Let’s face it, the recruiting industry doesn’t have the greatest reputation. Many heavy equipment dealerships, rental companies, and manufacturers have hired recruiters and paid hefty fees that yielded little or no return on investment. As a result, we encounter a lot of resistance from companies needing to hire key talent, and for good reason. Most of these companies who are justifiably wary have been burned by a failed attempt to hire through an agency. So, what can heavy equipment employers do to help reduce their investment risk while still gaining the benefit of the network, resources, and expertise of a specialized recruiter?
Recruiting Guarantees
Guarantees are nothing new. There are lifetime guarantees, money-back guarantees, service guarantees, and product warranties. The question is, what position should a heavy equipment recruiter take when it comes to offering a placement or performance guarantee? Is this an important factor in determining what agency you should select to help you fill your next service manager, sales representative, or executive role?
Research
Conduct due diligence through customer references, online reviews, and direct discussions with other dealerships or rental companies who have used the agency. Select agencies that serve as your agent, not the candidate’s agent. A good heavy equipment recruiter should be working for you to find the best talent, not just placing any candidate to earn a fee.
Pre-Hire
Clearly define and scope the position beyond just duties and requirements. Discuss the likely challenges facing your new service manager or sales representative, requisite core competencies, personal attributes, experience, and education needed for success in your dealership or rental operation.
Discuss your company’s vision, mission, and values in your interview process to ensure alignment with candidates. Develop behavior-based interview questions to address likely challenges and look for requisite core competencies for the position. Ask the candidate to develop a 90-to-180-day plan to help transition successfully into the role at your heavy equipment operation.
Post-Hire
Prepare a 90-day onboarding plan specific to your heavy equipment operation. Establish a weekly, bi-weekly, or monthly check-in meeting with an agenda to review performance and provide feedback to the new hire. This is especially important for technical roles like service technicians and parts managers who need proper training on your specific equipment brands and systems.
The industry standard for most recruiting agencies is a 90-day guarantee. You may find some willing to offer more, although it likely depends on the type and level of search being conducted. To help address the concerns of heavy equipment companies, reputable recruiters often structure their fees into specific types, each with particular assurances.
- Engagement Fee: An up-front fee that aligns the company and the recruiter. This ensures the recruiter will provide qualified candidates within a specified amount of time or provide a refund. This makes the recruiter accountable for delivering quality heavy equipment candidates within a defined period.
- Placement Fee: Paid at the time of placement as a reward for placing a candidate into the role. This ensures the recruiter is accountable for providing not only interview-worthy candidates, but candidates actually worthy of an offer. Most reputable recruiters provide a placement guarantee that ranges from 90 days to one year, depending on the role and seniority level.
- Success Fee: A portion of the total placement fee that is set aside for a period of time to ensure that the candidate is on board and performing as expected. The idea is that the recruiter doesn’t take the full fee until clients are certain the candidate is performing well. If not, the success fee isn’t charged.
We believe heavy equipment recruiters should have accountability for your return on investment. That being said, we also believe dealerships, rental companies, and manufacturers should recognize that recruiters can only control the front end of the hiring process. Companies with weak leadership, poor communication, lack of performance metrics, cultural problems, and low accountability should assume a significant amount of responsibility for the success or failure of any employee, including those hired through an agency.
For example, imagine you purchased a new piece of premium heavy equipment and decided to operate it in extremely harsh conditions without proper maintenance. Would you consider the manufacturer responsible for the damage caused to the equipment? Should those repairs rest on the operator or owner, or the manufacturer? In this example, your new employee is like that premium equipment, and their performance success will depend on the environment you put them in. That said, be careful not to hire someone overqualified when what you may actually need is a different skill set. You cannot hold the recruiter accountable if you hired the wrong person for the specific job requirements.
Key Takeaways
Yes, we believe satisfaction guarantees are important when engaging a heavy equipment recruiter. Look for recruiters with proven experience in the heavy equipment industry, strong client references from other dealerships, rental companies or manufacturers, and fair guarantee structures that protect your investment while holding both parties accountable for success.
However, if you do your part as an employer by providing proper onboarding, clear expectations, good leadership, and a healthy work environment, you’ll likely find the ROI from your recruiting fee will not be an issue. If it is, then the recruiter should step up and take ownership. This is why we feel that “reputation” is the most important aspect of selecting a heavy equipment recruiting agency.
