Employee Recruiting Services

Employee recruiting services (recruiters, headhunters, etc) are available to help build a candidate pool. However, these services are often misunderstood.

Like any other business service, there are organizations that specialize in recruiting employees for businesses. They operate under a number of different names including recruiting firm, headhunter, contingency recruiting firm and retained search firm.

Don't be confused by all the different names.

Employee recruiting services really boil down to two types of organizations. The first type attempts to find candidates for open positions and only gets paid if one of the candidates they refer gets hired. These firms operate on a "contingency" basis and generally are referred to as headhunters or contingency recruiters.

The second type of employee recruiting firm is the retained search firm. This organization charges a fee that is paid in installments regardless of the results. This is not to say search firms don't deliver because mostly they do.

Recruiting Fees

In both cases, the fee paid is a generally a percentage of the new employee's compensation. Percentages run from 20% on the low end to 35% on the high end. Although all of these firms say the fee percentage is fixed, that is simply not the case. It is always possible to negotiate different terms.

Choosing A Recruiting Firm

Before choosing an recruiting firm, have a clear grasp of the business need. In addition, be certain to understand the sense of urgency and the budget. See the article on recruiting strategy for insight into budgeting issues.  Using a recruiting firm can be one of the fastest options but it is also the most expensive option.

Have a clear profile of the person needed to satisfy the business need. Have the budget to pay for the service. And, be prepared to devote the necessary time to work with the recruiting firm so they can successfully present candidates.

With all preparations completed, it is time to determine whether to work with a contingency firm or a retained firm. Retained firms are generally best used for very senior positions or positions where discretion is critical and when the budget is available. Contingency firms are generally used for all other positions when the decision is made to use an outside firm.

Start, the search for a recruiting firm by checking with peers, friends, suppliers and anyone else in your professional network. The best way to find a good recruiting firm is by way of referral from someone who has had positive results.

Next, you can check with your industry association to see if there are firms that specialize in your industry. It is critical to work with a firm that specializes in your industry. You want someone who knows the players and doesn't have to start from scratch.

Once a firm is found, check references. You are about to make a sizable investment and want to be as certain as possible about the chosen firm.

Finally, it is time to negotiate the terms of the agreement. Every employee recruiting firm has a standard contract. That is only the starting point for the negotiations. Everything from the percentage fee, the terms of payment and the guarantee are open to discussion.

Some firms will be more willing to discuss terms than others. Remember, you are the customer. The terms needs to work for you.

Guidelines For Working With Recruiting Firms

There are a couple of guidelines that will help get the best return on investment when using employee recruiting services. First, give them all the information and access they need so they have what is necessary to get the job done. Don't ever have an adversarial relationship with the chosen recruiting firm.

Next, give them the feedback they need to narrow the search. Recruiting is not an exact science and the better feedback you give them, the better candidates that are presented. But, DO NOT ACCEPT SHODDY WORK.

Don't let a recruiting firm just throw resumes at you and hope something will stick. You are paying a serious amount of money and should expect a professional job. Every candidate should be closer to exactly what is needed.

Don't hesitate to move on to a different firm if you are not getting the expected results.

Finally, conduct your own reference checks. It is always best to speak with references personally. It is too easy for things to get lost when the recruiting firm is involved with references.

In conclusion, employee recruiting services can be an excellent source of candidates for open positions. Choose a recruiting firm (headhunter or search firm) when the budget is available but you do not have the time or expertise to recruit on your own.  They are one of the recruiting sources that should be considered.