Headhunter

[sgcarlsberg]

Can anyone explain how does headhunter go about in their business. I am curious how they earn their money.

Can anyone shed some light on the industry.

Originally Posted by sgcarlsberg

Can anyone explain how does headhunter go about in their business. I am curious how they earn their money.

Can anyone shed some light on the industry.

It's a sales job. So they earn commissions.

[paymemore]

upon finding a successful candidate, the employer will pay the headhunter a lump sum of money.

competition is tough as the employer may still use many headhunters for filling 1 position.

it's no easy job as the headhunter will need to handle pressure by employer and dealing with candidates.

[sgcarlsberg]

Anyone know how much the commission do headhunter charge? Someone told me it is between 25 to 30%.

headhunter job???

Aren't those job similar to those people in Recruit Express, Kelly Services, Adecco & etc???

Correct me if i'm wrong.

[paymemore]

job agencies and headhunter differs. though headhunter may represent a job agency.

headhunter can actively search for a specific candidate which fits the employer requirements exactly as and when needed. more like seeking the right candidate. they can drop candidates as and when they like.

job agency match between current positions and candidates the fastest possible time. job agencies always keep the candidate and fill them for the roles where possible.

the commission varies. sometimes it can be a percentage. sometimes it can be how many months of the candidate's salary. it depends on the role and expected salary.

[sgcarlsberg]

Originally Posted by paymemore

job agencies and headhunter differs. though headhunter may represent a job agency.

headhunter can actively search for a specific candidate which fits the employer requirements exactly as and when needed. more like seeking the right candidate. they can drop candidates as and when they like.

job agency match between current positions and candidates the fastest possible time. job agencies always keep the candidate and fill them for the roles where possible.

the commission varies. sometimes it can be a percentage. sometimes it can be how many months of the candidate's salary. it depends on the role and expected salary.

what kind of position does the job agency match then?
Anyone can share the kind of commission they are getting.

Headhunter company earns about 20-35% of a candidate's annual salary. Those well-known ones can charge premium, so it's a huge compensation. For example: Annual salary of a candidate S$ 100,000, the headhunter's company earns about 30-35k.

Does the commission for the recruitment consultant/headhunter come from the candidate's salary?

i.e. If a job candidate gets a job thru a recruitment consultancy, would he get a lower salary compared to the scenario whereby he gets the job via direct application to the company?

Appreciate the facts from those who have dealings in this..

There’s a lot of confusion and hearsay around the headhunting industry that I would like to take some time here to clarify.

First of all, the word “headhunting” is a pretty much abused term, “staffing” is a more accurate term describing the industry. There are broadly 4 kinds of staffing businesses in which most agencies specialize in 1 or 2 of these:

1)Temporary Level – Lowest end of the food chain, this is where telesales people simply sit in front of a computer with a headset and make cold calls to candidates and clients daily. The jobs they place are mostly ad-hoc or contract junior roles like receptionist, retail promoters, administrators etc. This is also where most people start out on their staffing career.

2)Junior Manager & below Level – Usually places jobs that are below 7k per month, also where most people have the most experience when looking for a job. Consultants at this level are more like interview coordinators where they invite candidates down to their office and interview them and proceed to act as a middleman between client and candidate to arrange for interview meetings.

3)Middle Managers to Directors / Specialist Level – Targets jobs that are 7k – 20k per month, usually mid level managers, directors or some sort of technical specialist. In a sense, this is the first level of true “recruitment consultant” where they actually spend a lot of time creating their networks by attending trade shows, forums, exhibitions etc. They also spend much more time chatting with candidates, meeting candidates discretely by inviting them for lunch, coffee etc.

4)Executive Level – This is what was known as “headhunting” before the term got abused, people who are paid handsomely to actively seek out very senior level executives. Most of these headhunters do not take up jobs that are less than 20k unless times are really bad. Common activities include golf, brunches, fashion recept, tennis, various professional submits, chasing candidates at airport transit lounge etc.

For those who are interested in the compensation for the different types of staffing professionals:

1)Temporary Level – Not much, usually a low basic of less than 2k, plus some incentive if you hit sales target.
2)Junior Manager & below Level – Either basic + incentive or commission, around 3-4k per month if average. I’ve seen some good ones hit 6k+.
3)Middle Managers to Directors / Specialist Level – Commissions ranging from 5k – 15k per month
4)Executive Level – Commissions where sky’s the limit, but from experience most of them fall around 10k – 20k per month

By the way, 25%-30% of candidates annual salary as commission is a common myth that has been perpetuated by a lot of agencies to attract people to join them. The common practice now is more like 15% - 25% of annual salary as billings of which the recruiter gets more like 6%- 10% of annual salary as commissions. In conclusion, being a recruiter is a tough sales job just like any other.