Headhunter

Definition, scope, costs and more

Every job opening presents a challenge. But some challenges are greater than others: Filling high-level specialist and management positions is particularly critical to a company’s success, and traditional search methods—from newspaper advertisements to online job boards—quickly reach their limits. Headhunters can help.

If other recruiting methods fail or the position to be filled is particularly important, headhunters offer professional support. In this article, we explain what headhunters do, the benefits of using them, and how to recognize a good headhunter.

In summary:

• Headhunters help to quickly fill high-level specialist and management positions
• Both the profile creation, the search and the assessment are carried out by the headhunter
• The headhunter addresses the candidates directly and effectively to maximize the chances of success
• There are various compensation models for headhunters, in particular the commission and the installment model

Now you know which aspects you should pay attention to in personnel marketing and what the differences are between internal and external personnel marketing.

At Riverstate, you’ll find customized recruiting and experienced headhunters who discreetly and quickly find the right talent for your high-level positions. Contact us now and tell us about your requirements—without obligation.

Headhunter definition

Let’s start with the word itself: The term “headhunter” comes from English and literally means “head hunter.” This sounds more dangerous than it actually is: “Heads” here represent specialists and executives, since recruiting them is the specialty of most headhunters. Headhunters therefore fall under the category of recruiters and personnel agents, but they have a very specific focus on filling high-level positions.

Headhunting is therefore part of what is known as executive search – the search for specialist and management personnel. Headhunting may pose a “danger” to other companies, as poaching talent is also part of a headhunter’s responsibilities. This is done by contacting talent directly, for example, via email or social media.

Headhunters to support your HR department

Often, a company’s human resources departments aren’t specifically geared toward searching for specific candidate profiles. Filling management and highly specialized positions, in particular, is difficult for internal HR staff to manage alongside their daily work. Often, the right candidates aren’t even looking for new opportunities and need to be not only identified but also persuaded.

Professional headhunters know where these high-level talents are located – and how best to approach them to convince them of an offer. This allows them to find suitable talent for critical positions more quickly, while also relieving the burden on a company’s HR department. But how exactly do they go about it?

Headhunter: The most important steps in the recruitment process

Professional headhunters must be familiar with all facets of executive search. Their search process includes, among other things, the following stages and tasks:

• Profiling:
  Headhunters work with employees of the hiring company to create a precise profile of the sought-after talent. This profile takes into account not only technical criteria and hard skills, but also soft skills and the cultural fit of the candidates.
• Direct Search
  Based on the applicant’s profile, headhunters compile a list of potentially suitable talents, which they then contact directly. This occurs via various channels, such as telephone or email.
• Discreet Headhunting
  Sought-after specialists and managers are often already employed. Professional headhunters have the talent to operate discreetly to protect the reputation of the hiring company and avoid alienating the talented individuals they are targeting.
• Assessing the talents
  After making contact, headhunters must once again assess the suitability of the talents, based on the applicant profile, the references and aptitude tests of the potential candidates, and the personal impression.
• Presenting suitable profiles
  After carefully selecting the most suitable talents, headhunters must introduce them to the target company and present their assessment logically.
• Accompanying job interviews
  Because headhunters know the candidates particularly well and have made the initial contact, they are often present at job interviews as mediators.

These are the most important tasks and methods of a headhunter, but many recruiters also support their clients with other HR activities. The extent of this support also depends on the headhunter’s fee—but how much is that fee?

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How much does a headhunter cost?

In general, there are two payment models in recruiting:

1. Payment after successful placement
   With this model, payment is only due in full once a candidate has been successfully placed.
2. Installment model:
   With this model, a portion of the fee is due at the beginning of the assignment. The remainder must be paid after certain milestones—for example, after the presentation of suitable candidates or after a successful placement.

Because headhunters provide extensive consulting services long before placement, and direct contact is time-consuming, success-based payment is rare in headhunting. It is primarily used in traditional recruitment agencies, where the search is less personalized and less binding.

With headhunting, companies pay for the search process itself. Paying in installments based on specific milestones also creates predictability, because companies know which installment is due and when. The thirds model is popular: Clients pay one-third at the beginning of the consultation, one-third after suitable candidates have been introduced, and one-third after a successful placement.

The actual costs of a headhunting firm are ultimately calculated based on the salary of the position to be filled; there is often a minimum fee in addition. For these reasons, headhunting is only worthwhile for high-level key positions with corresponding salaries.

This is what distinguishes the right headhunter

Are you convinced that a headhunter is the right choice for your search? Then you just need to find the right provider. Of course, it’s worth exploring your own network first – you might find recommendations and testimonials there. Otherwise, a Google search is the best place to start.

The headhunter market is large, but here you can refine your search: If geographical proximity to the company is important to you? Then narrow your search by location, for example, “Headhunter Munich” or “Headhunter Hamburg.” Alternatively, you can also search for headhunters with experience in specific sectors or industries.

When it comes to selecting your headhunter, there are a few criteria you should consider when headhunters approach you:

Now you know what qualities you should look for when selecting your headhunter, how they go about finding candidates, and what costs you can expect.

At Riverstate, you’ll find customized recruiting and experienced headhunters who discreetly and quickly find the right talent for your high-level positions. Contact us now and tell us about your requirements—without obligation.