a comission job, then explicitly state that on the ad. Again, you'll have less responses than if you explicitly said it was a comission job, but the ones you do get (if they read the ad) will know it is comission.

3) Try to send a few emails- not a lot- After you post ads, I would look at a job board and try to find potential candidates. Do a few key word searches. Try to look for people who have done something similar in the past or somehow on their resume would want a comission job. Do not get burned out by calling or sending tons of cold call types resumes. You will only get frustrated.

4) Consider going to a big job fair- Try a local job fair or two. Again, be very explicit that you are looking for comission only jobs. You want to spend time talking only to the people who know that and would consider that- no one else.

 

Simple Recruiting Exercise

One of the critical skills for any recruiter is evaluating a resume to determine if there is a fit. Thus, I feel before any recruiter is hired, it is wise to test a recruiters skill in this area.

One way to do it is to give a job description. Then, show two sample resume and then have the recruiter state which resume is the best fit and why.

Another way to do it is to show a job description and then show a resume. Then ask the recruiter if they would would interview the candidate. A) Yes B) No C) Maybe. Then justify their answer.

A recruier has to demonstrate that basic skill.

Retail vs. Inside Deals

There are two types of deals. Retail and Inside. Retail deals are advertised out there to everyone. They are generally not the best deals because the best deals have been sorted out already and taken by someone else. That is called an inside deal. Inside deals are the ones where you get a phone call from someone and say, hey I got a deal for you and I am giving you the deal because I know you and I know you can deliver.

Regular people focus on retail deals. The rich and smart focus on putting themselves in a position to get the inside deals.