What is a headhunter?

Headhunters act as hired consultants who hand-pick selected candidates for job openings. They often work for themselves or have a team of administrative assistants to handle paperwork. Headhunters are very well connected, usually in a specific field of industry, and tend to work exclusively within their skillset—you won’t see a construction headhunter working for an educational institution, for example. Headhunters tend to work with professionals already employed in the industry and try to persuade them to take a position elsewhere—hence the term head “hunters.”

Firms usually hire headhunters to help them fill executive roles or positions that require more specialized skills. Sometimes, they’re used for confidential or high-budget roles, where publicly posting job information and compensation could compromise a company’s operations. They’re also hired to find talent outside the local or regional market.

Jobseekers can also use headhunters to stay in consideration for future opportunities in their industry, and may or may not pay for this service. Then, when an opportunity opens, the headhunter will contact any people in their network who they think would be a good fit.

Generally speaking, headhunters are paid by a company that has vacancies and make their money by filling these vacancies—if their chosen candidate is not hired, they don’t get paid. Usually, payment is a percentage of the new hire’s first year of salary. Many successful headhunters have made a career of staffing multiple executive-level positions per year and will subsequently charge more—but it’s because they get proven results.

Headhunters vs. recruiters

Here are the main differences between headhunters and recruiters:

• Headhunters are less involved in the hiring process than recruiters. Firms hire headhunters to handle the recruitment process on their behalf. Recruiters on the other hand work for the company that’s hiring and will manage the entire hiring process from interviews to onboarding. They’re often tasked with marketing the opening and fielding any questions about the position or company as a whole, while a headhunter may only know the core details of the job or company in question.
• Headhunters are third parties; recruiters are company employees. Headhunters hand-pick the right people, and if their candidates are hired, they get paid and move on. Recruiters write the job posting, respond to inquiries, handle any initial interviews, and are often involved beyond the hiring process as employees are onboarded.
• Headhunters work on commission; recruiters are paid a salary. The hiring company owes no obligation to the headhunter beyond paying them for finding the right talent. If they charge 10%, and their candidate is hired for a $100,000 per year in the position, they’ll make $10,000. A recruiter is a full-time, salaried employee in the Human Resources department. While headhunters focus purely on talent and skills, recruiters also need to keep in mind company culture and how the employee fits into the bigger picture—their job depends on it.

Related: FAQ: What Is a Headhunter Fee and How Much Does It Cost?

Best practices for hiring a headhunter

The best headhunters have three things in common:

1. The best headhunters are immersed in their industries. They know all the decision-makers and influencers at the companies they work for. Over time, successful headhunters will get repeat business from specific firms and can become invaluable assets for a company.
2. References. Good headhunters will build a portfolio of successful hires over the years and won’t hesitate to show you when asked. This is proof that they do a good job and have been doing so consistently.
3. The best headhunters have placed countless professionals throughout the years and almost intuitively know which companies are hiring and where. Some headhunters boast years of experience but can’t back it up with results. That’s why it’s important to check how recent their references are.

It isn’t hard to find a headhunter. Finding a good one is. Many of the best headhunters work for multiple clients at a time, and some will only work for companies looking to hire executives or C-suite employees. If you have industry colleagues who have used headhunting services, see if they can refer you (many headhunters get work on a word-of-mouth basis). You can also look online, but make sure to do your homework.

Regardless of how you find a headhunter, make sure you verify that:

• they’re qualified, and in the absence of years of headhunting experience, have prior human resources experience, education, training, or other credentials in staffing for your particular industry.
• they have references to back their work that are current, relevant, and not connected to a prior company they may have been employed by.
• their results justify their asking price. Nobody wants to overpay for sub-standard service, so shop around and see what similar headhunters charge—and compare their prices and stated results accordingly.

Choosing a good headhunter can make the difference between hiring a top employee and going through the whole recruitment process again months later because of a poor fit. It isn’t a decision to be made in haste. Take your time, weigh all your options, and choose the solution that’s right for you. If you aren’t ready to commit the money and resources to hiring a recruiter full time, a good headhunter is an excellent way to fill positions quickly and effectively.