Definition: The act of using a personnel firm to locate potential candidates to
fill open senior-level management or other critical positions in
your company
Looking to fill an important position but dreading the hassle of
hunting for candidates? Executive recruitment firms, also known as
"headhunters" or search firms, can find qualified professional,
managerial or technical candidates for you. Hiring a headhunter
relieves you of the time-consuming distraction of sifting through
candidates, often at a considerable distance, while other work goes
begging. It also gives you a contact who may already potential
candidates for your available position.
Headhunters are not without problems, however; cost is the main
one. Some work on a retainer basis, charging a fixed fee in advance
for filling the position; others are paid a contingency fee when a
successful hire is made. Many firms charge a percentage of the
employee's first-year salary. Be warned, however: If you're looking
to fill an executive level position, depending on your location,
the type of manager you need and the time required to find
candidates, a successful search could cost between $50,000 and
$100,000.