Delivering the Systems and Expertise You Need to Make Great Hiring Decisions
In Defense of our Culture at Hire Better
Earlier this week I found myself on the phone with one of our service providers at Hire Better. The company: Monster.com. We’ve used their service with average satisfaction for about 5 years. Every year we step back and evaluate it but ultimately, we’ve chosen to invest the $10,000-$15,000 that they want to charge for access to a huge database of largely uninteresting people – many of whom need work Visas to make career moves.
Our account comes up for renewal at the end of May. We haven’t heard from anyone in their company since last September when our account was nearly cancelled FOR FRAUDULENT ACTIVITY.
A little bit of history – Last year an interesting thing happened: their Compliance Department caught wind of a report that the “seats” that we paid for were being used by IP addresses that weren’t in Austin, TX. This set off all kinds of alarms at Monster.com and I received a disturbing voicemail from a woman who more than suggested that we were guilty of fraud because of our usage and that the legal team was looking into canceling our account without a refund – essentially a loss of $10,000 for us.
Why were they accusing us of Fraud? Because our Corporate Address is in Austin, TX. ”If your address is in Austin, why would you have anyone with an IP address in Iowa, Kansas or Arkansas?” they asked. How very 1993 of them. I challenged that same Legal Team and their Compliance Team by asking,
“Have any of our seats EVER been logged into by more than one person simultaneously and in different geographic regions?”
“No, never once.” they responded.
“And is our usage on any of these accounts outside of our terms of use or so heavy that it would make you think that we were trying to be fraudulent or mis-represent ourselves in any way?”
“No, not at all.” was their answer.
It took me a week and about 20 hours of our senior team’s time to explain to their Legal Department that we’re a Virtual Company that’s built around team members who work from their homes because of the Balance that it provides to each and every one of us. We finally settled on an agreement with their team that we could give each and every one of our employees their own usernames and passwords and split up the usage of each “seat” into what was the equivalent of 50% of a traditional license. This satisfied their Legal team and it allowed us to avoid a $10,000 loss. My Account Representative at the time was a gentlemen named Chris Shaw. He stuck up for us, was the internal champion for our cause and put his reputation on the line with that same Compliance Department to vouch for us and insist that there wasn’t any fraudulent intent or activity.
Fast forward to this week: my new Account Representative called me 4 times over the course of a week – only bothering to leave a voicemail once (a hint: while we’re virtual we do have “real” phones that have caller ID). When Cortney, my Assistant, finally reached him to book our phone meeting, we were less than a week from our renewal. Here’s the breakdown of the conversation:
9:15 AM Central Time comes and goes (our agreed upon call time)
9:21 My phone finally rings. It’s my new representative. It’s clear he doesn’t understand how OCD I can be about the timing on phone calls. He starts the call with, “So how’s your business doing these days?” with an artificially chipper tonality. I politely asked if he had turned on the news in the last 9 months and then reminded him that we had 15 minutes booked for the call and we were down to 7.5 minutes left because of his tardiness.
9:32 I’ve had to explain, at length, what the entire situation was that had happened during the previous September. Apparently, the CRM system at Monster.com isn’t equipped to keep track of week-long legal boondoggles with clients that have paid them nearly $75,000 over 5 years. If you’ll remember, I mentioned earlier that Chris Shaw, our representative at the time, was a great advocate for us. Our new representative made it a point to remind me, at least 3 times during these 11 minutes, “Well, based on all of these exceptions that you benefitted from in the past year, you’ll clearly understand why Chris isn’t with our company any more.”
9:34 I’m now 4 minutes late for a commitment I made to call a prospective candidate for one of our biggest clients. As politely as I can muster, I shared with our representative, “Look, I appreciate that you’re not a fan of Chris. I also respect that you have a precious “rate card” that you’re allowed to discount from by 75% (side note, if a sales rep can discount by 75% off of a rate card, what’s the point of even having a rate card?), but unless you can wrap your brain around the fact that I’m VERY familiar with your legal contract and that I’m not willing to buy ONE seat (as he suggested) and pass around the username to everyone (which is in violation of their agreement) or 9 full, individual seats for our employees who spend about 1 hour per week each on your website, we don’t have much more to talk about. And I’m late for my next call. I need to go.”
9:36 It’s starting to get ridiculous. Every effort that I’ve made to be polite so that I can move on to my next commitment has been ignored. It’s as if I’m speaking an entirely different language. My representative has shared with me things like, “You know, 2 years ago we were only permitted to discount by 15%” and “What you received last September was clearly a one time thing and there’s no way I could get that approved again.” His arguments were as pertinent to our conversation as the amount of snow they received in the Napa Valley last year. ”I know we’ve gone a bit over our alloted time this morning Jonathan. Why don’t you let me go back to my managers and that Compliance Team from last September and see if I can work something out for you.”
3:10 Central Time – My representative called me back to share the news with me. ”Jonathan, what I’ve gotten approval for is to sell you 9 individual seats at 75% off of our rate card. This is a great deal. Can I send over the agreement?”
If you’ve hung with me and read all the way down to this part of this blog post I hope you’ll let me clarify something: My intent of this post was NOT to air the dirty laundry of my discussions with Monster.com. However, sharing that level of detail was critically important because this is what I want every company who acts as a service provider for us to understand:
- Our Core Values are NOT something that we just hung on a wall for everyone to ignore. Earning Trust, Having Balance, Adding Value and Respect play a significant part in every decision that we make every day.
- I (and We) will never apologize for or alter our decision to have hired the team that we have in place that just happen to work from their homes all around the country. Because we have Balance in our lives, the quality of the work that we do for our clients is TOP NOTCH. When we work, we work hard. And then we stop and spend time with our families. We don’t waste time commuting, attending pointless meetings or waiting in line for lunch in the same 15 minute period that everyone else has to run to the local fast food joint.
- We may need a concession or two from you, as a service provider, because we ARE different. Here are some of the companies who have acknowledged that and will be Partners of ours for a long time:
- Pioneer Bank in Dripping Springs, TX
- 8×8: the providers of Packet 8 Phones
- Apple
- Otherinbox
- 37Signals
- Jintech
- Clutch Creative
- Spross & Associates
And one final note to Monster.com: it’s 2009. It might be time for you to take a good hard look at services like LinkedIn, ZoomInfo, Recruiter’s Earth, Door64, Google, Craig’s List and a host of other websites that passed you by a long time ago. For me, I’ll take the $13,000 I just saved by not renewing with your service and I’ll spend it on training our employees on AIRS. After all, our commitment to our clients is that they’ll HIRE BETTER. Your website simply doesn’t help us do that any more.
Tags: 8x8, A-Players, AIRS, american workforce, amwf, bad hires, career history, clutch creative, hire better, hiring, LinkedIn, Monster, monster.com, OtherInbox, pioneer bank, proactive recruiting, purchasing decisions, recruit don't absorb, Recruiting, research, talent acquisition, talent vault, Topgrading, tweets, Twitter, unemployment, unemployment rate, virtual bench, zoominfo
The Economist: How the Recession is changing Recruiting
Last week The Economist had an article in their Print Magazine that was titled, “You’re hired – next year“. I found to it be a lot of window dressing and likely written to attract eyeballs more than provide real value. However, there were a couple of things in the article that were worth noting:
“According to a survey carried out by Watson Wyatt, a consulting firm, three-quarters of American companies have implemented a hiring freeze.”
“The hiring of freelancers and consultants has become more common, allowing companies to avoid spending on employee benefits and delay hiring decisions until the economy picks up.”
“When they do take on new employees, companies are taking longer to make an offer, knowing that they no longer have to move fast to prevent competitors from stealing their prospective hires.”
The first data point, while it likely won’t surprise you, is still very shocking. There are nearly 5 million unemployed Americans right now and 75% of companies aren’t allowing new hires. This combination does make me wonder what Ben Bernanke was smiling about today…
The second data point, again, won’t come as any surprise at all. The reason I pulled out for the purpose of this blog is to emphasize the guidance that I’ve shared with a number of colleagues. If you’ve got needs right now for work that can be done by freelancers, it’s very possible to get $1 worth of work for $.25 these days. It’s not because Freelancers are lowering their rates. Rather, I’ve found that it’s because hiring a graphic artist (as an example) for a 10 hour project is much easier to do these days and, if you hire a Freelancer who doesn’t have anything else to do, there’s a very high likelihood that they’ll put 15 or 20 hours into the project simply to fill up their day and occupy themselves.
Lastly, the third quote that I called out of the Article is another example of just how clueless the media is about the labor market these days. It’s absolutely true that if you’re competing for a perpetually lazy clock-puncher who is guaranteed to bring no value to your organization and poison your culture, you can take as long as you want to hire them without fear of competition. But if you’re looking for top talent, even in this marketplace, you’re going to have to fight. A real life example: one of our clients needed to hire a Service Delivery expert in the NYC area while the S&P was at its absolute low earlier this year. The prospective employee they really wanted had been on the market for 3 days because the company he was with had shut down when it ran out of funding. By the time they “won” the chance to add him to their team he had 3 other offers.
I love analogies and I’ll end with this to drive home my point and also show my love of baseball: there are never scalpers selling tickets for more than face value outside of the stadium in Kansas City in September. Conversely, good luck getting a single seat at Fenway during the same period of time for anything less than twice the price printed on the ticket.
Tags: A-Players, ben bernanke, freelancers, hire better, hiring, proactive recruiting, recruit don't absorb, Recruiting, talent acquisition, unemployment, unemployment rate, watson wyatt
Recruiting vs Absorbing: Know the Difference?
I continue to hear from Recruiters, Journalists and even Business owners that now is a great time to pick up talent because of how high the unemployment rate is. I’ve written in the past about how I think that now is a great time to be RECRUITING as well but not because of the growing number of the unemployed. I’m not going to re-hash that here. Instead, this post is going to focus on what Jack Daly considers the difference between Recruiting and Absorbing.
I’d like to start by sharing that I live in Austin, TX (yes, it is as cool as you’ve heard). In this town we’re proud of live music, barbeque and, probably above all, Longhorn Football. Mack Brown is the Head Coach (aka the CEO) of the team.
Right now, spring practices are done and the coaching team is spending all of their time figuring out (1) what’s our depth chart for the fall (2) who are the top High School Sophomores at each position in Texas and the US and (3) how are we going to convince young men from around the country to pay us $300+ to come to our camp so that they can be seen by our coaches when every other school in the country wants them to do the same?
The reason I brought up point #3 is because it’s not unlike the current marketplace for Businesses looking to land top talent. How? Hundreds of young men will descend upon Austin in the coming weeks and happily throw down their $300 camp fee. While the coaching staff has a responsibility to treat every camper fairly by providing them with a safe place to stay, healthy food and some nominal feedback about how to improve, it’s the 8-10 players that they personally invited in for the camp that they are focusing their attention on. Every once in a while a young man who shows up and was unheralded impresses the coaches and gets a shot scholarship but it’s rare.
I hope you’re seeing the direct parallel between the people who are applying for jobs at your company as opposed to the people who you have to fight to get.
With that in mind, let’s go back to Mack Brown’s role in this recruiting process. Because he has the advantage of knowing who the top 10 Prep Quarterbacks or Linebackers are by subscribing to the industry publications that track this data, he can carefully place phone calls to these young men to get them excited about the program.
Focus because here’s the crux of the blog post: After Mack Brown gets off the phone with a young man who he’d like to see as his starting quarterback in 2011, do you think he sends that 16 year old a copy of a job description for what a Quarterback does?
Let’s bring it all back to your business: here are the 5 questions you have to ask YOURSELF when recruiting and then share with your “top recruits”:
1. Why come to work here?
2. What are we (as a company) doing to ensure that our team is successful?
3. How can you (our prized recruit) be sure that the reputation of our company is exceptional?
4. Where is our greatest opportunity for growth in the marketplace?
5. What are the most compelling reasons to join the team here?
If you’ve read the book Who you would know that these are also part of the 5 F’s (Fame, Family, Fortune, Fun and Fit). By asking yourself these questions as the CEO or Hiring Manager you’re attempting to proactively answer a lot of these concerns that a recruit would have.
If you’d like to pick up a great book for the weekend and learn how college football is answering each of these questions, check out Meat Market: Inside the smash mouth world of College Football Recruiting by Bruce Feldman.
Bonus food for thought: if Mack Brown needed a starting quarterback in 2011 and he didn’t start thinking about it until 2 weeks before the season started, would he start placing ads on CraigsList with the hopes someone would apply that he could hire?
Tags: 5 F's, A-Player, A-Players, Austin, bruce feldman, Fame, Family, Fit, Fortune, Fun, geoff smart, hiring manager, jack daly, longhorn football, mack brown, proactive recruiting, recruit don't absorb, recruiting versus absorbing, talent acquisition, unemployment, unemployment rate, who the book
When Recruiting Gets Fun
We’ve had three client meetings on-site in the last few days. All three of these meetings were tremendous and remind us about why we do this. It got me thinking: what makes a great client for American Workforce?
1. They understand that people aren’t widgets that can be manufactured. Some weeks might produce 5 qualified people who could be great in a role. Some months might produce no one!
2. They realize that the cost of a mis-hire is a lot more damaging to their company than trying to hire too quickly or trying to save money on the front end by cutting corners on talent assessment.
3. They only want to hire amazing people. Really, for them it isn’t just lip service. They’ve analyzed their needs, they’ve built an environment that makes it incredible for people to work in, and they’re willing to be patient until the perfect A-Player is identified.
4. They “Aim High in Steering”. Remember Driver’s Ed in High School? You’ll drive your car into a tree if you are staring at the steering wheel. When you can look down the road and understand what your needs are going to be 3, 6, 9, 12 months out you’re much more likely to get exceptional people instead of just the ones that are looking for jobs on that particular day.


