| Recruiter |
Head hunter and Recruitment Agencies both offer what can be very valuable services to recruiters, particularly when it comes to helping to cut down on the work involved in sifting candidates. While recruitment agencies generally charge anywhere between around 10-20% of the new hire’s annual salary, headhunters’ commissions normally start at 20% and range from there upwards.
Of course, one of the main differences between recruitment agencies and headhunters is that the former tend to charge a contingency fee which is usually only payable if the agency actually finds a suitable candidate for the vacancy, whereas the latter are typically held on retainer so that they receive all or part of their commission irrespective of whether they find the right person for the job. Aside from this, however, the levels of service that you can reasonably expect from each of these different types of recruiters can vary considerable Although recruitment agencies do have to be extremely mindful of their reputations and of ensuring that they only refer candidates who would be a good match for the role, of course their businesses also rely on volume. Essentially, the more vacancies they help to fill, the more money they make. In some, although not all cases, this can mean that the quantity of candidates referred can take priority over their quality, which means that the fit between the employee and the hiring company doesn’t always turn out to be the best.
Of course, one of the main differences between recruitment agencies and headhunters is that the former tend to charge a contingency fee which is usually only payable if the agency actually finds a suitable candidate for the vacancy, whereas the latter are typically held on retainer so that they receive all or part of their commission irrespective of whether they find the right person for the job. Aside from this, however, the levels of service that you can reasonably expect from each of these different types of recruiters can vary considerable Although recruitment agencies do have to be extremely mindful of their reputations and of ensuring that they only refer candidates who would be a good match for the role, of course their businesses also rely on volume. Essentially, the more vacancies they help to fill, the more money they make. In some, although not all cases, this can mean that the quantity of candidates referred can take priority over their quality, which means that the fit between the employee and the hiring company doesn’t always turn out to be the best.
| Headhunter |
Headhunters, on the other hand, get paid something at least, regardless of whether the role is filled or not, and their reputations stand or fall on the quality of the people that they attract. This arrangement allows them the opportunity to really get to know the recruiting company, to understand its culture and its staffing requirements and to find the individual who is ideally suited to the role in every respect.
The higher fees and the retainer agreement with head hunter usually means that their services are reserved for executive and leadership positions right at the top of an organization, but as in some cases what they charge is only comparable with the upper end of the scale for recruitment agencies, it can be useful to consider them for positions which are lower down the hierarchy. After all, making a better hiring decision first time around can save the considerable costs of having to re-advertise and go through the recruitment and training processes all over again.
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