Author: apatel

The Value of Investing in a Recruiting Agency

BY: Ron Proul, CEO

This hot, candidate-driven market reminds me of the bubbles of 1989, 2001 and 2007. And just like with those markets, many companies are understandably employing strategies that reduce outside fees. However, many of these strategies end up backfiring, rather than accomplishing the goal of attracting the very best talent.

In Century Group’s new series, CG Recruitment Trends, we’re going to take a look at some of the strategies that we’re seeing clients utilize in order to save on costs. As we demonstrate, it plays out like the classic scenario of saving on costs upfront, simply to pay more later. One such method: investing solely in internal talent acquisition. Unfortunately for these companies, this often does not yield the returns they had hoped for.

The Limitations of Internal Talent Acquisition

In contrast to utilizing a recruitment firm, developing an internal talent acquisition team takes time, is costly and requires talent itself — a Catch 22. Still, many companies choose to make this investment. But the volume of placements an individual or even a few individuals can handle has its limits, and it can become difficult for one person to specialize or develop a truly robust list of candidates. In contrast to internal talent acquisition teams who work with a limited pool of candidates, recruitment firms develop lengthy, up-to-the-minute lists of top-tier talent.

Recruiters Can Access Top-Tier Talent, Fast

As we outline in A Recruiter’s Guide to Finding Your Next Great Hire, recruitment and staffing firms have their finger on the pulse of the regional talent pool and know precisely which professionals are ready to make a career move.

At Century Group, we even pioneered a practice called The Group Concept, where recruiters are encouraged and incentivized to work on searches together. This philosophy ultimately magnifies search capacity as well as results for the client. Recruitment firms will save you cost and uncertainty while optimizing your search’s reach.

Reactive vs. Proactive

Most internal recruiting strategies are reactive — the talent acquisition team can only produce candidates interested in engaging when an opening occurs. Specialist recruiting firms, however, are proactive. Recruiters are constantly developing and refining a target list of talent — talent that represents the best of the market — to be tapped when the appropriate search arises.

When a client’s talent acquisition department says, “We have been looking for this position for months and you produced the candidate within weeks,” it’s indicative of how good recruiting professionals develop a deep talent pool and nurture relationships over a long period of time — maybe even years — so that they are able to immediately match the right candidate to the right opportunity.

The Value Proposition of Recruitment Firms

Many companies think recruiters just sit there passively waiting for the opportunity to send a bill for anyone who can pull from a job board. This common myth is due to the fact that the majority of recruiting professionals don’t adequately explain their value proposition.

At well-established recruitment firms like Century Group, recruiters nurture long-term relationships with skilled candidates and track these candidates throughout their career. Recruiters also have the advantage of being seen by candidates as an objective third party who can bring candidates multiple opportunities, which encourages candidates to engage more with clients.

Consider how a recruiter presents their value proposition when selecting a recruitment firm to work with — it will speak to how well they can negotiate on your behalf. In this market, a recruiter knowing and stating their value is not only paramount to their success in negotiations, it is also crucial to your success in this competitive marketplace. As Malcolm Forbes said, “Too many people overvalue what they are not, and undervalue what they are.”

When companies try to save on recruitment costs by investing solely in internal talent acquisition, the return on their investment suffers when it comes to talent, time and the reach of their job search.

In Part 2 of CG Recruitment Trends, we’ll explore the strategy of reducing fees and markups. Part 3 discusses the troubling trend of “tempnapping” and its detrimental effect on securing the best talent.

Boost Your Career by Developing These 5 Soft Skills

AI can seem like a formidable foe to the everyday employee. For one, artificial intelligence has the potential to increase productivity. Joined with enhanced accuracy and reduced costs, and the future looks progressively automated.

Fret not, candidates. Employers don’t underestimate the soft skills needed for a company to thrive — characteristics that bring value to an entire organization and remain wholly human. Professionals looking to boost their desirability should consider upskilling in the indefinable. Because while technical aptitude and educational backgrounds have their place, developing soft skills like communication and empathy in the workplace will help you through your entire career trajectory — wherever that may lead.

1. COMMUNICATION

Communication skills encompass a few things: active listening, clear, thoughtful speech and an ability to effectively work in a team setting. Simple, right? Not always. The best communicators are often the least verbal. Instead, they choose to let others do the talking and process the information before interjecting with meaningful ideas that move the conversation forward.

For job seekers, proving that you’re able to successfully master these areas must be expressed and emphasized from your cover letter through the entire hiring process. Share examples of how your communication skills have allowed you to complete and collaborate on projects, and be sure to be a present participant during interviews.

2. EMPATHY

This soft skill is important in all aspects of life, but is especially handy in the workplace. Empathy allows us to understand perspectives other than our own, as well as ups our emotional IQ. That way, we’re able to read into certain situations, make adjustments and create strong relationships with the people we regularly work with and depend upon.

3. CREATIVE PROBLEM-SOLVING

Stuff happens. It’s how you respond that matters. Problem-solving is a concept that’s prevalent in our everyday lives, but not always done well. Does a roadblock cause more than a stumble in your productivity or does it generate innovation? Learning to detach from the issue and think free of bias are the first steps to developing this skill.

4. PATIENCE

Practicing patience in an era of instant gratification seems less of a virtue and more of an impossibility. Still, it has real merit in the workplace. A company’s culture is largely based on how its employees communicate and interact with one another. Finding employees that are able to remain level-headed in stressful situations and foster a calm, safe space for collaboration with their colleagues are essential to a building a thriving work environment. It’s also a key indicator of leadership potential — something all companies are on the lookout for when building their teams.

5. ENCOURAGEMENT

Motivation is a powerful thing. And for most, positive reinforcement is just the trick to get people — and ideas — in motion. The ability to influence your peers is a crucial soft skill to achieving results, and helps encourage better output and self-confidence.

Ready to put your soft skills to the test? Check out our latest jobs in accounting, finance, tax and audit and apply today!

How to Make a Good First Impression at Your Next Job Interview

A person walks into a job interview. They’re 20 minutes late, slouching in their seat and make their distaste for their former employer known, well, several times within the conversation. It’s safe to say the candidate’s left a not-so-great impression on the interviewer — one that even the most qualified or skilled professionals can’t shake.

In fact, research shows the outcome of an interview can be determined 20 seconds from the first greeting. Put plainly: first impressions matter. Make your snapshot intro count by mastering these three tips by Associate Director of Recruiting, Maryum Anwar.

1. ARRIVE EARLY

Anwar recommends candidates get to the interview 10 to 15 minutes before their scheduled meeting. “Make sure to leave yourself a buffer to account for any traffic, especially if it’s an area you’re not familiar with,” she explains. “Remember: if you are early, you’re on time. If you are on time, you’re late!”

2. NEVER SPEAK NEGATIVELY ABOUT FORMER EMPLOYERS

Think of the situation like a date. Talking about how terrible your ex was is a major turn-off to a prospective partner. “You’re not likely to get the second date, or in this case, a second interview,” Anwar says. It’s valid to have poor experiences in previous roles, but framing your responses in a positive light — rather than accusatory — will leave a better lasting impression on the hiring manager.

3. DO YOUR RESEARCH

The interview shouldn’t be the first time you find out what the company does. Most businesses have an online presence — perfect for some amateur sleuthing, and easy access to a company’s mission statement, staff and more. Pro tip: If you learn who will be interviewing you before the meeting, check out their LinkedIn profile to gain extra insight that may come in handy. “You should be able to hold an educated conversation regarding the company,” Anwar says. “And share why you’re interested in working for their organization.”

Are you looking for a new career opportunity? Submit your resume, and our recruiters can match you with positions you’re qualified for.

The Epidemic of Tempnapping

BY: Ron Proul, CEO

In the last installment of CG Recruitment Trends, we took a look at tactics for maximizing the ROI of your company’s recruitment strategy. This week, we’ll examine a troubling trend I’ve seen emerge in the recruitment industry over the past several years: an epidemic of companies and individual hiring authorities who, to put it simply, try to steal candidates.

With the ready availability of information online, companies have begun to help themselves to candidates after the agency introduction — even when a price and agreement are in place. The direct hire business has a name for this: backdoor hires. In temporary staffing, the American Staffing Association coined the term “tempnapping” in reference to this pervasive trend.

A Likely Story

It always starts the same. The client says we are going in a different direction and the candidate ghosts the agency. Back in the day of fax machines and phone call introductions, tempnapping happened once in a while. You would find out a few months or a year later. The paper trail could be difficult to assemble, but diligent recruiters always got what they were due.

I remember one candidate calling us years later saying, “Remember when I told you that I was leaving my temp assignment for a family emergency? Well, I didn’t. I conspired with your client so that they didn’t have to pay a fee for me.” The candidate intuitively knew it wasn’t right, but the client told the candidate that was the only way they would hire her. The client was a large real estate investment company, but somehow couldn’t afford the recruiting fee. When we asked the candidate the reason she was telling us years later, she said, “I am dying of a brain tumor and I want to have a clean conscience.”

Back in the day of fax machines and phone call introductions, tempnapping happened once in a while. You would find out a few months or a year later. The paper trail could be difficult to assemble, but diligent recruiters always got what they were due.

The Legal and Ethical Ramifications

In the digital age, we don’t need an act of confession because we find out almost immediately. The electronic trail is so easy to follow that when companies do it, I am honestly amazed. In any industry, there is a credit risk. But to have a company outright steal your product or service is shameful. Not only is it strikingly unethical, but as the American Staffing Association attests in their issue paper on tempnapping: in many cases, it is also unlawful.

The ASA points out that, “Merely offering employment to another’s employees is not in itself wrongful…” But if staffing firms are able to show fraud, coercion or other misconduct, the company’s actions can be found to be wrongful in a court of law. In these cases, a company’s efforts to cut costs results in costing them so much more.

Century Group once worked with a national retailer that wanted to hire someone. When we wouldn’t flex on pricing, they took our candidate and referred them to another temp agency that would. Thing is: the company misled the candidate, too. So when her assignment ended, the first thing she did was complain about the company’s ethics, forwarding us the LinkedIn solicitation from the company asking her to go around us. The company’s defense: we could never come to an agreement on pricing for that candidate. Our response: You could always find another candidate on your own. Whatever the justification, this type of behavior by companies is tantamount to shoplifting.

A Typical Defense

Each month, my team at Century Group uncovers one or two of these instances. Many companies don’t deny tempnapping and acknowledge that they owe a fee. But some resort to tactics akin to corporate bullying, threatening: “We won’t use you again if you charge us for this one.” Other familiar defenses we’ve heard: “We hired the candidate for a different position.” Or, my personal favorite, “The person who signed your agreement didn’t have the authority to bind the company.” The candidate doesn’t pay a fee, so it’s very easy for the company to entice them to go along with it in exchange for the benefit of a job.

I still remember the first time this happened to me and how I felt.  A company representative at a large entertainment conglomerate told me, “If you don’t like it, maybe you should get out of the contingency business.” This perception was so prevalent at this particular company that they eventually incorporated a clause in their contract to enable them to backdoor hire. I never worked on another deal there, and I managed to bill millions of dollars without that client.

Knowing Your Value

Ultimately, tempnapping and backdoor hiring are not only unethical — they also can lead to legal proceedings and costly consequences. A respectable recruiting firm will not want to work with a company that condones and entertains unethical behavior. Period. And respectable candidates will not want to work at companies that condone that behavior.

One story illustrates how the best recruiters and the best candidates don’t ever lower their standards. Why? Because they know their inherent value. Years ago we submitted a candidate’s resume for a high-paying investor relations role with a large public company. Upon receiving the resume, the hiring authority said, “I am not paying a fee for this person because someone on my staff knows them.” We let the company and the candidate know this wouldn’t stand, but the company still called the candidate directly to arrange an interview.

A respectable recruiting firm will not want to work with a company that condones and entertains unethical behavior. Period. And respectable candidates will not want to work at companies that condone that behavior.

During the interview, the hiring authority actually used the exact resume we sent them with our recruitment firm’s logo right at the top. When the interview was done and the company extended an offer, the candidate did something so honorable I got choked up when she told me. She said, “Sir, you claim you won’t pay the agency because my former coworker works for you and you already knew about me. But I didn’t know about you until the recruitment agency called me. At first, I didn’t know what to think, but you are actually interviewing me using the agency’s resume with their logo right on top. I can’t, in all honesty, work in investor relations for a company with such an egregious lack of business ethics.” This candidate was very intuitive about the company’s ethics: eventually that company’s CEO ended up in front of Congress for fraudulent lending practices, and his name is still in the news ten years later for the company’s flagrant misconduct.

Bottom Line

The best candidates, as well as the best recruiters, know their worth and never settle for less. In this market, a recruitment professional must select their clients carefully (steering clear of clients with a history of tempnapping and backdoor hiring), explain their value to both clients and candidates and they will be rewarded with a long, prosperous, and fulfilling career.

Why Your Company Should Invest in Professional Development

Competitive compensation is key to attracting and retaining top talent, right? Yes, but it’s not always enough — especially with this new generation of workers.

In a tight labor market, companies must appeal to the candidate on multiple levels. And when it comes to giving millennial employees what they want, a focus on employee development is a must. Take our 2019 Salary Guide, for instance. We found professionals are seeking roles that bring about personal gratification as well as financial, and are more likely to accept a position that provides growth potential and mentorship opportunities.

Here are three reasons why investing in professional development isn’t just a perk for your employees — but can positively impact your company’s success, too.

Increases Engagement and Productivity

This one is obvious: employees who feel stagnant or bored in their role are less likely to be engaged at work. A quick fix is to encourage growth throughout their time with your company. But don’t just take our word for it. According to a 2017 study by Association for Talent Development, companies that invest in professional development “enjoy a 24% higher profit margin” than those that don’t. Another study by the National Center on the Educational Quality of the Workforce showed that a focus on education, rather than equipment, was more effective in increasing workers’ engagement.

Helps Upskill Current Workers

Talent shortage? No problem. A great way employers are sidestepping this issue is by training staff to meet their current needs. Some companies are even letting their employees take the lead on what they’d like to focus on. If you can, include workers on new projects. This provides a challenging change of pace that helps stretch their skill set and inspires new ideas and company strategies.

Reduces Turnover and Attracts Talent

The career game may be all about who you know, but what you know still matters in today’s competitive labor market. And the best way to get ahead? Continue learning. Employers need to invest in professional development or employees will find a company that does. A Deloitte study shows that the millennial workforce is the most interested in professional development, with 71% reporting that they’d leave a company within two years if they’re unsatisfied with how their skills are developing. Employees want to know there’s a path to grow and move up in their role — and highlighting these opportunities when courting a candidate is key.

Brush up on more hiring trends by downloading our 2019 Salary Guide. Need accounting or finance staff? Contact us for your temporary or direct hire hiring needs.

Top Industries Hiring in 2019

Sure, June’s solid job creation helped ease some concerns of a slowing economy — but it’s always in your best interest to take advantage of the tight labor market while you can.

One method: know where the jobs are.

WHERE THE JOBS ARE

High-earning jobs like registered nurses, accountants and auditors are expected to grow 5.71% through 2023, according to CareerBuilder. In fact, the unemployment rate for accountants and auditors was a low 1.5% in June — helping to illustrate this trend. Low-wage positions are also set to experience sizable growth, while middle-wage roles is a moderate 3.83%

Several key sectors have helped drive the economy in Q1 and Q2, with professional and business services, health care and education and leisure and hospitality leading the way. But other sectors made notable gains in June, according to the U.S. Bureau of Labor Statistics.

2019’S TOP INDUSTRIES

Here are a few of the top industries that are hiring into 2019’S Q3 at a glance:

Top Industries Hiring in 2019

 

 

 

 

 

 

 

 

 

 

 

Source: BLS

PROFESSIONAL & BUSINESS SERVICES: Since January 2019, this industry has added an average of 35,000 jobs per month, which is down from last year’s average monthly gain of 47,000. Still, professional and business services led growth in June with 51,000 added jobs.

Browse Professional and Business Services Jobs »

EDUCATION AND HEALTH SERVICES: This supersector added 35,000 jobs in June 2019 — averaging a total of 403,000 over the past 12 months. BLS notes that the most growth took place in ambulatory health services and hospitals.

Browse Health Services Jobs »

TRANSPORTATION AND WAREHOUSING: According to BLS, this industry added 24,000 jobs last month. Top gains included couriers, messengers and air transportation.

Browse Transportation Jobs »

CONSTRUCTION: Hiring in the construction industry continued to trend up in June, adding 21,000 jobs.

Browse Construction Jobs »

MANUFACTURING: After an overall disappointing early half of 2019, manufacturing employment added 17,000 jobs at the end of Q2. The areas that edged up included computer and electronic products and plastic and rubber products.

Browse Manufacturing Jobs »

Financial Job Outlook

Financial Job Outlook
Everyone I talk with, clients and candidates, are interested to find out the status of the job market. Why not, listening to the news there is no shortage of layoffs. The media and companies have given up the euphemisms such as “right sizing” or “downsizing” and settled on the plain language of “lay offs”. Those in accounting and finance are faring better than most I talk with in other disciplines. Without a doubt it is slower today than even six months ago, the days of landing two job offers in two weeks are gone. Still there exists a fair demand for talented accounting and finance professionals.

Download PDF

Q3 Accounting and Finance Employment Report

May’s lackluster 72,000 added jobs indicated what many had feared — the economic slowdown is here. But if June’s encouraging bounce-back showed anything, we’ve staved off that reality for a bit longer.

The Labor Department reported 224,000 jobs were created last month and helped to close Q2 on a strong note. The unemployment rate’s slight rise from 3.6% early in the quarter to 3.7% is also a positive marker, according to the The New York Times. And actually illustrates the influx of people participating in the U.S. workforce rather than a warning of something more dire. For college-degreed individuals, unemployment remains at 2.1%.

Signs that wage growth is beginning to slow are also apparent. Hourly earnings rose only 3.1% percent within the last year — barely missing market expectations of 3.2%.

accounting and finance employment Q3

Source: BLS

UNEMPLOYMENT RATE DOWN FOR FINANCIAL PROFESSIONS

One thing is evident: the demand for accounting and finance professionals remains in full force. According to The U.S. Bureau of Labor Statistics, unemployment for accountants and auditors dropped from 1.8% to 1.5% at the end of Q2 — falling well below the national unemployment rate and those with a Bachelor’s degree and higher.

Here’s the unemployment breakdown by roles:

  • Accountants and auditors: 1.5%
  • Financial managers: 1.2%
  • Financial analysts: 1.4%
  • Bookkeeping, accounting and auditing clerks: 1.8%
  • Billing and posting clerks: 1.0%

CENTURY GROUP’S FORECAST

For Employers

ITR Economics’ Trends Report foresees an optimistic outlook for the U.S. Private Sector within the next couple of years: employment will rise through at least 2021. Yes, the pace is expected to slow as we head into the last quarter of 2019 and into next year. But companies should resist the impulse to reduce their teams, as today’s tight labor market continues to make it difficult to replace employees.

Bottom line: Employers should continue courting candidates. Focus on offering competitive salaries, remaining engaged throughout the hiring process and presenting job offers quickly.

For Candidates

Now is a great time for job seekers to explore their options. Evaluate your current role — are all your needs being met? Networking with colleagues and other professionals can help introduce you to new positions that are a better fit.

But remember: when considering a new role, it’s important to remain a courteous candidate. Practicing flaky and rude habits like “ghosting” can have long-term effects on your career.

Download your copy of our 2019 Salary Guide for more employment trends and insights.

3 Ways to Accelerate Your Career This Summer

Summer is considered vacation season for most — a time to push pause on your life and reflect. We’re not saying that’s a bad thing. In fact, taking a step back to refocus on your goals is important, and key to personal and professional growth.

Here are three ways to heat up and accelerate your career this summer.

1. Reevaluate, Plan, Go

Taking a much-needed reset increases productivity, and allows you to gain a fresh perspective on your career. Have you accomplished or made headway on any set goals? Does achieving these objectives still make sense? Summer is the perfect halfway point to assess your progress, find the gaps and make adjustments so you can finish the year strong.

2. Grow Your Network

We get it. Stepping out of your social comfort zone doesn’t necessarily sound like lax summer material — but it can be. Seasonal mixers plus a relaxed atmosphere translate to easy networking that doesn’t even feel like, well, networking. A sluggish season is also an opportune time to schedule drinks or informal meetings with professionals who are normally too busy. Pro-tip: be sure to follow up with new connections come September.

3. Slow Means Opportunity

It’s a job seeker’s market, so candidates shouldn’t have too much difficulty finding open career opportunities. Identifying the right one, however, takes a little more finessing. Summer’s slow down gives you the chance to get an edge on competitors who choose to press pause on their search. A smaller candidate pool also encourages employers to be flexible with their requirements and consider professionals that maybe don’t have the exact skill set they’re searching for.

Ready to accelerate your career this summer? Our recruiters can help. Submit your resume or check out our latest jobs in your area.

Maximize ROI from Your Recruitment Strategy

BY: Ron Proul, CEO

Stellar recruiting strategies are key to company growth, but some tactics designed to save on recruitment costs end up undermining your goal of attracting the very best talent.

According to LinkedIn’s Global Recruiting Trends report, 35% of businesses cite “limited budget” as one of the biggest talent acquisition challenges they face. But in implementing cost-saving strategies, many companies are losing sight of what provides the most long-term value and ROI when it comes to talent acquisition. In the last installment of CG Recruitment Trends, we looked at how engaging recruitment firms yields a greater ROI than investing solely in internal talent acquisition. This week, we examine the three ways companies undermine their ROI in recruitment by negotiating reduced fees and markups.

Losing Out on Talent

Let’s talk fees. Because what we do as recruitment professionals is incentive-driven and we work on a contingency basis, negotiating deep discounts is a less-than-effective strategy and counterproductive during a talent shortage. In a highly candidate-driven marketplace, a company deciding to reduce the amount they are paying for talent defies the most basic economic law of supply and demand.

The most talented professionals work on assignments that pay at market rate for services. Lawyers do it, accountants do it and the best recruiters do it. When a company negotiates a deep discount, they move down the food chain, and come out short when it comes to acquiring top-tier talent. In a competitive market, the best candidates are going to go to the highest bidder. Period. Paying less than market value for a candidate takes a toll on the quality of your candidates, as well as your employee retention in the long-run.

The Value of Time

Negotiating lower fees also limits the amount of time that recruiters are able to dedicate to a search, ultimately prolonging the process for the client.

When you work on a contingency basis, you get rewarded based on the hours you put into a job. Put yourself in the recruiter’s shoes for a moment: a work year is 2,080 hours. If a recruiter gives a 20% discount, they have to work 460 more hours to make up that time. And if you find a recruiter that is looking for an extra 460 hours of work at a discounted price, what kind of professional are you hiring?

The only way the discounting argument could logically pass muster is if the client said, “We are going to streamline the hiring process and let you and your firm make our final hiring decisions.” Sound ridiculous? Well, of course it does. So why does a discount seem like an effective way to motivate a recruiter with a fixed amount of time to produce the same volume of work? The math just doesn’t add up.

Recruiters are going to prioritize and invest their time in the searches that will bring the greatest value. When companies negotiate reduced fees, they are inadvertently reducing the amount of time a recruiter can dedicate to a search, undermining the ROI of engaging a recruiting firm.

Discounting Your Search’s Reach

Over-negotiating reduced recruitment fees also diminishes your search’s reach. At recruitment firms like Century Group, recruiters are encouraged to work on placements together, which ultimately magnifies the scope of your search as well as results for the client. When companies try to negotiate deep discounts, it makes it difficult for recruiters to get the whole team to work on an assignment. There isn’t an incentive for other team members to provide candidates — unintentionally shrinking your search’s reach, and making it more difficult to reach passive candidates.

In sum, when companies try to negotiate deep discounts, the return on their investment in recruitment suffers when it comes to talent, time and the reach of a job search. Fee-reducing strategies employed by the client are often the result of a phenomenon we’ll explore in the next installment of CG Recruitment Trends: recruiters not adequately presenting their value proposition.