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How Headhunters Operate in Finding a Job for Job Seekers

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Headhunters are also known as executive recruiters and as executive search firms. Headhunters act as brokers for management, executive, or technical positions. Most of the jobs they fill are $50,000 and above. In most states headhunters are unregulated because employers pay the full fee, which can range from 15% to 30% of the first year's earnings.

Most headhunters have had experience in the fields for which they recruit people. They usually have an intimate knowledge of the industry or field, speak its language, and have plenty of contacts they've developed over time. They tend to specialize by industry or field. Headhunters who specialize in an industry, such as forest products or biotechnology, will recruit for all types of jobs which exist within that industry. Those who specialize in a field, on the other hand, will recruit for very specific types of jobs, such as accounting, programming, or marketing. Because headhunters' fees are paid by the client company, their loyalty is to the company rather than to the job candidate. Many recruiters do, however, form strong ties with candidates as well.

Headhunters operate in a variety of ways. Some are paid a retainer rather than a commission. They receive payment whether a placement is made or not. A client company will ask such a recruiter to locate the best person in the country for an executive position. The recruiter is guaranteed a certain fee plus recruiting expenses. The recruiter will be looking for the fast movers and will try to entice them out of one company and into the company the recruiter represents. The recruiter will initially screen applicants by phone. When the choice has been narrowed down to two or three, the recruiter will either fly out to meet the candidates or have the candidates flown in to meet him or her. These types of searches are often conducted when secrecy is essential or when a company wants the very best person for that position. Such searches usually involve positions paying over $100,000. Most recruiters are not on retainer. They are called contingency recruiters and receive a commission only after a placement is made. Sometimes they will be given exclusives, meaning they are the only firm involved in the search for three top candidates. More often, however, several recruiting firms will have been given the same job order and are all busily trying to recruit top candidates.



Contingency recruiters usually do all of their work over the phone, and rarely meet the people they place, or the executives to whom they refer candidates. The biggest part of this type of recruiter's day is spent seeking job orders. Considerable time is also spent reviewing the 100-300 resumes which typically arrive in a week. The resumes of those with interesting backgrounds are filed using manual or computerized systems for easy retrieval.

Once a job order is obtained, considerable effort goes into locating just the right person. Occasionally, ads are placed by the head-hunter, but more frequently the headhunter spends his or her time calling managers trying to get leads on who might be a good candidate. Frequently, a headhunter will call a manager on the pretense of asking for leads, when what the headhunter really wants to determine is whether that particular manager would be suitable and interested.

Headhunting firms suffer from the same turnover problems as employment agencies. Probably 80% of all recruiters drop out in their first year. Although some recruiters do very well, it's a tough way to make a living. While their 30% fees seem high, many of their searches result in no placement, which means no fee. Those who stay in the field more than two years will generally make between $45,000 and $90,000, although some make over $200,000 per year. Those who stay in the field for over five years typically make a career out of it.

How to Make Use of a Headhunter

Before using headhunters, you need to decide whether you would be well-served by using them. Generally, they can help only those who have at least five years experience in their present industry and who intend to stay in their current field. Recruiters are virtually never able or willing to place career changers. That does not mean that career changers are not marketable, it just means that headhunters know they won't be able to charge their 30% fees to place them.

If you are going to contact one headhunter, you might as well contact several. You can find The Directory of Executive Recruiters at most libraries. The directory contains lists of recruiters and also indicates their specialties. Don't limit yourself to local headhunters; virtually all of them do national searches, and many of their placements will be outside of their own metropolitan areas.

Do what you can to obtain names of specific headhunters. Then, send them a resume and cover letter. Call the recruiting firm and tell the receptionist that you are sending your resume and you want to address it to the person who handles your field. Since firms are generally composed of specialists, there will usually be only one or two who handle each field or industry. Indicate in your cover letter that you will be following up with a call.

Do not be bothered if the recruiter will not take your follow-up call. If recruiters spoke to everyone who sent a resume, they would never get any recruiting done. You can be assured, however, that your resume will be reviewed. If the recruiter thinks you are marketable, your resume will be saved and catalogued for later reference. If you do speak to the recruiter by phone, take only a short time to sell yourself. If you live in the same city as the recruiter, ask for a face-to-face appointment, but do not be offended if the recruiter declines. Just tell yourself that you did your best. You were willing to make the extra effort. If you don't get an appointment, you will be able to devote more time to something else.

If you want headhunters to call you, get active in your industry or do something to obtain some notoriety. It can be as simple as becoming a chairperson for a committee in your local trade or professional association. One step up is to become a board member. Or you might write articles for your trade publications. Find ways to get quoted in local or national business magazines. Become a recognized expert. Don't expect too much from headhunters. We often get enough feedback from clients to know that many recruiters come across as blunt, self-important, and cold. There are many other recruiters who treat each person they come in contact with in a cordial and friendly manner. The best suggestion would be to care only about results. If you've heard that a recruiter is good, excuse his or her idiosyncrasies.

Once you have made contact with a recruiter, send a thank-you note. Beyond that, there is rarely the need for further contact. You are in the system and nothing will happen until the right job comes up. Besides, since a recruiter may work actively on only 20-40 searches per year, the odds of the right job coming up with any particular recruiter are not great. The goal is to complete this part of your job search in the first week so you can concentrate on other aspects of the search.
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