Six Facts About Headhunters
Posted on Mon, Feb 14, 2011
By Koleen Singerline
Today marks sixteen years that I have been with Snelling. During this time, I have worked with many companies in New Jersey and have built enriching relationships with many local business people. I was talking to a contact last week about various employees from past employers, sharing our thoughts about the good and the “not so good”. I’ve followed his career for over 12 years now, so I’ve seen him in different settings and have talked candidly to people that have worked with him. He’s a great manager and a team player. I know this - not because I reviewed his resume, or checked out his Linkedin profile. I know this because I know the companies he’s worked for and I’ve seen the results of his work. I’ve worked with his managers and his direct reports. I understand the culture of the companies he’s worked for.
That’s what executive search or headhunting is about. As a 
recruiter, I track qualified people during their work life and that knowledge helps me understand where they might fit when they are ready for the next career move. I have no idea why recruiters are called headhunters. The dictionary defines a headhunter as a savage who cuts off and preserves the heads of enemies as trophies. Fortunately, I don’t know any local recruiters that do that. I’m happy to report though that I do find it very rewarding to visit clients and say hello to various individuals I have placed who are making great contributions in their current roles… and still have their heads.
Maybe you haven’t used an executive search firm or a headhunter before, so here are some facts about executive recruiters:
1. More than half of businesses use them. The Institute for Corporate Productivity reports that 67% of organizations use outside recruiting firms to find new employees. According to the Institute, 79% of big companies use search firms to locate new employees.
2. There are three types of recruiters:
Retained recruiters usually have an exclusive arrangement with the employer. They receive fees for their search at the beginning of a search assignment and continue to submit candidates until the employer fills the position or calls off the search. A company should use a retained recruiter for senior level positions or highly confidential searches.
Contingent recruiters work on assignments without retainer fees. They receive payment from the employer only if a candidate they present to the employer is subsequently hired. Contingency recruiters normally work in the middle management, professional and technical placements. Since the company does not pay a fee, companies can expand their pool of candidates by working with a contingent recruiter for all higher level positions. Building a good relationship with a recruiter that gets to know you company well is an important piece of workforce planning.
Corporate recruiters are employees of the company. They may be assigned to search for all staff openings or they may be assigned specific areas to recruit for. They generally work with outside recruiters for many openings, combining the candidates they find with the recruiters candidates to produce a well rounded applicant pool.
3. Recruiters generally charge 25-33% of the placed candidates’ first year salary. These fees can be negotiated based on the difficulty of the search and the volume of work a company has for the recruiter. The typical agreement includes a guarantee to replace the candidate within a given time frame if it does not work out. Given the amount of work that goes into a search, it is rare that a problem occurs, however the guarantee is a good protection for the hiring company.
4. Successful recruiters receive hundreds of resumes daily. While most resumes do not fit the requirements of the current job order, they may be useful to use on a future opening or for learning more about area businesses. Our applicant tracking systems allow us to catalogue resumes and search for candidates based on a Careerbuilder report: 52% of candidates that work with a recruiter to find a job end up on the other side of the desk and use a recruiter when they become a hiring manager. On either side of the search, it is easy for them to see the logic of expanding one’s knowledge of local business.
5. Recruiters have access to the big picture of workforce management. Often they are in a position similar to that of a hairdresser – people open up to them and share all sorts of information. Often people will share insights about a company that they would not share on an interview. Recruiters can discuss the pros and cons of working with a given company from an unbiased viewpoint and can be very helpful to the applicant or the company in making the right decision. The recruiter can become a valuable coach to the applicant and the hiring manager.
6. Using a large number of recruiters does not lead to a more successful search. Best practice is to use a select few recruiters that understand your company culture and have a good understanding of what you are looking for. If too many recruiters contact candidates about your company, it could appear that you are not selective in choosing candidates or for some reason you are desperate to find someone. Similar to the way you choose an accountant, choose one or two recruiters to work with. Look for them to be focused on a long term partnership with you and your company.
Hiring managers use Executive Recruiters for this key reason: reliability in consistently producing qualified candidates that fit with the company culture. Have you used a headhunter and have a story to tell? I’d like to hear from you - comment on this blog post!