Successful Objection Handling - Specifically during a recession

We’re in the middle of it, folks. The toughest economy in decades. We hear it every day from prospective clients and longtime customers alike, “We have a hiring freeze” or “We are about to have a “RIF” (Reduction in Force)” or even “We’ll work with you, but only if you cut your fee.”

Today’s marketplace is not for the fainthearted. These are trying times in the recruiting world for those not fortunate enough to be deeply entrenched in the rare market unaffected by a struggling economy.

There is good news however. In a sort of Darwinian way, weak recruiters are going to remove themselves from the industry. The rest of us will stay and fight for our careers. It won’t be easy, but those of us who won’t accept defeat are going to make it happen. To do that, you’ll need to follow four rules of recruiting in a recession.

Each of the rules I’ve outlined below is essential in a tough, tough marketplace. The reality is you’re hearing a lot of client objections in this economy. You’ve got to have a strategy in place to deal with them. Those who master the art of recruiting in a recession will emerge from this economic downturn stronger and better at what they do. The recruiters who succeed today have so much to look forward to tomorrow!


Rule Number 1: Talk to the owner of the problem

Many times when we hear objections, we are not talking to the right people or the specific hiring manager who owns the problem. Our friends in HR are good at delivering the bad news. A great example: I got a call last month from one of an existing client’s HR Managers. He’d heard that the major ERP organizations were only paying flat $10K fees. And he wanted the same deal. His reasoning: if Oracle and HP can get away with it, why can’t my small software provider?

It’s a classic mistake and one I needed to correct. Right away I arranged a conference call with HR. I then began discussions with the Hiring Manager – who owned the problem. We talked about the difficulties he was having finding and acquiring top talent in his market. We defined the pain associated with sub par talent, the risks posed by tolerating a “C” player on a team that absolutely needed superstars. We never talked fee reduction. This was a conversation completely focused on one thing: identifying the ways in which we could find him better talent, more quickly.

Talking to the owner of the problem or the actual hiring manager increases your chances of working through the issues on the table. It isn’t about fees. It’s about people. HR may not feel the pain when a team is struggling to find top talent, but I think they like inflicting it sometimes!


Rule Number 2: Understand the problem

Sometimes I feel like I should tell people I’m a fulltime recruiter and a part-time psychologist. Because over the years I’ve realized that my clients need a lot more from me than a cursory knowledge of their hiring needs. Especially when times are tough, recruiters need to really understand their clients. The more we know them, and the deeper our understanding of what they are going through in this economy, the better we are positioned to help them.

Never forget. No economy changes this basic truth: all problems in business are people related. To identify what is really going on in an organization, get to the tertiary level of questioning.

For example, a client tells you her firm is putting into place a hiring freeze. You then ask the first question: “Why would you do that?” Your client explains there has been a slowdown in revenues lately. At this point, most recruiters would put their tails between their legs, and slink off to the next client hoping for better things. But that is exactly the wrong thing to do! Here is a chance to earn your stripes. Ask the secondary level of questioning. “Where are you seeing a shortfall in revenue? Is it a product, service or location?” The client tells you the shortfall in revenue is occurring mainly in the Southeast – which accounted for 33% of the company’s revenue in 2008. This is your chance… your tertiary level of questioning. Follow up with this: “Is there a problem with the product or service – or with your sales team in prospecting for new business?” There you have her. It isn’t that the product has failed. It’s the people failing the company in a tough economy. When you’ve subtly led the client to that inescapable conclusion, you’ve won. She may pause for a few seconds, give an uneasy laugh and say something like “Our product is still the best in the industry.”
Bingo. The truth will set you free.

By achieving the tertiary level of questioning on business issues, you will uncover realized and unrealized client needs. Like a psychologist helping a patient navigate through complex problems, unrealized (or latent) needs are what recruiters need to uncover. We must really understand our clients’ problems—today more than ever.

Rule Number 3: Show how you can add value—and eliminate the problem

Once you’ve identified the source of the problems troubling your client, you must show how you can add value. The truth in this economy is that while it’s easy to find average talent today, it’s still extremely difficult to find exceptional talent.

In extraordinary times, ordinary people don’t solve problems. “C” Players simply don’t have what it takes to help their teams triumph over the myriad of issues this economy creates for businesses. Luckily for us, that’s our specialty. We bring exceptional talent to our clients. That is how we add value, whatever the economy.

I recommend the following general script:

“Mr. Client, let me ask you a question. What we’re finding is that in today’s market average talent is everywhere, but exceptional talent is very difficult to find. Those are the individuals knocking the sales quotas down for your competitors in the Southeast. Here is my question…Since I talk to the “A” players in your market on a daily basis, would you like me to bring to your attention the top “A” players in the Southeast? The people who could quickly solve your revenue issues?”

With this simple paragraph, you’ve identified exactly the value you bring to the table, and how you directly solve customer problems. If you do this right, there can be no hiring-freeze objections. You bring exceptional talent to the table: the people who find a way to be successful in any economy. It’s a very clear choice: a team stuck with average players and failure or a team stacked with “A” players and thriving, whatever the economy! You are the one who can make that difference for them…


Rule Number 4: Spend more time getting good business

In a recession it’s not that there is no business to be had, it’s that unfortunately most of it is bad. When the economy is this tight, clients reduce fees, put multiple recruiters on a single search and delay hiring indefinitely. A successful recruiter’s goal is to get enough good business to eliminate the need to work on bad business. Bob Marshall came up with the Job Order Matrix a few years ago and it still is worth its weight in gold today. The Matrix itself poses a series of questions that rate a job. It distinguishes between great job orders or search assignments and those that need to be left alone. You can find this matrix on my website www.talentwinsonline.com/news.htm Take a look at it and get in the habit of using it. It can make or break you in 2009.

To acquire more good business, increase your marketing time. It isn’t enough to market a few hours a day; you’ve got to invest serious time every day to get good business.

Marketing time is based on the number “A” search assignments you have and your unique marketplace. If you are going to take a true “A” player to market into your prospect and client base, you will have a lot more success than other marketing techniques today. My rule of thumb – if you don’t have enough “A” search assignments to hit your numbers for the next three months, then increase your marketing time.

Times are tough. Every industry in our country is facing challenges. But I like to tell my staff that strong winds make strong trees. With every day that passes, we are one day closer to a better economy. And when we emerge from this storm, we will have the improved skills and increased professional confidence born of experience.

More importantly, our clients need us. Don’t let them stop you from helping them make it through this recession. We will all benefit from doing our jobs the best we can, even in a challenging economy.