“7 Secrets to Getting the Most from Staffing/Recruiting Firms”

James Del Monte CERS, CPCJDA Professional Services, Inc.

Agenda

• Value of professional groups • Current hiring trends in Houston• Setting up the relationship• Types of staffing firms • What you are paying for• Sourcing candidates• Evaluating assignments • Fees & Margins • Are you done yet??

Value of a Professional Organization

• Friendship

• Leadership

• Industry/Business Knowledge

• Networking Opportunities

Famous Quote

“ .. Almost 100% of a manager’s success comes from hiring and retaining good people. Good people don’t make the

difference - - they are the difference”• James Del Monte, CPC, CERS

Speakers Fee

Return the Favor

What JDA Does. . .JDA Professional Services, Inc. is a Houston-based IT staffing firm

specializing in the recruitment of strategic-technical to executive-level professionals. We provide staffing solutions through full-time,

contract, and project-based placements. Since 1981, we have

been helping companies build great IT departments while

helping IT professionals find the right career opportunities.

Full-Time Staffing

Contract / Temporary

Staffing

Special Projects

StaffingJDA

Questions

Pearls of Wisdom

“We are all temporary – only some of you don’t know it.”

--Larry Carreker

Law of Supply and Demand

The demand for skilled professionals bottomed out 3Q09. The current cycle indicates that we are in strong recovery. In Houston good people are hard to find.

Labor Surplus vs. Skill Shortage

1984 1995 2Q01 4Q04

4Q99Demand Peaked

Supply

Demand

1989Demand Bottomed

3Q03Demand Bottomed

4Q07Demand Peaked

12.21.2013

3Q 09Demand Bottomed

3Q10

Positive Signs

• The stock market is up

• Corporate profits have flattened but lots of cash

• The unemployment numbers have stabilized and are coming down - new jobs are being created

• Price of oil is $100 +/-. Good for Houston

Positive Signs (cont’d)

• Domestic oil & gas production up 20+% since 2006

• #1 Medical center in world

• 80+% of companies can now replace turnover

• Houston #1 for job growth

• Thank God we live in Houston

Market Shift

The job market has shifted from an Employer’s Market

to a Job Seeker’s Market.

Candidate

Candidate

Candidate

Position

Position

Position

Position

Candidate

2008 - 2009 2010 – 2013

Unemployment Rates

• National – 7.7%

• Texas – 6.1%

• Houston – 5.8%

• Degreed professionals 4%

• What is full employment?

Most Requested Informationon JDA web site

• How to write a resignation letter article

• High cost of turnover article

Causes of Turnover

When examining the talent at any organization, look at the culture, not the rhetoric – look at the results, not the commentary about potential. Despite some of the delusional perspectives in the corner office, when we interview their employees, here’s what they tell us:

Causes of Turnover (cont’d)

• More than 30% believe they’ll be working elsewhere within 12 months.

• More than 40% don’t respect the person they report to.

• More than 50% say they have different values than their employer.

Causes of Turnover (cont’d)

• More than 60% don’t feel their career goals are aligned with the plans their employers have for them.

• More than 70% don’t feel appreciated or valued by their employer.

• Source: Forbes magazine

Bad Seeds

Get rid of bad seeds and people who don’t want to be there – the dominant attitude will proliferate through the group and pollute the team.

How This Impacts You

• Employer– Higher Turnover

– Higher Employee Cost

– Positions Open Longer

– Higher Hiring Cost

– Additional Fees to Budget

• Employee– More Career Options

– Training

– Bonuses

– Increase Base Salary

Win – Win Relationship

• Creating a relationship

• Adversarial vs. Cooperative

• Align on goals

• Part of team

Expectations• Personal relationship

• Know the company /industry

• Trust

• Integrity and ethical standards

• Transparency

• Responsiveness

• Quality of candidates

• End results

• Central point of contact

• Capabilities

• Dedication to complete assignment

• Listen and converse

• Reliable and great follow through

• Patience

• Respect our processes

• Quality vs. quantity

• Progress on search

Dislike about Recruiters

• No differentiation

• Candidate database

• Inventory candidates

• Resume dumps

• Difficult to work with

• Don’t take no for answer

• Keep selling – pushy

• No skill assessments

• No background checks

• Not knowing candidates activities

• Multiple submission

• Sound like a used car salesman

• Only interested in commission

What Drives Us Nuts

• Moving target

• VMS – time to submit

• Already have candidate in VMS

• Hurry up and wait

• Fake job orders

• The help

• Treat all the same

• Extensive hiring process

• Eliminate first 3 resumes

• Don’t hire first candidate

Types of Recruiting and Staffing Firms

• Retained – executive search - commitment fees for critical/urgent need

• Contingency recruiting

• Contract

• Temporary

• Consulting

• Payroll service

Size and Scope

• Local

• Multi office

• National

• International

Sales

Recruiter Recruiter Recruiter

Recruiting Career Path

What are you paying for?• Value of recruiter

– Sourcing better candidates

– Manage hiring process

– Manage expectations

– Negotiating compensation packages

– Resignation and counter offers

– Get off the market

– Follow up

Quality of Candidates

• Sourcing

– Job boards –LinkedIn

– Recruiting – targeted

– Database

• Process and selection

– Fog a mirror

– Criminal history

– Drug test

– Skill testing

– Interviewed vs. scraped

– Background checks –hidden network

Types of Companies

Recruit for

• Active

• Targeted

• Occasional

Recruit from

Have worked with

Might work with

Never work with

Evaluating Assignment

• Company

– Good story/reputation

– Successful history

– Hiring process

– Benefits/bonuses

– Fees/margins

– Terms/Payment

– Culture – likable

– Respected resource

• Job order

– Niche – cluster able

– Detailed specs

– Vito contact

– Length of project

– Candidate availability

– Interview availability

– $$ to specs

– Urgency – status

Job Order Derby

Risk management

–Job order derby

–Semi exclusives

–Exclusives

–Commitment fees

–Retained

Risk vs. Reward

Reward

Risk

Low

Low

High

High

What is the return on time invested?What’s the probability of successfullycompleting the search?Is it a one off or can it be clustered? Will this lead to more business?

Fees & Margins

• Full-time fees

• Temporary margins

• Contract rates

• Consulting fees

• Payroll mark ups

Questions

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?

?

JDA Resources

• Salary Survey

• Hiring Trends

• Cost of Turn Over

• Counter Offers

• Hi-Tech Calendar

• Hot Jobs

• Interviewing Tips

• Employee retention

“7 Secrets to Getting the Most from Staffing/Recruiting Firms”

� Value of professional groups � Current hiring trends in Houston� Setting up the relationship� Types of staffing firms � What you are paying for� Sourcing candidates� Evaluating assignments � Fees & Margins

Are you done yet??

USA

TEXAS

HOUSTON

701 North Post Oak RoadSuite 610

Houston, Texas 77024-3818

Phone: 713/548-5400

www.jdapsi.com

Contract and Full-time Staffing Information Technology Staffing Specialists Consulting and Special Projects