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As the timesharing industry positions itself for the new century, the future is bright and the opportunities are virtually endless. Tremendous growth has created unexpected challenges when it comes to staffing timeshare and related companies. Unemployment in the United States is at a 28-year low, holding steady at just above four percent nationally, and that is'nt expected to change in the near future.
Compounding the problem is that the number of people possessing the appropriate skills to work in our industry may well be considered a mere drop in the shrinking labor pool. While various training institutions are increasing their efforts in the hospitality arena, they are not focusing on the special needs of the timeshare industry. And even if they were, the process of training and then acquiring practical experience takes time ?and in the vibrant climate of timesharing today, time is of the essence.
Most corporations have strategic plans that drive their financial, operational and marketing functions. A quality executive management team is essential for executing those plans, and companies that fail to develop and implement an effective human resources strategy are at serious risk of falling short of their goals. When the wrong, or even a close but not perfect candidate is hired (especially at a senior level) the costs are significant. Profits are lost, growth is inhibited and general morale suffers.
To find top talent and reduce the risk of hiring mistakes, savvy timeshare operators are turning to executive search firms. The logic is simple: if you are in the timeshare business, your expertise is in developing, marketing, and/or running resorts - not finding and screening people for sales and management positions.
By contrast, executive search firms do nothing but locate, qualify and match the best candidate to the right organization. A search firm that specializes in the timeshare industry understands what skills and abilities the positions in your company require; knows the market in terms of compensation packages and availability; and has a network in place to help you quickly fill critical openings.
If you are running a fast-growing timeshare company, you simply don’t have time to handle the recruiting and hiring process as thoroughly as an executive search firm can.
According to Mie-Yun Lee, editor of the Business Consumer Guide, the primary advantage executive recruiters offer is their ability to tap candidates that you would otherwise be unable to approach. “In particular, executive recruiters can recruit individuals who are currently employed, whether they are passively looking for a job or not even in the hunt," she says.
Business is Booming
Whether your are hiring or looking to be hired, if you are an industry mover and shaker, you will likely have contact with an executive search firm at some point. Growth in the headhunting industry is outpacing overall employment growth. The money paid to headhunters in North America has been increasing at the rate of 17 percent annually, from $3.5 billion in 1993 to $6.5 billion in 1997.
Don't confuse executive recruiters (or headhunters) with employment agencies. The latter are businesses that are typically licensed by the state that deal primarily with clerical and junior level staff and are often paid by the applicant. Executive recruiters are what the name implies: they seek out qualified, management-level candidates for their client companies, which pay a fee for their services.
Executive recruiters are compensated by either a retainer or on a contingency basis. Generally, retained searches are used for high-level executives, while contingency searches are for junior and mid-level executives. When a recruiter is on retainer, the fee is agreed on and paid whether or not the company hires one of the candidates. Under a contingency agreement, the recruiter receives a percentage of the new employee’s salary and is paid only when this candidate is selected and hired.
Executive recruiting services are not inexpensive. In general, recruiting fees range between 20 and 35 percent of a position’s first-year compensation. In addition, prospective employers pay travel costs and other related expenses required to bring candidates in for interviews. However, smart hiring authorities realize that search fees do not cost a company money, but rather make a company money by achieving a higher standard of employee who will impact the bottom line with experience, reliability, and additional relationships.
The Search is On . . .
Choosing a Search Firm
Headhunting is as much an art as it is a science. "It requires a careful blend of skill and intuition, and you should select your Search firm with as much care as you would choose a senior-level employee. Begin by looking for a firm with expertise in the timeshare industry. Or a search firm to be effective, they need to know the players, both major and minor, in our industry."Says Ed McMullen, Sr., RRP, a partner with Shell Vacations and outgoing chairman of ARDA. T“They also need to understand the corporate cultures of the particular companies and be able to appropriately match candidates skills and personalities with those cultures.
Timeshare expertise also means the headhunter will understand what each position requires and how it is unique to the industry. “Because ours is a relatively young industry, the pool of experienced timeshare professionals is understandably small,"says McMullen. “You need a recruiter who can look at a candidate from various other hospitality fields and even totally non-related industries, and be able to evaluate whether or not their skills are transferable." Next, find out who will actually conduct the search. In many large firms, once an account is sold, the actual search is assigned to a subordinate who may not understand your needs or represent you as professionally as you would like. The recruiter who is handling your search should understand your company and its specific needs and opportunities, and be able to quickly recognize people who will satisfy your requirements. This means the recruiter must have the background to fully appreciate your situation ideally, this includes having worked as a senior executive in the resort timeshare industry.
It is critical that you be comfortable with how the recruiter will represent you and your company to the industry and the general public. In an executive search situation, the recruiter creates the first impression a potential candidate has of your company. To attract high quality candidates, that impression must be strong, positive and professional.
Work out all the details of your agreement in advance. Be sure fees and payment terms are clearly spelled out. Ask for a thorough explanation of the recruiting process that will be used and how extensive the screening procedures will be. You should understand exactly what will happen and what your mutual responsibilities are.
Before the search begins, you should provide your headhunter a detailed job description, the education and experience you require, and the compensation you are offering. Keep in mind that many executives today are less interested in specific salary levels and more concerned with job satisfaction and growth opportunities, so be sure the headhunter has this information.
Of course, if you can avoid using an executive search firm by promoting from within, you should certainly do so. After all, promoting from within is an excellent management strategy; you know your own employees, you can groom them for future positions and you build morale when workers know they have advancement opportunities.
But when you need to go outside your company for the best talent, it makes sense to engage professional help to get the job done correctly.
Copyright ©2003 Keith Trowbridge, Ph.D.
