Finders Keepers: Navigating the Finders Fee

Finders Keepers: Navigating the Finders Fee

When implemented correctly, a finders fee can bring the best clients and top-notch future employees to your doorstep.

We are all familiar with finder’s fees in one capacity or another. If you have ever offered a reward for a lost dog, recruited a friend to live in your apartment building for the cash incentive, or found the next best candidate at your company for a bonus… then you have participated in a finders fee strategy

Finders fees or referral fees are typically thought of as a mutually profitable deal for the finder, and the party seeking assistance. Whether you are a small business looking to recruit an executive or an individual with clients they would love to refer, finders fees are a great strategy to move any business process forward.

Who uses Finders Fees?

Companies who are looking to grow their roster or client list will often implement a finders fee strategy. In most cases, finder’s fees are used as a referral program for contacts who introduce new clients or new employees to the company.

While finder fees are a generally accepted method of progressing business, they can be somewhat informal. If you find yourself paying (or getting paid!) these fees regularly, it may be time to implement a more formal strategy…. Such as hiring a headhunter or recruitment agency with a contract and formal arrangement in place.

Determining the Fee Amount

Finders fees are paid after the “finder” successfully finds a solution to the need. As you can probably guess, the more money you put behind your fee, the better your search results (after all, those who are incentivized with big paychecks tend to look a little harder!)

Budget aside, keep these items in mind when determining the fee amount:

  • Price of the goods, services, or position being marketed
  • When the payment is made
  • How long the sales process will take

Consider this criterion and talk to similar businesses who have participated in a finders fee strategy. They will be able to point you in the right direction based on your industry, the size of your company, and the client or position you are searching for.

Why should I implement a finder’s fee?

In many cases, a finder’s fees encourage the intermediaries to go above and beyond to find a client, or prospective employee, for the company. The result? Some incredible candidates and partners at your doorstep.

Curious if a finders fee is right for your company, or if a formal headhunting service is a better fit? We would love to hear from you. Human capital is your number one asset, and we make it our top priority.

Are Mergers and Acquisitions Part of Corporate Finance?

Merger and acquisition deals are transactions that are considered to be part of corporate finance, actually being one of the most important fields of corporate affairs.

Mergers and acquisitions are deals that two separate entities enter to consolidate their operations and their positions in their niche. These transactions can take place in many different ways. Mergers typically involve two companies that create a new, third one that incorporates either parts of the two merging companies or involve the complete dissolution of the two into the new business. Acquisitions, on the other hand, are transactions in which one company purchases the shares, the assets and the operations of another one. The two companies involved in mergers and acquisitions can operate in the same niche or industry or they can operate in different, unrelated industries.

There can be many reasons to motivate mergers and acquisitions. Top rated M&A advisors confirm that these deals can be considered beneficial because they can improve the performance of one or of both participants, they can increase the market share of the new structure or they can diversify product ranges and ensure access to new markets. A company might decide to merge with another one or to acquire another one to increase revenues or to lower expenses as well.

How to Be A C-Suite Recruiter

C-suite executive headhunters are people who engage in the sensitive and often very complex tasks of searching for and finding suitable talent to fill executive vacancies at companies. These specialists can either work for a recruiting company or for themselves and they might recruit for one or for several industries.

C-suite executive headhunters are usually not required to carry a particular degree, but training in related fields, such as psychology, law, economics, or in a field related to the niche they are recruiting for might come in handy. The easiest way to start a career in executive recruiting is to find a mentor with experience in the field or to find employment with a recruiting firm – the two paths will give you the networking opportunities and the knowledge regarding processes and best practices that you need to start your own business. If the idea of becoming a C-suite executive headhunter comes after you have spent years working in a particular industry, such as hospitality (this happens very often), you can leverage your knowledge of the segment and your network starting to recruit for that industry either as an employee at a headhunting firm recruiting for lower-level positions or starting your own business upfront.

Why Hire an Executive Search Firm?

Working with an experienced company to help you find the right talent for your executive vacancy is the best way to fill that vacancy with a person whose experience, leadership style, and values match your company’s needs and requirements. Here are some important benefits of outsourcing the process to iKadre executive headhunters:

  • Maximizing your reach – executive search firms will leverage their extensive network and in-depth knowledge of your niche to search for suitable candidates not only among people who are actively searching for employment, but also among people who are currently employed but might be interested in new challenges;
  • A solid and tested recruitment process – executive search firms have thorough and efficient recruitment processes in place that have been refined over time and can give you the desired results in a short time. Your recruiter will collect resumes, conduct preliminary interviews and verify references, making sure that the applicants you meet will be the best, indeed;
  • Inclusion of your corporate culture – the candidate’s compatibility with your company’s values and culture is as important as the person’s experience and professional knowledge. Executive search firms are well aware of that and will ensure that your candidates match your needs in terms of cultural compatibility as well.

How to Build A Relationship with An Executive Recruiter

Finding a C-suite job to match your skills, your experience and to meet your requirements in terms of payment, benefits as well as corporate culture is a complex process that can be made much easier if you work with an executive recruiter. If you have found the recruiter you want to work with, here are some tips to build a strong relationship with the specialist:

  • Update your resume – help your recruiter providing an updated resume. Take the time to refresh it with the goal in mind – check out the latest trends in structuring and formatting resumes, experiment with sentences and formulations with maximum impact in mind, and use an elegant template that highlights your best qualities at a glance;
  • Prepare thoroughly – research the companies that might recruit for the position that you are looking for and have a clear view of your expectations. Try to anticipate the potential employer’s expectations, too, and figure out how you would respond to awkward and difficult questions;
  • Look for recruitment agencies with experience in your niche – someone who knows your industry, as well as your particular niche, will be able to find the right position for you faster than someone recruiting for any industry, without in-depth knowledge and experience in your field.

Searching for the Cream of the Crop: The Benefits of an Executive Headhunter

Why working with an Executive Headhunter may be the best business decision you make his year.

A Harvard Business Review study suggests that 80% of turnover is due to bad hiring decisions. What does that mean when you are ready to bring a new executive on board? That the wrong decision will cost you.

Executives are the backbone of any company. Culture, leadership, and business strategy all revolve around who you have chosen to lead your team. And while investing in an executive headhunter may seem like something to put on the backburner, the results are worthwhile.

Executive headhunters don’t just bring potential candidates to your door. They weed through the prospects, bring in their own network, and sort through the logistics. This not only saves you time, but it gives you the mental space to make decisions on the important things: like determining which leader is the best fit for the future of your company.

Narrow Down the Pool

Did you know… it is fairly common for one job posting to get around 200 applicants? That’s 200 resumes to sort through, and dozens of phone calls before you find a few people who may be a good match.

An executive headhunter is able to do this for you and save you countless hours weeding through unsuitable candidates. They are also able to perform initial screening calls.

Cast a Wide Net

Executive headhunters have an excellent network to reference when seeking candidates. In fact, many executive headhunters are known as the eyes and ears within the industry and in the marketplace for their insight into the inner workings of firms in your industry. Sure, you may your business like the back of your hand, but recruiters have additional insight into who looking for a job and their skillset.

As leaders of the company, executives, do not advertise when they are seeking a new position, whether that be a change in company or a different industry altogether. Because of this, one of the most effective ways for an executive to find a new position is through a headhunter who can work confidentially (and allow you to connect with your future hire!)

The Logistics

From screener interviews to negotiations, to nailing down the ideal candidate… executive headhunters can serve as a partner that stands with you and your company every step of the way during the executive search. Many executive headhunters will even follow up with both the candidate and the company after a placement has been made to ensure the transition is going off without a hitch.

Recruitment companies like iKadre, do not take payment until your new employee or executive has accepted the job offer. What does this mean for you and your company? That we don’t succeed until you are satisfied with your new recruit. Every single time.

Interested in learning more about how executive headhunters work. Reach out! We would love to help find your leaders of tomorrow.

What Executive Recruiters Look for On A Resume

Recruiters, especially the professionals who recruit for executive positions, are very busy people who have only a couple of minutes to spend looking at a resume at a time – if their interest is not raised during that short time frame, they usually move on to the next resume and the next candidate. Experienced executive headhunters have a trained eye to evaluate resumes at a glance, filtering information and evaluating resume layout very quickly.

Here is what they are looking for when they are looking at a resume:

  • The candidate’s most recent role and current employment status – this detail is important for figuring out why the candidate is looking for a job whether it is because the applicant was fired or is just looking for new challenges;
  • The previous employer – whatever the industry, some companies will be more prestigious than others. Working for a company that enjoys a high reputation will surely add to the value of the candidate;
  • Experience – the direction of the progression of the candidate’s career is also important;
  • Gaps in the timeline – being in between jobs for a couple of months is usually not a problem, but spending a long time looking for a new job, then spending very short in that new job is usually a red flag for recruiters.

What to Know About Executive Recruiters

Turning to a reputable iKadre recruiter to find suitable talent to fill your executive vacancy is the best way to streamline the recruitment process and to reduce the necessary time, too. Here are some things to know about executive recruiters:

  • In-depth knowledge of specific industries and niches – most executive recruiters specialize in recruiting only for the industries and the niches that they know. That kind of approach allows well known technology executive search firms to choose the best channels for finding suitable candidates. They can also leverage their network on behalf of their clients;
  • Searching not only for active job seekers – executive recruiters usually know the key people in the field they are recruiting for, therefore they can reach out to people who are currently employed, but would appreciate new and challenging work opportunities;
  • A wide range of additional services – besides identifying the best candidates for an executive-level opening, recruiters can also provide additional services, including checking candidate references and participating in the interviewing and payment negotiation processes;
  • Awareness of the importance of corporate culture – executive recruiters are aware of how important it is to find candidates who are suitable for a particular role not only in terms of knowledge and experience, but also in terms of personality, values, and leadership style and they will integrate that awareness in their search processes.

5 Mistakes to Avoid When Selling your Business

Thinking of selling your business? Learn from business owners before you and avoid these 5 mistakes in the selling process.

For many business owners, the sale of your firm has been a long time coming. And while you are eager to close the deal and move on to your next venture, it is important that the transaction is conducted carefully and intentionally.

One of the best ways to avoid mistakes in the selling process? Learn from those who came before you! The time, effort, and dedication you put into selling your company now will pay off in the long run.

1. Selling too quickly.

We get it: selling your business can be a pain, and it can be tempting to get the business off of your hands quickly. Financial documentation, sustainable profitability, lease issues, staffing problems, and other concerns should be addressed before getting your company on the market. Solving these underlying issues can greatly increase the salability and margin of your sale.

2. Failing to negotiate.

Some people love it and some people hate it – but that beast “negotiations” will probably rear its ugly head at some point during the sales process. Know your worth and your company’s worth, and be willing to stand up for what you deserve. (HINT: Professional business brokers can come in very handy in this area!)

3. Being unprepared to defend your valuation.

Know where the numbers came from, and be prepared to show how you came to the conclusions you did! After all, anyone can say they have a multi-million-dollar company on their hands, but not everyone can defend that claim.

4. Unwillingness to get professional help.

You may know the business world like the back of your hand, however, having a professional walk you through the process, and advising on the best time to make the sale can be priceless. If you decide to get a broker, don’t forget to choose someone who is right for you and your company.

5. Not preparing the team for the transition.

Even good transitions can be challenging! Ensure that your team is aware of the changes  that will ensue, and the timeline that will follow. Furthermore, choose a buyer that prioritizes culture! This will allow for a smoother transition where everyone is happy and comfortable in the new working environment.

Navigating the Transition

Selling a business is not for the faint of heart, but as a business owner, you already knew that! With a little intention and a lot of preparation, it can be a beautiful chapter of your life. If you are interested in learning how iKadre can help navigate this transition, please reach out. There is nothing we would love more than to take this journey with you.

Should You Consider A Recruiting Agency for Top Talent?

Turning to an experienced recruiting agency like iKadre for help with finding suitable talent for your vacancies is a good way to streamline the hiring process for positions at any level of the hierarchy and the best way to succeed if you need top talent for executive positions.

Here are the benefits of working with professional iKadre recruiters:

  • An extended reach – a recruitment agency specializing in your industry or in your niche will have a large network of contacts that they will leverage on your behalf, searching for the right candidates not only among active job seekers, but also among talented people who are currently employed, but might be interested in new challenges;
  • Saving time – the process of recruiting for any position, especially for C-suite vacancies, is a lengthy process that involves viewing lots of resumes and conducting lots of preliminary interviews. Your recruiting agency will simplify that process by reviewing all those resumes and by conducting all those candidates to filter them and to send you only the best prospects;
  • Additional services – recruitment services can also provide background checking services to verify candidate references and they can also participate in the interviewing and negotiation processes to give you the new executive you need within the shortest time possible.