So, in 2007 I got the news, my six figure cushy job was going away. I didn't know at the time but it was the start of the so-called 'great recession', and not only my job was being eliminated, but the jobs of millions of American's were in jeopardy.
The first thought I had was to get my resume out to as many people as possible. Gmail only let me send "X" number of emails in a day, and I maxed that out quickly and google turned off my email for 24 hours. I sat there hoping that someone had seen my resume, and would either refer me to a hot job prospect or maybe even hire me quickly!
That didn't happen.
My next thought was, what can I do to make sure this never happens to me again.
The only thing I could think of was, start my own business!
The first person I sought out was an old boss of mine who had sold his first company for $20MM and his second company for $15MM. I knew he would have some great advice for me, and could steer me the right way, and help me make the final decision.
His advice was: "Don't do it!"
How could I possiblly listen to a guy tell me to Not Do Something, when he had done it, twice, and lived next door to Tiger Woods???
I figured out pretty quickly that I only heard the first three words, Don't do it! and that he had actually said something else: "Don't do it! Unless....."
Unless what? Unless I dont have any other options, Unless I am crazy, Unless I have a great work ethic working alone, ...Unless I have a great idea no one else has? Unless WHAT??
He said, "Unless, you know you can succeed and no one can convince you otherwise".
I started with an PC and a Desk. That was it. The PC was slow by today's standards, and I had no idea where it would take me. I still have the same desk, newer chair, and am on my fourth computer, but the dream remains the same as it was on day 1.
So, what's the purpose of this post??
On Friday, I went to the doctor, and while the nice lady was drawing my blood she asked me if I would talk to her husband about his business that he had started. She said, "Maybe you can convince him to work harder. He thinks that until the economy turns around, he can't find business".
RULE ONE: You are crazy if you start your own business, UNLESS, you are convinced that there are customers who need you and want you. And No One can convince you otherwise!
RULE TWO: Be prepared to work more hours, make less money, and have more stress than you have ever had in your life. And be prepared to thrive on it!
RULE THREE: Consider taking on a partner. Only take on a partner if they are Smarter Than You Are!
RULE FOUR: Only work with people who are as driven, and as excited about your company as you are.
RULE FIVE: Don't ever give up. And when you do, don't tell anyone. Because if you give up one day, you will regret it the next. When you give up, take a break, come back and try again. Repeat as necessary!
RULE SIX: Don't risk your family's future. I did, and so far it looks like it will pay off, but if at all possible, try and have a second income for your family. I didn't but somehow have survivied.
RULE SEVEN: Find customers who Like You! Don't deal with people who won't help you grow your business, if you have done a great job for them. Referrals are everything!
RULE EIGHT: Don't be afraid to try new things. You can become an expert in a hurry if you research your new product or offering, get one customer, and make sure that your trail and error is invisible to them.
RULE NINE: Finding customer's is the hardest thing to do with a new company. Your first and second customer should be done almost at cost, just get the customer, get a reference, get a starting point, do a good job, ask for referrals, use that customer when you market to others, don't try and make money on the first few customers....they will appreciate what you are doing for them, and it will pay off ten fold.
RULE TEN: Pray.
More later....have fun, and if you are interested in starting your own company, Don't Do It...Unless....
Sunday, March 6, 2011
Wednesday, January 19, 2011
Top Ten Mistakes while Interviewing
Twenty years in a single industry is a long time, at least it seems to be in my world.
I remember being trained as an entry level recruiter twenty years ago this month, the same holds true to today as it did then, recruiters are only as good as the processes they learn and the tasks they do on a consistent basis.
Today there is a glut of talent, and recruiters will repeatedly assume that if one candidate does not work out, there is another that can be located immediately without too much work.
This makes it tough on the Candidate, as recruiters are not preparing candidates for interviews today as much as they have done in the past.
So...with that said, Candidates must prepare themselves for an interview sometimes without assistance from a recruiter.
The key is: Make your Interview Mistake Free!
Here are Ten Mistakes that people make when interviewing:
1. No Goal.
You must have a goal for the interview. Most people think that the goal of the interview is to 'get the job'. That's typically a bad game plan. Your goal should be to "get another interview!" Few companies or hiring managers will hire someone after one or even two interviews. You hardly ever know if it's a one two three or even four interview process. SET YOUR GOAL: GET ANOTHER INTERVIEW!
2. Assuming that a resume will get you a Job.
Resumes should do one thing. Get you an interview! Resumes are simply sales tools, and your initial sale to a prospective employer is to Get an Interview! Re-read your resume, is it formatted correctly, what can you change to make sure that you Get that Interview! Have others read your resume and give you input, see if a 'layman', or someone outside your industry, can understand your resume. RESUME: A TOOL TO GET AN INTERVIEW
3. Using the wrong format in your Resume:
Recruiters are swamped and overwhelmed with resumes. They choose to contact you according to what they see, and you only have a few seconds to get their attention. DO NOT: 1. Use PDF formats (They will not upload into automated systems) 2. Use funky or cool Font. (makes resumes hard to read and some autoreaders will mis-read keywords) 3. Omit information: such as address city and state, this makes your resume look either fake or that you are trying to hide something.
4. Assume that a recruiter will realize that you are willing to take a lower level position:
Believe it or not, recruiters and hiring managers are interested in success, and even if you are more senior than the job requires, in this economy senior people are applying to more junior level jobs. Do not assume that a recruiter will realize this without you telling them that you are open to more junior positions. Do not look desperate, but do make it clear you are willing to work hard, in a more junior role, but apply your Senior Experience to that role.
5. Not "Dressing the Part"
I don't think that dressing business casual is a bad thing, unless you you want the job! Even if you are in Austin or Seattle or some other city where people wear Ed Hardy shirts to work, you are selling yourself! Dress above and beyond the normal dress code of the company. A suit and tie is best, almost always, a dress or slacks for women, but always professional. This is your one and only chance to make a first impression. I have interviewed people when I walk in the room and decided to Not hire them within the first fifteen seconds just because of their decision as to how seriously they take this opportunity! Serious = Dress the Part!
6. Mispronouncing words!
This is so very common, during an interview you are trying to impress the interviewer. Don't use words to impress that you don't use everyday! Trust me on that one, Poor Communication = Unemployment!
7. Not understanding that PERCEPTION is REALITY
What people think of you, or perceive of you, is truly who you really are. Build a perception that you are the Man (or Woman) for the job! Again, use friends or others in your industry to review your resume, to make comments and give you input. After all, they know you best. PERCEPTION = REALITY
8. Forgetting to do your homework
The Dog Ate It, will not work! It's obvious to look at the company website - but - use Facebook, Google, and any other information on the Internet. Look up people on LinkedIn that you may interview with. Send an Email to the hiring manager who may hire you, tell them that you are interviewing with HR or a Recruiter and are excited about the potential interview with them. DO THE WORK - BEFORE YOU GET THE WORK!
9. Not "Asking for the Job!"
Ok, seriously, how many things have fallen in your lap that you have Not asked for? Not many....if you want the job, Ask for It! At the end of the interview, tell the interviewer that after every thing you have heard, you really would love to have this job!" ASK FOR WHAT YOU WANT!
10. Not understanding your Competition -
A. You DO have competition for this job
B. You DO have to outdo, outperform and out-interview your competition to Win.
C. It's a battle, it's a game, have a winning gameplan!
Ask about your competition. Try to get feedback on what you are lacking and where you may be better than your other candidate competitors. Try and make sure that every potential issue with your resume or background is overcome. Do not Assume that you are getting the job after one interview....assume that you have more work to do! and never, ever, just say "Yep, I sure am interested...., sounds like something I would be interested in...." That's fine for an interview in 2001, You'd probably get the job, but in 2011 being interested means your not the right guy....wanting the job, asking for the job, and getting the job are the new mantra's that all candidates need to adhere to.
Good Luck, do well.....Believe in yourself, and build the perception of the great person you really are.
I remember being trained as an entry level recruiter twenty years ago this month, the same holds true to today as it did then, recruiters are only as good as the processes they learn and the tasks they do on a consistent basis.
Today there is a glut of talent, and recruiters will repeatedly assume that if one candidate does not work out, there is another that can be located immediately without too much work.
This makes it tough on the Candidate, as recruiters are not preparing candidates for interviews today as much as they have done in the past.
So...with that said, Candidates must prepare themselves for an interview sometimes without assistance from a recruiter.
The key is: Make your Interview Mistake Free!
Here are Ten Mistakes that people make when interviewing:
1. No Goal.
You must have a goal for the interview. Most people think that the goal of the interview is to 'get the job'. That's typically a bad game plan. Your goal should be to "get another interview!" Few companies or hiring managers will hire someone after one or even two interviews. You hardly ever know if it's a one two three or even four interview process. SET YOUR GOAL: GET ANOTHER INTERVIEW!
2. Assuming that a resume will get you a Job.
Resumes should do one thing. Get you an interview! Resumes are simply sales tools, and your initial sale to a prospective employer is to Get an Interview! Re-read your resume, is it formatted correctly, what can you change to make sure that you Get that Interview! Have others read your resume and give you input, see if a 'layman', or someone outside your industry, can understand your resume. RESUME: A TOOL TO GET AN INTERVIEW
3. Using the wrong format in your Resume:
Recruiters are swamped and overwhelmed with resumes. They choose to contact you according to what they see, and you only have a few seconds to get their attention. DO NOT: 1. Use PDF formats (They will not upload into automated systems) 2. Use funky or cool Font. (makes resumes hard to read and some autoreaders will mis-read keywords) 3. Omit information: such as address city and state, this makes your resume look either fake or that you are trying to hide something.
4. Assume that a recruiter will realize that you are willing to take a lower level position:
Believe it or not, recruiters and hiring managers are interested in success, and even if you are more senior than the job requires, in this economy senior people are applying to more junior level jobs. Do not assume that a recruiter will realize this without you telling them that you are open to more junior positions. Do not look desperate, but do make it clear you are willing to work hard, in a more junior role, but apply your Senior Experience to that role.
5. Not "Dressing the Part"
I don't think that dressing business casual is a bad thing, unless you you want the job! Even if you are in Austin or Seattle or some other city where people wear Ed Hardy shirts to work, you are selling yourself! Dress above and beyond the normal dress code of the company. A suit and tie is best, almost always, a dress or slacks for women, but always professional. This is your one and only chance to make a first impression. I have interviewed people when I walk in the room and decided to Not hire them within the first fifteen seconds just because of their decision as to how seriously they take this opportunity! Serious = Dress the Part!
6. Mispronouncing words!
This is so very common, during an interview you are trying to impress the interviewer. Don't use words to impress that you don't use everyday! Trust me on that one, Poor Communication = Unemployment!
7. Not understanding that PERCEPTION is REALITY
What people think of you, or perceive of you, is truly who you really are. Build a perception that you are the Man (or Woman) for the job! Again, use friends or others in your industry to review your resume, to make comments and give you input. After all, they know you best. PERCEPTION = REALITY
8. Forgetting to do your homework
The Dog Ate It, will not work! It's obvious to look at the company website - but - use Facebook, Google, and any other information on the Internet. Look up people on LinkedIn that you may interview with. Send an Email to the hiring manager who may hire you, tell them that you are interviewing with HR or a Recruiter and are excited about the potential interview with them. DO THE WORK - BEFORE YOU GET THE WORK!
9. Not "Asking for the Job!"
Ok, seriously, how many things have fallen in your lap that you have Not asked for? Not many....if you want the job, Ask for It! At the end of the interview, tell the interviewer that after every thing you have heard, you really would love to have this job!" ASK FOR WHAT YOU WANT!
10. Not understanding your Competition -
A. You DO have competition for this job
B. You DO have to outdo, outperform and out-interview your competition to Win.
C. It's a battle, it's a game, have a winning gameplan!
Ask about your competition. Try to get feedback on what you are lacking and where you may be better than your other candidate competitors. Try and make sure that every potential issue with your resume or background is overcome. Do not Assume that you are getting the job after one interview....assume that you have more work to do! and never, ever, just say "Yep, I sure am interested...., sounds like something I would be interested in...." That's fine for an interview in 2001, You'd probably get the job, but in 2011 being interested means your not the right guy....wanting the job, asking for the job, and getting the job are the new mantra's that all candidates need to adhere to.
Good Luck, do well.....Believe in yourself, and build the perception of the great person you really are.
Tuesday, November 17, 2009
As the economy turns.....
Finally, it looks like the economy is turning around and the recession may be ending, or at least this is the end of the begining....
I saw that Modis was aquired by Adecco recently for a multiple of over 9x's earnings, which indicates at least to me that Adecco sees the staffing business as starting to grow once again and should be an excellent year for them in 2010.
As I previously posted, the first signs of the end of the recession should be an increase in 'temporary hiring'....in our business, we are seeing new business start to come from a variety of customers, not just one or two. I.T. staffing has ramped up, Healthcare staffing never ramped down.....manufacturing is slow still from what I hear, and Accounting Finance staffing has remained steady throughout the recession. I don't know how many budgets have been unfrozen within the Fortune 1000, but there does seem to be a thaw so far during the 4th quarter of 2009. Only time will tell, but for those people who are still unemployed, 2010 may be the year that we all put this behind us and are able to move forward.
I hope so.
I saw that Modis was aquired by Adecco recently for a multiple of over 9x's earnings, which indicates at least to me that Adecco sees the staffing business as starting to grow once again and should be an excellent year for them in 2010.
As I previously posted, the first signs of the end of the recession should be an increase in 'temporary hiring'....in our business, we are seeing new business start to come from a variety of customers, not just one or two. I.T. staffing has ramped up, Healthcare staffing never ramped down.....manufacturing is slow still from what I hear, and Accounting Finance staffing has remained steady throughout the recession. I don't know how many budgets have been unfrozen within the Fortune 1000, but there does seem to be a thaw so far during the 4th quarter of 2009. Only time will tell, but for those people who are still unemployed, 2010 may be the year that we all put this behind us and are able to move forward.
I hope so.
Tuesday, August 4, 2009
Becoming a Green Staffing Firm....
"Green Company" is probably going to be one of the most overutilized words in business over the coming months and years....Being Green, Going Green, Becoming Green is something that is not only 'cool', but terms that are going to be PC (Politically Correct)
Seriously, who doesn't want to be known as a "Green" company or individual...it's all about perception.
Our firm, Prevail Resources, is a Green Company. http://www.prevailresources.net/
We were a 'Green Company' from day one...we have no brick and mortar, we have no electricity usage (company-wise), our employees don't commute so there is no carbon footprint, we only utilize wireless phone lines, no plugged in phone systems, our computers (by company policy) are shut off at night, our laptops are set on 'Power Saver' mode, we use little or no paper products, and we only purchase recycled paper when we do have to actually print documents. Virtulization!
So, being a Gree Company can actually be...Green Reality.
How does this matter and Why does it matter to customers?
Well, it probably doesn't...until, large corporations set up one of their famous imperatives to not only become a Good Corporate Citizen and run a Green Shop, but then when they actually search out vendors who do the same! Will it matter in the long run? Who knows.....no idea...no predictions here....but, if it does, companies should be proactive and be ready.
For example, one firm I know in the staffing world has a 22% burden....of that, 6 -9% is operating overhead....leases, water, gas, electric, mileage expense, etc...that's a big amount when you are operating a two-billion dollar company!
Green Companies don't have nearly that type of operating burden....
So, bottom line is, do Green Companies offer their customers lower rates than the large lumbering competitors? Maybe....hard to tell....probably....I think so, but others will argue that point. But common sense says if you don't have the Expense, then your prices are Lower ...right?
Low Carbon Footprint, Green Policies, Virtualization, actually can be a selling point and a value proposition....Don't ya think?
Friday, July 31, 2009
Watching the Recession End....or is it?
2009 has been a tough year in the staffing industry. I have seen companies completely fold, others have become aquired by competitors at vastly reduced values.
Unemployment is at near 10%, from what I understand if unemployment rises above 10%, that indicates we are in a depression.
So, what is going to happen to the staffing and temp industry?
Sooner or Later ---It's going to explode!
Most of the smart people tell us that the first signs of the end of the recession will be an increase in contract or temp hiring. Companies are reporting higher earnings, but are still reluctant to increase hiring practices....yet, business goes on, customers still need services and products, and consumers are still spending money.
As the 3rd quarter of 2009 begins, our industry is seeing some green shoots and potential turnaround signs. This seems to be the indicator that everyone has been looking for...a rise in the contract and temp hiring process and statistics.
Our firm is landing new customers again, and we are adding headcount. We are seeing renewed interest in our business model, Faster Better Cheaper - a Green Approach to Staffing! Our Press Releases are being read again, our customers are answering their phone.
In my opinion, its the begining of the end...I hope so!
Unemployment is at near 10%, from what I understand if unemployment rises above 10%, that indicates we are in a depression.
So, what is going to happen to the staffing and temp industry?
Sooner or Later ---It's going to explode!
Most of the smart people tell us that the first signs of the end of the recession will be an increase in contract or temp hiring. Companies are reporting higher earnings, but are still reluctant to increase hiring practices....yet, business goes on, customers still need services and products, and consumers are still spending money.
As the 3rd quarter of 2009 begins, our industry is seeing some green shoots and potential turnaround signs. This seems to be the indicator that everyone has been looking for...a rise in the contract and temp hiring process and statistics.
Our firm is landing new customers again, and we are adding headcount. We are seeing renewed interest in our business model, Faster Better Cheaper - a Green Approach to Staffing! Our Press Releases are being read again, our customers are answering their phone.
In my opinion, its the begining of the end...I hope so!
Monday, June 2, 2008
Cost per Hire....the 20 year debate continues...
Since I got into the industry in 1991, the debate has raged on as to what consistutes Cost per Hire.
I know this was a key element of the emergence of the Applicant Tracking Sysems (ATS) back in the 90's. Industry pioneers, such as Hank Stringer (Hire.com) and Derek Mercer (RecruitMax) worked dilligently to get some sort of an industry standard metrix as to CPH, so they could justify or at least 'sell' the reduction feature of CPH as it related to their ATS software.
And no one could agree....today we are still debating the CPH metric, and it will continue for some time, I can assure you.
Here is one crazy metric that I know two Fortune 500 firms utilize.
And, it scares the heck out of their corporate recruiters. Again, this may sound Crazy, but they use it.... and its effective.
Management takes the total revenue of the company, divides it by the total number of employees, then divide that by work days in a year. (250) Then take the 'Time to Fill' metric, i.e. 25 work days or whatever it is, and multiply it out. Sounds crazy, but it really gets the recruiters attention.
For example, one company I know has a gross revenue of $400,000 for each employee on staff, in this example, 1000 employees equals a gross revenue for the company of $400Million.
They divide the $400,000 by number of workdays (250) and come up with a 'lost revenue' of $1600.00 per day for everyday a req is open..then multiply the $1600 x's number of days the position is open. It may not be entirely accurate, but they want recruiters to know exactly how much it means to limit the days it takes to fill a position. So, if it takes 25 workdays to fill a position, ($1600 x's 25) they call that cost per hire $40,000. Sounds crazy, but its one way to create an innovative metric that is consistent. I dont recommend it, but it obviously makes a huge statement to the recruiters etc....
Other cost per hire metrics are exact costs of the department, i.e. salaries, benefits, etc...plus job board costs and other departmental overhead, all divided by number of hires made in a given month. This does not calculate lost revenue, but gives a true dollar figure as it relates to the department.
Interesting differences of metrics and business opinions.
The bottom line is, establish your metric, apply it to all personnel, and stick to it. Any type of measurement is better than No type of measurement....and a metric that fits your company best is always the best metric.
A good combination of lost revenue, plus expenses, seems to make the most sense. But does an open 'sales position' warrant more attention than an open 'admin position' as it leads to more lost revenue? Probably....but it all works out in the end.
CPH....is whatever you want it to be, as long as you remain consistent with your metrics.
I know this was a key element of the emergence of the Applicant Tracking Sysems (ATS) back in the 90's. Industry pioneers, such as Hank Stringer (Hire.com) and Derek Mercer (RecruitMax) worked dilligently to get some sort of an industry standard metrix as to CPH, so they could justify or at least 'sell' the reduction feature of CPH as it related to their ATS software.
And no one could agree....today we are still debating the CPH metric, and it will continue for some time, I can assure you.
Here is one crazy metric that I know two Fortune 500 firms utilize.
And, it scares the heck out of their corporate recruiters. Again, this may sound Crazy, but they use it.... and its effective.
Management takes the total revenue of the company, divides it by the total number of employees, then divide that by work days in a year. (250) Then take the 'Time to Fill' metric, i.e. 25 work days or whatever it is, and multiply it out. Sounds crazy, but it really gets the recruiters attention.
For example, one company I know has a gross revenue of $400,000 for each employee on staff, in this example, 1000 employees equals a gross revenue for the company of $400Million.
They divide the $400,000 by number of workdays (250) and come up with a 'lost revenue' of $1600.00 per day for everyday a req is open..then multiply the $1600 x's number of days the position is open. It may not be entirely accurate, but they want recruiters to know exactly how much it means to limit the days it takes to fill a position. So, if it takes 25 workdays to fill a position, ($1600 x's 25) they call that cost per hire $40,000. Sounds crazy, but its one way to create an innovative metric that is consistent. I dont recommend it, but it obviously makes a huge statement to the recruiters etc....
Other cost per hire metrics are exact costs of the department, i.e. salaries, benefits, etc...plus job board costs and other departmental overhead, all divided by number of hires made in a given month. This does not calculate lost revenue, but gives a true dollar figure as it relates to the department.
Interesting differences of metrics and business opinions.
The bottom line is, establish your metric, apply it to all personnel, and stick to it. Any type of measurement is better than No type of measurement....and a metric that fits your company best is always the best metric.
A good combination of lost revenue, plus expenses, seems to make the most sense. But does an open 'sales position' warrant more attention than an open 'admin position' as it leads to more lost revenue? Probably....but it all works out in the end.
CPH....is whatever you want it to be, as long as you remain consistent with your metrics.
Partners, Co-horts, and Third Party Agencies
I am noticing more and more 'fake resumes' on the job boards....resumes that are intended to get a recruiter to make a phone call or to email a third party firm in order for them to market additional candidates that they have available.
Most of these guys, if not all, are H1b visa holders....the employer who holds the Visa on behalf of temporary workers, usually from India.
At first, this seems to upset many recruiters as they feel it's unethical and a waste of time.
I disagree.
Here's why...
These employers are (at least right now) a valuable commodity, as they have many consultants who are not posted directly on the boards, who may be finishing a project, and they are in dire need of finding them another project asap. They must continue to make payroll, according to the immigration standards, even if these guys are not engaged on a project and creating revenue.
So, they have a huge vested interest in getting them new Gigs, even at reduced rates in some cases.
They will generally negotiate their hourly rate, especially if the consultant is 'on the bench' and not creating revenue.
So, my opinion is, think of these third parties as true partners, unless they prove out to be a poor resource. They also know most everyone in their community, so they will refer you to their own partners who may have the resource that you need.
Most of these guys, if not all, are H1b visa holders....the employer who holds the Visa on behalf of temporary workers, usually from India.
At first, this seems to upset many recruiters as they feel it's unethical and a waste of time.
I disagree.
Here's why...
These employers are (at least right now) a valuable commodity, as they have many consultants who are not posted directly on the boards, who may be finishing a project, and they are in dire need of finding them another project asap. They must continue to make payroll, according to the immigration standards, even if these guys are not engaged on a project and creating revenue.
So, they have a huge vested interest in getting them new Gigs, even at reduced rates in some cases.
They will generally negotiate their hourly rate, especially if the consultant is 'on the bench' and not creating revenue.
So, my opinion is, think of these third parties as true partners, unless they prove out to be a poor resource. They also know most everyone in their community, so they will refer you to their own partners who may have the resource that you need.
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