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Are headhunters worth the fee?

Thanks to poor delivery, fly-by-night operations, mismanagement of candidates and poor ethics, many companies are re-evaluating the value of headhunters.
By Mark Fraser-Grant, Head of The People Business
Johannesburg, 21 May 2004

Headhunters are seldom called that these days. The more commonly adopted phrase these days is "executive search". They also claim to do way more than recruitment, and now list talent networks, talent management, prospect provision and search solutions among their service offerings.

Why? Because the recruitment industry is tarnished with poor delivery, fly-by-nights, mismanagement of candidates, poor ethics and a misconception about what recruitment agencies are actually capable of delivering. So the more expensive, high-end executive-level recruiters are understandably positioning themselves differently from traditional recruitment agencies.

Another more recent trend is that of recruitment agencies joining the ranks of executive search firms in labelling the service they provide a whole host of marketing jargon. They too are shying away from the word recruitment, dressing up what they do as executive searches. This has obvious benefits as they charge more than the general industry. Therefore the focus is on marketing hype rather than the delivery of superior service.

Furthermore, retainer business is shrinking, mainly in reaction to overly expensive fees and too many cases of candidates not living up to hyped expectations. So there are fewer executive search firms and their "go to market model" now incorporates contingency recruitment previously unheard of. The more upmarket recruitment agencies are also taking market share away from the executive search firms - creating a more competitive market and blurring the distinction between search firms and recruitment service firms.

What about service and delivery?

Retainer business is shrinking, mainly in reaction to overly expensive fees and too many cases of candidates not living up to hyped expectations.

Mark Fraser-Grant, head of The People Business - Recruitment

The delivery gap between recruitment agents and executive search consultancies is not necessarily as wide as you think and depends largely on the depth of partnership developed with either. Flashy presentations do not guarantee the best service delivery. So what does? It`s simple - a good fit between the organisation and the candidate; an in-depth understanding of the business and culture; and genuine, proactive, value-added service.

Very often, what happens at the back of the office often does not correlate with the process as presented to the client. The process of targeted selection in itself is sometimes a flawed process, which does not creatively consider candidates who come from a different industry, in a different role but can add incredible value. The flashy presentation and experienced headhunter does not necessarily or automatically understand specific market sectors or ensure access to the talent base available.

In search of a transparent process

On occasion, headhunters introduce talent that re-ignites a business and proves to be a real return on investment. Unfortunately, there are many times where the delivery and value do not measure up to the fee, making the whole experience costly.

Earnest business-oriented, hard-working recruitment agents can deliver the goods without all the bells and whistles, smoke and mirrors, and greedy shareholders.

When sourcing someone to handle your recruitment needs, look beyond the labels to ascertain whether your preferred provider has a transparent process without the flash; tangible and visible business aptitude and sense; and the ability to adapt and tailor the process according to your particular needs.

You should also expect them to have a working knowledge of your company, its competitors as well as the market it plays in, flexibility regarding pricing in accordance with input, and the ability to access talent through not only advertising campaigns and/or database searches, but extensive network connections and a long-standing reputation as well.

Your chosen supplier should also be able to provide proof of ownership regarding the success of the selected candidates in the role, including a guarantee and refund clause.

The People Business sponsors ITWeb`s Career Moves industry portal. Today`s business success stories are companies with innovative, adaptable teams that stay focused under pressure and constantly identify new growth opportunities. This portal covers how to find these people and then retain them.

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