Recruiting Contracts: Say "No" to Dumb Clauses!

I’ve seen a trend over the past few months where companies are asking recruiters to wait 90 days after their candidate starts working before the client is required to pay the recruiting fee. What disturbs me is  recruiters are agreeing to this nonsense. This is not good for your career. In fact I think it's total garbage. Here's some basic advice for full cycle recruiters: DON’T AGREE TO CRAZY TERMS! If you’re going to be a recruiter the sooner you grow a backbone the better.

Just because some corporate attorney puts a clause in a recruiting contract does not mean it’s reasonable. Say NO to terms that hurt you as a recruiter. Picture this: you go to buy a set of tires and after installation the service person says, “That will be $800.” What would happen if you responded with, “Please sign this paper that says I can drive these babies around for 90 days before I pay”? They would take the tires off your car.

The response to a contract that asks you to wait 90 days for payment is, “No”. End of story. Walk away if it’s a deal breaker. If you’ve read any of my advice you know I believe recruiters offer great value. If you don’t value your service and hard work, find another line of work! Just because something is written in a contract does not mean it's fair, reasonable, or cannot be challenged. Don't give someone permission to steal from you. Theft is theft. Don't wait 90 days to be paid for work that took 30 - 90 days before a candidate was hired.

A better response is, “I cannot agree to these terms. During the search process I work for you for free. Once you interview a great candidate I also follow through to make sure that candidate accepts your offer, resigns without incident, and starts the position with your company. A lot of effort went into finding a great candidate who fits your criteria. At the point of hire I expect to be paid within ten days and with your payment a 90 day Guarantee For Replacement kicks in. Should the candidate you approved and hired leave your company within 90 days I will replace that candidate at no extra charge to you. How does that sound?” Tie your guarantee to the condition of being paid promptly.

A big mistake some recruiters make is setting the tone to be treated like a clerk. You’re a consultant. Use your recruiting skills to establish equal partnership-status relationships. Guess what happens when a company ‘wins’ and you ‘lose’? You won’t want to work on their search and you shouldn’t! 

When you stand your ground and expect respect more often than not, you easily get what you want. It is reasonable to be paid for work completed. Those of you who’ve read my book know I usually (unless the search has caused me extra brain damage) offer a $500. Discount if my invoice is paid within 5 days. 99% of the time I get paid within 5 days.

The second benefit of saying ‘No’ to stupid contract clauses is the client begins to see you as a strong professional. Everyone recognizes a winner when they see one and people like to work with winners. Be seen as someone who can think, and ask for what you want. Demonstrate you are nobody’s fool. Be someone who makes things happen. Your client will treat you better.

Recruiting relationships are a two-way street. Stand your ground and choose to work with fair-minded clients. You’ll be glad you did.

by Kimberly Schenk, Headhunter, Trainer, Author. 

If you need a recruiting coach to help you solidify a more successful mindset, that’s my specialty. Thanks for reading.

If you recruit in the mortgage industry and want to know How to Recruit Loan Officers, I can help.

Looking For A Mortgage Recruiter? 5 Reasons to DIY!

If you’re in the mortgage business the recent upswing in housing sales is welcome news. Every month, per the Google search word tool about 600 companies search for a mortgage recruiter. Per the Indeed.com job site, there are 4260 jobs posted for loan officers. Simplyhired.com shows 28,804 posts for loan officers; CareerBuilder, 1361, and Monster, 1000. As an Executive Recruiter who has worked in the mortgage industry for over 20 years, I can tell you there are not enough recruiters  to fill the need for loan officers.

What’s the solution? If you’re a branch manager or executive in the mortgage industry and your company is in an aggressive expansion mode, seek out recruiter training. Recruiting is a skill you'll use throughout your career, no matter your position.

The fact is the fastest way to increase the number of loans your office closes each month is to attract top talent again and again. Every loan officer hired who can close 1.5 – 3 million a month will continue to increase their loan volume as the market improves.

Here are 5 reasons to seek out recruiter training from a top mortgage recruiter.

 1.     DIY recruiting saves you time and money. Why spend 6k – 15k or more per hire? You’re in the ideal position to gather names of loan officers with good reputations in your local market. You can approach them using the same techniques top headhunters use. You'll know how to gain trust, establish rapport, qualify, dismiss a candidate respectfully if needed, or move the process forward. This know-how is invaluable. Why pay a recruiter 100k a year when you can DIY with some high level training?

 2.      Choose to recruit and hire one loan officer a month or each quarter. Control your destiny and create a name for yourself in your local market as the man or woman who makes things happen.

 3.     Eliminate the frustration of ‘going without’. There’s no need to be at the mercy of an outside recruiter’s schedule or an in-house recruiter who has dozens or hundreds of offices demanding loan officers. Every recruiter you speak with has multiple clients clamoring for loan officers.

 4.     When you know how to recruit, you’ll avoid activities that waste your precious time. You’ll qualify potential candidates in less than ten minutes and select only a few to interview thoroughly.

 5.     You’ll know not to extend offers unless you’re sure the offer will be accepted. This protects your brand and raises your credibility in the community as a leader who hires the best producers. Loan officers gossip and free, positive PR is valuable.

When you know how to recruit, you can plant seeds in the minds of up-and-coming stars. When the time is right you’ll be equipped to close the deal and hire yet another top producer. Recruiting does not happen by accident. There’s a process and proven methods to generate results quickly.

Recruiting should be a priority for production managers at every level. Why delegate this important task to someone else? While it’s smart to share the tasks involved in the recruiting process, knowing how to systematically attract and hire the talent you want will place you light years ahead of the competition.

We live in a world of specialists. There’s value in working with a recruiting coach. They can quickly help you improve your technique. Those who make recruiting a priority will win big as a new generation of loan officers get licensed and established in the mortgage industry. We all benefit from professional training so consider learning the principles of recruiting.

Surprises surface regularly during the recruitment process and cause confusion. Don’t re-invent the wheel. Work with a recruiting coach for immediate feedback and strategy. Recruiting cannot be learned in one sitting. Cultivate a relationship with a recruiter and pay them by the hour for advice, if they don't have a formal program.

The magic of a great process is these techniques transfer to every kind of negotiation. When a transaction comes together beautifully, there’s an elegance to be appreciated. When everyone walks away happy, there’s satisfaction in knowing you’re the one at the center who made the deal happen. Recruiting is a skill that delivers one of the highest ROI you’ll ever experience.

by Kimberly Schenk, Headhunter, Recruiting Coach, Trainer, and Author

http://www.magicofrecruiting.com

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