The last time you attended a dinner party, you might
have assumed that your hosts whipped up every last hors d'oeuvre themselves --
but chances are good that they outsourced at least some of the party
preparations to a caterer! This strategy, which maximized the tastiness of the treats as well as the quality time the hosts could spend with their guests, holds a lesson for recruiters: On special occasions, you may have to make tough decisions about the best use of your time, and the solution doesn't always involve working longer hours. Prudent recruiters get by with a little help from their friends in the world of contract research.
Contract researchers (or research assistants) ferret out and locate candidates, screen, rank, and qualify them, generally on the telephone. They pare away non-qualified candidates and prepare the top qualifiers for your call. When you're ready to extend an offer, many will also check references and credentials. They do paperwork. [Top]
WHO USES CONTRACT RESEARCHERS?
Retained search recruiters use them, and so do HR departments, but contingency recruiters, who are understandably more reluctant to invest dollars in a search that doesn't have a guaranteed payoff, generally don't.
As you may have guessed, a time crunch is the main reason that people turn to contract researchers "Using some freelancers provides maximum flexibility during the periodic peaks and valleys of any business," says Russ Towne, managing partner of RTA Recruiting Research (Campbell CA). "We support various cyclical industries, and they'll go from hiring madly for a period of time to not hiring at all, or very little, for periods of time." Carol Oglesbee, Director of Research for executive search firm Christian & Timbers (Cleveland), agrees; her firm occasionally outsources name generation during times of heavy workload in order to guarantee high-quality searches for its clients.
Researchers can do more than ease your schedule, though. Many are in demand because of their special expertise. "I've done a lot of work in diversity recruiting. I am a person of color myself," says researcher Kenneth Lee of Special Markets Group (South Stone Mountain GA). "Sometimes a search firm will call me when they have a fairly senior-level assignment for a client that wants that position to be filled with a minority." And a Silicon Valley recruiter told us that he uses IT-savvy contractors because "Silicon Valley is just so crazy now, we're swamped. [Contract research is] a good business to be in."
Of course, there are good reasons not to go out-of-house. Recruiting in a niche is the top reason our sources cited for reluctance to outsource this research. Because she is in the booming field of healthcare recruiting, Joan Schlachter, a Senior Associate with the Atlanta office of Heidrick & Struggles, rarely uses researchers. Healthcare executives are highly visible, she says, and she simply doesn't need extra help in finding them. It's the same story at a contingency staffing firm in the market research niche, where one exec says, "I don't believe that anyone could do a better job of finding these people than we can."
Another recruiter confesses that there is much debate at her executive search firm about the proper role of researchers. Her opinion is that clients deserve to have the recruiter they hire acting on their behalf in the marketplace, so she is not comfortable having contractors make phone calls. She does say, however, that contractors are "great" for generating names. [Top]
SERVICES OFFERED
In fact, name generation is the most popular service requested of researchers, with telephone screening running a distant second. "Name generation is where most of the demand is. In the recruiting business, names are gold," says researcher Gary Teller of Executive Search and Research Services Inc. (Dunwoody GA). Every researcher interviewed for this story agreed, explaining that recruiters need vast numbers of quality names to support their business.
According to Dick Finnegan, a former employment manager in a large corporation, "[Contractors'] greatest skill is that they can call in to companies and get you lists of people ... without using or scarring your name."
Mary Coole, a former recruiter who now runs her own contract research business, Search/Research Services (Lilburn GA), says that she actually prefers performing name generation only, as it keeps her out of "mission impossible situations," where the client is looking for an elusive candidate. Other researchers echoed that sentiment.
The second-most-popular service researchers perform is telephone screening. The advantage here is that the recruiter gets a list of candidates who are definitely interested in receiving another call. A potential downside is that researchers' skills vary. Until you're sure about whether the contract researcher you're using can win candidates over, you might want to perform this task yourself.
Many of the contract researchers in the marketplace are former recruiters themselves and can provide total turnkey solutions. Their usual mode, however, is to sell unbundled services, allowing clients to put together their own packages from an á la carte menu consisting of target lists, screening, interviewing, and more. [Top]
TARGETED RESEARCH VERSUS "DATA DUMPS"
It's important to decide whether you're hiring someone to do original research or provide names out of a database.
Researcher Coole says she cannot overemphasize the value of targeted research. "I've been a consultant, and I've done searches my way, so I've proven that process to myself. If I spend a little more time in original research identifying the best people, I spend less time in screening and recruitment calls, because I call 'righter' people first," she says. Committing to spending money on research ultimately saves her clients money, Coole adds.
Christian & Timbers is another search firm that places a high priority on original research, although it starts from a file search and works from there. Unlike many other search firms, C&T uses a team-based approach; each and every project has a researcher, a recruiter, and a consultant who takes care of client relations. Management feels that the researcher is "the backbone of the search," says Oglesbee.
It's not that databases aren't useful; they are. It's necessary to keep a record of contacts, and many recruiters -- particularly recruiters who work at big companies with big databases -- report that they are satisfied with the leads that their file searches provide. The question is whether you want someone to make calls especially for you, whether you want to get access to the database that person has developed, or both. This requires evaluating how fast you want things done and how much you are willing to pay.
Researcher Joan Leonard of Leonard Associates (Alamo CA) offers both services. "The file search has been really useful for a lot of clients, because it gets them started," she says. "They know they're probably going to do custom research, but at least they can go into a presentation," armed with a list of names, and make a case for how well-equipped they are to start the search. It's not the be-all and end-all, says Leonard, but it's a good jumping-off point -- and it's quick. "We can often produce those lists within minutes. A client can call us up at noon and say 'I've got an appointment at 3 o'clock; what can we do?' and we've got a list over to them within the half-hour."
HTC Research (Martinez CA) specializes in quick-turnaround name generation. "We pride ourselves on our speed and our quality," says President Jesse Hahn, who employs 24 full-time researchers in two states. "When we get a job, we guarantee they will have candidates within 24 to 72 hours. And we work 40 to 50 jobs at a time. We're the largest at what we do." What HTC does is sell different packages of names, "100% guaranteed," for a set price. The secret of its success is a combination of multiple researchers, a large database, and a specialization in high tech. [Top]
LOCATION? NO PROBLEM
The vast majority of contract researchers work on their own, often out of a home office. "It's pretty much a one-man band," says Janis Roche, principal of Executive Recruiting Research (Redondo Beach CA), who has been in business for 17 years. Many researchers are drawn to the flexible lifestyle, which Roche credits with allowing her to be with her children when they were younger. But, she cautions, the life can be "isolating."
It's unusual for researchers to work on-site. Because they are usually conducting several searches at once, they are reluctant to block out eight hour periods to concentrate on a single client. They work best with their own contacts and equipment, which enables them to keep many irons in the fire at once. On rare occasions, however, contractors hire on for long-term, on-site project lasting months, such as staffing an entire department.
Another reason that you might never meet your researcher face-to-face is that contract research is independent of physical location.
"There's a phrase in the Bible: A prophet in his own land is not believed,'" said one contract researcher. "People are always more impressed by someone from out of town -- no matter what town."
Many researchers set up shop on the East Coast in order to take advantage of the earlier time zone. Atlanta-based Lee says others gravitate to the South because the climate is mild and "the economics make more sense."
But a researcher's home base really doesn't matter. "As long as you have a telephone, a computer, a fax machine, and a directory, you can operate anywhere," says Leonard. Leonard operated her business from Lake Tahoe CA for the first seven years and did not find it a liability. She reports that her new location, which is closer to Silicon Valley, has had little effect on business, even though she specializes in high technology. Researcher Caroline Price of Caprice Consulting (Peachtree City GA) confirms this, saying, "Geography does not play any part in either the consultants that I work with or the search firms I work with. More often, industry is more important than geography."
Because they are often physically isolated, researchers tend to band together in organizations such as the Atlanta Research Roundtable and the Southern California Research Roundtable. In addition, they often form their own improvised support systems. Darlene McCarthy, who runs her own research firm, IR2000 (Forestdale MA), says that networking informally with two other researchers is invaluable to her work. "Even though each of us is in a different part of the country, with the new technology we can talk to each other over the Internet or on the telephone and keep each other informed every day," says McCarthy. The peers keep one another informed about new techniques and offer advice on business practices or difficult searches. [Top]
CHOOSING A RESEARCHER
We asked recruiters the best way to choose a contract researcher. The unanimous answer was: check references. But there are other steps to take to make sure that you are hooking up with a researcher who can meet your needs.
Schlachter advises that you mine your past relationships. Perhaps a recruiter that you know and respect has turned to research. You could also take a referral from a trusted colleague. "Rarely do we use people who have just hung a shingle out, because you want to know that you're dealing with someone who can get the information for you. It's a fairly expensive service, so we are always looking for value and timeliness," says Schlachter.
Oglesbee recommends starting with The Executive Search Research Directory (see page 90) to find likely matches, then interviewing at least ten candidates. Oglesbee quizzes candidates on turnaround time, delivery methods, fee structure, and more, then asks for a sample of recent work. The sample clinches the deal, she says, because it's such a tangible example of what she'll be buying.
One executive at a retained search firm goes so far as to demand a sample work period. "Limit it to ten hours and see what results they give," he advises. Any good recruiter should be able to surmise quality of work from such a trial, he says. [Top]
HOW MUCH DOES IT COST?
The total fee for a researcher can add up to just about anything, depending on the services requested, but it's almost certain that you'll be paying by the hour. Research is a chancy business, say contractors, and most are unwilling to make promises based on a flat fee. "You have to be careful about project fees, because they can come back to bite you. If you don't have all the information and presumptions about the search accurately up front, you may find that what appeared to be easy is actually incredibly difficult, yet you're under an obligation for a project fee," says researcher Stewart Morris, President of Stewart Morris Associates, Inc. (Torrance CA).
Fees vary widely, with a rough industry average of perhaps $65-$70 per hour. If you're looking for a bargain, you can find less experienced researchers for $50/hour; rates on the high end run up to $150/hour. "But just because some researchers charge $150 does not mean that they are the best," says Oglesbee, who says she's been disappointed in the results produced by some firms that charge that much. Oglesbee's strategy is to stick with researchers from a stable of proven talent; many do exemplary work at reasonable rates, she says.
You may hope to get around the uncertainty of hourly rates by asking for estimates, but researchers are reluctant to give estimates, saying that they are little more than flat fees in disguise. Researcher Teller says that an estimate for name generation is "just a strange animal to get a grip on." Sometimes, you run into dead ends; other times, you hit a gold mine on the first try. It depends on the complexity of the search, variety of titles that could apply, number of regions searched, centralization of the company, and so forth. And Morris feels that hourly rates can actually punish a swift researcher. "There's an odd catch-22 when you're working hourly: the better you are, the faster you are, the more complete you are, the less you earn," says Morris. He works around this problem by setting minimums and by negotiating completion/deliverables incentives on hire.
Hahn of HTC Research, one of the minority of firms charging flat fees, argues that his customers prefer to know what they are spending up front. "I feel that it is better for the customer if I charge them by the name. I believe we should charge for the work we've done. If it takes us a week to get those 20 names, then it's our loss. If it takes a half hour to get 20 names, it's our gain." [Top]
LIMITATIONS
Unfortunately, in some quarters, contract research suffers from a kind of professional stigma. One search-firm exec says it can be hard to find superlative researchers because the best ones are constantly trying to move up and out of their jobs. She also claims that she sees a lack of commitment and quality in some members of the profession. Researcher Leonard admits that there may be some unreliable researchers but asks that a few bad apples not spoil the reputation of the entire industry. "I know that there are researchers who try very hard to be conscientious, provide quality research on time, and always act very reliable," she says, adding that any good researcher will work hard to "make it right" if the information presented is not precisely what the client wanted.
Many researchers feel hurt by the profession's mediocre image but say that it is changing for the better. "There was a time when a lot of people saw research and search work as just being what people did when they couldn't find a job themselves," says Lee. "But I think, more and more, we're beginning to see people who are willing to dedicate their careers to research."
Complaints about contract researchers primarily involve the matching of ideals. It's difficult for people who have never met to have the same ideas about what constitutes top results or the same impressions of something as subjective as a candidate's tone of voice.
But the limitation mentioned most commonly, by far, is availability. The market is hot right now, and all researchers are busy, busy, busy. Your favorite researcher may not have time to work you in if you are only an occasional client. Oglesbee recommends sticking with a researcher you trust, even if it takes a little longer to get results, because "there are firms that aren't as busy and their turnaround time is fast, but the quality isn't there, and you may end up doing your own research anyway." [Top]
TIPS FOR SUCCESS
So how do you choose and use a researcher successfully? "Start small, and build a relationship slowly. Give him or her a chance to measure up or to fail. "We say: 'Either succeed quickly or fail fast,' so if they're not working out, you'll know it soon," says Towne, who suggests specifying project milestones as a way to avoid getting blindsided with a big bill and nothing to show for it.
Morris advises recruiters that "It's vital to ask specific questions
of researchers to determine whether they've done this type of search
before. If they've done good work for you in another area, that's a good
sign but it's important to know what you're paying for. Some researchers
can learn very quickly and use a successful search model, but you should
know whether you're paying for a steep learning curve before you
authorize the work. Then everyone's expectations are realistic."
Oglesbee recommends having researchers turn in work on a daily basis
because "It gives a jump start to the recruiters. You're not losing any
cycle time." This also ensures that you can provide continuous feedback
to the researcher, making sure that your expectations match as the
search progresses.
Overall, experienced users are positive about the symbiotic relationship between researchers and recruiters. Keep up communication, they advise, and make sure that you've found a researcher who is a good fit for you, both in industry expertise and personal style. If you can negotiate a good relationship with a contract researcher, it may help to make you more productive and successful than you've ever been.
Si Review researched and wrote this article in response to reader inquiries. [Top]
