Differences Between Headhunters and Recruiters

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) January 11, 2011 -- Titles can be misleading, like many companies, each recruitment firm has different definitions and responsibilities. Often headhunters and recruiters are used interchangeably. What is more important, when dealing with a third party recruiter (TPR), is the difference in their relationship with the hiring company they are representing.

Traditionally, recruiters have played a role as outsourced mediators between job seekers and hiring companies. Headhunters, on the other hand, target specific candidates with unique backgrounds. Typically a recruiter will interview and screen candidates for job applications, while headhunters build networks and search for that needle in the haystack. However, these lines continue to blur. Today there are three main distinctive TPR’s – retained, contingency and agency.

The retained recruiters tend to focus mainly on management, executive and board positions. Retained firms are the most expensive and typically charge 25-30% of the employee’s annual salary, which gets paid up front or in instalments by the hiring company as they move through the recruitment process. The fee is negotiated before the search begins and can vary based on guarantee period, payment terms and responsiveness from the hiring company. Retained recruiters are the most proactive in terms of researching who is who in business.

Contingency recruiters are focused on mid-level positions and are only paid once they have successfully filled the position. The amount paid tends to be a predefined percentage of the employee’s annual salary. Contingency recruiters usually compete with other contingency firms to fill the same position. For this reason they can only expect to be successful in a percentage of the positions they are trying to fill. Some contingency recruiters do have exclusive agreements with hiring companies for a period of time.

Recruitment agencies are mainly focused on more junior positions that can be either permanent, contract or temporary. Agencies cover high volumes of candidates in a short space of time as the hiring company usually needs the position to be filled almost immediately. Agencies bill hiring companies by the hour and staff usually get paid a basic plus commission on completed projects.

It is certainly a good idea to build a relationship with good recruiters as they form an important part of your contacts with other businesses. Stay in contact and update your Curriculum Vitae regularly to get the most out of the relationship. Recruiters can serve your career well, even when you are not looking you might land a more lucrative or exciting job.

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