Headhunting and Recruitment: What Are the Differences?

Headhunting and recruitment are two common methods used by companies and organizations to find the best candidates for their open positions. However, most recruiters and HR managers often get the difference between the concepts mixed up. So, what is a headhunter? Is it different from a recruiter? While the terms are sometimes used interchangeably, it’s the methods involved in each that differentiate a headhunter from a recruiter.

It can be difficult to find a clear and concise explanation sometimes. In this article, we aim to clear up any confusion and provide a definitive explanation of the differences between headhunting and recruiting. Understanding these differences is crucial for any industry looking to optimize their hiring processes. So, let’s dive in and learn about the differences between headhunting and recruitment.

So, What is a Headhunter?

A headhunter is a professional who specializes in finding and recruiting highly skilled individuals for high-level, executive positions. Headhunters are typically hired by companies to fill specific, hard-to-fill roles that require a unique set of skills and experience. Unlike traditional recruiters, headhunters actively seek out potential candidates, often approaching individuals who are already employed and not actively looking for a new job. Headhunters, like recruiters use a variety of methods to accomplish this goal, such as networking, outreach, industry research, and referrals.

What Does A Headhunter Do?

To help find the best candidates for high-level positions, many companies often turn to headhunters - professionals who specialize in finding and recruiting qualified individuals for open positions. But what exactly does a headhunter do? Let’s take a closer look.

• Defining job requirements: Headhunters often work closely with hiring managers to define the necessary requirements for open roles. This includes understanding the skills, experience, and qualifications needed for the position, as well as the company culture and values. They may also help but not necessarily create job descriptions and postings that accurately reflect the requirements of the role.
• Sourcing candidates: Headhunters use various channels to source potential candidates, including social media, resume databases, and job fairs. They also utilize sourcing techniques such as Boolean Searches and referrals to find qualified candidates for hard-to-fill roles. They may network with industry professionals to identify potential candidates as well. Headhunters use a variety of tools and techniques to find the best candidates for a role.
• Engaging with candidates: Once they’ve identified potential candidates, headhunters reach out to them to gauge their interest in the position via email or phone. They also maintain candidate databases and track communication with prospects. Headhunters might also conduct initial interviews to assess the candidate’s fit for the role and provide feedback to the hiring manager.
• Measuring recruitment metrics: Headhunters measure key recruitment metrics such as source of hire and time-to-fill for each role. This helps them identify areas for improvement and optimize their recruitment strategies. They may also track other metrics such as cost-per-hire and candidate satisfaction to ensure that their recruitment processes are effective.
• Conducting benchmark research: Headhunters conduct benchmark research on compensation and benefits to ensure that their clients are offering competitive packages to attract top talent. They may also research industry trends and best practices to provide recommendations on how to improve the recruitment process.

Differences Between a Headhunter and a Recruiter

1. Compensation

When it comes to getting paid, headhunters and recruiters operate a little differently. Headhunters are paid on a contingency or retainer basis, meaning they only get paid if they successfully fill a position or are paid upfront to conduct a search. This can be a high-risk, high-reward situation for headhunters, as they may put in a lot of work without any guarantee of payment. Recruiters, on the other hand, may receive a salary or commission for their work, providing them with more stability and security.

2. Human resources vs. sales

Headhunters and recruiters also differ in their approach to their work. Headhunters are more sales-oriented, with their persuasive skills, they can sell their services to clients and convince candidates to accept job offers. Recruiters are more focused on managing the hiring process, and ensuring that the right candidate is hired for the right position.

3. Hiring process

Headhunters are involved in the initial stages, focusing on finding and presenting candidates to clients. Once they have found the right candidate, their job is done. Recruiters are more involved in the hiring process and frequently manage the entire hiring process from start to finish, from posting job ads to screening resumes to conducting interviews.

4. Filling specific positions vs. having a number of positions

Headhunters typically focus on finding candidates for high-level, executive, or specialized positions. They are usually hired by companies to help them find the best job candidates for top company positions, like CEOs or other executives. While recruiters may be responsible for filling a variety of positions at all levels within an organization, from entry-level jobs to senior management roles. They connect with candidates who are open to employment and often find candidates at job fairs, through their network, or on networking websites. ‘

5. Working internally vs. externally

Another key difference between headhunters and recruiters is where they work. Headhunters work externally for agencies, using their extensive networks, connections, and expertise to find the perfect candidates for their clients. Recruiters on the other hand may work internally for a company or externally for an agency, filling positions within that company or for multiple clients.

6. Methods

Headhunters often rely on networking and cold calling to find top talent, using their connections and persuasive skills to convince candidates to consider new opportunities by highlighting various benefits and compensation that come with that particular position. Recruiters use a variety of methods to find candidates, including job fairs, networking and job boards, and referrals.

7. Time spent in recruiting

Finally, headhunters and recruiters differ in the amount of time they spend recruiting for each position. Headhunters focus on finding the right candidate quickly, often working on tight deadlines to fill urgent positions. Recruiters spend more time recruiting for each position as they screen and interview candidates to ensure they are the right fit.

Headhunting Fees vs. Recruitment Fees

Headhunting is typically more expensive for companies than the recruiting process. Headhunters specialize in a certain industry or role, and they help find executive candidates for a senior-level role. This typically takes more time and effort than the recruiting process. For permanent staff, standard recruitment costs tend to range between 15% and 20% of a candidate’s first annual salary, but this can go much higher for hard-to-fill positions or headhunted Candidates because of the more tailored, labour-intensive methods.

For example, if a Director of Marketing is offered a position at $100,000 and the recruiter’s fee is 20%, that would be a $20,000 fee paid to the recruiter. In contrast, headhunting fees may be higher due to the specialized nature of their work. Headhunters often charge a percentage of the candidate’s first-year salary as their fee, which can range from 20% to 35% or more depending on the level of service provided and the complexity of the position being filled.

Conclusion

Headhunting and recruitment are two different approaches to finding candidates for open positions. While both headhunters and recruiters can help your company grow its human capital, their responsibilities are often different. Headhunters locate and engage talents directly, while recruiters hire interested qualified applicants for open positions. Ultimately, the choice between headhunting and recruitment depends on your specific needs and goals.

Once you’ve made a choice, knowing there’s a tool that can streamline the hiring process while smoothening the interactions between a hiring manager and a headhunter or a recruiter from end to end can also help you in the long run. An Applicant Tracking System (ATS) is one of such tools. Among available ATS systems on the market, Manatal is one you should take a look at. Aside from being able to automate the recruitment process and source candidates quickly with features like job board integrations and candidate enrichment, it is also built-in with a Recruitment CRM (Customer Relationship Management.)

With Manatal’s Recruitment CRM, you can ensure seamless communication and firm relationships between recruiters or headhunters and hiring managers. You’ll be able to keep track of all your customer-related activities, from lead generation and client communication to placement management and revenue tracking. You can also monitor your sales funnel, identify bottlenecks, and improve your sales performance. All within a few clicks.

Start a 14-day free trial with Manatal today to learn more about its innovative features and see how this cloud-based recruitment solution can elevate your hiring game with only a few taps.