Full Desk Recruiters Deserve a Better Quality of Life

Successfully running a full desk in a recruitment firm has to be the most rigorous sales job in existence.

If you're one of the top 5% who has mastered your craft, why would you continue to give your precious time, blood, sweat, and tears to a company that is structured for the 95%?

Is your current environment just good enough, encouraging you to stick to the path of least resistance? Is "good enough" what you're worth?

Life is too short to spend it with an organization that doesn't allow you to maximize your earning potential, personal freedom and overall quality of life.

Kofi Group decided to start aggressively scaling our recruitment org in 2018 and engaged with a few rec2rec recruiters to help us better target top producers. This process forced us to get better at verbalizing what we're building, what we offer and why someone would want to leave their current recruitment firm/agency to come work with us. 

What we've discovered is that the more we share about how we do things, the more interest we receive from successful recruiters.

Here are the 14 questions I will be answering:

1. Why was Kofi Group founded?
2. How are we different and what makes us a highly-effective team?
3. How and why do we compensate recruiters so generously and what benefits do we offer?
4. What resources are provided?
5. How are we structured/managed?
6. How do we collaborate as a remote team?
7. How do we handle conflict?
8. How do our recruiters achieve work-life balance?
9. What's our niche and how have we done so far?
10. Potential drawbacks of our environment?
11. What's the story regarding individuals who are no longer with Kofi Group?
12. Why should you not worry about your existing non-compete/restricted location clauses?
13. Why should you work with us instead of starting your own firm?
14. Why will it never be "the right time" to make a change for a better opportunity?

Why was Kofi Group founded?

• Traditional, VC/PE-backed recruitment firms are stuck in the ice age. They're managed at the highest levels by investors (most of whom have never been recruiters), which makes them KPI-driven, inflexible with work hours, and highly focused on numbers/the operational aspects of this business - all while employing individuals who essentially work on a 100% commission basis and therefore shoulder the majority of the risks. There is nothing materially wrong with VC/PE firms, but very few recruitment firm owners have mastered the balancing act of pleasing their investors and creating a culture that works well for both entry-level and seasoned recruiters who crave the autonomy to drive their own destiny and fully enjoy the fruits of their labor.
• The widely used growth model is to hire entry-level recruiters, offer a crash course in recruitment/sales, deal with 90-95% employee turnover, and create corporate cultures that appeal to young, extroverted professionals who have little responsibility outside of work. These environments are often filled with distractions, integrity issues, politics, and fails to reward recruiters at a level that justifies the tremendous dedication that it takes to be successful in this business.
• Several small firms have some of the same issues because their founders were engrained with the methods taught at larger firms. There are a few exceptions.
• Recruiters are trained and rewarded to hit arbitrary KPIs - weekly activities that have a correlation with revenue production for the business. Ex - 300 phone calls/week, 15 hours of total phone time/week, 10 in-person candidate interviews/week, 10 in-person client meetings/week, 15 candidate sendouts/week. The problem is that correlation doesn't always equal causation. Many recruiters figure out their own personal formula for success, but they go through the motions anyway to avoid the negative consequences and humiliation from their bosses; the company's relationship with clients, candidates, and employees take a back seat to "hitting their numbers". Some of my old colleagues used to joke about being "telephone terrorists" - this is less amusing when you put yourself in the shoes of the people you're supposed to be adding value to. 

Have you ever found yourself at your desk on a Friday afternoon trying to fudge numbers to hit KPIs?

• The most successful recruiters eventually outgrow these environments...so they either isolate themselves from the rest of the office so they can put their clients/candidates first, they try to go out on their own (which we'll address later), or they look into other career options. 

We have created the ideal environment for successful recruiters who have outgrown traditional recruitment environments, achieved some of the highest levels of success and want to now work with a team of high-achieving individuals who are committed to this industry as a long-term career. 

“You become like the five people you spend the most time with. Choose carefully.” - Jim Rohn

If you want to elevate your career then you need to elevate your association.

Think about it... why do some of the most successful athletes make lateral moves to other professional teams? They want to play with the best, and in the process, position themselves to win more championships. Playing for the right team can geometrically increase your levels of productivity and overall quality of life.

How are we different and what makes us a highly-effective team?

• We are 100% bootstrapped, meaning we haven't taken a dime from outside investors. Our founder operated 2 successful businesses for several years before starting his recruitment career and self-funded Kofi Group for several months until it started to generate revenue. He started this company to serve as a solution to the inherent problems he faced while working for traditional recruitment firms. We're not driven by the need to show "growth numbers" and KPIs to investors. We chase organic growth through meaningful, long-term relationships.
• We are 100% results/productivity-focused and don't have daily, weekly, or monthly KPI targets. We instead, focus on monthly and quarterly revenue goals and trust our recruiters' mastery over the basics. We allow our recruiters to set their goals individually, based on their personal income goals. We don't manage the process, but we do hold people accountable for achieving minimum targets in a prudent manner. This is subjective because recruitment is both a science and art with several successful methods.
• We work 100% remote, allowing our recruiters to dictate their daily schedule, environment, and work-style while minimizing political issues, office distractions, and reducing overhead for the company (which we've reinvested into a very generous commission plan). As a company, this allows us to hire the best people, regardless of where they live. It's 2019... a time where people are more connected and leveraging technology better than ever before; our environment is reflective of that. Check out this article from Inc.com about the savings and lifestyle benefits of remote work:

• We only hire and retain highly productive, top producing, full-desk recruiters, who are committed to this business as their long-term career, have mastered the basics of running a full desk, and display the following qualities:

1. Self-directed, proactive and entrepreneurial approach to their work 
2. An insatiable desire to achieve and constantly outdo themselves 
3. Mental sharpness, above-average oral/written communication skills, and responsiveness 
4. Maturity and mental toughness 
5. Honesty, teachability, and humility 

• We're committed to improving our craft and have done several lunch-and-learn sessions with industry leaders (including our candidates and clients) across several domains to discuss emerging trends, recruitment best practices, and how they would do our jobs if they were in our shoes. This has given us the opportunity to broaden our perspectives while giving our audience a greater appreciation for what we do.

How and why do we compensate recruiters so generously and what benefits do we offer?

• We have cut out all of the unnecessary costs, things that most top producers don't care about. Ex - a fancy office, ping pong tables, "fully stocked kitchens" with expensive alcoholic beverages, multiple layers of redundant operations focused managers (who don't make placements themselves), etc. Instead, we've invested those funds into commissions and employee healthcare benefits. 
• We pay 100% of the monthly premiums for employee medical, dental, and vision benefits. We also offer subsidized plans for dependents.
• Regarding retirement plans, we recently moved away from a cookie-cutter 401k model and instead retained a financial advising firm that creates individualized, and flexible retirement plans and strategies for our employees.
• Our standard compensation plans offer a base salary or draw and a generous commission plan, which we've benchmarked against dozens of other traditional and boutique firms. We realize that recruiters have different levels of risk tolerance and have a few options to choose from.

Option 1, with illustrations: 

Base salary + commission + expense reimbursement + free employee benefits 

20% on 0-100k 

30% on 100-300k 

40% on 300k+ (uncapped) 

Ex. With $200k in billing, you make base + $50k commission 

Ex. With $400k in billing, you make base + $120k commission 

Ex. With $700k in billing, you make base + $240k commission 

Commissions are paid out immediately (on the next pay period) once we collect from the client, along with a commission report. 

Option 2 

Recoverable draw + commission + expense reimbursement + free employee benefits 

40% on 0-400k 

50% on 400k+ (uncapped) 

Ex. With $200k in billing, you make $80k commission 

Ex. With $400k in billing, you make $160k commission 

Ex. With $700k in billing, you make $310k commission 

Option 3  

Commission + no benefits or expense reimbursement (10-99 with tax write-offs) 

65% on 0-400k 

80% on 400k+ (uncapped) 

Ex. With $200k in billing, you make $130k commission 

Ex. With $400k in billing, you make $260k commission 

Ex. With $700k in billing, you make $500k commission 

How do these compare with your current comp plan? 99% of the recruiters we interview tell us that these are the most lucrative comp plans they've ever seen, but we'd like to hear from you as well: [email protected]

What resources are provided?

• We provide all of our recruiters with an iMac desktop computer, reimburse $50/month for cell phone usage, and $50/month for internet/connectivity
• Bullhorn ATS/CRM with email integration and public job postings
• Office 365 premium with shared cloud drive and Outlook email
• LinkedIn Sales Navigator
• Corporate credit card and reimbursement for any business-related expenses
• We value personal growth/development and reimburse the cost of any books/audiobooks that can help our employees to be more effective.

Here are a few of my favorites:

How are we structured/managed?

• We believe in leadership by example and personal accountability. Last year, our founder billed just under $500k in perm fees in his local market - this won't always be the case as we continue to scale, but it's the mindset that counts. The best recruiters don't need to be "managed" per se... they need active, available leadership whom they can count on and the resources to do their job effectively. We hate micromanagement just as much as you do - it stifles productivity and independent thinking. No status meetings, mandatory training, or emergency conference calls about things that can just be emailed out to the team. Instead, we just give people as much room as they need to do what they do best and point out blind spots as we see them.
• We publish a weekly leaderboard and invoice status spreadsheet so everyone knows where they stand and can plan accordingly.
• No one understands how to run a full desk better than someone who's actually doing it. Our current and future management team will never be completely removed from the day to day grind so they can constantly lead in a way that's in the best interest of our recruiters, candidates, and clients.
• Any coaching is shared on a one-on-one basis. We don't play games with people's egos by correcting or criticizing them in front of others.
• On the flip-side, we love recognizing our recruiters in public when they close tough deals or have an exceptional month.

How do we collaborate as a remote team?

• Since we work 100% remote, over-communication is key to keep things from falling through the cracks. Phone calls, email, text, etc. 
• We utilize shared spreadsheets along with our CRM/ATS to keep track of submittals, interviews, offers, etc.
• Daily, 15-minute Zoom video calls help us to calibrate on new clients, top priorities, and share what's working. 
• We get together in person, when we can, to celebrate wins as a team. We also have an annual holiday dinner and are looking into annual retreat/incentive trip options.

Candid screenshot from one of our Zoom calls

We flew the whole team and their spouses/significant others into Houston last year for a holiday dinner-party at Del Frisco's

How do we handle conflict?

• We attack problems and don't believe in sweeping anything under the rug, no matter how small. Little problems tend to grow and compound over time. Ex - how many times have you had a candidate bring up the 401k % match at the offer stage?
• We don't have a "Kofi Group way" of doing things or an employee handbook (who reads that crap anyway). We hire recruiters who are long-term thinkers, have common sense and do what is legal, moral, ethical, and in the best interest of everyone in all of their deals. 
• Disagreements are handled with respect and big-picture thinking. 
• Client/candidate ownership rules are very reasonable and published in our shared drive.

How do our recruiters achieve work-life balance?

• This is defined on an individual basis. We allow all of our recruiters to have unlimited PTO, provided they're achieving their minimum revenue targets, and we don't dictate how many hours they need to work each day/week. Quantity is important, but over time, most of our recruiters work smart and operate like "snipers" instead of "war dialers".
• Some individuals like to start early in the morning, grind it out through the afternoon, and finish up around 4 or 5 pm. Others (including myself) like to start their day in the mid-morning and work in blocks of time (with several breaks) throughout the day and into the late evening. We want our recruiters to be self-aware enough to do what's both sustainable for them and in the best interest of all parties.
• We work to live, not the other way around. Working remotely gives our recruiters the opportunity to fully integrate their work into their lives, instead of trying to squeeze their lives around a strict 9 to 5 schedule.

Here's one of our senior recruiters at one of his favorite work locations (yes, that's beach sand outside his window)

What's our niche and how have we done so far?

• Our current team specializes in recruiting software engineers (70% of our practice), data engineers, data scientists, and tech leadership. Most of our clients are startups or small to medium-sized businesses where we have the opportunity to work directly with hiring managers/executives and establish long-term partnerships. Being focused on a few key areas means that we sometimes miss out on potential business, but our effectiveness in these areas compensate for the lack of volume. We also have the respect of our clients and candidates because our recruiters understand the differences between client-side and server-side languages, relational databases vs NoSQL, data science vs data engineering, etc. Here's a screenshot of our last 10 placements, with salaries:

• We are currently evaluating other practice areas including accounting & finance, C-level search, sales & marketing, and subsurface/oil & gas. We'd like to hear from you if you're a successful recruiter in one of these practice areas and intrigued by what you've read so far: [email protected]
• Most of our success has come from Texas and the San Francisco/Bay area but we're eager to extend our presence to Denver, Phoenix, New York, and several other major cities across the states.
• Our revenue grew by more than 5x from 2017-2018 and we're on track to beat those numbers in 2019
• Take a look at what our clients and candidates are saying: 

Our Trustpilot reviews

Our Google reviews

Potential drawbacks of our environment?

• The level of autonomy we provide can be shocking and potentially bad for your career if you're not self-disciplined, intrinsically motivated, and have the ability to consistently produce results on both sides of the recruitment desk. We won't micromanage you so having an entrepreneurial attitude is critical.
• Working remotely could open you up for more distractions if you don't have a room that you can designate as a home office and effectively set boundaries with your family.
• We don't provide much formal training because we hire people who already have a solid mastery of the basics. Most advanced lessons are learned from reflecting on experiences. We do provide a constant feedback loop and accountability.
• Other than LinkedIn Recruiter Lite, we don't provide specific tools for new business development or sourcing. We expect our recruiters to be very resourceful and not overly dependent on off-the-shelf tools, online databases (which are often outdated), and job boards (which cannot give you access to passive candidates). We are, however, happy to explore inexpensive tools that you've found to be helpful in the past. We'll run a trial for almost any tool one of our recruiters can make a case for and evaluate whether or not it's worth the cost.

What's the story regarding individuals who are no longer with Kofi Group?

• We're obviously not the best fit for everyone and there's still an element of uncertainty in hiring. Some of our previous employees misrepresented or overestimated their abilities and were either focused on activity more than productivity, did not hit their minimum performance targets (which were set by them individually), or they repeatedly did things that made their co-workers question their ability to trust them as a productive member of the team. We take swift action when we realize that someone isn't actually a good fit for our team; this benefits them individually because they can quickly find an environment where they're a better fit, and it benefits the rest of our team for obvious reasons. Above all else, we take full responsibility for the success or failure of our employees and have taken measures to further improve our internal hiring process.
• We would much rather let someone go than risk compromising the A-team that we're building and not living up to the commitments that we've made to the rest of our top performers.
• There were also a couple of individuals who had a change of heart and decided that this industry was just too stressful for them. Unfortunately, we cannot reduce the level of difficulty in running a full desk. Our goal is to create the best environment for driven individuals, but the job itself is still a marathon.

Why should you not worry about your existing non-compete/restricted location clauses?

• Non-competes we're initially designed to protect a company's business interests and confidential data, but they're now being used as scare tactics and a retention scheme. If your non-compete states that you cannot work for another recruitment firm/agency for a set period of time, you need to understand that a restriction like that cannot actually be enforced in most states.
• Don't attempt to work with any clients or candidates you were previously exposed to and you won't have any issues. If you live in a major city, there are so many other individuals you can work with for the next year while you wait out your non-compete
• Are you worried about your ability to rebuild your desk in the same city without being able to leverage your existing network? I had the same fear in 2017 when I rebuilt my desk from scratch after leaving a national firm. What I discovered is that, in major cities, there is almost an unlimited amount of business. I put my head down, got to work, and put together over 10 new client agreements within a matter of 90 days - with companies that I had previously never heard of after working in the same market for close to 4 years. Don't be so naive to think that you've achieved maximum market penetration and are currently working with 90% of the good clients and candidates in your market. Furthermore, you've likely learned a ton of valuable lessons and could build a successful recruitment desk even faster the second or third time around. If you can't replicate your existing success, then you should ask yourself if you've really mastered the basics of running a full desk. Is your current success just due to luck?
• We also have relationships with a couple of non-compete lawyers who have assisted us in the past (at the company's, not the employee's expense) regarding reviewing and getting around complex non-compete agreements.

General enforceability/un-enforceability of non-competes

Non-competes are virtually unenforceable in California

Why should you work with us instead of starting your own firm?

Many top producers believe that the best alternative at the peak of their career is to "go out on their own". Here are some things to consider:

• Do you have experience with business operations, back-office/invoicing, financial management, legal processes/state documentation, people/vendor management, etc? These are all areas that come into play when you're building a firm, whether it's a solo operation, a 5-10 person company, or larger organization.
• Funding/startup capital - you either need to rely on an investor (which can lead to several cultural issues mentioned earlier) or self-fund, which can take years of planning.
• Time - the administrative areas mentioned above easily require 20-30 hours a week (on top of personal production time). Are you prepared to work 80-90 hours/week for the first couple of years until you build an infrastructure? 
• If you intend on just running a solo operation, some of the areas mentioned above will not apply, but you won't have the benefit of multiplying your efforts/collaborating with an effective team. If you change your mind after going solo, it's very difficult to join another firm.
• Our compensation plan allows you to earn nearly as much as you would if you were working solo, with a similar level of autonomy, minus all of the administrative headaches. Weigh the risk vs reward and potential tolls on your work-life balance.
• Two of our recruiters previously ran their own companies, had several options, and chose to work with us.
• If you do some light searching on LinkedIn, you'll discover that most recruiters who have gone solo aren't able to grow their org beyond 2-3 people. Being a great full desk recruiter and being a great business owner is not necessarily one and the same.

Why will it never be "the right time" to make a change for a better opportunity?

• If you're a successful recruiter, then you will always be leaving money/deals on the table. Since there is no getting around this, you should make this less of a factor when you're considering a move. Your 12-18 month non-compete will go by very quickly.
• Change is and will always be uncomfortable. It only gets harder as time passes. If you're a successful recruiter and want to increase your productivity, compensation, and work-life balance, let's talk.

In closing, our business is all about people... sadly, most firms forget that recruiters are people too. We aim to change that. Has this been like a breath of fresh air? We'd love to hear from you!

Contact: [email protected]