1. Social Media
Take a thorough look at your social media efforts and ask yourself if the effort is paying off. If there are no clear pay-offs from your time spent posting, tweeting, and “friending” decide which efforts you can dump and which you can focus more narrowly on. As an example, you've been dedicated to posting relevant content religiously and trying to get your audience to engage through your Facebook page, but in all reality it’s just not happening – I say, don’t obsess about it and focus your time where positive results can be documented. Or, try a new way to get your audience involved. Social media is all about being creative. It never hurt to try something once (usually).

2. Clients
It might be beneficial for you to take a look at the clients you consistently cater to that for some reason have never been able to place one of your candidates. Don’t waste your time and energy on clients who are working with multiple recruiters or don’t work with you. You have the control in this situation and it doesn’t benefit you to keep an unproductive client in your portfolio.

3. Old-Fashioned Networking
As a Millennial, I am supposed to “believe” in the power of technology – and I do, most of the time. But when it comes to recruiting, there is no better way to build a relationship with a candidate or client than sitting down for a cup of coffee or having a lunch meeting. Personality and integrity will take you farther than any online social media tool and it’s important not to forget you have this valuable relationship building tool in your back pocket.

4. Know the Difference
“Grant me the serenity to accept the things I cannot change, courage to change the things I can, and wisdom to know the difference (or something like that).” Don’t waste your time worrying about things that you can’t change (economy, talent shortage, European economy, election, etc.) To keep moving forward, you have to be able to work amidst all of these challenges and find success in the things that you can control. 

5. Are You a Member of an Executive Search Network?
If so, try to work with a couple new split fee partners this year. Maybe you’ve been working with the same ones for a while, but it never hurt to step out of your comfort zone and build a relationship with someone new. If you are paying dues to a network but aren’t getting a good return on investment, or at least your dues worth, it might be time to either find a new network or restructure your work-style within the network.

Hopefully this gets you thinking about how you are going to de-clutter your business and stay focused on the activities that produce results. What are some things you've decided to focus less or focus more on in 2012?

67% of the 45 respondents were male and 33% were female. Positions held by the majority of respondents included owner, manager, CXO, and VP. The poll did not include in which areas the recruiting business growth would occur. However, several comments point towards the areas of engineering and information technology.

The poll question and responses appear below:

“What are your business predictions for 2012? Do you expect your recruiting business to:

• Increase significantly – 38%

• Increase slightly - 42%

• Remain the same – 11% 

• Decrease slightly – 0% 

• Decrease significantly – 9%

The results of the poll, while not scientific, are encouraging. Frankly, I was surprised to see that 80% of respondents believed their recruiting business would increase in 2012. That large percentage is definitely encouraging!

Do you expect your recruiting business to also increase in 2012? If yes, do you predict the increase will occur in the areas of engineering and information technology or in another area?

3. Hangouts
In my opinion, this is probably the best and most differentiating feature of Google+. Hangouts allow you to group video chat. Up to 10 people can join at once and Google+ is intuitive enough to change your view based on who is speaking. Hangouts are meant to be informal and connect you for a spontaneous conversation with a friend or colleague. Sure, we’ve all been using Skype, but Hangouts are the free version of Skype’s group video calling.

4. +1’s
+1’s (plus ones) are similar to the Facebook “like” button. I’m sure you’ve seen the +1 button everywhere, but by using it you endorse articles, urls, links, brands, products, etc. We are now seeing articles that have been +1’ed showing up in Google search results along with a picture of individuals you are connected to on Google+ that have +1’d the search result. As an example, I searched for “recruiting” in the Google browser. For me, the 4^th result is a page on NPA’s website. If you are connected to either of us on Google+, you will see that Dave Nerz and I have little pictures next to this article because we have +1’d NPA’s website. If you are not connected to either of us, or anyone who has liked NPA's website, you won't find NPA on the first page of your search results. So, this is where the personal branding comes in to play. If you are diligent about connecting with people in your industry and +1ing information relevant to your profession, your face may pop up next to an article you have endorsed. It’s important to keep your +1ing habits relevant to you particular industry in order to capitalize on this feature.

If you haven’t given it a try yet, I recommend exploring Google+. If you are using Google+, what are the features that you find most useful?

If you are making the leap into a new business you are faced with options. The two options that those starting a recruiting business most frequently consider are the “Go It Alone” model and the “Recruiting Franchise” model. 

The “Go It Alone” model may feel the riskiest to the new recruiting business owner.  In this model, you take what you have learned from your former employers, from consultants (business coaches, incubators, accountants, and lawyers) and from books and build from the ground up. New systems, new technology, new markets, and new challenges are all likely in the first year of business. As the owner of a start-up executive search firm, owners are faced with the prospects of doing it all. Since many start-up search firm owners were previously recruiters or HR managers, the complexity of managing the entire new recruiting business can be intimidating. The guideline that I have seen over the years says that a start-up business of any kind requires enough capital to survive about 18 months without a positive income. Most new search firms will require this kind of capital to survive the first year in business. By the end of two years the averages say 50% of all those start-up ventures will be out of business.

A second option for a new search business owner is to consider a recruitment franchise. The “Recruitment Franchise” model provides a business model for starting a recruitment business. Some of the “back office” process and tools are provided. There is a defined structure that will increase the odds of success but this insurance does not come without its own risks. A recruiting franchise can cost as little as $25,000 to $50,000 and as much has $200,000 to acquire. In addition to the upfront costs, there are downstream costs. Some downstream costs include the annual fees and the percentage taken off the top of revenue. Some franchised recruiting models call for 6% to 9% of revenue (this is before tax and profit) to be paid to the franchise group. There can also be requirements to participate in certain technology solutions, to attend required training, to contribute to advertising pools, and other must-do expenses. The chances of success are greater and the likelihood of failure reduced when starting a recruiting business with the support of a franchise behind you. If fact, if you have the cash, can afford the expenses and like being a part of something larger, a recruitment franchise is a wise investment to ensure success. Over time, some of the most successful recruiting franchise owners have struck out on their own after becoming successful within the franchise group. The downsides are about control and cost. If you are starting a recruiting business because you want to run the show and do it your way, a recruiting franchise is just going to create undue conflict and stress. 

There are obviously other options that can support the start-up of a executive search business. There is always the option to purchase an existing recruiting business. This means upfront costs and the acquisition of methods, accounts, successes, challenges and people that you did not hand-select. Some will be a great asset and others will be a great distraction.

A final option that I think deserves consideration is the use of recruiting networks to support the start-up recruiting business. Recruiting networks can be formal or informal. There are many great recruiting communities online that can be a source of business opportunities and support for a recruitment start-up. It is always helpful for a new recruiting business to have multiple sources of open job orders and available candidates to work. The connections you make in formal and informal networks can provide jobs to work and candidates for those really tough-to-find positions. Yes, I’m talking about doing splits. 

In the United States, a recruiting association is likely to be a non-taxable, non-profit entity. Recruiting associations, as well as many other trade associations, typically exist for the following reasons:

1. To provide formal education by way of certification or other professional credentials;
2. To create and enforce professional standards of behavior and ethics; and,
3. To provide lobbying and other legislative support for the industry they represent.

The National Association of Personnel Services (NAPS) is the predominant US association in the recruitment industry. (Disclosure: NPA is a corporate member of NAPS, and NPA’s president is also a member of the NAPS board of directors.)

NAPS is a great recruiting organization, offering the well-known CPC (Certified Personnel Consultant) credentialing program. While NAPS and NPA both offer access to a network of recruiters through meetings, seminars, conferences, and other events, there are some big differences between our two organizations.

NPA is, by legal definition, a not-for-profit cooperative, but we are NOT non-taxable. As a cooperative, NPA is owned by its members. Member-ownership is one hallmark that makes us different from other recruiting networks and recruiting organizations. NPA is not a recruiting association; we do not offer credentialing, professional standards, or legislative services.

NPA exists to help independent recruiting firms make more money through split placements. The network was founded in 1956 as a way for independent recruiting firms to work together to compete against larger, franchised employment agencies. These forward-thinking independent recruitment companies knew they could make more placements (and more money) by working together, but did not want to give up the autonomy of running their own businesses.

NPA’s cooperative structure means that all of our members contribute financially (via dues and brokerage) for products and services that create additional split placement opportunities. By pooling their resources, NPA members receive more products and services, more cost-effectively, than they would be able to purchase on their own.

Finally, member-ownership means that any profits earned by NPA are shared by the owners, or put back into the recruiting network for the development of additional recruiting resources. NPA exists solely to serve its members; it is not owned by a private individual who receives all the financial benefits.

These are the prime traits that distinguish NPA from a recruiting association. Are there other differences? Please share your thoughts below!

Recruiter: (n) One who recruits

Recruit: (v) To supply with new members or employees

From the definitions above, it seems to me that “headhunter” and “recruiter” have similar meanings. Neither one identified as carrying a negative connotation. Within our executive search network, we have members that refer to themselves as recruiters, and some as headhunters. So, where did this come from and is there merit behind the differentiation? Is it a generational thing? A regional thing? Do you prefer to be called a headhunter or recruiter, and why? To solve this great debate please comment with your thoughts and insight.

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• Which of the competing factors that the industry takes for granted should be eliminated?

• Which factors should be reduced well below the industry’s standard?

• Which factors should be raised well above the industry’s standard?

• Which factors should be created that the industry has never offered?

It’s my favorite time of year at NPA. Our members-only Global Conference is just a few weeks away, and the excitement and anticipation are killing me (so is the workload, but I digress…). The Global Conference is where the magic happens. I love sitting back and watching what happens when smart, engaged recruiters get together in person:

• The “ah-ha” moments that occur when two recruiters meet for the first time and realize the number of placements they can make by working together
• The wondrous moments when recruiters who are new to NPA walk into a breakout session where others are openly sharing their proprietary business processes
• The “light bulb” moments when a speaker or trainer shares something that a recruiter KNOWS can be implemented immediately to make (or save) money
• The joyful moments when recruiters celebrate each others’ successes (individual or shared) and lift each other up when times are tough

Planning conferences and meetings for NPA is part of my job, so I suppose I’m biased when I say it’s important for people to interact in person. But I’ve seen the spark, the energy, the magic when a room full of recruiters gets together, and it’s not something I have ever experienced through email or Facebook or LinkedIn. It’s better.

There are many kinds of recruiter associations: formal and informal, large and small, regional and global. Many of them offer in-person meetings. Find one that makes sense for your business model and go. While NPA’s meetings are members-only events, other recruiting associations allow both member and non-member attendees. It’s a great opportunity for professional development. After all, your clients expect you to be knowledgeable, with up-to-date skills, right?

If you’d rather start small, try reaching out to a handful of recruiters in your local area and meet up for coffee or a beer. You’ll learn more about each other in that hour than you could ever hope to learn through electronic updates. And you’ll walk away feeling more connected, with a solid network to support you. That’s the kind of recruiting association you need!

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How’s business? Answer NPA’s one-question survey about your 2012 recruiting business predictions. We’ll blog about the results of our non-scientific poll next month!

Today’s guest blogger is Meri Laird Jones of Davidson, Laird & Associates, located in the metro Detroit area of Michigan. Meri is a current member of NPA’s board of directors. Davidson, Laird & Associates places technical, operations, sales and manufacturing professionals, primarily in the renewable energy, automotive, paint, plastics, chemical and processing industries.

We see a major trend in executive search assignments that are becoming increasingly specialized and specific in the skill sets required. For example, our clients are asking us to find them executives/senior managers not only with very specific technical experience and educational requirements, but who also have bilingual skills to address their global markets in Asia especially. (It’s not enough to find a Ph.D. in chemical engineering with years of research in specific energy markets who is willing and able to relocate, but this person must also be fluent in both English and Mandarin!) The good news is, there is no doubt client companies depend on well-connected executive search firms for these types of searches and they gladly pay full search fees as well as retainer or engagement fees. Furthermore, success in these searches builds loyalty and clients return to engage us in additional searches, which may be just as specific, but in a completely different functional area or even searches for less technical, lighter level people.

For a long time, we walked away from those searches, not wanting to lose the edge in our specialty markets or tarnish our “executive search” image by working on interesting (but lower level) contingency searches. Partnering with other recruitment and executive search firms by joining a recruiting organization solved this problem for us. We are now connected in many industries and functions. When we have a strong client relationship, we feel confident we can be their number one recruiting source for many or all of their searches, because we now have the recruiting power of 400-plus offices to help us fill their needs in all functional areas and levels. Additionally, with our business and client needs becoming more global by the year, seeking out a global recruiting organization has even been key to further service our clients not only in North America, but also internationally.

The most valuable outcome of joining a solid global recruiting network has been the ability to work with clients in varying industries and truly focus on building and maintaining those relationships. We can create a “happy dependency” with each other as they feel comfortable that with our recruiting network, we can build their teams, all around their organizational structures, with top performing talent.

• Placements of positions with US$80,000 and above salaries were 59% of total split fee placements
• Placements of positions with US$100,000 and above salaries were 35% of total split fee placements

• Strategic Management  / Supply Chain
• Manufacturing / Mining / Construction
• Sales / Marketing / Business Development
• Accounting / Financial Services
• Chemical Process

• Chemical Process – increased by 71%
• Strategic Management  / Supply Chain – increased by 54%
• Accounting / Financial Services – increased by 27%

• Placements of positions with US$80,000 and above salaries increased by 25%
• Placements of positions with US$100,000 and above salaries increased by 55%