Senior Housing Recruiting Mythbusters: 8 Executive Recruiting Myths Debunked

“I thought you were calling to sell me on skilled nursing or executive directors.”

As an executive recruiter, that’s a common reaction I receive when I’m networking with seniors housing executives.  However, in my activities leading the seniors housing recruiting practice for ibr Search – that couldn’t be further from my reality. Below are 8 executive recruiting myths debunked to help you better understand the facts behind our approach to executive recruitment. 

MYTH #1: ibr Search has captive candidates that we are calling to discuss and share with you

                REALITY:  Every search we perform is based on a careful understanding of your exact hiring scenario, the internal stakeholders in your firm and ibrSearch matching this against a competitive analysis of your peers in the industry and our ability to source the appropriate candidates from those firms.  Each search is crafted from a scratch understanding of these drivers and then articulated to you in a search plan with time-sensitive deliverables that we must live up to.  A typical engagement nets a qualified slate of presentable candidates for consideration/interview in 3-4 weeks from the launch of the search.

MYTH #2: there’s no reason to take our call or counsel with us if you do not currently have a hiring need

                REALTIY:  Success at this level of search is highly dependent on a deep understanding of what sets your seniors housing firm apart culturally and capabilities from your peers.  In the nearly 20 years of experience of our leadership team, we’ve found that in all but the rarest instances, it can take, on average, 9-12 months to form a relationship to which successfully launch our first search together.  We are more than willing to commit to that path with you – we want to gain your trust and that does take time.

MYTH #3: “I already know all the recruiters in the Seniors Housing space.”

                REALITY:  You may.  However, from our experience, the majority of recruiters in the space are based on the very lucrative, high-churn nursing and skilled-medical staff that makes up over 90% of the employee-base in seniors housing.  ibr Search is a boutique recruiter only focusing on senior management and executive leadership positions that possess a strong real estate, development, design/construction, finance and marketing concentration.

MYTH #4: “I presume the reason you are calling or attempting to meet is that you are out looking for candidates.”

                REALITY:  The general purpose for our initial outreach, be it by phone or to arrange a meeting during our extensive in-market travel, is to plant the seed of mutual understanding and a hopeful relationship.

MYTH #5: “We’re not a good prospect for your recruiting services, we only hire one or two executives every couple of years.”

                REALITY:  In fact, most of our client use our services, on average, for one to two critical searches every 16 months.  Due to the highly-specialized nature of our relationship with you – we consider this client volume a quality (not quantity) relationship!

MYTH #6:  “We have a relationship with a recruiter already.”

                REALITY:  We respect that.  That doesn’t always mean they are the specific tool for the search at hand.  Ibr Search does not seek to be your exclusive recruiter – only the one that focuses on specific positions.  Further, we are a boutique with a full recruitng staff, team leads (specialists) and a research department.  Many, would-be competitors, are sole pracitioners with limited capabilities.

MYTH #7:  “Most of our middle and senior leadership is stable and has been with us for years.”

                REALITY:  We respect that response and candidly, you sound like the type of company we’d be proud to represent.  However, now is the time to consider succession planning (internal) and external pools of talent for diversifying and enriching your tehnical skill-set.  Ibr Search, during our relationship building phase (which can take months, if not years), is happy to casually discuss and brainstorm where you can begin to consider talent options that might not be required until years from now.

MYTH #8:  “You’re based in Pittsburgh.  How can you be effective when you are hundreds, if not thousands of miles away?”

                REALITY:  For nearly 20 years, our leadership team has been effectively networking coast-to-coast and building trusted relationships with industry executives that form the backbone of our referral network to potential candidates.  In addition to all available electronic and telephonic means, our search principals, on average, travel 6-8 days each month to most major markets, nationally.

Written by:

Wesley P. Easly, Managing Principal 

Brian P. Shuppe, Sr. Director Research & CIO 

Real Estate Gold Rush

As a recruiter I’m exposed to many markets, product types, personalities and cultures. We all know Austin Texas is the progressive Mecca of Development. Young and seasoned professionals alike are flocking in droves. Candidly, it’s a great place to be. What other city could possibly be on the same level of growth? Well, it’s not a just a city! It’s the 3rd largest and most populous state in the Nation; California. The West Coast, in general, possesses a progressive forward thinking mentality. Ultra-luxury goods and need for high-amenities has long been the norm in the West Coast. Recently, I had the opportunity of recruiting and placing a head of construction and development for a several billion dollar real estate fund. Between acquisition /rehab and new development that group alone has $500 million under construction, just in SoCal.

I’m not sure if the real-estate industry is simply overlooked on the West Coast or it’s a well kept secret hidden by the people and its real-estate tycoons of the West. My guess is the latter. It occurred to me the other day that most development /construction companies in California generally stay relatively secluded to the West Coast market. Very rarely do you see outside developers penetrating this market as well. Is this because of the stringent zoning regulations or are local companies land-banking and keeping pay dirt for themselves?

One thing is certain, development is alive and well on the West Coast. Traditionally, real-estate goes through a predictable cycle. Old school thinking would put the current market at the beginning of the “4th quarter” to quote a sports analogy. I have a hunch this market has its eyes set on overtime. There’s no reason for real-estate companies to be hiring executive level construction and development positions this late in the cycle, right? You would think there would be an increase in say, Asset Managers? Wrong! This past quarter we have seen a surge in demand for executive level development positions. To piggy-back off of that trend, I recently placed a President of Construction in the West – all for new product that is still early in the design phase and a huge pipeline still in the early stages of development. This group historically has developed throughout California for several decades. They decided to bring construction in house and capitalize on the high demand for reputable GC’s by pure development companies.

Long story short, the West Coast is alive and well. If you are a professional practicing real estate there – enjoy! If you want to recreate the “Gold Rush of ‘49” – head West!

-Ian

Q4 2014: Corporate & Personal Growth Analysis

What makes you different?

Through the course of each week I speak with a great number of executives in the Affordable Housing Industry. Development, Management, Lenders and Syndicators alike are all stating the same thing – “We are growing”. It’s true, many organizations and the people within them are growing; growing the organization’s geographical footprint, growing strategically by way of opportunistic deals or hires. Many refer to this as “Planned Growth”.

Often, the point that I offer is that everyone can’t grow because the balloon can only hold so much air before it will burst. So what allows some groups to grow as opposed to others? The answer is not always simple, but there is always an answer. Many times, the personal drive that fuels growth is hidden in catchy words like – luck, effort, strong work ethic, determination and even being opportunistic. In reality, it is a combination of each of those things as well as talent. Talent in the form of good people working for a good organization (with others) that possess strong work ethic, great effort, determination, being opportunistic and of course some luck along the way.

As an executive recruiter, focused on both the high-growth affordable housing industry and the people that make it spin on its axis each day, my job is to identify the companies that do this well and find ways to help them do it better. Conversely, when I find companies that are unable, for whatever reason, to not grow or succeed – my job then becomes one of helping the people there who are capable of growing get introduced to other companies that can indeed facilitate their personal growth.

The Fourth Quarter is always a great time for everyone, CEO’s and Board Members to take stock of corporate growth and success and likewise, mid and senior level employees to assess their career growth. Just as organizations take-on careful review and planning, one should also pull out paper and do this for your career.

I welcome the opportunity to discuss further by phone either angle mentioned above (corporate or personal). Further, I will be at the AHF Live Conference in Chicago, November 19-21, 2014 and would be happy to further the conversation in person.

- Butch

Altruistic Recruiting 101

 

I’ve been at executive recruiting for about a year and a half now.  During this period of time, I’ve had the pleasure of working with and placing a number of executives across the real estate management and investment space.  The experience has been unique in that I interact daily with individuals that I have little in common, if any at all, technical work experience. 

However, what makes a successful recruiter and what I pride myself on improving upon daily, is not necessarily being able to “talk shop” with my candidates or boast of great industry knowledge, but rather build a relationship in an effort get to know them and subsequently help them on a personal level.

I feel too many recruiters place more weight on being able to talk shop versus doing what’s in the best interest of a candidate – finding how to help them.  What we do is special.  We find out the deepest reasons behind why an individual would make a major career change and possibly relocate a family.  Here are a few things to look for the next time that you considering to return a call from a recruiter:

•  “If they’re telling, they’re selling you.”  If a recruiter’s M.O. is reading you a job description during their pitch call to see if you think it sounds attractive or compelling, they’re doing you a disservice.  It is not my role to sell you on a position that will solve your problems rather to first understand why you’d even be open to making a change.  This can be for a myriad of reasons – ranging from lack of opportunity for growth which might quell a candidates chance to provide for a childs’ college education in the not so distant future.

• Question their process.  Many different recruiters go about their business in different ways.  Some harvest resumes then go out into the market and advertise them to clients that they’d love to work with.  Some contingency recruiters are loosely committed to the search they pitch you on and may merely be trying to shove you through a rapidly closing window of opportunity to fill a search that three other contingent firms are also vying to fill.  On the contrary, retained firms are typically paid an up-front fee to go out into the market and find the perfect candidate for their client and stay committed to that task until the right candidate for the job is found (this is a mutual agreement by employer and candidate).

• Understand what saying “yes” means.  Submitting a resume will probably take up the least of your time once you engage in a recruiter’s process.  If they do not clearly outline the steps of the interviewing/hiring process, something’s probably awry. 

In conclusion, I’d recommend the next time that you’re contacted by a recruiter, speak to them.  Explore where else your talents may be better suited.  We’re in a hot market and there are a ton of opportunities to get ahead in your career and personal goals.  So I challenge you, the next time a recruiter calls, ask questions!  Find out if they’re legitimate in their intentions to work with you or if they’re merely looking to market you unbeknownst to yourself in order for them to land a potential client.

Cheers,
Brian Blunkosky
Executive Recruiter, ibr Search

Chicago - survived the fire

For those who attended the NMHC Student Housing Conference in Chicago a couple of weeks back welcome home. At one point I wasn’t sure I’d make it back to Pittsburgh with major delays from the air-traffic control fire – but I made it!
Pursuant to my outreach prior the conference and as the leading executive recruiter in our space, I’m sharing a brief summary of my conversations with your peers while in Chicago. Hopefully, you’ll find these interesting personally or perhaps able to guide any corporate planning efforts heading into 2015.

• Development Diversification – in 2014 this meant moving from garden-style to podium/wrap or highrise development. In 2015, I am hearing of adding Seniors Housing into companies’ product mix due to inherent demand and commonalities of the marketing/leasing and operations
• Signs of Long Term Industry Growth – Perhaps more confidently projecting economic growth beyond any pending “economic doom,” companies are still adding to their development teams, both on the sourcing and execution sides
• Portfolio expansion headaches – as the number of properties in portfolios (owned and fee management) are growing – particularly as smaller companies “nationalize,” – regional operations experts and more experienced/broad-based asset managers are in high demand.
• Layers of Management – for developers using 3 party management firms, many are hiring internal operations personnel (aka quasi-asset management) to work with their 3 party management firm to ensure success, not only for troubled properties, but ground up development as well
• Fresh Talent – with the growth in the student housing sector everyone is scrambling for the best talent – what are new pools to pull from? Hospitality? Higher-Ed? More and better training? Stronger internship/recruitment/internal development programs?

If there is something here that strikes a chord and necessitates further conversation let me know, we can talk further.

- Melanie

Private Equity Real Estate: New Economy Version 2.0

Sometimes you read or hear a statistic, but don’t quite understand it until you feel it by “the seat of your pants” as they used to say. For instance, I read a great statistic in the news yesterday that Pittsburgh had a 30% population increase in college graduates under the age of 29 years old during the past 10 years. –it doesn’t really resonate, even for me as a local - right? However, I’ve been making the same exact commute for nearly seven years and what used to be a reliable 15 minute commute to downtown now has crept to a regular 20-22 minute drive with at least twice-per-week traffic congestion related back-ups (i.e. – no accident or other mitigating factor). It’s real – this city is changing through growth! But, I digress…
I wanted to talk about the well-publicized statistics and very observable presence of private equity investors (both individual, 1:1 private equity as well as organized fund managers) in the investment real estate space. I won’t use this piece to rehash the figures, headlines and names you already know or can easily look-up. Rather, I want to discuss what the present market “feels like” in the seat of the pants as a player in commercial real estate. More specifically, how the private equity influence is affecting how companies are run and who is running them in the top two tiers of leadership.
In the early phase of the private equity boon (mid-2000’s give or take and certainly ending in 2008/09) and mostly lead by Blackstone’s aggressive push, the influence felt mostly like traditional fund-base LP investing. Real estate companies had higher returns to achieve and expectations, but culturally and talent-wise, not much changed. My efforts as an executive recruiter during this time were merely to find more bodies and in some cases more experienced talent to help manage the aggressive acquisitions load and project growth on the development side.
As the current economy came about in 2011 and then really picked up steam over the past 24 months, a new wave of private equity investor emerged. More highly regulated and scrutinized “big” private equity now needed to place executive leadership on the boards and in the C-Suite (particularly) of their portfolio companies and/or GP’s of whom they sponsored projects with or co-invested in funds. This is in addition to the project-level and deal-level middle-managers we’d been recruiting all along. The ability of a private equity firm to steer and guide the course of their investments has become more apparent – particularly in real estate where the assets themselves have grown well into the $100 million to nearly billion dollar per asset range in the case of some large mixed-use deals. Competent real estate executive leadership that understands investor transparency, regulatory compliance, human resources/EEOC and social awareness are real factors of consideration and hold merit when global PE is involved. I mention these executive skills in addition to all of the traditional (and still required) real estate competencies of driving return, managing project schedules and budgets and the decisive, aggressive leadership that made commercial real estate appealing to the PE firms in the first place.
During this current cycle we’ve also seen a significant advent of small to mid-cap regional private equity firms, many of which have wide and varying offshore investors. Whereas in the past, high net worth investors participated in real estate either through direct investment deals or through a deal-by-deal “country club” fund structure, we are now currently recruiting for and communicating with organized, business-plan driven PE firms exclusively dedicated to commercial real estate investment, development and asset management. Many of these firms have captive internal divisions or subsidiary companies that perform site-acquisition, development, construction, asset management and even property management.
They look a lot like traditional, vertically integrated real estate firms! Close to 40% of our recruiting activity this past year has come from these emerging PE platforms that need to bring highly skilled “functional vice president” leadership to their companies to lead the key disciplines noted above which in many cases were being previously “boot strapped” by the founders or with a skeleton-crew/staff.
The real take-away from these observations is not necessarily the strong resurgence of private equity in commercial real estate investing (statistically-speaking), rather the less apparent and very real assimilation of these firms as bona fide real estate companies. This is going to have a long term affect, for the positive, I might add, of the employment landscape. This will come in the form of diversity of position requirements, enrichment of skills of leading professionals (on the long term) and an overall more competitive employment market.
I am happy to discuss at any point. Sincerely, Wes

Post-NIC (virtual) seniors housing ramblings

In retrospect, I wish that I attended NIC (http://www.nic.org/events/) two weeks ago in Chicago.  Unfortunately, a personal scheduling conflict and an amazing recruiting workload made it very difficult for me to get there for the event and more importantly prepare so that I’d be productive while in town.

However, I do feel like I virtually attended the event.  You see, in my world as a headhunter, ahem – executive recruiter, I am on the phone each and every day.  In today’s work environment of email and social media – we now have two other communication modes working simultaneously and around the clock.  Between the three channels, I am directly exposed to at least one hundred, if not more, opinions, trends, comments and “other” daily.  Lately, more days than not, the conversation in our office has been on seniors housing…and the conversation has been driven by you, the masses of real estate professionals that we connect with daily, both “in” seniors housing and those wanting to get in or are about to be.

The principal reason for this exposure-level has been the sheer amount of executive recruiting activity we are conducting in the space.  During the past 12 months, we have conducted no fewer than four lead development officer searches for emerging seniors platforms.  We are presently in discussion to launch a fifth.  And the uncanny thing (in this relatively plug & play investment environment) – all five have their own “twist” that made each one unique and different.  One was focused on delivering a specialty residential product to a very tiny sliver of underserved demographic, the other was exclusively limited to a particular geographic market and requisite demographic, whereas another spun-off a commercial/MOB/health system infrastructure and yet another was leveraging the national infrastructure of an industry residential giant.

When I am talking to incumbent industry players, the talk-track is much the same as was echoed in the halls during NIC (or so I’m told); demographics, capital, partnering, consciousness toward regulatory matters.  However, the excitement is really from who is on the outside looking in.  There is so much investment capital that not yet participating in the space.  Add to that, eager, established and confident real estate companies that believe they can compete with the seniors housing icons or even find untapped market share relative to geographic, product differentiation or sheer scale that was previously unattainable.

It’s an exciting time to be certain.  I have cleared my calendar and I look forward to attending the ASHA Conference (https://www.seniorshousing.org/) this coming January in Southern California.

Until then, Brian