I usually shy away from the top 10 lists or the cliché of “Things you need to do” but I couldn’t resist putting together a list of what I feel are critical actions you should be taking, processes that you should be following or tools that you should be using if you want to be competitive in the DFW IT Staffing Market.
Number One – Educate your clients
Yes, it is hard to believe that there are clients in the Dallas / Fort Worth area that are still clueless regarding the shortage of good talent in this area. Some clients also seem to be looking for candidates that don’t exist or losing great candidates waiting for that “Perfect” person. Unfortunately, some of these clients think that unemployment figures relate to the DFW IT Staffing market. All I can say is that they need to wake their asses up – You cannot afford to be choosy. Those perfect candidates are already working and are few and far between.
Number Two – Attend Networking Events
In December 2011, Bullhorn performed its annual global survey* of recruiting professionals seeking data and insights into overall firm performance, best practices for success, perceived risk factors and compensation. The report revealed that the most effective way to obtain candidates as well as clients was attending networking events. According to the article, candidates found at Networking Events are 60% more likely to be a technical fit as well as passive. One interesting bit of info – The same study listed Job Boards as being the least effective and Social Media cracked the top 3 for the first time.
Which brings me to……
Number Three – Participate in online Social Networking
Social media use continues to grow, and most recruiters that I know think that Social Networking is particularly effective for identifying high-quality, passive candidates. In terms of results, LinkedIn is not only the most utilized Social Networking tool for recruiters but it also appears to be the most effective. If you are a Recruiter, you MUST have at the very least a Linkedin Business Account which will allow you to utilize the advanced search functions and provide you with a greater number of results as well as more “InMails” per month. Every recruiter should ask their employer to invest in a Business Account. If you cannot get your employer to reimburse the expense, take care of the expense yourself…it’s worth it. If you are an employer and cannot make the investment…well……f##k you!!
Number Four – Implement an Aggressive Referral Program
I have never understood competitors or clients that get cheap when it comes to paying referrals. Here is a good rule of thumb – If you are placing someone in a Direct Hire position, the referral should be 4 figures (minimum of $1,000 up to a quarter of the fee). If it is a Contract position, you should pay a percentage of the margin dollars for the duration that the referred person is on contract. In addition, Pay client referrals by providing a percentage of ALL business generated at the client for a year. Once you get a good referral program established, roll it out to EVERYONE in your database (Contractors, Placements, Candidates, Alumni).
Number Five – Increase your Mark-ups
Yeah……you heard me. I’m not talking about gouging your clients. I’m talking about getting away from 35 to 40% markups on non-volume accounts. I would also add that you need to stay away from fees under 20%. Bottom line – you don’t need to lower your prices if you add quality and value. I understand standard mark-ups for high volume accounts, but there are too many clients that will pay fair market value and there is simply a shortage of good IT Talent.
There are many more things that I could add and increase my list beyond 5 like – Getting great benefits and training for your contractors, search for candidates out of state or in other markets, implement contests weekly/monthly, etc. I chose 5 because I needed to keep my focus and because writing this blog is a hobby of mine……not my career. Best of luck to you in your searches!
*Additional Info from Bullhorn’s Staffing Survey that I think you might find interesting
- 70 percent of the staffing companies surveyed report that their firms either met or exceeded their 2011 revenue goal.
- 96 percent believe their firm’s revenue will increase in 2012.
- Average placement ratios decreased from 2010 (35.6 percent) to 2011 (34.1 percent).
- Average compensation for recruiting professionals was $136,385, up slightly from $131,851 in 2010.
- 61 percent reported that their compensation increased from 2010 to 2011.
- Nearly four out of five respondents (79 percent) plan to add staff to their business in 2012.
- 94 percent now use social media for business.

This is the first of a 3 part series.
After about 20 years in the business of IT Staffing and Professional IT Consulting Services, I have had many experiences that have molded me into the ornery SOB I am today. I have previously worked and continue to work with exceptional people and am fortunate to have a great business partner. I have had the pleasure of seeing many people that I have worked with attain tremendous success and have also witnessed people at their worst. The reason that I’m writing this article is to share some advice, personal rules, insights and opinions.

