
by Bill Radin
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 systems 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.
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