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EXECUTIVE RECRUITERS:
YOUR JOB-SEARCH COMMANDO'S
By Bill Radin

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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.
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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.
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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.
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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.
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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.
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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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Staff Resources Inc. |
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P.O. Box 4557
Rock Hill, SC
29732-6557 |
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803-366-0500
Fax: 803-366-1021
sri@srijobs.com |
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