Videos

Note: Please set the volume on your monitor to Hi to ensure you can hear these clips. Just click on the picture to activate the video. To view in Full Screen, at the bottom right of the video window is a small box next to the speaker volume that if clicked, will open the video to Full Screen.

Introduction - The video to the right is the introduction explaining the basics covering how I can work for you, just as as if my company were a department within your business. Click the link to the right and wait a few moments for YouTube to activate. Also, ensure the volume is turned up on your monitor.

http://www.youtube.com/watch?v=WvWXRtLZs8I

The diagram to the right does a good job of explaining why this concept makes so much sense. Ensure you also read the Our Services page as that helps break down and clarify the details.

This diagram will help you clearly understand the difference between the normal contingency fee staffing model compared to the shared cost/group concept I offer to the few staffing companies I work with. This diagram is critical for any Owner or VP level executive to read.

Normal Supplemental/Contingency Model - Perm Placement

The minimal annual revenue that staffing companies use as the baseline of a decent perm recruiter is $200k annual billing. To keep the numbers simple for this example, assume all job orders are $50k salary x 20% fee = $10k per placement. For the recruiter to produce $200k, they must call on over 200 employers per year to generate approximately 80 job orders. 60 of the 80 job orders will fizzle out into nothing for all the common reasons, leaving the recruiter to fill 20 job orders resulting in the $200K. The recruiter must spend 50% of their time selling to constantly find new job orders to work, and waste a tremendous amount of time on the 60 job orders that fizzled out. This model does not promote loyalty between the recruiter and customer, as the recruiter is forced to constantly sell looking for new job orders.

Assume you want to hire an experienced staffing sales rep or recruiter from your competition, and not a marginal person off the job boards. It is very time intensive to find such a person, and then a Head Hunter must "lure" the candidate into making the decision to interview with your company, and then follow up to break them loose and "close" them into accepting your offer. This takes much more time than recruiting an accountant off a job board for a regular job order. No recruiter is going to work for free up front and invest the weeks of time it takes to find such a person and break them loose to bring to your company because the risk of losing money on that type of search is greater than the odds of making money. The point is contingency fee terms work only if the job orders are for regular corporate jobs such as accounting, clerical, HR, IT etc where the candidates are sourced mainly off job boards. Contingency terms actually make it impossible for a true Head Hunter to work a complete search process because the risk of losing and money outweighs the potential to earn a fee. Another problem with continency terms is the recruiter is very cautious with how they recruit from your competition because they are not exclusive to your company. They are worried about getting caught recruiting out of your competition and burning bridges with other companies whom they may one day want to do business with. Because they are not exclusive to your company, they are not going to aggressively recruit out of your competition because doing so could result in killing their chances to work with future customers. They end result is contingency fee recruiters work a cautious & minimal search process, normally picking the low hanging fruit, or the marginal candidates. And you can bet they are double dipping where if a fee is at stake, they will recruit people out of your company even as you pay them fees to hire people. There is little loyalty on the part of contingency fee recruiters towards their clients.

The honest truth is contingency terms create a situation where the theory is to bring in 10 job orders expecting 6 to fizzle out, filling 4. The recruiter posts all 10 jobs to the job boards, cross submits the same resumes to each client competing clients against each other. Because the recruiting process is light, not much time is lost on the 6 job orders that fizzled out, so the fees earned off the 4 make it profitable. What if your company was one of the 6 where the job order fizzled out and the recruiter failed to source a candidate to hire? You might not have paid a fee, but you did not hire a good person either!

Frankly, this is a process that leads to low quality and is a shotgun approach to making money as a recruiter. And I am sure this is not how you would want me to work for you, especially if you wanted me to recruit the best people from your competition.

The Shared Cost/Group Concept and how you can benefit

Using the same $200k as in the contingency model above, I am forming a small group consisting of 13 staffing companies each hiring me part time at just $15k per year, broken down into monthly payments ( $15k x 13 = $200k ) Due to the group concept I am not having to spend 50% of my time calling on over 200 companies per year seeking job orders, as I work full time only for the 13 companies in this group. I am also not wasting time on the job orders that would normally fizzle out under the supplemental/contingency model so all that wasted time is allocated as productive time for the companies I support.This group model does promote loyalty between me and you. In fact, because I would be exclusive to your company in your region, I could care less what the other staffing companies think so I am not worried about burning bridges with them by aggressively recruiting their people on your behalf! Due to the nature of the ongoing relationship between you and I this concept sets the stage for me to work for you all year long at a low part time compensation, implementing the most advanced, ambitious and thorough talent acquisition resource found anywhere in the staffing industry. I can build lists of your competitors, keep them up to date all year, promote your company as the best place in town to work, and lure the top people from your competition into switching teams to bring their experience and customer relationships to your company. This concept also enables me to do other work for you and the few other staffing companies in the group such as Business Development, Marketing and Generating Sales Leads.

When the facts are studied, I am helping the companies in this group increase their revenue to the tune of millions of dollars per year. Therefore purely from a mathematical perspective this concept sells itself because I help the companies in this group make far more money than it cost to particpate.

Finally, under this model I would be doing all of this and more only for your company in your region, not for any of your competitors. I would become your inside Guy, a secret weapon on your team, a resource none of your competitors can have nor can they duplicate.

This can only be done for a small group of staffing companies. Everyone wins. I am creating a full time career for myself where I can bring all my resources to the table and significantly help just a few staffing companies rise up and out-compete the other firms they do battle with in the war to generate customers and revenue. The pricing could be as low as just $10k per year for a small locally owned staffing company up to a max of $35k per year for a firm with multiple offices. I will know when my plate is full and have reached our maximum capacity to work. Once our capacity is reached, I will no longer invite any other staffing companies into this group. You control this relationship because you can fire me at any time, for any reason. It is up to me to earn my place with your company and ultimately become a strategic part of your business. The only downside to the shared cost model is it limits annual revenue to a fixed number, whereas with contingency even with all it's problems, a recruiter has the potential to earn more. However, when it comes to actually doing a good job for your company, and life & work balance, the shared cost model is better for both your business and me because we both win!

Reference written by the CEO of a staffing company:

To whom this may concern,

I have known David Fogg for several years, back from when he started his staffing industry specific head hunting business.
When working with David I have come to learn he is ethical and deeply experienced when it comes to the staffing industry.

David and I were discussing his business model and I suggested to him that as an Owner of a Staffing Company, although I might need help with head hunting experienced people from my competition from time to time, I had an inherent dislike for paying external recruiters.

I suppose the underlying issue is we in the staffing industry think of ourselves as recruiters, so we have a prejudice against paying other recruiters.

What I like about this concept is David is essentially working for me as my personal talent acquisition resource at a cost I can afford. And, because of his external status and experience, he is able to do things for my company that is unheard of with any larger staffing companies. He has truly become an important resource to my business exclusively, as he is not working with any of my competitors.

Another suggestion I made to David is that I would be more interested in retaining him to essentially work for me if he could do other things, and provide other services to my company beyond just head hunting people from my competition.

As a result, David and his staff are feeding us sales leads – he is pre-training all of our new hires – he is helping me train my people by writing training articles each month that I review and distribute to my employees, and his recruiters are promoting my company to our prospective customers. Finally, one of the things I really like about this relationship and concept is I am always open minded to hiring experienced sales reps or recruiters who can bring a book of business to my company. Under a normal fee per hire model, there is no incentive for recruiters such as David to invest serious time into seeking out such people for me to look at. Under this new concept, because David is essentially working for me continuously, he is always looking for talented people he can bring to my attention.

Frankly, this concept makes perfect sense for me as an Owner of a staffing company, and for David. We both win. His cost would be split up among the small group of staffing companies which enables each of us to benefit from his support and experience at an affordable rate.

I trust him, and highly recommend that any Owner or Executive in the staffing industry whom David is calling on, to accept a phone call with him and consider this concept.

Sincerely,

Drew Seder

Drew Seder
CEO
Sanford Barrows Group, LLC
6015 Washington Street
Hollywood, FL 33023
(p)305-999-6242
(f)305-999-6241
dseder@sanfordbarrows.com
www.sanfordbarrows.com

"One of the things David is very good at is acting as the MatchMaker between candidates he is recruiting for my company, and us. He does a great job at getting into the minds of candidates he is recruiting to understand what makes them tick so he can effectively sell them on wanting a job with my company. While at the same time, he educates me what is going on in the minds of people we are considering which helps me be more effective at interviewing and enticing the best people to accept our job offers. The sales leads he generates do help my sales people spend more time selling and less time researching, which makes them more productive. I think his blending of talent acquisition with sales leads and marketing create a relationship I wish to continue permanently because I would much rather he work for me, than end up working for my competition.

I have worked with other recruiters in the past who specialize in the staffing industry, but all of them did little more than go to the same job boards we already use. David set me up with access to his online database so I could see for myself that he was working a complete talent acquisition process. I like the fact I can go into his database the same as if he were working directly for me, as that shows me he is doing the work he claims to be doing.

Finally, an interesting observation is for someone who is not actually one of my employees, David has been more loyal to us than many of the people who have worked for my company. He truly sees himself as being part of my business, and has our best interest at heart.

If I could afford to hire him to work exclusively for my company, I would. That is why his concept makes so much sense. In our part of the USA and in our niche, he works exclusively for my company. I do recommend him, and think his group concept makes very good sense."

Mughal & Associates Corporate Recruitment

Billy Mughal
"Professional Staffing Solutions"
(T) 305-571-9590
(C) 305-761-6052
(F) 305-571-9592
ameerm@macruit.com
www.marecruit.com