Recruiter

Related Topics:
Recruiters :: Recruiters_and_Consultants

A recruiter is someone engaging in recruitment which is the solicitation of individuals to fill jobs or positions within any group such as a sports team or corporation. Recruiters can be divided into 2 groups: those working internally for one organization, and those working for multiple clients in a 3rd-party broker relationship, sometimes called headhunters.

Internal recruiters

An internal recruiter is member of a company or organization, and typically works in human resources (HR), which in the past was known as the Personnel Office, or just Personnel. Internal recruiters may be multi-functional, serving in an HR generalist role (hiring, firing, exit interviews, employee disputes, contracts, benefits, recruiting, etc.) or in a specific role focusing all their time on the activity of recruiting. They can be permanent employees or hired as contractors for this purpose. Contract recruiters tend to move around between multiple companies working at each one for a short stint as needed for specific hiring purposes.

Third party recruiters or headhunters

A third party recruiter can work on their own or through an agency, and acts as an independent contact between their client companies and the candidates they recruit for a position. They can specialise in client relationships only (sales or business development), in finding candidates (recruiting or sourcing), or in both areas. Most recruiters tend to specialize in permanent or full-time, direct hire positions or contract positions, but occasionally in both.

Those recruiters who specialise in contract placements (where the candidate is typically paid hourly for temporary work) may divide their labours into two functional groups, with one group working to sell to clients and open job orders, and the other group focusing on recruiting candidates. Both staffing and consulting firms employ recruiters specialising in contractor placement. Most recruiters today working in this area are compensated with a base salary, but receive a commission or bonus that is somehow tied to the number of placements they make.

Third party recruiters who specialise in placing job seekers in full-time positions with their client companies are more often referred to as headhunters. It should be noted, however, that many recruiters resent being called headhunters. Compensation methods for recruiters specialising in direct hire placements fall into 2 broad categories: contingent and retained, both of which are explained below. Retained recruiting teams are often divided into researchers, who source viable candidates, and recruiters, who present opportunities and oversee the interview process for their clients.

Most direct hire third party recruiters make a large percentage of their income through sales commissions generated from the fees that they collect from their clients. Some recruiters also receive a base salary or a draw against future commissions.

Fees for contingency recruiting

Contingency recruiting fees are paid by a hiring company. The fee requirement is contingent on the hiring of a job candidate that the recruiting firm recommended i.e., no hire, no fee. The fee varies depending on the position and specialization of the search firm. Recruiting fees usually range from 20 to 33% of the recruit's first year compensation and are paid after the applicant is hired.

Some firms offer replacement or money back guarantees that are prorated for the first 60 or 90 days of employment. Guarantees are also contingent on prompt payment for the placement.

The term "Agency" applies to local staffing or recruiting firms that deal with low or mid level skilled job seekers that are found by running advertisement, or when an unemployed job seeker registers with the Agency.

The term "Search Firm" applies to more specialized / national firms that recruit job candidates with specialized skills that are not found in the local pool of job seekers.

Retained search

High-end executive search firms get a retainer (up-front fee) to perform a specific search for a company officer or executive position. Consequently, retained searches tend to be for positions that pay in the $200K+(US) range.

Search fees are usually 33% of the annual compensation of the recruited executive. Fee payments are made in thirds, 1/3 of fee paid on initiation of the search, 1/3 paid thirty days later, and 1/3 paid sixty days later. It is important to note that in a retained search you are paying for the time and expertise of the search firm, not "placement". Payment based on placement is called contingency recruiting.

Retained recruiters work for the organizations who are their clients, not for job candidates that need to "find a job".

Search firms generally commit to off-limits agreements. These agreements prevent a firm from approaching employees from their clients as candidates for other clients (for instance, if top headhunter recruits the new CEO into Boeing, they will agree not to recommend Boeing executives to other companies). Since they act as management consultants working in the best interests of the clients for whom they conduct searches, it would be counterproductive to simultaneously remove talented executives from the same companies. Search firms will decline assignments from certain companies, in order to preserve their ability to poach candidates from those companies. Very large search firms often insist on guarantees of certain amount of searches before they will put an entire company "off-limits".

Top-tier global search firms include Egon Zehnder International, Russell Reynolds, Spencer Stuart, Heidrich & Struggles and Korn/Ferry.

Specialization

Headhunters tend to either be generalist or specialists in a particular niche, with some recruiting firms also specializing in a geographical region as small as a city, and others recruiting worldwide. Niche headhunters may specialize in a specific industry or type of employee such as medical specialists, information technology professionals, senior level executives or sales professionals

External links

Association of Executive Search Consultants
Oya's Directory of Recruiters A searchable directory of recruiters organized by industry specialty and location.
UK Recruitment Agency Directory

Employment