Executive recruiters (also known
as headhunters or search consultants) have firmly established
themselves as a visible and highly valued fixture in today's employment
landscape. Through their aggressive matchmaking, headhunters affect
the careers of individuals, the lives of their families and friends,
and the profitability of entire corporations.
No one knows exactly what the business world would be like without
the influence of headhunters, but one thing's for sure: sometime
in your career, you'll either receive a call from a headhunter,
or initiate contact yourself. In either case, you should learn
how to work with them effectively, and take full advantage of
the many benefits their service provides. Here's what you get
from establishing a relationship with an executive recruiter:
- Greater exposure. Headhunters not only maintain a myriad of
existing contacts within your field, they can also scout out
new companies you never heard of.
- Increased efficiency. Headhunters are obsessive networkers;
they spend their time researching and penetrating the job market.
Their knowledge can save you time in identifying and pursuing
prospective employers.
- Personalized public relations. Employers generally look more
favorably towards a candidate who's professionally recommended.
Headhunters stake their reputations on the quality of their
candidates, and will always present you in the best possible
light.
- Confidential representation. Some job search situations require
a great deal of discretion. For example, you may want to explore
an opportunity with your present company's direct competitor.
In such an instance, a headhunter can present your background
confidentially, thereby protecting your identity, and eliminating
(or at least minimizing) your risk of exposure.
- Authoritative career consulting. Headhunters can help you
determine the job or career track that's right for you, based
on current market conditions and your own values and abilities.
They're also in a unique position to walk you through (and monitor)
each step in your job changing process.
- Private training. Headhunters can give you practical, time-tested
suggestions on how to strengthen your resume and improve your
interviewing technique. In many ways, a headhunter acts as a
personal coach.
- Third-party representation. As experienced brokers, headhunters
find ways to put favorable deals together, and iron out differences
you and the hiring company may have regarding your salary, benefits,
and relocation package.
In addition, working through a headhunter can actually improve
your chances for success once you've been placed. That's because
the search fee the hiring company paid the recruiter represents
a sizable financial investment in your future success -- an investment
worth protecting.
Headhunters: The Missing Link
Headhunting is a multi-billion dollar international industry
that acts as the missing link between a half million job seekers
and employers each year. At last count, there were over 125,000
executive search practitioners in the United States, according
to The Fordyce Letter, the industry's leading trade journal.
There's hardly an industry or profession that hasn't spawned
its own coterie of recruiters. They cover every conceivable pocket
of the job market, from food sales to machine design to motion
picture financing to mortgage banking to freight hauling to data
communications to haute cuisine to college administration to city
management.
Generally speaking, headhunters work within well-defined niches.
To make sense of a complicated employment market, headhunters
classify their candidates according to:
- Title or function, which refers to their descriptive title
or rank within the company, such as president, plant manager,
staff accountant, director of nursing, and so on;
- Skill or application, which refers to their specialized abilities,
such as tax accounting, IBM AS/400 programming, secured lending,
and the like; and
- Product or service, which refers to the industry in which
the candidates do their work, such as plastics, minicomputers,
industrial tools, public administration, hospitality, and so
forth.
To give you an example, a recruiter might place project engineers
(title) with computer-aided design experience (skill) into positions
with companies that built submarine hydraulic systems (product).
Other headhunters might place CEOs (title) with plant management
experience (skill) who work for companies that process frozen
broccoli (product); or district sales managers (title) with marketing
degrees (skill) who work for companies that make high-top leather
sneakers (product).
Think of your own experience. How would you classify yourself?
Your answer will not only help you put your career into perspective;
it'll help the headhunter determine whether you "fit" into his
or her market niche.
Of course, recruiters can use other means to define their markets.
Some take an industry-specific approach. Let's say you work in
the retail industry, or in construction. You'll probably find
a recruiter who doesn't care what your title or function is, as
long as you have experience in that target market. I knew a recruiter
named Jim, who specialized in the printing industry. No matter
what you did in the past, if it had anything to do with printing,
Jim would gladly take you under his wing.
The opposite approach is taken by the skill-specific recruiters.
To them, the product or service of the host company is secondary
to the skills of their candidates. This is the preferred method
of recruiters who specialize in placement of data processing,
accounting, or clerical personnel.
Don't Get Lost in the Shuffle
Even though headhunters can't guarantee you a new job, you have
much to gain from working with them. And vice-versa, since you
represent an addition to their continuously perishable inventory.
While it's true that headhunters owe their allegiance to their
client companies (who pay the fees), without candidates to fuel
the fire, headhunters simply wouldn't exist.
For each search assignment, headhunters may prescreen hundreds
of prospects. Therefore, the majority of their time is spent with
the finalists for each open position, relegating to their file
drawers the "reject" or the "maybe next time" candidates they
encounter. These candidates are often highly skilled professionals
who simply don't fit the specific qualifications required by the
headhunter's client company -- they're simply in the wrong place
at the wrong time.
For that reason, you should always press for a realistic appraisal
of your chances of being placed. If one isn't forthcoming, you
can assume the recruiter is giving your candidacy a low priority.
In that case, you can opt to let your resume languish in a headhunter's
file, or seek the help of a recruiter who'll take an active role
in finding you a new position.
I try my best to be up front with every candidate I talk to.
If your skills fall outside my area of expertise, I'll steer you
to another headhunter who can be of assistance, or provide you
with some general coaching which I hope will be of value.
Always look for a headhunter who takes an interest in your background,
or who specializes in your industry. The last thing you need is
to pin your hopes on someone who's not in a position to help you.
Be prepared for mixed reviews when you talk to recruiters. You
might very well receive a brush-off like, "I'll call you in a
week to 10 days"; or bad advice, such as "You'll never find the
job you want with the background you have"; or discouragement
like, "Nobody's hiring now." Just keep plugging away at your job
search -- and never take "No" from a headhunter.
Of course, even the most qualified candidacy is subject to the
whims of a supply and demand job market. In many cases, a headhunter
simply won't know what your chances of getting another job might
be until he or she puts out feelers or sends you out on an interview.
To work most efficiently, invest your time with a recruiter who
really wants to help you.
Sigmund, Sherlock, and Donald
Headhunters come from a wide variety of backgrounds, and exhibit
the same range of personal merits and character strengths as the
rest of the human race. The majority are honest, hardworking entrepreneurs,
who work diligently to help candidates find meaningful, rewarding
jobs.
I've found that headhunters can be divided into three different
personality types:
[1] The Sigmund Freud headhunter is a kindly, wise, and empathic
counselor. He or she listens carefully when you describe your
values, your job preferences, your personal goals, and your family
commitments. The Sigmund Freud headhunter wants to place you with
a company you'll feel comfortable working for, and will spend
lots of time getting to know you.
[2] The Sherlock Holmes headhunter is a clever, relentless, goal-oriented
detective, who'll track down and contact every company which might
provide a match for your skills. This type can be quite creative
in discovering aspects of your background which can be successfully
marketed to companies off the beaten track, or only peripherally
related to your present industry.
A perfect example of the Sherlock Holmes headhunter is Norman
Roberts, who works out of an office in Los Angeles. It was his
ingenuity that led to an unlikely (but highly successful) match
in 1984. He took an unknown travel industry executive -- Peter
Ueberroth -- and placed him as the head of the U.S. Olympic committee.
[3] The Donald Trump headhunter is the consummate deal maker.
This type is less concerned with whether you're a round or square
peg, as long as you can be crunched into whatever hole may be
available, or convenient. Headhunters like this tend to give the
search industry a bad name because of their insensitivity to the
true needs of their clients and candidates; and although they
can often produce positive results, many times their high- pressure
tactics lead to short-term employment.
While personality and style are important aspects to consider
when selecting a headhunter, you should also evaluate the headhunter's
past results. Assuming you feel a modicum of comfort with the
person you're dealing with, it's a good idea to check into their
track record and experience level. If you discover a consistent
pattern of success, you're probably off to a good start.
Otherwise, you might find yourself stuck with the fourth type
of headhunter: the Inspector Clouseau. This type embodies none
of the above personality traits, only the endearing, bumbling
incompetence of the movie character portrayed by the late Peter
Sellers. In his Pink Panther movies, Inspector Clouseau was able
to crack the trickiest cases; but only through sheer serendipity
or plain dumb luck.
The Two-Party System
You've probably heard of the so-called schism in the world of
executive search between "retained" and "contingency" headhunters.
True, differences exist, especially in regard to billing methods,
candidate salary levels, and operational procedures.
However, I prefer to think of the entire search industry as a
microcosm of the American political system, in which both Republicans
and Democrats live in peaceful co-existence.
"Gee, that's a far-fetched analogy, isn't it?" you ask.
No, not really. Republicans and Democrats are both loyal Americans;
they just have different views concerning society and the way
the country should be run.
The same could be said of the retained recruiters (who get their
fees paid in advance and work to fill higher level positions)
and the contingency folks (who only get paid once their candidates
are hired). Each serves a different slice of the employment population,
and each has a different concept of how the search business should
work.
Interestingly, the lines of demarcation have begun to blur in
recent years. Just as Republicans and Democrats have cross-bred
portions of their constituencies, so have the retained and contingency
headhunters. Although the traditional break point in salary is
around $75,000 (with retained above and contingency below) it's
no longer unheard of for a contingency recruiter to place a CEO
at $200,000 a year; or a retained headhunter to place a manufacturing
manager at $55,000. What's more, each camp will, if the situation
warrants, borrow from the other's method of billing the client.
Lately, I've heard stories of contingency recruiters charging
partially retained fees, and retainer headhunters accepting assignments
"on spec."
As the search industry continues to evolve, it'll matter less
and less how the client is billed. Currently, there are about
a dozen different billing schemes, from flat fees to hourly fees
to itemized service charges. One clever recipe combines contingency
with retained to produce -- voila! -- "contained" search.
Understanding these broad divisions will help avoid confusion
and save you time if your salary level is fairly polarized. That
is, if you're currently earning, say, $35,000, there's virtually
no chance you'll be working any time soon with a retained headhunter.
Similarly, if you're earning over $100,000, the odds are, the
headhunter you work with will be retained by the client company.
Both contingency and retained recruiters play for big stakes.
Fees generally run from twenty to as high as thirty-five percent
of a placed candidate's first year compensation. With that type
of arithmetic, it's easy to see why headhunters develop ulcers,
not to mention a healthy skepticism towards their clients and
candidates. All it takes is for an employer or candidate to change
his mind at the last minute, and the headhunter has lost, say,
$10,000 or $20,000 in personal income for months of work.
Some Common Sense Ground Rules
Let's talk turkey for a minute about what to expect from headhunters,
and how to establish some common sense ground rules. Here are
seven issues you'll want to discuss before you set any relationship
in stone:
[1] Compatibility -- Make sure you feel comfortable with the
style, personality, intensity level, and integrity of the headhunter.
As in any other business relationship, you want the other person
to understand your needs and act accordingly.
[2] Confidentiality -- Make sure your resume isn't going to get
plastered all over town without your knowledge. An inept (or anxious)
recruiter can overexpose your candidacy; or worse, reveal your
intention to change jobs to your own company.
[3] Good Judgment -- Make sure you're being sent to interviews
that match your background and interests with the needs of the
recruiter's client company. The most common complaint from both
candidates and employers is that recruiters "throw candidates
against the wall to see what sticks."
[4] Honesty -- Make sure there's either a bona fide job opening
or an upgrade possibility where you're being sent to interview.
Otherwise, you'll be spending your valuable time on one wild goose
chase after another.
[5] Tempo -- Make sure to let the recruiter know at what pace
you want to proceed in your search for a new position. If you're
not ready to make a change until a later date, or simply want
to explore the market, don't let the recruiter waste your time
by sending you on an interview.
[6] Arm-twisting -- Don't be pressured into accepting a position
or a compensation package simply to please the recruiter.
[7] Exclusivity -- It's fine to work with a recruiter on an exclusive
basis, as long as you feel comfortable with the arrangement, and
the recruiter has earned the right of sole representation. On
the other hand, you might not want to limit your options. Despite
what you may be told, no recruiter has the exclusive "ownership"
of your candidacy.
By the same token, you must be fair with headhunters. For example,
if you're pursuing a job search on your own or through another
party, keep the headhunter aware of your activity, so you don't
cross paths. A recruiter's time and reputation are his most valuable
commodities; he or she deserves better than to be manipulated
or left in the lurch.
Recruiters can't work miracles by waving a magic wand over your
resume; all they can do is match your background with a suitable
opening, and help guide you through the job changing process efficiently
and competitively. While it's true that headhunters have their
limitations and can't be all things to all people.
It makes good sense to build a solid relationship with a competent
headhunter.