Headhunters, Recruiters, and Recruitment Process Outsourcing

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Have you found yourself struggling to fill open positions in your company? Perhaps you work for a small firm and lack the resources to conduct a candidate search, or maybe your company is rapidly expanding beyond the capacity of your recruiting team. If any of these are the case at your organization, you might have considered employing the services of an external agency.

Recruiting services vary widely, and the benefits of each will depend on your company's needs. For those unfamiliar with the process, here is a brief guide to understanding some options:

Headhunters

Headhunters may work as part of an agency or may work independently. Generally, they aggressively seek candidates for roles in specialized fields (e.g., engineering) in which they have an established network of contacts. Their job is to find an ideal candidate, then hand the information off to human resources.

Costs: Some work on retainer (you pay a flat fee up front), but most work on contingency, which means you pay them a percentage of the candidate's starting salary once he or she is hired. The percentages can range from 10 to 40 percent, often depending on the level of the position.

Pros: Headhunters can be a great option when you are struggling to fill a very specific position, and you don't have many contacts within that field. They also usually offer a guarantee for placement. For example, if the new hire doesn't work out in the first three months, the headhunter will find another candidate for free, or for a discounted rate after six months.

Cons: Mostly expense; this is not a cheap option. Also, if you are concerned about “poaching” talent from other organizations, this is not for you, as headhunters often find passive candidates.

Recruiters

Recruiters usually work for an agency that handles a variety of businesses, but often they specialize in certain industries (e.g. healthcare or information technology). They generally handle the advertising of open positions, manage job postings, serve as the contact for applicants, and conduct initial interviews. Some will also headhunt.

Costs: Nearly all work on contingency, typically at around 25 percent.

Pros: Working with recruiters can be a great option when you want to expand your search without having to manage job board postings or sift through hundreds of applications. Good recruiters will weed out the less desirable candidates so you interview only the cream of the crop.

Cons: Recruiters mostly use job postings to find candidates, so you could possibly achieve the same results on your own for less expense. Also, some job applicants don't enjoy communicating through third-party recruiters, and it can sour a top candidate during the recruiting process.

Recruitment Process Outsourcing (RPO)

Firms that specialize in RPO provide custom recruiting services that either replace or supplement internal recruiting functions. They are strategic partners in your business and offer services ranging from working with managers to create job descriptions, to creating a career website. Unlike a third-party recruiter, they represent your brand, not an agency, in the marketplace.

Costs: Firms generally do business on a negotiated contract basis that lasts for several years.

Pros: If you don't want to do in-house recruiting, are expanding into an unknown market, or need guidance on recruiting approaches, a relationship with an RPO firm may be ideal.

Cons: Working with an RPO firm is a significant financial investment, not a onetime transaction. You are likely to be under a long-term contract, and unlikely to be involved in day-to-day oversight of the firm's work. If you are not careful to choose a firm that shares your business ideals and standards, you may not be happy with how it represents you in the marketplace.

['Recruiting and hiring']

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