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Red Lights Mean Go! by Nelson Abreu I've received a lot of questions over the last two weeks in response to the recent RNO articles I wrote on approaching a slow periods in the executive search industry. Generally the feedback sought practical approaches to remaining competitive in a demand-challenged market. Let's look into some options. In most industries an economic downturn is proceeded with cost cutting measures and an increase in sales and marketing activities. Companies generally increase advertising budgets and promotional offerings while finding ways to decrease overhead. In a business like executive search where sales are generated primarily from networking initiatives, advertising budgets range from slim to none. It wouldn't make much sense for a business that thrives largely on its ability to deliver what advertising cannot suddenly expect advertising to provide a competitive edge. Similarly, it wouldn't seem logical to cut overhead because in the executive search business that likely translates to cutting staff that directly contributes to sales. In an industry where success is built on relationships one's most important asset is time. Love at first site relationships happen between candidate and employer from time to time but rarely do they occur between employer and recruiter. The first attempt at replacing lost business is to make new contacts and forge new relationships, both of which require time. This likely means a recommitment to cold calling and candidate marketing. Not the most enjoyable or self-fulfilling tasks but these activities will get you in the frame of mind to compete for commissions that are still available. The competition doesn't stop there. Job orders from new clients only guarantee more work. With little or no prior relationship obtaining exclusive representation is unlikely. The race has begun! Another method of generating business can come from moving inventory. There is no better time to profit from candidates you've already invested search time into than during low demand times. This is perhaps the executive recruiter's most under-utilized placement potential with a time-challenged schedule being the typical scapegoat. Aside from conducting file searches in response to new job orders recruiters generally don't do much with this resource. A time intensive approach would include marketing these candidates to potential employers as discussed above. The potential benefits are both short and long term as this can result in new job orders and the beginning of new client relationships. A more efficient approach would involve marketing candidates to other recruiters. This can prove to be as difficult a task if you haven't already established a formal network of peers. The main advantages of this approach are that you end up leveraging other people's contacts producing better quality job leads, saving a lot of time and gaining greater coverage when compared to direct prospecting. RecruitersCafe.com is an Internet based recruitment network with an established contact base that automatically keeps you updated on new activity in your field. There are many Internet based products and services that can help minimize search tasks, uncover leads and save you valuable time. Explore your options, question service providers on what they offer and ask existing users for their opinions before making any commitments. The popularity of the Internet as a recruitment medium has mushroomed and is now considered a main channel in the recruitment mix. Even though popularity has had a watered-down effect on most Internet based recruitment services, for the sake of exploring all of your options this medium cannot be overlooked. There is a growing trend in our industry to employ researchers. When most organizations are cutting staff it may be a good time to consider the opposite. The experience and efficiency that a good researcher can add to your efforts is likely far beyond what you would be able to produce on your own and will allow you to focus on what matters most, developing relationships. No doubt the best recession recovery plan is an anti-recession plan. Long range planning and balancing daily tasks are both key ingredients in helping to prevent and overcome the potential effects of demand challenged markets. A good time management plan will have you exploring all your potential business generating avenues. |
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