You are marketing you-the-product to one or more segments of the job market. In that market are brokers who match buyer and seller. These brokers have a variety of names: recruiter, headhunter, executive search consultant. Here, we refer to all people and firms providing this brokerage function as recruiters.
The recruiting industry has a certain mystique to many outsiders. Managers know that every day someone gets that unexpected call from a recruiter that can propel him or her into an exciting and rewarding new position. Many managers maintain contact with a handful of recruiters in hopes of one day receiving that magic call. Ironically, most managers are also aware of the questionable practices of some recruiters. Most people have at least one negative recruiter story- sometimes heard second- or third hand, sometimes a painful chapter in their own past.
Begin by learning the basics: how recruiters are compensated, who makes up the industry, their function as job-brokers, and how they do-and do not-fit into your job search.
My first move, after I was fired, was to contact several recruiters who had worked for our firm. They were friendly, but the weeks went by and nothing happened. Finally, I came to the realization that the recruiter works for the recruiter, not for you - that wasted a lot of time in my search.
NUGGET: When you clearly understand the function and limitations of these brokers, you can use recruiters effectively in your marketing campaign. Failure to do so could result in missing out on some great jobs or in your being used by recruiters. Avoid the frustration caused by having unrealistic expectations of recruiters.
Recruiters Are Paid by the Employer
Recruiter or broker fees are paid by the employer (the client) for presenting properly qualified candidates to fill an employment need. Employers work through a third party for any of a number of reasons: confidentiality (both inside and outside the firm), better access to the employees of competitors, enhanced discipline to the process, greater objectivity in defining the position and assessing candidates, prescreening of prospective candidates, and less burden on staff. Since the fee is customarily one-third of the new hire's annual cash compensation, the client has determined that the cost of using a recruiter is justified by access to a better pool of candidates, faster and more objective results, and less wear-and-tear on management than if recruiting were handled in-house.
During your job search you may encounter firms who at first glance appear to be recruiters but offer a different kind of broker function: connecting you with the job market in exchange for a fee paid by you. These are not recruiters but comprise a shadow part of the industry dealing with (some might say preying upon) people looking for jobs. We recommend against using such services.
NUGGET: Recruiters work for the corporate and institutional client who pays the fee, not for you. Never deal with a recruiter who charges you a fee. Job seekers who speak of "my recruiter" or who expect recruiters to carry out their job campaigns for them don't understand how the game is played.
Two Categories of Recruiters
Recruiters can be grouped into two broad categories, according to the nature of the client relationship and compensation and expense reimbursement arrangements.
- Retainer firms have an exclusive on their assignments; no other firm is engaged to fill the position. Customarily they are paid one-third of their fee when the contract is signed to initiate the search, with the remaining two-thirds paid over the course of the assignment, whether or not the position is filled. Expenses incurred are reimbursed by the client company. Retainer firms may or may not specialize in certain fields or industries but generally will accept a search assignment in any field.
- Contingency firms may or may not have an exclusive assignment from a company. They are paid a fee only if they fill a position. Their expenses are often not reimbursed by the client. They may have good contacts in particular industries or segments of the job market and under extraordinary circumstances will "shop" a particularly attractive candidate.
Elegantly appointed offices may be enjoyable to visit, but you should focus on what role a recruiter can play in your marketing campaign. Contingency recruiters are capable of marketing someone who might earn them a fee even if they are not aware of any actual openings; this is seldom if ever done by a retainer firm, which works only on specific client assignments. The universe of recruiters is large and varied; the most recent Directory of Executive Recruiters1lists over 1,000 retainer firms and over 1,500 contingency firms in the United States. Within that group may be several who could assist your marketing campaign-and some who could complicate it. It's your job to know how to use the recruiter or broker effectively.
Whenever you are dealing with a recruiter, determine in which category he or she belongs. Ask early in the conversation, "Does your firm do contingency or retainer search?" Recruiters with retainer firms will indicate clearly that they do only retainer work; contingency recruiters will often respond, "We do both." Just knowing enough to ask that question is a signal to the recruiter that you would like to use-but not be used by-a job broker.
