I’m About to Place a New Hiring Authority, How Do I Get the Referrals?

Comments: Hi Danny, I'm hoping to place a senior VP of IT at a client, one who will be overseeing several major projects over the next two years. Although hiring plans are not finalized, the client will be looking to hire a number of additional staff members to support these projects. The VP candidate is deeply involved in the IT community in the region, and it stands to reason that he would (if hired), know a number of former colleagues who would consider positions at his new company. From a budgetary standpoint, it wouldn't make sense for this VP to refer candidates to me in the future - why would he voluntarily pay a fee (and thus affect his P&L statement) for his own referrals? Other than from a strictly relationship-based (I helped you get a good job, now feed me some kickbacks) standpoint, how can I best position myself now to get these residual referrals from him in the future? Is there a valid business reason I can leverage in order to capitalize on the situation?

 

ATD response

 

You can't look at this from a rational business point of view. Any degreed economist would look at our business and say it makes no sense. To an economist, people do only what they are incented to do. You want a fee; therefore you have an incentive to make calls to find candidates. Companies need a VP of IT so they have an incentive to pay your fee. To an economist, your answer is simple. Split your fee, and all future fees, with that candidate. Now he/she is properly incented to give you referrals. Are you prepared to do so?

 

I didn't think so.

 

You are correct to assume your candidate's allegiance will shift from you to the client once they start work and have to live within a budget. So that tells me you need to act now. In the beginning of a romantic relationship, you are in, for a precious few months, a love coma. Your wants and needs are subordinate to the wants and needs of your beloved. (Later, you will wonder what the hell you were thinking) So while your candidate is aligned with you, and in a love coma, you strike.

 

Lay it out for him/her. After they get the job, (the job YOU got them,) they will need to staff up. You can help. They have some "FRONT END" info that is valuable, in that they know some people, but they will need a search firm to do "BACK END" work.  This includes the nitty gritty of evaluating who is serious, checking backgrounds, overcoming fear of change, and negotiating compensation. Because you two know each other (and because YOU got them the job, did I mention), you would make a great team. So while you could demand the same fee you are getting for him/her, in order to make them a hero right from jumpstreet, you will design a tiered reduced fee plan, where each deal reduces the fee 1%. The jobs get filled quickly, the fees get reduced, and everyone wins. And close them on this as an acceptable way to go forward.

 

Now here is the critical part. Once they agree, get the names right now. Tell them you want to begin doing some due diligence. If you get the names, get the resumes, and submit now.  If your candidate tries to back out of your "deal", there will still be enough obligation built up to get you some credit and some monies.

In the best of all worlds, you get the client to pay a retainer for future positions up front. But that is a stretch for someone coming into a job. I've pulled it off, though, so why not ask?

 

Don't put this off. Recruiters are forever whining about how candidates don't stay loyal to them. Loyalty is not a vaccination shot. It does not last. It is medicine that needs reapplying, at the right dosage, every day. It’s not handed to anyone. It is earned.

 

As a bonus:

 

Danny Cahill's training company, AccordingToDanny has launched a new DVD series this week called the Fast Track Series. Danny will be doing a deep dive on a series of topics. The first session is entitled "Everything You Need to Know About Retainers in 4 Furious Hours!". It was filmed in June in Danny's Cheshire CT based training center in front of a packed house! The 2 DVD product includes the instruction manual all the participants received. Topics covered include:

 

 

 

    * How to close your first retainer

    * The value proposition to your clients

    * Implementing a retainer "process" mentality

    * Converting contingency clients

    * Pricing realities, not rhetoric

    * Tips from Danny's mentoring clients

    * A live interview with a retained search top producer

    * Overcoming objections to retainers

 

You can order your set today by calling 203-439-0267 or going to http://24.248.89.91/products.aspx?stype=3