How much does a headhunter cost?

If you are a business owner looking to hire new talent for your company, utilizing the specialized skills of a headhunter can make the process significantly easier. Not only will they present you with the most qualified candidates, but they will take all the stress out of the hiring process, so you can focus on running a successful business. In this article, we explain everything you need to know about headhunting

What does a headhunter do?

A headhunter is a recruiter. They work to find highly qualified candidates who are qualified for roles within specific industries. Most headhunters focus on only a few industries to center their expertise and find potential candidates who they know have the required skills and experience. 

For example, the headhunting firm Spartanium primarily focuses on insurance, law, and accounting recruitment. The specialized skills of headhunters are usually utilized for high-profile jobs that are not traditionally advertised. This allows headhunters to assess the job market and only deal with serious candidates. 

What is the difference between a headhunter and a recruiter?

Headhunters and recruiters and extremely similar, although there are some nuanced differences. You will often find that headhunters work within recruitment agencies but have their own set of roles and responsibilities. Below is a breakdown of the key differences between recruiters and headhunters.

Getting paid 

The way in which headhunters and recruiters get paid highlights the differences between the two roles. Recruiters are usually paid in a more traditional manner, with a regular salary. On the other hand, headhunters work on a contingency basis. This means that they only get paid if they find a successful candidate.  

Finding talent 

This is the most significant difference between the two roles. Headhunters proactively hunt candidates, which means that the candidate pool is everyone, whether they already have a steady job or are looking for something new. This is because headhunters know the fields within which they work, so they are able to identify the person who is best for the job, regardless of that person’s current employment position. 

On the other hand, recruiters let job candidates come to them. They are not looking at individuals who are currently employed to fill the positions they have to fill. Instead, they put time into advertising the job to job seekers and assess the talent pool that applied to the job. From there, they assess who the best candidates are and sent them to the hiring company for final interviews. 

Who they recruit 

The types of candidates that headhunters are tasked with finding and the types of people recruiters are tasked with finding are completely different. Recruiters have more flexibility in regard to the companies they work for. They don’t necessarily require an area of expertise in any one industry (although it can be beneficial). 

This is because they generally hire for regular positions in a company. Headhunters, however, exclusively hire high-end employees. They need a significant level of knowledge to ensure that the people they are putting forward are sufficiently qualified as the stakes are much higher. 

How to attract employees to your company

When should you hire a headhunter?

You should hire a headhunter as soon as you know that you have a high-profile position to fill. Once your current employee expresses a desire to leave, you should contact a headhunter. The aim is to get a new employee in as soon as the old one leaves to make the transition as seamless as possible. 

What is the average cost of a headhunter?

Since headhunters usually work on a contingency basis, the cost of their services depends on different factors. However, if your headhunter is working on a contingency basis and provides you with a successful recruitment service, the headhunting fees are usually anywhere between 15% and 30% of the hire’s first-year salary. 

Whilst most headhunters work on a contingency basis with their headhunter fee based on the hire’s first-year salary, others prefer a retainer model and ask for a percentage of their fee upfront and the rest following a successful hire. Furthermore, others charge a flat fee regardless of their success in finding a candidate. 

Who do headhunters work for?

A headhunter can work for a hiring employer or a job seeker. When working for the employer, their job is to find the most qualified candidate to fill the position that the employer has open. When working for a job seeker, headhunters actively search for roles that they believe the individual will excel in. 

Hire a headhunter

What to look for in a headhunter?

Finding the perfect headhunter for your business is important if you want a successful outcome. Hiring an individual who understands the needs of your company as well as the job market is key. Below are the qualities you should look for when hiring a headhunter. 

Specialized expertise 

Finding a headhunter that is a specialist in their field is essential. It is virtually impossible to be a successful headhunter if you are trying to capitalize on the entire market. It is far more beneficial to have genuine expertise in one or two industries than to have limited knowledge of every industry. 

Understands your company 

If you want a candidate to succeed within your company, they need to suit the company culture. There is no point in hiring someone with differing views and values from that of your business, as they will fail to thrive in your company environment. Headhunters, therefore, need to understand your company, your values, and your working environment, in order to be able to tailor-pick individuals who suit your business and will be successful in these new surroundings. 

Good connections 

The headhunter you choose should have the necessary connections to ensure a wide reach within your industry. If they don’t have a strong network, they won’t be able to find the right candidate for you. It is impossible to be a successful headhunter without a wide network of connections and contacts.

Headhunting services

The best way to find qualified candidates is to hire an experienced recruitment agency or headhunter. At Spartanium, we have a team of experts who are dedicated to finding the best candidates for businesses in different fields including insurance, law, and accounting.The current job market is competitive, so we understand just how difficult it can be to find the right employee. Our extensive database of hand-picked, highly qualified employees, allows us to easily find the perfect match for your business. Don’t hesitate to contact us if you want to optimize your hiring process!

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