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Cashing in on Hiring Trends in 2008

written by Mark Sangerman, HomebasedRecruiter.com

Electronic Recruiting Exchanges Gaining Popularity as Internet Recruiting Works

Recruiter Q & A

Question: Should I pay over $10,000 to own a recruiting franchise as a way to enter this industry?

Answer: No way. You can get started in recruiting for under $500 and take the skills you develop to grow your business at your own pace. Employers are far more interested in the qualified candidates you can bring them than they are a franchise brand name.

Question: How do I keep companies from hiring the candidates I send them without my knowing and not paying me?

Answer: Recruiters who keep in regular touch with their candidates and actively influence the hiring process by communicating with the decision makers never have this problem. Stay on top of things.

Home-based recruiters and staffing consultants in cities around the United States are cashing in on companies' ongoing need for their most prized and valuable commodity--talented people. Without the right employees, companies stand little chance of surviving and becoming prosperous in the future. But alas, independent recruiters are lining up to provide talented candidates for each of the empty desks that keep a company from running on all its cylinders. And they should be. The financial rewards for making employee placements today are substantially higher than what most professionals earn for their daily efforts.

With permanent placement fees averaging over $10,000 per hire, and recruiting contracts up to $75 per hour, recruiters are more than happy to find out what makes candidates tick to court them through their next job change. Earning a sizeable income in the staffing industry is nothing new, but doing it from home is a phenomenon that has become popularized during the last decade. No surprises here considering the obvious benefits of working from home: greater earning potential and tasty lunch-hour barbecues at home with family. Those are just some of the reasons that more than one million businesses operate each year by entrepreneurs seeking financial advancement from the comfort of home.

Still, home-based recruiting is not the only game in town. Demand also exists for corporate recruiters who manage a company's hiring objectives from the inside. Working the front lines of hiring for a growing company may be one of the best ways to learn both sides of the employment services industry. The problem, however, is that the earning potential for an independent recruiter is easily twice that of a corporate recruiter, and the boss-less environment that freelancers enjoy makes self-employment a more attractive opportunity. With everyone's eyes on the bottom line first today, companies are struggling to retain what talent is left in corporate recruiting.

Does the internet have anything to do with this? Yes. Most recruiters agree that "internet recruiting" has been the most significant new development in the staffing industry's long history. Already over $500 million in shared placements (recruiters working with other recruiters) have been generated through split-fee collaborations that originated online. It probably doesn't take that or the web's high volume of employment sites to illustrate that the internet is an amazing landscape for matching things: buyers and sellers, chatters and listeners, job seekers and employers. With so much money at stake, home-based recruiters are quickly learning the ropes of internet recruiting to better their chances of winning the big sweepstakes. Combine the power of internet recruiting with good fundamentals and a healthy dose of self-motivation, and a successful career in the staffing industry might be closer than you think.

Click Here to Learn More About Recruiting

Recruiting and staffing professionals are always seeking new ways to make money with the information they have but do not have time to put to use. This applies in particular to job orders and candidates who sit on a recruiters desk unattended because the recruiter is busy working on higher priority assignments. The result is that recruiters lose many thousands of dollars in earnings because they cannot get the maximum benefit from all of their information. Thankfully, internet recruiting has changed all of that and created new opportunities for recruiters who want the maximum gain for their hard-earned information.

Thanks to brilliant new solutions from companies like New Hampshire based HireAbility, this period of not making money on un-worked job orders and candidates is now over. Recruiting xchanges allow recruiters to publicize their job orders and candidates through an online exchange where they can be viewed and acted upon by other recruiters who wish to make a split placement. A split placement occurs when two recruiters work together (one provides the job order; the other provides the candidate) to get a candidate hired by a company, the placement fee for which is then split between the two recruiters. Electronic recruiting exchanges have streamlined this process with cutting-edge technology that can have a serious impact on your bottom line. Here are just a few ways that belonging to an exchange can help you business.

* If you are new to recruiting and have no clients, but have access to good candidates through your existing business relationships, you can use the Exchange by plugging in the resumes of your candidates and allowing others to place them. This is a perfect strategy for someone who is not familiar with developing their own business but wants to make immediate income using resumes they already have access to.

* When you receive resumes on candidates who do not live near any of your clients, plug them into the exchange so someone else can place them and share the fee with you. It doesn't matter where the placement takes place - you will get paid your share for the split placement.

* If a highly valued client needs resumes from you immediately and you experience trouble finding them in a short time, enter your job orders into the exchange - your clients will be pleased with your quick turnaround time on resumes sent to you directly by other recruiters.

To learn more about companies who provide an online recruiting exchange, run a search engine search for "online recruiting exchange" and a number of suppliers can be found. For our specific recommendations, please contact us.

How to Get an Entry-Level Job in Recruiting

Thanks to a growing economy and healthy business climate, U.S. companies and recruiters are thriving again and see healthy hiring trends that look favorable moving forward. The $75 billion employment services industry shows positive signs of growth across a variety of disciplines including healthcare, financial services, information technology, and many others. Now may be the best time to enter the recruiting industry as we prepare for the next leg in America's unprecedented economic growth.

Finding the right place to get started is important as your first position as a recruiter inevitably influences your path in the industry. When you are just starting out, working in a positive learning environment is as important as being compensated fairly for your work. There are a number of entry-level staffing positions designed for someone new to the industry. These "apprentice" positions allow you to genuinely contribute to a company's success while coming up the learning curve on becoming a full-service staffing professional. Generally, these positions involve supporting the efforts of other recruiters while learning the ropes of the placement process. Here are a few examples:

Sourcer--The primary responsibility of a Sourcer is to generate the names of potential candidates that can be contacted by an experienced recruiter to discuss a job opportunity. Learning creative ways to perform name generation is critical to being successful in this position. Sourcers use a variety of resources to identify potential candidates such as trade magazines, the internet, and calling companies directly to gain information on their employees. If you can extract information on the employees of your clients' competitors there is no doubt a place for you somewhere in the staffing industry. Average annual salary: $20,000-$35,000

Research Associate--Research Associates have similar responsibilities to those of a Sourcer, in addition to handling the initial pre-screening of candidates before an experienced recruiter invests time with them. Pre-screening candidates (also called qualifying) on their skills and motivation is a crucial step in the placement process, and is often aided by an interview questionnaire used by the Research Associate. The goal of the Research Associate is to help an experienced recruiter determine whether or not a candidate is worth pursuing. Average annual salary: $25,000-$40,000

Contingency Recruiter--A Contingency Recruiter (affectionately known as a headhunter) is by no means considered an entry-level position. However, there is no shortage of search firms who are willing to lend a desk and telephone to industry newcomers that feel they can succeed starting from scratch. Contingency Recruiters receive compensation only when they make placements. Search firm owners are risk-averse. Therefore, they are more likely to hire an inexperienced, commission-based recruiter who might be their next superstar. Average annual salary: $0-$250,000+

Entry-level recruiting positions are great door-openers to an industry with real growth and career potential. Ambitious professionals who desire advancement usually stay in these positions for three months to a year before expanding their responsibilities and income respectively. Some move on into other areas of employment services such as benefits, training or human resource consulting. Others go on to start recruiting businesses of their own. Whichever path you undertake, it pays to do your homework when getting started to ensure your career begins in the right direction.

Start Your Own Recruiting Business with Training Books and Practical Information on Success

StaffingAgent.com is an exclusive distributor of "Start Your Homebased Recruiting Business" by Mark Sangerman, a professional trainer with over 15 years experience in the recruiting and staffing industry. Since 1997 Mark has helped thousands of people enter the recruiting industry with knowledge and skills that can only come from quality training. If you are new to the industry or thinking about becoming a recruiter, StaffingAgent.com can provide you with this informative audio training book that will answer many of your questions concerning how to get started.

. Packed with strategies and techniques on different ways of making money in recruiting, "Start Your Homebased Recruiting Business" takes you step by step through the process of starting a recruiting business at home and generating a healthy income as an independent recruiter. This unique audio training program features 23 role playing sessions on making effective presentations to employers and candidates plus internet recruiter training and a ton of recruiting strategies and techniques. Start Your Homebased Recruiting Business! provides step-by-step instructions on managing each step of the recruiting process from finding job orders and candidates to coordinating interviews and making placements. Combined with our a complete set of recruiting fee agreements and forms, this package is ideal training for anyone who wants to start their own recruiting business and achieve success. Prepare yourself for the most substantive and practical program on making money in the recruiting and staffing industry!

Some of the many questions answered in this training:

How do I establish my recruiting business and get started operating on my own?

What do I say exactly to employers and candidates to manage every step of the recruitment and hiring process?

How do I find and interview qualified candidates for job opportunities?

What fee agreements are commonly accepted by employers and how do I present them properly to potential clients?

How do I perform internet recruiting and use the internet to maximize my profit?

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