Headhunter or Recruiter?

Wednesday, March 3rd, 2010 - Executive Jobs, Executive Recruitment, Executive Search

Headhunter or Recruiter?

One of the errors made in Executive Employment is handing out your CV to everyone who claims to be a Head Hunter. When in actual fact they are a Recruiter or even less on the scale of employment sharks.

If you make this mistake, you will at best blight your employment opportunities, and at worst extend your period of job seeking indefinitely.

So, how do you tell a Head Hunter from a Recruiter?

Employment background

There are three types of basic paid-for animal that roam the employment market place:

• Employment agencies: the familiar High Street chains that place mostly temporary workers, in both blue and white collar jobs. The job seekers is contracted and paid by the agency, with the percentage varying between 5% and 15%, but always with a minimum. Hence in some minimum wage blue collar jobs, the blue collar worker doing the actual work will be paid less than the agency, thanks to minimum contract clauses
• Recruitment agencies: focus on management and junior executive positions, these are now mostly niche sector focused. Some recruiters run contract teams who will have contracts similar to job agencies, but most will operate on permanent position briefs. Job briefs may or may not be exclusive to that recruiter, who could be working in competition. Percentages will vary from 12% to 35%+, with most working on a “paid on success” basis over a “paid on process progression.”
• Head Hunters: will have a long term relationship with their clients, and although they may not be exclusive to that client, will be on that job brief. Often paid a retainer up front of between a third and half of their agreed fee, the final fee is between 30% and 200% of first year salary plus bonus

Now, much as that’s the basic brief, there are some variations which as a job seeker you need to be aware of.

For instance, many will have heard of CV fishing, why does it exist? One High Street agency still runs a “paid on process” recruitment contract which charges employers: 1/3 on engagement, 1/3 on vetted CV pile delivery (minimum of 12); 1/3 post interview. Hence, as 2/3rds of their fee is paid just for placing 12 CV’s on the desk of their client employer, their staff have a huge incentive to CV fish.

Head hunter

Though paid by their employer client, it is in the interests of the head hunter to serve both the employer client as well as the job seeker. Reputation is key to the head hunter, and they don’t like damaging their reputation in their core market place with anyone.

As this reputation in market is hard won, and the fees paid know to be high, often many internal recruiters will claim to be head hunters. They are not, as head hunters are independent of the employer client and only work on a retained payment brief: this person calling you is trying to fill an internal position. Further, as head hunters only work from employer client briefs, so anyone who offers to find you a job is not a head hunter: that is a job coach you are talking to!

Head Hunter v Recruiter!

Now you know the basic difference between Head Hunters and Recruiters, you are part armed to test the difference of anyone’s claim.
For instance, try these questions:

• How long has this organisation been a client
• How many briefs have they had from this client before/how many people placed – a head hunters number may be low, but percentage placed will be high; the recruiters will be opposite
• What is their brief for this job – a head hunter could now complete a 30minute speech, where as a recruiter will only have a job specification
• How many job applicants/CV’s will they put forward – a head hunter will pace 2 or 3 people per brief maximum in front of a client; a recruiter will place 3 or more
• When does the client want a person in place – head hunters will focus on the right candidate; recruiters will say “now” or “soon”

Recruiter meeting

Competitive brief recruiters and internal pay systems mean that however they found you, they can’t spend time meeting job seekers to properly vet candidates as a head hunter would. So use time and process to tell the difference.

When their contractual process payments asks for a pile of so many CV’s, getting your CV adds fresh meat to the pile for their client, and hence prompt payment. So, when they ask for your CV, offer them your LinkedIn profile. If they press, offer to meet them for a coffee. Head hunters will at this point probably ask more questions and be happy to meet serious job seeking professionals; competitive brief recruiters do not have the time to meet, and hence at this point close the conversation.

Head Hunter pay

But the most telling difference between a head hunter and a recruiter is asking them the question of how/when will they get paid.

Some job seekers feel that this question is too arrogant and up front. I understand that, but both want to engage with people they can place who have realistic expectations of what that job in their market will pay. Secondly, much as though money may not be a daily conversation for you, pay and package is in the world of employment. But thirdly and most tellingly, if they are asking your pay or package requirements, then knowing what and when they get paid equates to motivation.

The amount is not necessarily the answer you want, it’s the when which is the telling truth: exclusive brief head hunters get paid a percentage of fee up front; competitive brief recruiters get paid after the successful job seekers start date. The more they get paid the sooner in the process – and before they call you – the more likely they are to be a head hunter.

The sooner you can tell the difference between a head hunter and a recruiter, the sooner you know your job search will be more successful. There is no harm in engaging with a recruiter, and many job seekers successfully do. There are many good and great recruiters working on many different client briefs, and hence payment plans. But knowing who you are talking to and how they are briefed/paid will enable you to assess how successful your job search is likely to be fulfilled by pursuing that path – and that is the real gain here to a successful job search.

Good Luck!

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