Win-Win Relationships!

by Nelson Abreu

Executive search is a relationship building business. Search professionals find themselves investing the majority of their time networking and enhancing rapport with contacts. Coupled with the fact that these professionals are largely commission based, they tend to be quite aggressive at marketing business activity and opportunity. Beyond generating business recruiters strive for access to higher profile openings, search exclusivity and retainer fees. All of which are a result of high levels of trust and a solid record of achievements developed over time with clients.

In an industry where rewards are based on performance and contacts translate into opportunity, one would think that striking relationships which provide the potential to increase productivity in both areas would be an easy choice. Peer relationships are common in many industries yet they apply only to a small minority in the executive search field. In an article titled "Myths And Other Funny Thoughts" published in the March 2001 issue of The Fordyce Letter, Paul Hawkinson states;

"Our estimate, based on many surveys, is that, at most, 20% of the country's practitioners belong to a local, state or national association, network or other affinity group.

This when compared to other professions (lawyers, doctors, real estate pros, etc.) is a sad commentary. For an overly boastful business such as ours, the dues are usually chump change compared to the benefits but we don't expect much change in a business where almost everybody already 'knows it all!'"

True, most recruiters are apprehensive about starting relationships with other recruiters. I've heard reasons ranging from a poor experience in the past to a pure lack of trust towards others within their field. Generally recruiters fear losing good candidates and clients to peers they don't know well or trust. They share the same concern as their corporate cousins who fear encountering the revolving door recruiter.

On the other hand, I have yet to meet a recruiter that didn't claim his/her practice operated under high ethical standards and that its clients' best interests are top priority. Visit a few agency websites and check out some company profiles; they all tell the same story. Yet public opinion, even within the executive search community, is that most recruiters cannot be trusted.

Perhaps if recruiters place a fraction of the time they invest into cultivating a client relationship towards a peer relationship, they would actually benefit from quality leads and placements. Consider the amount of effort required in finding a good client? A good bird dog? A star candidate? The typical recruiter-to- recruiter partnership evolves from a state of urgency. One recruiter contacts another because he/she is desperate for help. They discuss search specialties, fee and guarantee terms, sign an agreement and in most cases that is as far as they go. If results aren't immediate chances are at least one party will give up. The problem with this approach stems from the fact that little or no prior relationship existed between the two parties. The commitment needed to complete the search was absent. Yet recruiters realize they have greatest success with clients when a high level of trust is established between them.

In a multi-person agency recruiters typically support each other's searches and benefit from pooling resources. Contributions from various sources provide greater market coverage and increase the possibility of completing more searches and closing them quicker. Bound by the agency's set of rules recruiters need not fear losing contacts to internal partners. Most recruiters will agree on the benefits of peer support within an agency yet few actually look beyond their walls to enhance that potential.

Over the years reports have indicated that search professionals involved in split arrangements bill up to 20% more than those that don't. If you have the desire to take a slice of the billion-dollar split placement market find one or two recruiters that complement your personality, business specialization, philosophy and fee structure. Qualify until you find someone that you would consider working for. Ask tough questions as you would if screening a candidate. How many splits have they conducted in the past? Which recruiter(s) or firm(s) have they partnered with? Ask if you can contact them. You know the deal.

Nelson Abreu