Recession, Recovery and Recruiters Recover Profits in the Wind and HVAC Industry By Jeanne Silvis

We see it all the time. Pick up any newspaper, magazine, periodical and you will see and read about the devastation that this recession has wrought on businesses, individuals, organizations and the world in general. These are not high times in the work market; an unfortunate scenario for everyone involved. The good news is that there is a way to recover profits in the HVAC and Wind Industries.

Businesses are still struggling to come back; some seasonally driven businesses (Wind or HVAC for example) are hoping for cooperation from the weather to drive up sales; hot summers and the forecast of cold winters are encouraging signs for them. Others are making the most of it and wind is attempting to hold its own. Making profits in the wind industry in a realistic endeavor.

So how can utilizing a Recruiter have a positive impact on the bottom line? The recession and recovery can be highly impacted the Recruiting Industry. One would immediately come to the conclusion that a Recruiter costs the company money. Admit it; to pay someone a $25,000 to $100,000 fee (or more) certainly looks like a very large expense. But I like to think of this expense as an investment. All companies have good Attorneys and Accountants on staff helping to insure that the company is kept out of trouble and is managing the revenues wisely. This is an investment though it is also a cost. A Recruiter is akin to these professionals working to ensure that there are no mistakes when hiring an individual be they a Sales Rep or a senior level Executive.

In our examples, we will look at three positions common across most wind enterprises: Process Engineer, Sales Representative and Executive.

Position – Process Engineer:

Salary/year $85,000

Recruiter´s Fee $25,600

Position – Sales Representative:

Salary/Year $100,000

Recruiter´s Fee $30,000

Position – Executive:

Salary/Year $100,000

Recruiter´s Fee $90,000

At first glance it would appear that the Recruiter´s fee is substantial but if we expand our thinking to include the cost of replacing each candidate and the lost opportunity costs the picture changes.

Using the Caliper Cost of Replacement tool, we can project the cost of replacement: we will include in the calculation the costs for Lost Productivity and the Cost to Hire. We will not include ancillary costs like: Training Cost, Days to Productivity, advertising, etc.

Position: Process Engineer

Salary/year: $85,000

Recruiter´s Fee: $25,600

Cost to Replace: $22,590

Position: Sales Representative

Salary/yr $100,000

Recruiter´s Fee $30,000

Cost to Replace: $25,020

Position: Executive

Salary/yr $300,000

Recruiter´s Fee $90,000

Cost to Replace: $57,870

Now, let us layer over the Lost Opportunity Costs: most companies do not have a sense of this, as a result the cost is never included in any replacement calculation. Assumptions as follows:

  • A Process Engineer is expected to save, through improvements, five times their base salary (industry standard) or $425,000/year. For 90 days this cost is $106,250.
  • A Sales Rep with a $2,000,000 quota has a 90 day goal of $500,000.
  • The Executive is a bit more difficult to assess. For simplicity sake let us use a very conservative number of $25,000/week. Lost Opportunity Cost equals $300,000 ($25,000 X 12 weeks).

Position: Process Engineer

Salary/yr: $85,000

Recruiter´s Fee: $25,600

Cost to Replace: $22,590

Lost Opportunity Cost: $106,250

Total Costs: $128,840

Position: Sales Representative

Salary/yr: $100,000

Recruiter´s Fee: $30,000

Cost to Replace: $25,250

Lost Opportunity Cost: $500,000

Total Costs: $525.020

Position: Executive

Salary/yr: $300,000

Recruiter´s Fee: $90,000

Cost to Replace: $57,870

Lost Opportunity Cost: $300,000

Total Costs: $357,870

By expanding our thinking to include most of the costs associated with an opening we see the reasonableness of the Recruiter´s fee.

When most of the costs of a job search are considered, the numbers point out that utilizing a professional recruiter is a great value for the money. As a side note, these examples present the time for a Recruiter to fill a position to be the same as HR. Most, if not all, professional Recruiters would agree that there is a 1/3 to ½ time reduction of any open position if a Recruiter is partnered with the company.

It is never easy to lose a key staff member; the open position can generate its own wave of concerns through the company and can impact the image of the company if the position is open too long. Understand that no company is immune for staff turn over. When attracting new talent, consider partnering with a Recruiter who can partner with your key Management staff and save the company money in the process. As the partnership grows the Recruiter will know your company, its culture, services/products, executives and industry. They will seek out the talent you need, want and desire. Theirs is a role that is truly an investment insuring your dollars are well spent in support of your business today and into the future.

www.searchpathofchicago.com
By Jeanne Silvis, Executive Search Professional
(815) 261-4403 x 106
Jsilvis@searchpath.com

The Shortage Of Trained Executive Search Professionals Will Erode Your Business Sales And Profits

During the last couple of months, I have received a number of requests from Headhunters seeking new opportunities. A few have actually expressed a desire to leave search entirely. They are considering moving to an internal recruiting role, maybe something different. This has caused ashortage of highly trained Search Professionals. The reasons for leaving vary, but it most of reasons can be traced back to the difficult year or years we have recently experienced. There is not much I can say about the last two years, it has been tough, but what I can say is that it is getting better and it will continue to do so. My counsel to most is to not give up, mainly because great years always follow bad ones, but more importantly, there are not many options for a true headhunter. Once a Headhunter, always a Headhunter.

- A great line from Henry Hill in the movie “Goodfellas”, “For us to live any other way was nuts. Uh, to us, those goody-good people who worked crap jobs for bum paychecks and took the subway to work every day, and worried about their bills, were dead. I mean they were suckers.”

Think about how wonderful the life of a trained Headhunter can be. We help organizations identify great talent, we help people find new opportunities, and we are the leaders in the human capital markets. Technology has given headhunters a level of freedom and flexibly that is unheard of in most industries. Finally, due to the fact that most of us work for a percentage of salary, we do not have to deal with the “billable hour” problem many other professionals struggle with. Finally, if we do our jobs correctly, we continue to build relationships with people that can generate revenue for years.

Consider everything that is going on in the world, what other profession can offer all the benefits of search? No other career choice offers so many benefits and earning potential. Clearly, some of the target career tracks for high performing “future stars” like medicine, law, wall street, banking and real estate have lost some of the their appeal recently. I strongly believe that search will be one of the key target career tracks in the next decade. As people start to realize how critical human capital is to success. I endorse our industry to all from young college grads to senior executives seeking to leverage years of industry knowledge, but seeking a different track

So bottom line, think long and hard before you bail on search. Not many other career choices offer so much upside and lifestyle options. I recommend forgetting the last couple of years, put your head down and start working again. Adjust your industry focus, make some new contacts, and go back to the basics. I guarantee within 90 days you will once again remember why you love this business.

BOTTOM LINE FOR COMPANIES

Keep your Executive Search relationships tight and right. The Headhunters in the market today are the ones who know what they are doing and should be the ones your firm uses for years to come to impacting sales and profits of your business.

For a free worksheet detailing reasons to use a professional executive firm, please contact:

WWW.SEARCHPATHOFCHICAGO.COM
Chris Hillman, Talent Acquisition Professional, SearchPath of Chicago
(815) 261-4403 x 100
chillman@searchpath.com

Identify Real Packaging Jobs, Without The Traditional Approach, By Chris Hillman – Executive Search

This morning I was getting ready to go to work and I happen to have the television tuned to one of the major international news channels. They were discussing the recent rise in unemployment and were offering to have an “expert´ come on show to help all those people out there looking for a job. The story opened with a discussion of the recent unemployment numbers and presented the fact that many employers are receiving many more resumes and the “expert” was going to help a current job seeker. They then introduced an employee from one of the major job boards. We presented him as an expert in helping people find jobs. They discussed the fact that if you do not have the right words in your resume, it will be tossed in the trash. The expert said that he prefers to say “it will go to the bottom of the pile.” Another caller then explained that he was planning on moving to a different location and was looking to get into another industry like IT or healthcare. The “expert” told him to reformat his resume to highlight his project management skills so that the human resource executives would be able to see how they would be qualified for a position.

Consider the following:

It is almost impossible for someone to get a position using one of the many job boards. This traditional approach for opportunity seekers, anyone who posts a resume on a job board is either unemployed, about to be unemployed, or perpetually unhappy. Most companies have come to the realization that using a job board may be a cheap way to source candidates, but for the most part, it is a pretty useless tool.

There are so many people out there that call themselves experts in career transition, recruiters, etc. Most people who call themselves recruiters are not executive search recruiters, they are HR weenies, administrative people, qualifiers and screeners, and they are not recruiters.

The advice this individual candidate should have been given should have sounded something like this “are you nuts?” The last thing he should be expecting is to be able to move to a new area and try to find a pretty senior level position in a completely new industry. The key element here is that he is not qualified for a project manager´s position in healthcare. There are plenty of highly qualified project managers WITH HEALTHCARE EXPERIENCE IN THE MARKET!

The crime is that this poor person is actually given some hope that he may actually get a job in a new location and a new industry. Now miracles do happen, but I have learned in my life that they RARELY happen.

Some better ideas:

During a downturn is the worst possible time to consider an industry switch, may want to consider an industry off shoot. Shift a bit, but moving entirely out of the industry where you have experience is going to make a tough move much tougher.

The key to identifying a new position is to identify the best packaging jobs with the companies that would look at your packaging background and experience and see value. You have to be able to help a company increase revenues, reduce expenses, open new markets, etc. If you desire to move industries, you need to build a long term plan to get there. It is going to require education, hard work, maybe a few steps backward. Are you really willing to do that? I mean sacrifice.

Really consider why you want to switch industries. Is it because of a true dislike for what you do or is because of a bad experience in a current or former job. Please do not make a move because of economic reasons. I had one of my consultants tell me that she was going to move out to the transportation and distribution industry because NO ONE in the ENTIRE industry was hiring. I would recommend moving industries when we see all the trucks in the United States parked on the side of the road and abandoned. If that happens, we have much bigger problems to worry about.

This is my opinion as a Headhunter. I get paid a lot of money to find companies the best talent. I am just getting a little tired of all the “experts” that are offering opinions that are not really going to help very much.

Bottom line:

It is hard out there, but it has always been hard. The only way to move and find a new opportunity is to develop a focused attack plan. To work it hard and aggressively. Use true marketing and sales techniques and never ever give up.

If you would like to receive additional information and a strategy document

www.searchpathofchicago.com

Chris Hillman, President and Managing Recruiter –Renewable Energy, Packaging Materials, HVAC and Industrial Manufacturing

SearchPath of Chicago
(815) 261-4403 x 100
chillman@searchpath.com

Locate Talented Candidates With Experience In The Wind Industry, By Jeanne Silvis, Wind Expert

If the wind industry is to meet the U.S. Department of Energy´s 20% wind energy by 2030 target, one wind technician will be needed for every 10 MW of wind installed, according to the American Wind Energy Association. Because of the expected future demand for wind technicians, it is crucial to locate and retain technicians rather than risk losing them to the competition. Therefore, forward-looking companies should develop retention programs. Not only can these programs be a crucial part of a company´s culture, but they can also do wonders for the bottom line. Simply put, it is less expensive to retain employees you already have than to hire and retrainsomeone new. According to the Salary.com employee job satisfaction and retention survey, the average hiring cost in the energy and utility industries to replace an employee has risen 40% overthe past three years. Given the physical challenges endured by wind technicians and the inconsistent nature of the work, retaining wind technicians poses some challenges for employers. Increasing salaries and fewer qualified technicians make this task even more difficult. Traditional models indicate that needs of employees include recognition, autonomy and career growth. Wind technicians can be divided into three groups based on age and life stage: young workers (ages 19 to mid-20s), those recently married (mid-20s to early 30s) and generally settled employees (age 30 and older). Characteristics of the groups vary. Younger workers have fewer obligations and are able to travel more. Generally speaking, younger workers are more amenable to being away from home for extended periods of time. The recently hitched are newly married or those seriously dating may be ready to start a family. Members of this group are less likely to travel on a moment´s notice, want to be home with a degree of frequency and are beginning to feel the toll of the physical nature of the work. Then there´s the mostly settled group. Typically, the mostly settled are married with families and are not willing to travel as regularly as their younger counterparts. Mostly settled ones want to be home on weekends (or at least two weekends a month) and prefer to limit the physical nature of the job. Traditional methods of retention, such as recognition and career growth, are not going to meet the needs of the middle and late groups. The late group, in many cases, are the primary providers for their families. Because wind technicians may work only a few months out of the year, the late group must be able to stretch their paychecks to cover bills.

Retention tips

Based on feedback obtained from operations and maintenance (O&M) managers and technicians, the following are some ways to tailor retention strategies to individual employees.

Training.

Make sure that employees are trained in the work they will be performing. This wind industry experience involves more than just the Occupational Safety and Health Administration standards, confined-space training or mechanical and equipment training. Training also needs to include information about the rigors of the job and how to prevent physical and mental fatigue. Additionally, ongoing refresher training and new equipment and repair-methodology training are important ways to demonstrate that the organization is invested in the success of its technicians. A well trained staff is less inclined to leave a firm that provides initial and ongoing investments when it comes to talented wind industry candidates.

For a free hiring consultation and strategy which will also include partnering, rewards, downtime options, compensation, scheduling, benefits and professional development, please contact:
www.searchpathofchicago.com
Jeanne Silvis, Managing Director – Wind Energy, SearchPath of Chicago, (815) 261-4403 x 106
jsilvis@searchpath.com

Maximize Your Career And Job Opportunities In The Renewable Energy Market – Wind, Solar & Biofuels

Well-run companies around the globe continually strategize, implement and execute business plans. Their plans are fluid, written on paper, have specific goals and objectives, create direction and purpose, and are shared with others to inspire accountability.

Is your career as well planned? You expend roughly 80,000 hours of your life at work. Think about the impact both personally and professionally-a well-planned and managed renewable energy career could have. Imagine the possibilities of having

a career strategy with measurable milestones, action items, accountability partners and dreams in place.

Career management strategies

The best place to start is to take an active inventory assessment of your current situation-and create a base line.

Then, decide where you want to be and finally create action steps as to how you will get there.

Where you are currently

How does your current career meet your goals?

Consider finances, location, entrepreneurial, autonomy,

Work-life balance, philanthropic, friendship, educational, self improvement, esteem, travel, retirement and family.

Where you want to be

What does your dream career look like? What job opportunities will fulfill for career aspirations? Consider company size, public or private, geographic location, how you are rewarded and/or recognized, title, responsibilities and support.

It’s no secret that the competition for talent in the renewable energy market (wind. Solar and biofuels) has become fierce. As an industry leader, how have you positioned your company and/or department as being a terrific place to work? How do you reduce employee turnover, increase morale and be the employer of choice in our industry?

I have been asked this very question by hundreds of client companies and thousands of candidates seeking the “best” employer.

In a competitive market, qualified and motivated people move faster and expect the most from their employer.

Life is a movie and you are the director

Unfortunately most people let life and their career happen to them. The reality is that we can be the director of or our own movie. Who we work for, where we work, why we work and what we do should be considered. Remember, intention is everything. The way you do anything in life is the way you do everything.

For a free consultation on career advancement, please contact:

www.SearchPathofchicago.com
Chris Hillman, Executive Recruiter, SearchPath of Chicago
chillman@searchpath.com
(815) 261-4403 x 100

Ways To Find Power Transmission Manufacturing Candidates By Chris Hillman Executive Recruiter

Job opportunities in the power transmission industry are on the rebound. The days of locating great talent on job boards are over! From the perspective of a Talent Acquisition specialist, there are 7 key areas to focus on when looking for your next superstar,

- Trade shows – set up appointments prior to a show and have an offsite meeting with candidates involved in actuators, gearings, bearings, belting, roller chain and other PT products so confidentiality is respected.

- Organizations – An example might be the PTDA. This is a terrific venue for meeting new talent in a social environment.

- The bench – all companies need to consider investing in a recent graduate pool. This will ensure that when an opening comes about……your firm has a plug and play with zero downtime.

- Competition – as always, keep a list of your competitors and who is in each position. These people can step in and make an immediate impact. You will need an attractive package to entice them.

- Company reputation – the last person you interviewed might be your next boss. Treat everyone as family.

- Distribution channels – Always be watching the movers and shakers from your key distributors and Rep. Firms.

- Publications – watch those trade magazines for who is climbing the ladder, who moved from company A to B, which companies are downsizing and which people are getting exposure.

- Annual directories – Each year and annual directory is published that points out exactly who competes with who. Why not tap in?

- Websites – Many companies list distributors, Rep. Firms and their direct employees on their website. Take advantage of the resource.

- Vendor training events – Most manufacturers have training seminars where networking can take place.

- Ex employers – keep your rolodex up to date with people have you have worked with in the past. They also know industry specific Executive Recruiters.

- Linked In – a gem indeed. Why not link up with industry peers and join industry groups?

For a free in house workshop detailing and exhaustive list of ideas, please contact:

Chris Hillman, President, SearchPath of Chicago
www.SearchPathofchicago.com
(815) 261-4403 x 100
Talent Acquisition Professionals
chillman@searchpath.com

The Cost Associated Of Hiring “B” or “C” Employees In The Energy Market, By Chris Hillman, Recruiter

Many of us in the renewable energy market take gambles when hiring poor employees. The employment pool of skilled labor with backgrounds in wind, solar, biofuels and geothermal are minimal. However, they can be found by using the most qualified Recruiter.

Statistics show that the brief expense list below what the cost of hiring the wrong employee will add up to around 3 to 5 times the candidate´s salary.

Here are some items to that factor in to these costs:

Salary

Bonus

Commissions

Recruitment costs

Benefits

401k

Severance pay

Unemployment

Travel expenses

Office equipment

Lost sales and profits

Entertainment

The science-art-strategy of hiring key talent needs to be a top priority for every renewable energy company. Having a system in place will minimize the risk. We strongly suggest a 25 step process which will help hedge your bets. The strategy should not only include who interviews, but the key outcomes and objectives needed. We suggest starting with the end in mind.

The risk of not knowing these answers to these questions can cost you over $500,000. What is the outcome or result for hiring a particular person? What is the purpose for hiring them? If it does not relate to increasing sales or decreasing profits….reformulate the position. What is the action plan (in detail) for bringing this candidate on board?

The key point to explore is hiring does not need to be a gamble. With a strategic and tactical approach to candidate selection, risk can be minimized and ROI can be maximized.

For a free worksheet detailing the cost of a poor hire, please contact:

www.SearchPathofchicago.com

Chris Hillman, Executive Rectuiter, SearchPath of Chicago
(815) 261-4403 x 100

chillman@searchpath.com

Ways To Attract The Most Productive Packaging Materials Sales Managers, By Expert Chris Hillman

Packaging sales professionals and Account Executives looking for new employment and job searches have several criteria which they consider. It is important to remember that passive talent needs to be treated much differently than an unemployed candidate.

1. Capacity of product. Are the plants equipped for additional business or maxed out?

2. Compensation structure – the best Sales Managers use a Talent Acquisition Professional to evaluate the compensation plans. They tend to look for performance based programs centered around individual performance rather than company or division performance.

3. Territory: Is the Sales Representative starting in a virgin territory with little or no brand recognition or some established business to work from.

4. Automobile plan – A company car or car allowance are preferred. The days of paying mileage are over.

5. Job Opportunity – Is the market saturated with compensation or is there room for market share.

6. Benefits package – Job Placement professionals suggest a benefits program where health packages start immediately with a 401k contribution.

7. The Hiring Manager– does your firm have a hiring manager who can sell the company or simply a Human Resource person asking standard, meaningless questions.

8. Timing – Candidates look for companies who can make decisions. The longer an interview process takes demonstrates that this is how other internal decisions will be made

9. As an interviewer, you want to insure that the candidate; Can do the job? Will do the job? Will do the job long term? And it´s part of their core nature.

10. Have a 30, 60, 90 and 1year strategy and goals for the person being hired.

11. Leads – Let´s get them off on the right foot by providing some targets or existing clients.

12. Clear quarterly goals: set the standards and help with the strategy and tactics to reach the goal.

13. Keep your promises and appointments – don´t be late and don´t reschedule. Do make the scheduling of the interview easy. Book travel for candidates and have agendas prepared.

For a free hiring consultation and strategy, please contact:

www.searchpathofchicago.com

Chris Hillman, President, SearchPath International of Chicago

(815) 261-4403 x 100
Talent Acquisition Professionals
chillman@searchpath.com

Reduce Employee Turnover, Increase Morale, Attract Talent In Biofuels Industry By Recruiting Expert

More info click here: www.searchpathofchicago.com

It´s no secret that the competition for talent in the biofuels industry has become fierce. As an industry leader, how have you positioned your company/department as being a terrific place to work as the employer of choice? How to reduce employee turnover in biofuels industry, increase morale, attract super stars and be the employer of choice in our industry?

I have been asked this very question by hundreds of client companies and thousands of candidates seeking the “best” employer.

In a competitive market, qualified and motivated people move faster and expect the most from their employer. Outlined below are several ideas to help your firm stand out, attract the best and become an employer of choice.

What do you have to offer?

• Management Team

Well run companies are almost always able to claim a progressive and motivated management team. When attracting talent, always emphasize the boss. He/she should be a motivator, empowers their staff, doesn´t micromanage, leads not manages, creates a pleasant culture, sets challenging goals, values opinions, set standards, is knowledgeable, trains and mentors others, is a true role model, has unrivaled ethics, knows when to take a bullet for his/her team, plans for fun, encourages, praises, creates incentives and respects others.

• Unique Benefits

Your company needs to stand out from the pack and step up to the plate on benefits. Start health insurance on day one. Waiting periods cause COBRA issues and can hinder your staffing efforts. In addition to life insurance, short term and long term disability and dental, offer a 401k with a match and short vesting period. Most importantly, your unique benefits offering should include (where appropriate) child care, golf memberships, flexible schedules, dinner once a quarter, holiday parties, company outings to a baseball game, phantom stock, timely bonuses, annual trips, celebrate each employee once a year — not on their birthday, but on the anniversary of their employment — with a party, complete with cake and balloons. Other ideas include group legal plans, employee assistance plans, 45 hours of paid professional training to all full time employees each year; allow 5 days of paid leave each year to volunteer in your community; matches dollar for dollar all charitable donations that employees make.

Here are some ideas from a biofuels recruiting expert.

• The Opportunity

Does each position in your firm make an impact on the company? The answer, of course, is yes. Employers of choice share with potential employees the realistic upward growth potential and impact they will make by joining the company. Include quantifiable results such as dollars earned or dollars saved for the company. Also include intangible items and other opportunity costs savings such as time savings, increase employee morale in the biofuels industry, efficiencies and customer satisfaction. It´s important to convey to the employee that their position is extremely important and affects the company. This is true for broom pushers to CEO.

• The Company

So what is great about your firm? An employer of choice outlines their stability, employee turnover and retention, ROI to investors, vision, sales growth, debt, acquisition plans, unique selling proposition, and reputation among customers, training/education and philanthropy.

Other Points: In addition to having a solid leadership team, unique benefits, a terrific company story. Treat employees like customers, never change commission/bonus to unrealistic goals, never breaking promises, conduct confidential employee satisfaction surveys, offer flexible work hours, share ownership for key employees and create an exit strategy.

Make room for fun – Take the whole company on two 4-day trips every year to develop themselves and plan for the future. Can you afford to close the company for a few days every year? Maybe not. But can you couldn´t afford not to in order to attract talent in the biofuels industry!

For a free talent and salary statistics consultation, please contact:

www.SearchPathofchicago.com

Chris Hillman, Biofuels Search Expert, SearchPath of Chicago

(815) 261-4403 x 100
Talent Acquisition Professionals
chillman@searchpath.com