Transitioning to Engaged … And Partial Retained Search

A presentation by Frank G. Risalvato, CPC of

www.searchwizardry.com

About Frank Risalvato •  Fired from a $38,000/year job in November, 1987 •  Accepted a recruiter “trainee” job that same month •  Earned first $21,000 fee February, 1988 (was about to quit) •  By February, 1989 I was billing about $20,000 semi-monthly •  Average fee is between $35,000 - $45,000 with 50% of our

work requiring upfront “non-refundable engagement fee” of $5,000 to $8,000

•  Launched www.searchwizardry.com in 2006 to share concepts with the industry

•  Minimum of 1 to 3 hires monthly •  Periods in excess of $75,000 in one single month

Differentiating Contingency from Engaged

1.  Create a suite of Pamphlets & Educational booklets 2.  Educate the client and/or hiring manager on what can

go wrong with contingency 3.  Provide supporting evidence and examples of the

differences 4.  Set yourself apart visually: Revamp & Improve every

visible aspect of the recruiting firm’s marketing material 5.  Release the flow of information in stages every few

days until the contract is signed 6.  NEVER send everything all at once!

Professional Services

•  All true professionals distinguish themselves with standardized booklets, brochures and pamphlets outlining their services

•  Doctors Lawyers Ø Periodontist Ø Podiatrist Ø Gastroenterologist Ø Internets Ø Pediatrician

Ø  Personal Injury Ø  Employment Lawyers Ø  Corporate/Contract Law Ø  Criminal Defense Ø  Insurance Claims Attorney

A booklet for each step of the process – (Original early versions)

Professionally designed booklet

Educates managers on the pitfalls of working contingency versus engaged/retained

TOP TEN CAUSES OF SEARCH FIRM FAILURE

1.  Fee Attitudes: Expense or Investment? 2.  Delaying feedback and necessary communication 3.  Weak links in the Recruiting Chain 4.  The Search Party Posse Strategy (using too many recruiters) 5.  Overly Powerful “Gatekeepers” 6.  Circumventing the Recruiter – to the detriment of the deal 7.  Too Many Chefs spoiling the broth 8.  Exaggerated claims – by both recruiters and company managers 9.  Requesting References 10.  Uninviting Office Environments

Final Design

Ø  Was outsourced to marketing professional

Ø  Took several weeks to complete

Ø  Cost less than $390.00 Ø  www.elance.com Ø  Hiring executives are

not embarrassed to share this with board of directors of billion dollar companies

Reinventing your practice

Keyword Relevant

Professional Brochure

Interactive Videos

Animation

Rewrote Agreement

•  Emphasizing strong push toward partial retained (engaged)

•  Strongly discouraging contingency only

NOTE: I am not an attorney and not providing legal advice. You should speak to your own attorney knowledgeable in your own state when consulting about contractual agreements. Following is for informational and entertainment purposes only.

Prevents overwhelming client with excessive information

Gradually drives them closer to agreement one step at a time!

Sample of client email template

Hello Bill, I enjoyed speaking with you and learning more about Kaylon Group. I have attached the following: •  PDF/Outline of our services – Notice we offer a “Hybrid” option combing the best aspects of retained but at reduced

upfront cost with part of the fee contingent to the hire date. This may be your best option.

•  A bio on myself and my experience in recruiting spanning over 22 years.

We are familiar with the E&S, Wholesale, MGA and specialty program markets your company works within. IRES has fulfilled similar manager positions with Amazing Corp (E&S carrier in NJ) and Nemesis Group to name but a few you may be familiar with. I can understand your concerns of wanting a higher-grade service and I am confident IRES’s will fulfill your needs. I will separately email you a few “Executive Search Reports” involving as examples of recent retained search successes. Sincerely, Frank G. Risalvato, CPC

Dear Bill, I hope you had a moment to look over our services outlined in our brochure. In this email I have attached: §  Three samples of recent Retained recruiting project reports including:

o  CEO for new launch of underwriting group (we identified the #1 finalist ) o  Controller/CFO for a office in West Virginia o  Specialty Underwriter in Texas

In each report, the #1 recommended candidate IRES referred turned out to be the company’s choice for hire as well. Let us know if the in-depth reporting revealed in our “Search Reports” exclusive to our retained clients is what you had in mind. As you will notice, the competitive intelligence alone is worth its investment even if a hire should not occur. I have also asked my office manager to mail you (U.S. Mail) a copy of a book I authored on the very subject of dealing with contingency or retained which you are now confronted by. I highlighted/flagged some sections of interest. Sincerely, Frank G. Risalvato www.iresinc.com

Dear Bill, Since we believe in providing clients choices, I have attached two recruiting agreements for Xylon Corp. to consider. You will note: •  One is contingency with 25% fee •  The 2nd is partial retained, with a 20% net fee in return for $5,000 non-refundable upfront partial retainer

The primary differences are: 1.  Partial Retained

§  Lower overall fee §  Detailed accounting of all recruiting activity presented in our “Search Report” §  Search is placed ahead of all others in priority until 3 interview-worthy candidates are presented §  Extended guarantee with refund components §  Presented candidates are not approached for other jobs by IRES

2.  Contingency •  All competitive intelligence gathered during the search is withheld by IRES and not shared with client •  Candidates can be re-routed to other contingency clients in the event of delays •  Higher net fee •  Replacement guarantee only with no refund applicable

Bill, as we discussed in our conference call, I am very confident Xylon Corp and IRES should move forward under the partial retained proposal. Sincerely, Frank G. Risalvato www.iresinc.com 704 243-2110

1.  Emulates a Real Estate Appraisal Report

2.  Shows hiring executives depth and detail they’ve most likely never seen before

3.  Contrasts sharply with the type of service most are receiving by contingency search

4.  Most are “Wowed” when they see this!!!

5. Format is from a MS Word Business Template (any will do)

6. Includes actual spreadsheets with contact info removed

7. Copy of actual, recent executive search.

8.  Original version was developed from a contingency search!

9.  I RECYCLE the reports with each next client!

How to “WOW” your prospective client …

31

The Complete CLIENT HANDOUT PACKAGE

Handouts & Pamphlets/Booklets

•  Can add visual impact •  Re-enforce your message •  Connects EMOTIONALLY with the client

WHERE IT HURTS MOST (Their livelihood) •  Connect with different sensory receptors •  Re-condition and re-program your client •  Set the stage for securing NATIONAL

ACCOUNTS! •  Uses concepts from “Switch” the book!

(704) 243-2110 info@searchwizardry.com