Lessons from a Seasoned Recruiter
Insights from Three Decades of Human Capital Challenges
The Weekly Walkaway highlights negotiation in its ‘good’, ‘bad’ and sometimes ‘downright ugly’ forms. Issue No. 95 (22nd November 2024).
Lessons from a Seasoned Recruiter
Some would call me a seasoned recruiter, and with over three decades of experience, you can see why.
Although I don't do recruitment anymore my company serves the recruitment and professionals services industry first and others second. It’s my place, my comfortable place..
I’m one of those old guards who has been lucky enough to have kept close to the new.
I’ve navigated the emerging market crash of the 1990s, the DotCom bubble, the Credit Crunch, and COVID and each financial crisis has taught me lessons, some very painful, and like everything in life these lessons have helped to shape me and the services I and Kahvay now provide.
I’m also learning from you.
From the buying side and from the selling.
Some of you I’ve had the pleasure of training. Some I’ve coached and consulted with in your real world negotiations and I thank you for the opportunity of continued learning.
Yes, there are many of you I haven't yet met and I look forward to doing so and learning from you too and sharing what I have learnt.
In the late naughties and early 2000’s I was ‘young, dumb and full of ‘come’.. spelling incorrect I know..
Anyways the saying is from the 1990’s movie: Point Break with Keanu Reeves and Patrick Swaze.
For you young’uns; ‘young, dumb and full of ‘come’ means ambitious and eager to make my mark.
I was competitive and arrogant; I was a top biller!
We were making money, money, money. Margins were high and it was all about cold calling, early mornings and late nights, working hard and playing even harder.
And then the emerging market crash hit..
And then after that the DotCom bubble burst and my colleagues and I were hit hard.
Companies started to cut people, job placements became scarce, companies started to fold and hiring freezes became the norm.
It was brutal!
To survive I learnt that a young, dumb and full of ‘come’ recruiter, without trusted solid relationships to back it all up with just wasn't gonna cut it.
I had to adapt; to change.
And so, with two awesome and like minded colleagues, we started on a journey; we started our own recruitment firm.
We adopted a relationship building philosophy, we became that trusted supplier who prided ourselves on knowing more about the markets than our candidates and clients did. A sports agent if you will. And we grew and we flourished.
Then the Credit Crunch hit!
It brought our clients to their knees.
We were better prepared than most but our clients became extremely cautious, budgets were slashed and the market became saturated with talent overnight.
We looked to adapt, embracing consulting services and other lines, not just as a recruiter. I remember we even did a SoW where we moved a whole trading floor! Yup, not our thing but we adapted, added value where we could and negotiated our way through.
To cut a long story short, I have concluded that negotiation was the common thread that helped me and others like me navigate each crisis.
I shared a nugget yesterday:
‘In every crisis lies an opportunity. Learn to see beyond the immediate challenges and focus on how you can add value.’ Learn to negotiate better.
And it’s true. This is the key to negotiating your way out of this current market.
The Recruitment and Employment Confederation (REC) and KPMG's recent "Report on Jobs" highlighted several key findings:
Decline in Permanent Placements: Permanent staff appointments have decreased, indicating the steepest rate of contraction since March;
Slowing Wage Growth: Starting pay for permanent roles has slowed, marking the weakest level since February 2021;
Increased Candidate Availability: There has been a significant rise in available candidates, especially for temporary roles, as businesses report the sharpest pace of increase in temporary staff availability in nearly four years.
This is by no means a recession like old seasoned recruiters like me have known before but the pain you are feeling right now is similar.
Speak to any recruitment and professional services firm right now and they’ll tell you that life in the industry is tough.
We’ve been here before, well some of us have..
The human capital economy is not picking up as quickly as hoped for and competition is as fierce as trying to get to the front of a Principality Stadium bar full of Welshmen ahead of an International Rugby Match.
Add to this mix procurement departments, who have been squeezed from the other side, and who have been under cost pressure for the last few years, are starting to prance around with newfound bravado as their game theory tactics start to bite.
Job cuts are back in fashion and where recruiters used to have the upper hand during scarce resources now the space is again becoming saturated.
All the while Human Capital, now commoditised, is back in that race to the bottom which is tanking your EBITDA.
And that is why you are hearing shareholders and stakeholders chanting their usual mantra: ‘Do more with less!’, and ‘Sell, Sell,. Sell’..
Oh, the joy of being in professional services right now.. But we have been here before and trust me, negotiation is the only way out!
The Irony of It All
If only negotiating million £/€/$ deals was as easy as dodging calls from that annoying recruiter (wink wink), because that's what clients will be doing right now, dodging your calls.
But here we are, again, navigating this maze of madness.
You might think your negotiation skills are sharp enough. After all, you did manage to use job ‘scarcity’ to haggle that salary down on your last placement you made, didn’t you?
But let's be honest, negotiating with a candidate who’s been out of work for a few months is a different ball game compared to navigating the emboldened HR and Procurement space when securing top talent in a cutthroat commoditised market.
The Neglected Superpower
Here’s a little nugget to chew on.. ‘our experience shows that most recruitment and professional services firms see negotiation as the final step, a last-minute hurdle before agreeing a deal’.
But what if I told you that real game changers, those who will navigate their way through these troubled times, already know negotiation is the secret that links every step of the process?
Imagine boosting your firm's profitability by 20% just by mastering the art of negotiation. Sounds like a dream, doesn’t it? But it's not just a dream; it's a reality for those who dare to think differently, who are willing to challenge, adapt and who are open to changing their ingrained behaviours.
The Cost of Mediocrity. Do Nothing, Nothing changes!
Let’s slap your face a bit.. like being in that bar watching Wales lose a 12th successive game of Rugby, breaking all previous records, and you get splashed in the face by that pint of beer called ‘reality’ when South Africa score another try when the South African next to you gets excited!
Firms with sub-par negotiation skills are leaking revenue faster than that pint of beer.
Endless RFP’s and no wins, lower volumes and lower fees, lost relationships and more stakeholder conflict, extended time-to-fill KPI’s and lost deals.. sound familiar?
As we said last week your bottom line is leaking, bleeding even!
Professional services firms with weak negotiation capabilities kiss goodbye to millions of potential revenue every year due to weak negotiation skills.
Picture what that means for your firm’s bottom line.
Yes, it’s as painful as it sounds.
Let’s Get Personal Shall We?
Take recruiters.. Yes, we’re talking to you.
In your fast paced, ever changing market every negotiation must be sharper than Crocodile Dundee's knife.
Without it, you’re just another Crocodile in the overcrowded, dried up, recruitment pond, waiting for the rains to come..
They aint coming soon.. So what are you gonna do?
The Solution, of Course..
We, here at Kahvay Ltd, as you know are negotiation skills training, coaching, and consulting for recruitment and professional services.
We have been where you are.
We have navigated the emerging market crash of the naughties, the DotCom bubble bust, the Credit Crunch and Covid.
We don’t just teach negotiation; we transform it into your firm’s secret weapon; which will give you the advantage.
Our tailored programs are designed specifically for you, making you master negotiators.
We’re not just blowing hot air here. Our training programmes deliver a guaranteed 10x Return on Investment and our consulting services deliver 3x times more. As measured by people like you.
So what are you gonna do?
Show Me the Money
It’s simples, isn't it!?
Improved negotiation skills mean better margins, increased EBITDA and happier clients.
It’s not rocket science.. you’re not just surviving the current economic turmoil.. You’ve got to thrive in spite of it and yes, when you’ve got a guaranteed 10x ROI know that we are reassuringly expensive.
So what? What are Your The Next Steps
Here’s where you take control (because, let’s face it, someone needs to).
The next logical step is to schedule a discovery session where we can assess your team’s current negotiation skills and outline a customised plan.
It’s time to stop leaving money on the table and start taking chargeof your company's future.
When’s a good time for you? We’re ready when you are.
www.kahvay.com
01483 338 683
In this delightful economic climate, consider this newsletter your lifeline.
Don’t let your negotiation skills be the weak link in your chain of success. Reach out to us at Kahvay Ltd, and let’s turn your EBITDA nightmares into success stories.
Until next time, stay as sharp as Dundee’s knife, stay away from that excited dude at the bar and for heaven’s sake, negotiate!
The Kahvay Ltd Team
P.S. If you’re still reading and haven’t booked that discovery session yet, we’re impressed. Now, go on and make the smart move. Contact us today.