….the cost of not using a recruiter..

 

I guess all people businesses can tell some strange stories. Just this week I spoke to a friend of mine who has been a hiring authority over the past 15 years, as well as a great manager. He moved to a new company about a year ago and has been needing to hire a salesperson for nine months. I called him two or three times since he had gone to his new firm but never had the chance to speak with him.

He’s one of the most successful managers that I’ve dealt with in all the years I’ve been in this business. He hasn’t hired all that many people, but the ones he has have absolutely loved him because he’s helped them make more money than they ever have. Once I got them on the phone and found out he had been looking for a salesperson for nine months, I asked him why he didn’t call me. He explained that his corporate “recruiting department” won’t allow him to pay a fee and that they are supposed to be getting him good candidates. I asked him how many candidates you’d seen in nine months. (It’s not surprising that he may not have hired someone, because he’s very picky and very careful.) He told me that in nine months he had only seen three candidates.

He admitted that he was phenomenally frustrated. He was not going to hit his numbers this year because he was one salesperson short and since he was covering the vacant territory, he couldn’t help the other five salespeople that he had. Each salesperson’s quota is right at $1 million, and the vacant territory he was covering had only sold $450,000 with three weeks left in the year.

So, his company doesn’t want him to pay a $20,000 fee and yet they are willing to let a very experienced…expensive… first-line manager trying to manage five salespeople forfeit close to $450,000 in sales as well as become very, very, very frustrated with his company. He told me that he had told his boss that he absolutely had to find a salesperson before the new year began. He told his boss that he just didn’t think he could go on like this.

I often wonder how many managers out there go through this kind of frustration. My friend’s corporate recruiting function is in New York. There is absolutely no way…short of a miracle…that they would ever be able to find the same quality of candidate in Dallas as we could. I interview two to three candidates a day…and have for 45 years. I have more than 100,000 candidates in the database that I’ve interviewed face-to-face. How are three twenty-something year old recruiters in New York going to find a better candidate in Dallas then I would even though my client is very picky. I know that I can find him what he needs. Can you imagine how much money this is really costing them?

If my hiring authority has to go through the same agonizing experience at the beginning of the year, I imagine that I will have another excellent sales manager as a candidate. The cost of not paying a fee can be very high.

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