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Free Tips for Recruiters

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Tips for Recruiters
Table of Contents

Strategy & Tactics
w Make Placements -- FAST!
w Voice Mail & E-mail: Eight Simple Rules
w Job Orders -- Better, Faster, Smarter
w How to Switch Desk Specialties
w Who Makes the Most Money?
w Retainers: Look Before You Leap
w How to Add Value, Not Redundancy
w Intelligent Online Recruiting

Skill Building
w Counteroffers: Can You Spot the Signs?
w Resume Makeovers: Quick Tips
w Is There a MAGIC to Closing?
w Finding the Right Recruiting Script
w Storyboarding for Maximum Impact
w How to Stimulate Candidate Referrals
w Expand the Supply of Candidates

Candidate Management
w Playing Softball with Your Candidates?
w The Power of Interview Preparation
w Control: The Key to Recruiter Success
w How to Fight the Counteroffer Bug

Employer Relationships
w You’re Worth the Money You Charge!
w Negotiate for Higher Recruiting Fees
w Anti-Discount Tactics for Recruiters

For Candidates & Employers
w Graceful Exits for Job-Changers
w Advice for Engineering Candidates
w What’s Your Capture Strategy?

Q & A for Recruiters
w Answers to Your E-mail Questions
Bill Radin answers letters from recruiters around the world.

Insurance to Protect Your Business
By Bill Radin

Recruiters walk through minefields every day. But nothing compares to the devastation of being sued, which can put you out of pocket, out of business, or worse, in the slammer.

My wife's ex-husband was a doctor. His medical practice hired a bookkeeper who, before she was finally caught, embezzled over $20,000. She went to jail.

Attorneys for the medical practice discovered that the staffing firm who referred the bookkeeper had failed to perform a criminal background check on the bookkeeper prior to the placement. Since the bookkeeper had spent all the money she stole, the doctors sued the staffing firm and were awarded $20,000 in damages.

In a highly celebrated case a few years ago, an IBM employee was caught stealing trade secrets and was fired. IBM promptly sued the recruiter who referred the candidate. The plaintiff's attorneys found a discrepancy on the candidate's resume, which showed employment at his previous job to be 26 months, instead of 25. When the case went to trial, the jury found the recruiter guilty of professional misrepresentation and awarded IBM $1 million in damages.

How would you handle a lawsuit?

Litigation Happens, So Protect Your Assets
There are two types of insurance, property and liability. Property insurance covers your office, furniture, equipment and supplies. Most policies will also pay a certain amount to cover the cost of recovering or rebuilding your data files and business records, should they be destroyed or stolen. Some business policies also contain an umbrella rider to protect you from slip-and-falls or other physical mishaps that might affect your business visitors. 

The insurance you should be most concerned with is business liability, also known as errors-and-omissions (or simply "E&O"). As the name implies, an E&O policy protects you from (or minimizes your exposure to) liability resulting from your professional work, such as candidate or client misrepresentations or malfeasance, inadvertent non-compliance with regulations, or other types of misjudgment or honest mistakes you might make while conducting business.

E&O policies are very specific in the way they're underwritten, so when you apply, you'll need to state with great accuracy the exact nature of your personnel consulting business. For example, a policy written for temporary, contract or light industrial placement is very different than one written for permanent placement or executive search. In addition, your coverage is usually limited to the time frame in which the policy is in effect. In other words, your policy will not cover "pre-existing" or "post-existing" conditions—events that occurred before or after the policy's coverage period.

Very few insurance brokers or companies offer (or know anything about) E&O insurance, so shop carefully. The broker I use is Bradley & Parker, which is listed on my Resources page. Bradley & Parker represents underwriters that specifically offer E&O insurance to recruiters. The policy premium is based not only on the type of business you operate, but also on your annual revenues.

If you're an owner, manager or solo operator, I would strongly recommend you consider this type of insurance for your business. When it comes to lawsuits, the more protection you have, the better.



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