“You can’t manage people and lead them at the same time… You’re managing a task. You’re leading people”
Do you apply the same principles when running your recruitment firm? How do you develop leaders and managers to establish a succession plan when you are scaling it?
My special guest, Trey Hugley, shares his insights on fostering an environment in his recruitment business that not only grew his team in numbers but professionally as well. Trey is the President of Genesis Resources based in Dallas Forth Worth. Trey is a leader in executive search for the insurance industry, with over 28 years of experience.
Having launched and sold a recruiting firm, Trey founded Genesis Resources in 2004 with a commitment to bringing a consultative approach to recruitment. Trey also founded a sister business, Genesis Industries, in 2014, expanding consultancy practices into the Manufacturing, Engineering, Accounting & Finance, and Healthcare sectors.
Episode Outline and Highlights
- [02:21] Trey’s story from being a recruiter to starting his firm.
- [06:45] Sharing perspectives on how commitment and exclusivity work with client relationships.
- [19:54] Milestones in building an organization – how Trey built his team to 27 people.
- [33:09] How do you decide when you have to part ways with a team member?
- [46:56] Planning your brakes rather than it creeping up on you.
- [51:13] Developing business leaders and managers.
Scaling His Recruitment Firm Successfully
A key achievement of Trey that I wanted to pick his brains on is how he progressed in building his business from just him to having 27 team members. “I could have made a lot more money over the last 15 years if I was just doing it on my own. Mine is an end game. If I build it, I think my mentality is a little different. I enjoy the concept of building. I like the idea of growing something.”
Trey shared his practices when looking for someone to join his team. He mentioned hiring competitive individuals, often with a background in team sports, who can thrive in a competitive environment. He stressed the importance of training and creating an environment where his staff can support and learn from each other. We covered two focus areas when scaling: taking responsibility and ownership for hiring decisions and training to ensure that the right people are in the right roles.
Deciding When to Let Go of a Team Member
It can be challenging to let go of team members. A recruitment business owner could have invested so much time and resources in hiring and training, and the relationship built over time can make it difficult to let go.
Although difficult, Trey explained that it is part of scaling your business effectively, especially if the overall fit of your recruiter is not aligned with your organizational goals. He outlined the following objective factors that can help you decide when it is time to transition your team member to a new career:
1. If they’re not meeting their metrics, like having consistent candidate or client conversations, it’s a red flag.
2. Their ability to generate revenue is crucial; it’s a concern if they’re not producing at least $20,000 a month (in the case of Trey’s organization).
3. Assessing their pending deals and interview activities can predict future performance; if these numbers are low, they indicate potential issues.
4. If they lack the drive and initiative to meet basic expectations consistently, it may be time to let go.
Trey ended it by saying, “We’ll, you know, we’ll call it a career transition is what we call it. We’re gonna transition you. If you can’t succeed here, we don’t think you’re gonna be able to succeed in recruiting.”
Developing Leaders
Engaging your staff and making them leaders is another achievement that Trey is proud of. He has not only grown his team in size, but he grew them professionally into team leaders and managers. He described his approach and mindset well, “There’s a certain humility that comes with managing and, leadership, and I think those are two different, two completely different things. Management is the day-to-day, task-oriented. Have you met your numbers? Leading is, how do I make someone better? … But the concept is, you can’t manage people and lead them at the same time. Right? You’re managing a task. You’re leading people, at least in my mind.”
One thing that Trey shared is fostering an environment where asking questions and continuous learning are supported. He said, “I think the biggest piece is that there is no dumb question. And those who are most inquisitive tend to grow quicker than the others in nurturing a lot of that.”
He also shared an integrated approach (egalitarian versus a top-down model), where his staff can always approach him for ideas, scenarios, and proposals. This is except for metrics and numbers, for which clear expectations are in place.
Aside from very competitive compensation, Trey also shared their setup for working onsite and working from home, which offers practical benefits to his employees.
