Executive headhunters offer several benefits over traditional recruiting methods. For starters, they have connections to the right networks and a reputation for discretion and professionalism. In addition, if you’re a seasoned executive, you’re unlikely to be interested in a cold call from a stranger. Instead, you should contact a headhunting firm with a proven track record of placing professionals in top companies. These benefits are priceless, but what are the costs?
Connections to the right networks
One of the most important things to look for in hiring executive headhunters is connections to the right networks. Most top talent does not apply for jobs advertised on public job boards and instead seeks employment through their personal networks or close contacts. Because top talent rarely comes from one source, executive search companies spend substantial amounts of time and resources building networks of talented executives. As a result, these headhunters are invaluable in filling open positions and obtaining references from clients.
Once you find the right network, present your list of connections to the headhunter. Don’t forget to ask for the names and contact information of people you don’t know if they have a recommendation for you. While your connections might not yield a perfect candidate on your first try, you may find them helpful in filling roles later. It doesn’t hurt to ask for their recommendations and to say “thank you!”
Costs of hiring executive headhunters
The costs of hiring executive headhunters are not the same for every company. Depending on your location and industry, you could pay anywhere from a few hundred dollars to more than two thousand dollars for their services. Hiring times can range from ten to sixty days. The average time spent on a new hire by a private firm varies but can range anywhere from 10 to twenty days for the public sector.
The costs associated with hiring an executive headhunter can vary depending on the complexity of the search and the level of work involved. The average fee for a retained search can range from 18% to 34% of the compensation package. For instance, a C-level executive can command a salary of $ 1 million yearly plus a 50% variable bonus based on KPI. This is a huge investment, and hiring the wrong person could cost you more than you expected.
Generally, a headhunter’s fee is based on a percentage of the candidate’s first-year salary. The hiring company pays this fee on the day of hire, but it can vary from fifteen to forty percent, or even more. While there are many factors to consider, the average fee ranges from twenty to twenty-five percent. In addition, some jobs cost more than others.