From a Recruiter’s Viewpoint Vol. 3

In this Issue:
1. Types of Recruiters
2. Why Recruiters Are Worth What They Charge

1. Types of Recruiters

  • Retained – used when confidentiality is key and the search will be difficult and will likely take 6 months or more. Normally, the salary is above $200K. The recruiter is not typically an industry expert but has broad reach across many industries. Most are guided by a written code of ethics and have national certification programs. Fees are typically 30% to 35%.
  • Contingency – Also have a written code of ethics and national certification programs.
    • Candidate Driven – The majority of recruiters identify available candidates and market them to potential clients who may or may not have an opening. They use referrals, the job boards, the internet and other databases and are not typically industry experts. Fees are typically less than 25% and the hiring manager has to do more work to sift through resumes. A good way to see a lot of resumes. Best used for positions in the $40K to $70K salary range.
    • Client Driven – Work only on specific client openings. Build client relationships for the long-term. Tend to be industry experts. Focus on passive (employed and not looking) candidate market by customizing competitor lists and direct recruiting. Normally present a few well-qualified and interested candidates. Serve as an extension of their client in the marketplace. Know their clients well and have a deep reach in specific markets. Fees are typically 25% to 30%. Ideally used for positions in the $70K to $200K salary range where industry specific prior experience is required. Bob Harrington Associates is a good example.

2. Why Recruiters Are Worth What They Charge

  • Expertise – nobody knows the marketplace better
  • Cast a wider net – they know where the hidden talent is
  • Cost – compared to the total internal cost is more efficient
  • Unbiased third party input – will find the “truly exceptional” rather than “just satisfactory” candidates
  • Confidentiality – employees and competitors don’t need to know what you are recruiting for
  • Speed – a recruiter can devote a full-time effort to finding the best candidates
  • Post-hire downtime – locating a person who can “hit the ground running”, saves time after the hire
  • Reality – a good recruiter provides the right candidate to solve a problem, not just fill an opening
  • Negotiation – as a buffer can arrive at a mutually beneficial arrangement without hurt feelings
  • Prioritizing company resources – the fee for one well-placed employee who can be the cause of a
  • company’s profits skyrocketing pales by comparison to their bottom line contribution

Savvy executives learned long ago that the fee paid to a recruiter is a shrewd strategic investment, not an extraneous expense.


Next Issue:
1. The Nine Question, 20 Minute Interview
2. How to Work With Your Recruiter
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