The Power of Old-School: Why Phone Calls Still Dominate in Recruiting

Welcome to a deeper dive into the strategies and insights discussed in our latest podcast episode, How an Industry Insider Built a Recruiting Agency From Scratch (No Fancy Tools). In this episode, we explored how Chance Wood leveraged his industry expertise and old-school phone skills to build a successful recruiting agency. Chance's journey is a testament to the power of genuine connections and deep industry knowledge in a world increasingly dominated by automation. Discover how understanding the client-side can transform your approach to agency ownership.

Introduction: Why Old-School Phone Calls Still Matter in Recruiting

In today's fast-paced recruiting landscape, where automation and AI are often touted as the keys to success, it's easy to overlook the enduring value of traditional methods. While technology certainly has its place, the power of a simple phone call should not be underestimated. A direct, personal conversation can forge stronger relationships, uncover deeper insights, and ultimately lead to better outcomes than relying solely on automated outreach or generic email blasts. In the episode, Chance Wood shares how his reliance on phone calls has been a cornerstone of his recruiting success.

The Unexpected Advantage: Industry Expertise and Relationships

One of Chance Wood's most significant advantages in building his recruiting agency was his deep industry expertise. Having worked in the agricultural sector, Chance possessed an intimate understanding of the roles he was recruiting for, the challenges companies faced, and the specific skills and qualifications that made a candidate truly valuable. This expertise allowed him to speak the language of his clients, build trust quickly, and identify candidates who were not just a good fit on paper, but also culturally aligned with the organization.

Building on this expertise were the relationships Chance had cultivated throughout his career. These connections provided him with a network of potential clients and candidates, giving him a significant head start compared to recruiters with no prior industry experience. The ability to tap into this network allowed Chance to quickly establish a reputation as a knowledgeable and reliable partner in the agricultural recruiting space.

Chance Wood's Journey: From Industry to Recruiting Success

Chance Wood's journey to becoming a successful recruiting agency owner is an inspiring one. After working in the agricultural industry, he transitioned into agency recruiting, where he quickly realized the disconnect between recruiters and the industries they served. This realization led him to take an in-house TA role, where he saved his company over $1.5 million in agency fees by applying the principles of an efficient and targeted recruiting strategy.

It was this experience that ultimately motivated Chance to launch his own recruiting firm, One Degree Agriculture. Armed with his industry knowledge, a strong network, and a deep understanding of the client-side perspective, Chance was able to quickly establish a thriving business without relying on "fancy tools" or complex automation.

Why Phone Calls Beat Automation for Business Development

In an age of automated email campaigns and AI-powered chatbots, it might seem counterintuitive to prioritize phone calls for business development. However, Chance Wood argues that phone calls offer a level of personal connection and engagement that automation simply cannot replicate. A phone call allows you to have a real-time conversation, ask probing questions, and tailor your message to the specific needs and concerns of the person on the other end of the line.

Furthermore, phone calls demonstrate a level of commitment and effort that sets you apart from the competition. It shows that you are willing to invest the time and energy to truly understand the client's needs, rather than simply sending out a generic email and hoping for a response. Chance emphasizes in the podcast the importance of building real relationships and how phone calls facilitate that more effectively than any automated system.

The Power of NPCs (Named Potential Candidates) in Client Acquisition

One of the most innovative strategies Chance Wood employed in his business development efforts was the use of NPCs, or Named Potential Candidates. Instead of waiting for clients to post job openings, Chance proactively identified talented individuals who he believed would be a valuable asset to their organizations. He would then reach out to these individuals, build a relationship with them, and present them to potential clients as a "pre-vetted" candidate.

This approach offers several advantages. First, it allows you to showcase your expertise and knowledge of the industry by identifying top talent that clients may not be aware of. Second, it demonstrates your proactive and solution-oriented approach, positioning you as a valuable partner rather than just a reactive order-taker. Finally, it allows you to build relationships with potential candidates before a job opening even exists, giving you a competitive edge when the time comes to fill a role.

Avoiding the Trap: Scaling Too Fast as a New Agency Owner

One of the biggest mistakes new agency owners make is trying to scale too quickly. Driven by the desire to grow their business and increase revenue, they often hire too many recruiters, invest in expensive technology, and take on more clients than they can effectively manage. This can lead to a decline in quality, a loss of focus, and ultimately, a failure to achieve sustainable growth.

Chance Wood emphasizes the importance of taking a more measured and deliberate approach to scaling. He recommends focusing on building a strong foundation, establishing a clear niche, and developing a proven process before expanding the team or investing in new technologies. By prioritizing quality over quantity, you can ensure that your agency is well-positioned for long-term success.

Saving Big: How In-House Experience Translates to Agency Success

Chance Wood's experience working in-house was instrumental in his success as a recruiting agency owner. By sitting on the client-side of the table, he gained a deep understanding of the challenges and frustrations that companies face when working with external recruiters. He learned what worked, what didn't, and what clients truly valued in a recruiting partner.

This in-house experience allowed Chance to approach his agency with a unique perspective. He was able to anticipate the needs of his clients, tailor his services to their specific requirements, and build relationships based on trust and mutual understanding. Furthermore, his experience in saving his company $1.5 million in agency fees gave him credibility and demonstrated his ability to deliver real value.

The Common Pitfall: Why Recruiters Fail When Leaving Industry

While industry experience can be a significant advantage for recruiters, it's not a guarantee of success. Many recruiters who leave their industry to start their own agency fail because they don't understand the nuances of running a business. They may be great at finding and placing candidates, but they lack the skills and knowledge needed to manage finances, market their services, and build a sustainable business model.

To avoid this pitfall, it's essential to invest in developing your business acumen. Take courses on finance, marketing, and sales. Network with other entrepreneurs and learn from their experiences. Seek out mentors who can provide guidance and support. By combining your industry expertise with strong business skills, you can significantly increase your chances of success.

Building a Niche: Establishing Trust Before the First Call

In the crowded world of recruiting, it's essential to differentiate yourself from the competition. One of the most effective ways to do this is by building a strong niche. By focusing on a specific industry, job function, or geographic region, you can become a recognized expert in your field. This allows you to attract clients who are looking for specialized expertise and build trust before you even make the first call.

Chance Wood's focus on agricultural recruiting is a perfect example of the power of niching. By concentrating on this specific industry, he has been able to establish himself as a go-to resource for companies seeking top talent in the agricultural sector. This has allowed him to command higher fees, build stronger relationships, and achieve greater success than if he had tried to be a generalist recruiter.

The 'One-Two Punch' Outreach Approach

Chance Wood's "one-two punch" outreach approach is a highly effective strategy for engaging potential clients. It involves combining a targeted phone call with a follow-up email or LinkedIn message. The phone call allows you to introduce yourself, establish a personal connection, and gauge the client's interest. The follow-up message provides additional information, reinforces your message, and makes it easy for the client to take the next step.

The key to this approach is to be strategic and targeted in your outreach. Don't just randomly call and email anyone. Instead, identify companies that are a good fit for your niche and focus your efforts on reaching out to the decision-makers who are most likely to be interested in your services.

AI's Limitations in Business Development

While AI and automation can be valuable tools for streamlining certain aspects of recruiting, they are not a replacement for human interaction in business development. AI can help you identify potential clients, generate leads, and personalize your outreach, but it cannot build relationships, understand nuances, or adapt to changing circumstances in the same way that a human can.

Chance Wood argues that relying too heavily on AI can actually be detrimental to your business development efforts. It can lead to impersonal and generic outreach that fails to resonate with potential clients. Instead, he recommends using AI as a tool to augment your human efforts, rather than replace them altogether. The focus should always be on building genuine connections and providing real value to your clients.

Advice for Industry Professionals Considering Recruiting

For industry professionals considering a career in recruiting, Chance Wood offers the following advice: First, leverage your industry knowledge and relationships to build a strong niche. Second, invest in developing your business acumen and learning the fundamentals of running a successful agency. Third, focus on building genuine connections with clients and candidates, rather than relying solely on technology. Finally, be patient and persistent. Building a successful recruiting agency takes time and effort, but it can be a highly rewarding career path.

Conclusion: Embracing Simplicity and Genuine Connections in Recruiting

In a world obsessed with automation and the latest tech trends, Chance Wood's story serves as a powerful reminder of the enduring value of simplicity and genuine connections. By focusing on building relationships, leveraging his industry expertise, and making old-fashioned phone calls, Chance has built a thriving recruiting agency that delivers real value to his clients. As discussed in the related podcast episode, embracing these principles can set you apart in the recruiting world and lead to lasting success.