Recruiter
Encyclopedia
A recruiter is someone engaging in recruitment
, or the solicitation of individuals to fill job
s or positions within a corporation
, nonprofit organization, sports team, the military, etc. Recruiters may work within an organization's human resources department (typically) or on an outsourced basis. Outsourced recruiters typically work for multiple clients at once, on a third-party broker
basis, and are variously called headhunters, search firms/agents, agency recruiters, or recruitment consultants.
or organization
and typically works in the human resources
(HR) department, which in the past was known as the Personnel Office (or just Personnel). Internal recruiters may be multi-functional, serving in an HR generalist role -- (negotiating, hiring
, firing
, conducting exit interviews
; as well as managing employee disputes, contracts, benefits
, recruitment
, etc.) -- or in a specific role focusing all their time on recruiting. They can be permanent employees or hired as contractors for this purpose. Contract recruiters tend to move around between multiple companies, working at each one for a short stint as needed for specific hiring purposes. The responsibility is to filter candidates as per the requirements of each client.
acts as an independent contact between its client companies and the candidates it recruits for a position. These firms or individuals specialize in client relationships and finding candidates, with minimal or no focus on other HR tasks. Most recruiters tend to specialize in permanent, full-time, direct-hire positions or contract positions, but occasionally in both. The responsibility is to filter candidates as per the requirements of each client.
firm is a type of company that specializes in recruiting executive personnel for their client companies in various industries. Executive
search agents/professionals typically have a wide range of personal contacts in their industry or field of specialty; detailed, specific knowledge of the area; and typically operate at the most senior level of executive positions. Executive search professionals are also involved throughout more of the hiring process, conducting detailed interviews and presenting candidates to clients selectively, when they feel the candidate meets all stated requirements and would fit into the culture of the hiring firm, as well. Executive search agencies typically have long-lasting relationships with clients spanning many years, and in such cases the suitability of candidates is paramount. It is also important that such agencies operate with a high level of professionalism.
Executive search agencies often also provide clients with (legal) inside rumors gleaned from contacts within their clients' competitors.
Compensation
methods for recruiters specializing in direct hire placements fall into two broad categories: contingent and retained. Contingent recruiters are paid only upon the successful completion of the "search." Retained recruiters are paid for the process, typically earning a recruiting fee in 3 stages. 1/3 of the fee for initiating a search, 1/3 of the fee for delivering finalist candidates for a position, and the final 1/3 of the fee when a job offer is presented to the selected job candidate. Legitimate search firms are always paid by their clients (the company doing the hiring) and never by the candidate or job applicant. The days of the "employment agency" are gone since professional recruiting firms always represent the client and not the job candidate.
Search fees are typically 30% of the annual compensation of the recruited executive. Fee payments may be made in thirds, 1/3 of fee paid on initiation of the search, 1/3 paid thirty days later, and the final 1/3 paid thirty days later or upon placement of the candidate. Alternatively the fee may be paid upon the new employee starting work with a clawback if they leave within a defined period, sometimes with a clause in the contract which states that the search firm will find an alternative if the first employee fails to remain with the employer for the initial period.
In a retained search the fee is for the time and expertise of the search firm. The firm is employed to conduct the entire recruitment effort from startup until the candidate has started working.
Retained recruiters work for the organizations who are their clients, not for job candidates seeking employment, in some countries, such the UK, recruiters are not legally permitted to charge candidates. In the U.S. job candidates may pay an up front retainer to consulting or counselling firms to assist them in their job search. Such firms are not typically known as retained recruiters but may provide recruiting services to organizations and therefore share the descriptive nature of the title.
Search firms generally commit to off-limits agreements. These agreements prevent a firm from approaching employees of their current clients as candidates for other clients (for instance, if a headhunter recruits the new CEO into Boeing
, they will agree not to recommend Boeing executives to other companies). Since they act as management consultants working in the best interests of the clients for whom they conduct searches, it would be counterproductive to simultaneously remove talented executives from those client companies. Search firms may decline assignments from certain companies, in order to preserve their ability to poach candidates from those companies. Some large search firms may insist on guarantees of a certain number or dollar value of searches before they will put an entire company "off-limits".
One trade association for the retained search industry is known as the Association of Executive Search Consultants
(AESC) and is based in New York
.
Similar to retained search firms, delimited/engaged search firms require an up-front fee before engaging the search. Unlike a conventional retainer, however, the delimited/engaged search commitment fee is refundable if the recruiter fails to achieve a hire or other deliverable specified in the contract. Moreover, the delimited/engaged search commitment fee does not follow the typical 1/3, 1/3, 1/3 model of retainers, but rather is a relatively small up-front fee which is discounted from the final placement fee of 25-35% of the successful candidate’s first year compensation.
Both retained and delimited/engaged searches involve partial payment prior to filling the job, and the contracted recruiter has the search exclusively. Therefore, the search can be customized to the client organization’s needs, with the search professional providing a consultative service throughout the process.
While both retained and delimited/engaged searches serve client employers rather than job-seeking executives, delimited/engaged search contracts always (as opposed to sometimes) state a future date when the project must be completed or the downpayment refunded.
For senior level roles, clients often prefer to work with Recruiters who have performed in the past for them and usually will end up in the hands of a retained or delimited recruiter. By working exclusively with one firm on such searches, the client generally develops a much deeper relationship with the recruiter, and receives a much higher level of service. With all methods, retained, delimited, and contingency, clients rely on search professionals to provide not just resumes, but also insightful, consultative information about the market in general.
A delimited search is often preferred by clients who are seeking a retainer-style service level, while not willing to accept the level of risk that retained search entails. While delimited search does entail up-front fees, they tend to be much smaller than total pre-placement fees that retained search entails. Moreover, delimited search professionals shoulder the risk of their own failure to execute the search within a specified time-frame, offering to refund the up-front fees in such an event. While delimited search is not as desirable for searches that are open-ended in nature, the “ticking clock” is often seen by clients as an incentive that motivates delimited search recruiters to stay more active and involved throughout the hiring process.
A recruiter is someone engaging in recruitment
, or the solicitation of individuals to fill job
s or positions within a corporation
, nonprofit organization, sports team, the military, etc. Recruiters may work within an organization's human resources department (typically) or on an outsourced basis. Outsourced recruiters typically work for multiple clients at once, on a third-party broker
basis, and are variously called headhunters, search firms/agents, agency recruiters, or recruitment consultants.
or organization
and typically works in the human resources
(HR) department, which in the past was known as the Personnel Office (or just Personnel). Internal recruiters may be multi-functional, serving in an HR generalist role -- (negotiating, hiring
, firing
, conducting exit interviews
; as well as managing employee disputes, contracts, benefits
, recruitment
, etc.) -- or in a specific role focusing all their time on recruiting. They can be permanent employees or hired as contractors for this purpose. Contract recruiters tend to move around between multiple companies, working at each one for a short stint as needed for specific hiring purposes. The responsibility is to filter candidates as per the requirements of each client.
acts as an independent contact between its client companies and the candidates it recruits for a position. These firms or individuals specialize in client relationships and finding candidates, with minimal or no focus on other HR tasks. Most recruiters tend to specialize in permanent, full-time, direct-hire positions or contract positions, but occasionally in both. The responsibility is to filter candidates as per the requirements of each client.
firm is a type of company that specializes in recruiting executive personnel for their client companies in various industries. Executive
search agents/professionals typically have a wide range of personal contacts in their industry or field of specialty; detailed, specific knowledge of the area; and typically operate at the most senior level of executive positions. Executive search professionals are also involved throughout more of the hiring process, conducting detailed interviews and presenting candidates to clients selectively, when they feel the candidate meets all stated requirements and would fit into the culture of the hiring firm, as well. Executive search agencies typically have long-lasting relationships with clients spanning many years, and in such cases the suitability of candidates is paramount. It is also important that such agencies operate with a high level of professionalism.
Executive search agencies often also provide clients with (legal) inside rumors gleaned from contacts within their clients' competitors.
Compensation
methods for recruiters specializing in direct hire placements fall into two broad categories: contingent and retained. Contingent recruiters are paid only upon the successful completion of the "search." Retained recruiters are paid for the process, typically earning a recruiting fee in 3 stages. 1/3 of the fee for initiating a search, 1/3 of the fee for delivering finalist candidates for a position, and the final 1/3 of the fee when a job offer is presented to the selected job candidate. Legitimate search firms are always paid by their clients (the company doing the hiring) and never by the candidate or job applicant. The days of the "employment agency" are gone since professional recruiting firms always represent the client and not the job candidate.
Search fees are typically 30% of the annual compensation of the recruited executive. Fee payments may be made in thirds, 1/3 of fee paid on initiation of the search, 1/3 paid thirty days later, and the final 1/3 paid thirty days later or upon placement of the candidate. Alternatively the fee may be paid upon the new employee starting work with a clawback if they leave within a defined period, sometimes with a clause in the contract which states that the search firm will find an alternative if the first employee fails to remain with the employer for the initial period.
In a retained search the fee is for the time and expertise of the search firm. The firm is employed to conduct the entire recruitment effort from startup until the candidate has started working.
Retained recruiters work for the organizations who are their clients, not for job candidates seeking employment, in some countries, such the UK, recruiters are not legally permitted to charge candidates. In the U.S. job candidates may pay an up front retainer to consulting or counselling firms to assist them in their job search. Such firms are not typically known as retained recruiters but may provide recruiting services to organizations and therefore share the descriptive nature of the title.
Search firms generally commit to off-limits agreements. These agreements prevent a firm from approaching employees of their current clients as candidates for other clients (for instance, if a headhunter recruits the new CEO into Boeing
, they will agree not to recommend Boeing executives to other companies). Since they act as management consultants working in the best interests of the clients for whom they conduct searches, it would be counterproductive to simultaneously remove talented executives from those client companies. Search firms may decline assignments from certain companies, in order to preserve their ability to poach candidates from those companies. Some large search firms may insist on guarantees of a certain number or dollar value of searches before they will put an entire company "off-limits".
One trade association for the retained search industry is known as the Association of Executive Search Consultants
(AESC) and is based in New York
.
Similar to retained search firms, delimited/engaged search firms require an up-front fee before engaging the search. Unlike a conventional retainer, however, the delimited/engaged search commitment fee is refundable if the recruiter fails to achieve a hire or other deliverable specified in the contract. Moreover, the delimited/engaged search commitment fee does not follow the typical 1/3, 1/3, 1/3 model of retainers, but rather is a relatively small up-front fee which is discounted from the final placement fee of 25-35% of the successful candidate’s first year compensation.
Both retained and delimited/engaged searches involve partial payment prior to filling the job, and the contracted recruiter has the search exclusively. Therefore, the search can be customized to the client organization’s needs, with the search professional providing a consultative service throughout the process.
While both retained and delimited/engaged searches serve client employers rather than job-seeking executives, delimited/engaged search contracts always (as opposed to sometimes) state a future date when the project must be completed or the downpayment refunded.
For senior level roles, clients often prefer to work with Recruiters who have performed in the past for them and usually will end up in the hands of a retained or delimited recruiter. By working exclusively with one firm on such searches, the client generally develops a much deeper relationship with the recruiter, and receives a much higher level of service. With all methods, retained, delimited, and contingency, clients rely on search professionals to provide not just resumes, but also insightful, consultative information about the market in general.
A delimited search is often preferred by clients who are seeking a retainer-style service level, while not willing to accept the level of risk that retained search entails. While delimited search does entail up-front fees, they tend to be much smaller than total pre-placement fees that retained search entails. Moreover, delimited search professionals shoulder the risk of their own failure to execute the search within a specified time-frame, offering to refund the up-front fees in such an event. While delimited search is not as desirable for searches that are open-ended in nature, the “ticking clock” is often seen by clients as an incentive that motivates delimited search recruiters to stay more active and involved throughout the hiring process.
A recruiter is someone engaging in recruitment
, or the solicitation of individuals to fill job
s or positions within a corporation
, nonprofit organization, sports team, the military, etc. Recruiters may work within an organization's human resources department (typically) or on an outsourced basis. Outsourced recruiters typically work for multiple clients at once, on a third-party broker
basis, and are variously called headhunters, search firms/agents, agency recruiters, or recruitment consultants.
or organization
and typically works in the human resources
(HR) department, which in the past was known as the Personnel Office (or just Personnel). Internal recruiters may be multi-functional, serving in an HR generalist role -- (negotiating, hiring
, firing
, conducting exit interviews
; as well as managing employee disputes, contracts, benefits
, recruitment
, etc.) -- or in a specific role focusing all their time on recruiting. They can be permanent employees or hired as contractors for this purpose. Contract recruiters tend to move around between multiple companies, working at each one for a short stint as needed for specific hiring purposes. The responsibility is to filter candidates as per the requirements of each client.
acts as an independent contact between its client companies and the candidates it recruits for a position. These firms or individuals specialize in client relationships and finding candidates, with minimal or no focus on other HR tasks. Most recruiters tend to specialize in permanent, full-time, direct-hire positions or contract positions, but occasionally in both. The responsibility is to filter candidates as per the requirements of each client.
firm is a type of company that specializes in recruiting executive personnel for their client companies in various industries. Executive
search agents/professionals typically have a wide range of personal contacts in their industry or field of specialty; detailed, specific knowledge of the area; and typically operate at the most senior level of executive positions. Executive search professionals are also involved throughout more of the hiring process, conducting detailed interviews and presenting candidates to clients selectively, when they feel the candidate meets all stated requirements and would fit into the culture of the hiring firm, as well. Executive search agencies typically have long-lasting relationships with clients spanning many years, and in such cases the suitability of candidates is paramount. It is also important that such agencies operate with a high level of professionalism.
Executive search agencies often also provide clients with (legal) inside rumors gleaned from contacts within their clients' competitors.
Compensation
methods for recruiters specializing in direct hire placements fall into two broad categories: contingent and retained. Contingent recruiters are paid only upon the successful completion of the "search." Retained recruiters are paid for the process, typically earning a recruiting fee in 3 stages. 1/3 of the fee for initiating a search, 1/3 of the fee for delivering finalist candidates for a position, and the final 1/3 of the fee when a job offer is presented to the selected job candidate. Legitimate search firms are always paid by their clients (the company doing the hiring) and never by the candidate or job applicant. The days of the "employment agency" are gone since professional recruiting firms always represent the client and not the job candidate.
Search fees are typically 30% of the annual compensation of the recruited executive. Fee payments may be made in thirds, 1/3 of fee paid on initiation of the search, 1/3 paid thirty days later, and the final 1/3 paid thirty days later or upon placement of the candidate. Alternatively the fee may be paid upon the new employee starting work with a clawback if they leave within a defined period, sometimes with a clause in the contract which states that the search firm will find an alternative if the first employee fails to remain with the employer for the initial period.
In a retained search the fee is for the time and expertise of the search firm. The firm is employed to conduct the entire recruitment effort from startup until the candidate has started working.
Retained recruiters work for the organizations who are their clients, not for job candidates seeking employment, in some countries, such the UK, recruiters are not legally permitted to charge candidates. In the U.S. job candidates may pay an up front retainer to consulting or counselling firms to assist them in their job search. Such firms are not typically known as retained recruiters but may provide recruiting services to organizations and therefore share the descriptive nature of the title.
Search firms generally commit to off-limits agreements. These agreements prevent a firm from approaching employees of their current clients as candidates for other clients (for instance, if a headhunter recruits the new CEO into Boeing
, they will agree not to recommend Boeing executives to other companies). Since they act as management consultants working in the best interests of the clients for whom they conduct searches, it would be counterproductive to simultaneously remove talented executives from those client companies. Search firms may decline assignments from certain companies, in order to preserve their ability to poach candidates from those companies. Some large search firms may insist on guarantees of a certain number or dollar value of searches before they will put an entire company "off-limits".
One trade association for the retained search industry is known as the Association of Executive Search Consultants
(AESC) and is based in New York
.
Similar to retained search firms, delimited/engaged search firms require an up-front fee before engaging the search. Unlike a conventional retainer, however, the delimited/engaged search commitment fee is refundable if the recruiter fails to achieve a hire or other deliverable specified in the contract. Moreover, the delimited/engaged search commitment fee does not follow the typical 1/3, 1/3, 1/3 model of retainers, but rather is a relatively small up-front fee which is discounted from the final placement fee of 25-35% of the successful candidate’s first year compensation.
Both retained and delimited/engaged searches involve partial payment prior to filling the job, and the contracted recruiter has the search exclusively. Therefore, the search can be customized to the client organization’s needs, with the search professional providing a consultative service throughout the process.
While both retained and delimited/engaged searches serve client employers rather than job-seeking executives, delimited/engaged search contracts always (as opposed to sometimes) state a future date when the project must be completed or the downpayment refunded.
For senior level roles, clients often prefer to work with Recruiters who have performed in the past for them and usually will end up in the hands of a retained or delimited recruiter. By working exclusively with one firm on such searches, the client generally develops a much deeper relationship with the recruiter, and receives a much higher level of service. With all methods, retained, delimited, and contingency, clients rely on search professionals to provide not just resumes, but also insightful, consultative information about the market in general.
A delimited search is often preferred by clients who are seeking a retainer-style service level, while not willing to accept the level of risk that retained search entails. While delimited search does entail up-front fees, they tend to be much smaller than total pre-placement fees that retained search entails. Moreover, delimited search professionals shoulder the risk of their own failure to execute the search within a specified time-frame, offering to refund the up-front fees in such an event. While delimited search is not as desirable for searches that are open-ended in nature, the “ticking clock” is often seen by clients as an incentive that motivates delimited search recruiters to stay more active and involved throughout the hiring process.
Recruitment
Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.The recruitment...
, or the solicitation of individuals to fill job
Job (role)
A job is a regular activity performed in exchange for payment. A person usually begins a job by becoming an employee, volunteering, or starting a business. The duration of a job may range from an hour to a lifetime . If a person is trained for a certain type of job, they may have a profession...
s or positions within a corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
, nonprofit organization, sports team, the military, etc. Recruiters may work within an organization's human resources department (typically) or on an outsourced basis. Outsourced recruiters typically work for multiple clients at once, on a third-party broker
Broker
A broker is a party that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal...
basis, and are variously called headhunters, search firms/agents, agency recruiters, or recruitment consultants.
Internal recruiters
An internal recruiter (alternatively in-house recruiter or corporate recruiter) is member of a companyCompany
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
or organization
Organization
An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.There are a variety of legal types of...
and typically works in the human resources
Human resources
Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...
(HR) department, which in the past was known as the Personnel Office (or just Personnel). Internal recruiters may be multi-functional, serving in an HR generalist role -- (negotiating, hiring
Hiring
Hiring may refer to:* Recruitment of personnel * Renting of something...
, firing
Firing
Dismissal is the termination of employment by an employer against the will of the employee. Though such a decision can be made by an employer for a variety of reasons, ranging from an economic downturn to performance-related problems on the part of the employee, being fired has a strong stigma in...
, conducting exit interviews
Interviews
Interviews is:# the plural form of "interview"# a compilation album by Bob Marley & the Wailers, see Interviews # a C++ toolkit for the X Window System, see InterViews...
; as well as managing employee disputes, contracts, benefits
Employee benefit
Employee benefits and benefits in kind are various non-wage compensations provided to employees in addition to their normal wages or salaries...
, recruitment
Recruitment
Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.The recruitment...
, etc.) -- or in a specific role focusing all their time on recruiting. They can be permanent employees or hired as contractors for this purpose. Contract recruiters tend to move around between multiple companies, working at each one for a short stint as needed for specific hiring purposes. The responsibility is to filter candidates as per the requirements of each client.
Third party recruiters
A third party recruiter (sometimes known as a "headhunter") or an employment agencyEmployment agency
An employment agency is an organization which matches employers to employees. In all developed countries there is a publicly funded employment agency and multiple private businesses which also act as employment agencies.-Public employment agencies:...
acts as an independent contact between its client companies and the candidates it recruits for a position. These firms or individuals specialize in client relationships and finding candidates, with minimal or no focus on other HR tasks. Most recruiters tend to specialize in permanent, full-time, direct-hire positions or contract positions, but occasionally in both. The responsibility is to filter candidates as per the requirements of each client.
Executive Search
An executive searchExecutive search
Executive search is the consultative process of recruiting individuals to fill senior executive positions in organizations. Executive search may be performed by an organization's board of directors, or by an outside executive search organization....
firm is a type of company that specializes in recruiting executive personnel for their client companies in various industries. Executive
Senior management
Senior management, executive management, or management team is generally a team of individuals at the highest level of organizational management who have the day-to-day responsibilities of managing a company or corporation, they hold specific executive powers conferred onto them with and by...
search agents/professionals typically have a wide range of personal contacts in their industry or field of specialty; detailed, specific knowledge of the area; and typically operate at the most senior level of executive positions. Executive search professionals are also involved throughout more of the hiring process, conducting detailed interviews and presenting candidates to clients selectively, when they feel the candidate meets all stated requirements and would fit into the culture of the hiring firm, as well. Executive search agencies typically have long-lasting relationships with clients spanning many years, and in such cases the suitability of candidates is paramount. It is also important that such agencies operate with a high level of professionalism.
Executive search agencies often also provide clients with (legal) inside rumors gleaned from contacts within their clients' competitors.
Compensation
Remuneration
Remuneration is the total compensation that an employee receives in exchange for the service they perform for their employer. Typically, this consists of monetary rewards, also referred to as wage or salary...
methods for recruiters specializing in direct hire placements fall into two broad categories: contingent and retained. Contingent recruiters are paid only upon the successful completion of the "search." Retained recruiters are paid for the process, typically earning a recruiting fee in 3 stages. 1/3 of the fee for initiating a search, 1/3 of the fee for delivering finalist candidates for a position, and the final 1/3 of the fee when a job offer is presented to the selected job candidate. Legitimate search firms are always paid by their clients (the company doing the hiring) and never by the candidate or job applicant. The days of the "employment agency" are gone since professional recruiting firms always represent the client and not the job candidate.
Retained search
High-end executive search firms get a retainer (up-front fee) to perform a specific search for a corporate officer or other senior executive position. Typically, retained searches tend to be for positions that pay upwards of US$100,000 and often far more.Search fees are typically 30% of the annual compensation of the recruited executive. Fee payments may be made in thirds, 1/3 of fee paid on initiation of the search, 1/3 paid thirty days later, and the final 1/3 paid thirty days later or upon placement of the candidate. Alternatively the fee may be paid upon the new employee starting work with a clawback if they leave within a defined period, sometimes with a clause in the contract which states that the search firm will find an alternative if the first employee fails to remain with the employer for the initial period.
In a retained search the fee is for the time and expertise of the search firm. The firm is employed to conduct the entire recruitment effort from startup until the candidate has started working.
Retained recruiters work for the organizations who are their clients, not for job candidates seeking employment, in some countries, such the UK, recruiters are not legally permitted to charge candidates. In the U.S. job candidates may pay an up front retainer to consulting or counselling firms to assist them in their job search. Such firms are not typically known as retained recruiters but may provide recruiting services to organizations and therefore share the descriptive nature of the title.
Search firms generally commit to off-limits agreements. These agreements prevent a firm from approaching employees of their current clients as candidates for other clients (for instance, if a headhunter recruits the new CEO into Boeing
Boeing
The Boeing Company is an American multinational aerospace and defense corporation, founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing Corporate headquarters has been in Chicago, Illinois since 2001...
, they will agree not to recommend Boeing executives to other companies). Since they act as management consultants working in the best interests of the clients for whom they conduct searches, it would be counterproductive to simultaneously remove talented executives from those client companies. Search firms may decline assignments from certain companies, in order to preserve their ability to poach candidates from those companies. Some large search firms may insist on guarantees of a certain number or dollar value of searches before they will put an entire company "off-limits".
One trade association for the retained search industry is known as the Association of Executive Search Consultants
Association of Executive Search Consultants
The Association of Executive Search Consultants is the worldwide professional body representing the retained executive search industry. Founded in 1959 in the United States, it is today a global organization with its international headquarters in New York City, and a European office in Brussels.-...
(AESC) and is based in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
.
Delimited or engaged search
Another form of high-end executive search, delimited or engaged search, is often improperly categorized as retained search, although there are distinct differences.Similar to retained search firms, delimited/engaged search firms require an up-front fee before engaging the search. Unlike a conventional retainer, however, the delimited/engaged search commitment fee is refundable if the recruiter fails to achieve a hire or other deliverable specified in the contract. Moreover, the delimited/engaged search commitment fee does not follow the typical 1/3, 1/3, 1/3 model of retainers, but rather is a relatively small up-front fee which is discounted from the final placement fee of 25-35% of the successful candidate’s first year compensation.
Both retained and delimited/engaged searches involve partial payment prior to filling the job, and the contracted recruiter has the search exclusively. Therefore, the search can be customized to the client organization’s needs, with the search professional providing a consultative service throughout the process.
While both retained and delimited/engaged searches serve client employers rather than job-seeking executives, delimited/engaged search contracts always (as opposed to sometimes) state a future date when the project must be completed or the downpayment refunded.
Contingent search
As stated, contingent search firms are remunerated only upon the successful completion of the search -- typically when the candidate accepts the position. These recruiters may earn 20% to 35% of the candidate's first-year base salary or total remuneration as a hiring fee; the fee may also be calculated to include the candidate's (that is, the successful hire's) median or expected first-year bonus payout. In any case, the fee is (as always) paid by the hiring company, not the candidate/hire.Relative advantages
Clients (companies seeking to hire) often tend to work with contingent search firms when filling mid-level positions. As contingent search firms generally rely heavily on their contacts, and seldom work on an exclusive basis, it is not rare for a client to work with a large number of contingent recruiters on the same search at the same time, in order to maximize the volume of candidate (job seeker) resumes they receive. Beyond the increased volume of candidates that such an approach allows, contingent firms do not get paid until the placement is made (a candidate is successfully hired), and thus the search risk is shifted almost entirely to the search firms. Moreover, contingent search firms often work with clients on Higher percentage fee basis, relative to retained and delimited search firms as they shoulder more risk.For senior level roles, clients often prefer to work with Recruiters who have performed in the past for them and usually will end up in the hands of a retained or delimited recruiter. By working exclusively with one firm on such searches, the client generally develops a much deeper relationship with the recruiter, and receives a much higher level of service. With all methods, retained, delimited, and contingency, clients rely on search professionals to provide not just resumes, but also insightful, consultative information about the market in general.
A delimited search is often preferred by clients who are seeking a retainer-style service level, while not willing to accept the level of risk that retained search entails. While delimited search does entail up-front fees, they tend to be much smaller than total pre-placement fees that retained search entails. Moreover, delimited search professionals shoulder the risk of their own failure to execute the search within a specified time-frame, offering to refund the up-front fees in such an event. While delimited search is not as desirable for searches that are open-ended in nature, the “ticking clock” is often seen by clients as an incentive that motivates delimited search recruiters to stay more active and involved throughout the hiring process.
Specialization
Executive recruiters tend either to be generalists or specialists in a particular niche, with some recruiting firms also specialising in a geographical region as small as a city, and others recruiting worldwide. Niche recruiters may specialise in a specific industry or type of employee, such as medical specialists, information-technology professionals, senior-level executives, or sales professionals.A recruiter is someone engaging in recruitment
Recruitment
Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.The recruitment...
, or the solicitation of individuals to fill job
Job (role)
A job is a regular activity performed in exchange for payment. A person usually begins a job by becoming an employee, volunteering, or starting a business. The duration of a job may range from an hour to a lifetime . If a person is trained for a certain type of job, they may have a profession...
s or positions within a corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
, nonprofit organization, sports team, the military, etc. Recruiters may work within an organization's human resources department (typically) or on an outsourced basis. Outsourced recruiters typically work for multiple clients at once, on a third-party broker
Broker
A broker is a party that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal...
basis, and are variously called headhunters, search firms/agents, agency recruiters, or recruitment consultants.
Internal recruiters
An internal recruiter (alternatively in-house recruiter or corporate recruiter) is member of a companyCompany
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
or organization
Organization
An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.There are a variety of legal types of...
and typically works in the human resources
Human resources
Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...
(HR) department, which in the past was known as the Personnel Office (or just Personnel). Internal recruiters may be multi-functional, serving in an HR generalist role -- (negotiating, hiring
Hiring
Hiring may refer to:* Recruitment of personnel * Renting of something...
, firing
Firing
Dismissal is the termination of employment by an employer against the will of the employee. Though such a decision can be made by an employer for a variety of reasons, ranging from an economic downturn to performance-related problems on the part of the employee, being fired has a strong stigma in...
, conducting exit interviews
Interviews
Interviews is:# the plural form of "interview"# a compilation album by Bob Marley & the Wailers, see Interviews # a C++ toolkit for the X Window System, see InterViews...
; as well as managing employee disputes, contracts, benefits
Employee benefit
Employee benefits and benefits in kind are various non-wage compensations provided to employees in addition to their normal wages or salaries...
, recruitment
Recruitment
Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.The recruitment...
, etc.) -- or in a specific role focusing all their time on recruiting. They can be permanent employees or hired as contractors for this purpose. Contract recruiters tend to move around between multiple companies, working at each one for a short stint as needed for specific hiring purposes. The responsibility is to filter candidates as per the requirements of each client.
Third party recruiters
A third party recruiter (sometimes known as a "headhunter") or an employment agencyEmployment agency
An employment agency is an organization which matches employers to employees. In all developed countries there is a publicly funded employment agency and multiple private businesses which also act as employment agencies.-Public employment agencies:...
acts as an independent contact between its client companies and the candidates it recruits for a position. These firms or individuals specialize in client relationships and finding candidates, with minimal or no focus on other HR tasks. Most recruiters tend to specialize in permanent, full-time, direct-hire positions or contract positions, but occasionally in both. The responsibility is to filter candidates as per the requirements of each client.
Executive Search
An executive searchExecutive search
Executive search is the consultative process of recruiting individuals to fill senior executive positions in organizations. Executive search may be performed by an organization's board of directors, or by an outside executive search organization....
firm is a type of company that specializes in recruiting executive personnel for their client companies in various industries. Executive
Senior management
Senior management, executive management, or management team is generally a team of individuals at the highest level of organizational management who have the day-to-day responsibilities of managing a company or corporation, they hold specific executive powers conferred onto them with and by...
search agents/professionals typically have a wide range of personal contacts in their industry or field of specialty; detailed, specific knowledge of the area; and typically operate at the most senior level of executive positions. Executive search professionals are also involved throughout more of the hiring process, conducting detailed interviews and presenting candidates to clients selectively, when they feel the candidate meets all stated requirements and would fit into the culture of the hiring firm, as well. Executive search agencies typically have long-lasting relationships with clients spanning many years, and in such cases the suitability of candidates is paramount. It is also important that such agencies operate with a high level of professionalism.
Executive search agencies often also provide clients with (legal) inside rumors gleaned from contacts within their clients' competitors.
Compensation
Remuneration
Remuneration is the total compensation that an employee receives in exchange for the service they perform for their employer. Typically, this consists of monetary rewards, also referred to as wage or salary...
methods for recruiters specializing in direct hire placements fall into two broad categories: contingent and retained. Contingent recruiters are paid only upon the successful completion of the "search." Retained recruiters are paid for the process, typically earning a recruiting fee in 3 stages. 1/3 of the fee for initiating a search, 1/3 of the fee for delivering finalist candidates for a position, and the final 1/3 of the fee when a job offer is presented to the selected job candidate. Legitimate search firms are always paid by their clients (the company doing the hiring) and never by the candidate or job applicant. The days of the "employment agency" are gone since professional recruiting firms always represent the client and not the job candidate.
Retained search
High-end executive search firms get a retainer (up-front fee) to perform a specific search for a corporate officer or other senior executive position. Typically, retained searches tend to be for positions that pay upwards of US$100,000 and often far more.Search fees are typically 30% of the annual compensation of the recruited executive. Fee payments may be made in thirds, 1/3 of fee paid on initiation of the search, 1/3 paid thirty days later, and the final 1/3 paid thirty days later or upon placement of the candidate. Alternatively the fee may be paid upon the new employee starting work with a clawback if they leave within a defined period, sometimes with a clause in the contract which states that the search firm will find an alternative if the first employee fails to remain with the employer for the initial period.
In a retained search the fee is for the time and expertise of the search firm. The firm is employed to conduct the entire recruitment effort from startup until the candidate has started working.
Retained recruiters work for the organizations who are their clients, not for job candidates seeking employment, in some countries, such the UK, recruiters are not legally permitted to charge candidates. In the U.S. job candidates may pay an up front retainer to consulting or counselling firms to assist them in their job search. Such firms are not typically known as retained recruiters but may provide recruiting services to organizations and therefore share the descriptive nature of the title.
Search firms generally commit to off-limits agreements. These agreements prevent a firm from approaching employees of their current clients as candidates for other clients (for instance, if a headhunter recruits the new CEO into Boeing
Boeing
The Boeing Company is an American multinational aerospace and defense corporation, founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing Corporate headquarters has been in Chicago, Illinois since 2001...
, they will agree not to recommend Boeing executives to other companies). Since they act as management consultants working in the best interests of the clients for whom they conduct searches, it would be counterproductive to simultaneously remove talented executives from those client companies. Search firms may decline assignments from certain companies, in order to preserve their ability to poach candidates from those companies. Some large search firms may insist on guarantees of a certain number or dollar value of searches before they will put an entire company "off-limits".
One trade association for the retained search industry is known as the Association of Executive Search Consultants
Association of Executive Search Consultants
The Association of Executive Search Consultants is the worldwide professional body representing the retained executive search industry. Founded in 1959 in the United States, it is today a global organization with its international headquarters in New York City, and a European office in Brussels.-...
(AESC) and is based in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
.
Delimited or engaged search
Another form of high-end executive search, delimited or engaged search, is often improperly categorized as retained search, although there are distinct differences.Similar to retained search firms, delimited/engaged search firms require an up-front fee before engaging the search. Unlike a conventional retainer, however, the delimited/engaged search commitment fee is refundable if the recruiter fails to achieve a hire or other deliverable specified in the contract. Moreover, the delimited/engaged search commitment fee does not follow the typical 1/3, 1/3, 1/3 model of retainers, but rather is a relatively small up-front fee which is discounted from the final placement fee of 25-35% of the successful candidate’s first year compensation.
Both retained and delimited/engaged searches involve partial payment prior to filling the job, and the contracted recruiter has the search exclusively. Therefore, the search can be customized to the client organization’s needs, with the search professional providing a consultative service throughout the process.
While both retained and delimited/engaged searches serve client employers rather than job-seeking executives, delimited/engaged search contracts always (as opposed to sometimes) state a future date when the project must be completed or the downpayment refunded.
Contingent search
As stated, contingent search firms are remunerated only upon the successful completion of the search -- typically when the candidate accepts the position. These recruiters may earn 20% to 35% of the candidate's first-year base salary or total remuneration as a hiring fee; the fee may also be calculated to include the candidate's (that is, the successful hire's) median or expected first-year bonus payout. In any case, the fee is (as always) paid by the hiring company, not the candidate/hire.Relative advantages
Clients (companies seeking to hire) often tend to work with contingent search firms when filling mid-level positions. As contingent search firms generally rely heavily on their contacts, and seldom work on an exclusive basis, it is not rare for a client to work with a large number of contingent recruiters on the same search at the same time, in order to maximize the volume of candidate (job seeker) resumes they receive. Beyond the increased volume of candidates that such an approach allows, contingent firms do not get paid until the placement is made (a candidate is successfully hired), and thus the search risk is shifted almost entirely to the search firms. Moreover, contingent search firms often work with clients on Higher percentage fee basis, relative to retained and delimited search firms as they shoulder more risk.For senior level roles, clients often prefer to work with Recruiters who have performed in the past for them and usually will end up in the hands of a retained or delimited recruiter. By working exclusively with one firm on such searches, the client generally develops a much deeper relationship with the recruiter, and receives a much higher level of service. With all methods, retained, delimited, and contingency, clients rely on search professionals to provide not just resumes, but also insightful, consultative information about the market in general.
A delimited search is often preferred by clients who are seeking a retainer-style service level, while not willing to accept the level of risk that retained search entails. While delimited search does entail up-front fees, they tend to be much smaller than total pre-placement fees that retained search entails. Moreover, delimited search professionals shoulder the risk of their own failure to execute the search within a specified time-frame, offering to refund the up-front fees in such an event. While delimited search is not as desirable for searches that are open-ended in nature, the “ticking clock” is often seen by clients as an incentive that motivates delimited search recruiters to stay more active and involved throughout the hiring process.
Specialization
Executive recruiters tend either to be generalists or specialists in a particular niche, with some recruiting firms also specialising in a geographical region as small as a city, and others recruiting worldwide. Niche recruiters may specialise in a specific industry or type of employee, such as medical specialists, information-technology professionals, senior-level executives, or sales professionals.A recruiter is someone engaging in recruitment
Recruitment
Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.The recruitment...
, or the solicitation of individuals to fill job
Job (role)
A job is a regular activity performed in exchange for payment. A person usually begins a job by becoming an employee, volunteering, or starting a business. The duration of a job may range from an hour to a lifetime . If a person is trained for a certain type of job, they may have a profession...
s or positions within a corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
, nonprofit organization, sports team, the military, etc. Recruiters may work within an organization's human resources department (typically) or on an outsourced basis. Outsourced recruiters typically work for multiple clients at once, on a third-party broker
Broker
A broker is a party that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal...
basis, and are variously called headhunters, search firms/agents, agency recruiters, or recruitment consultants.
Internal recruiters
An internal recruiter (alternatively in-house recruiter or corporate recruiter) is member of a companyCompany
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
or organization
Organization
An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.There are a variety of legal types of...
and typically works in the human resources
Human resources
Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...
(HR) department, which in the past was known as the Personnel Office (or just Personnel). Internal recruiters may be multi-functional, serving in an HR generalist role -- (negotiating, hiring
Hiring
Hiring may refer to:* Recruitment of personnel * Renting of something...
, firing
Firing
Dismissal is the termination of employment by an employer against the will of the employee. Though such a decision can be made by an employer for a variety of reasons, ranging from an economic downturn to performance-related problems on the part of the employee, being fired has a strong stigma in...
, conducting exit interviews
Interviews
Interviews is:# the plural form of "interview"# a compilation album by Bob Marley & the Wailers, see Interviews # a C++ toolkit for the X Window System, see InterViews...
; as well as managing employee disputes, contracts, benefits
Employee benefit
Employee benefits and benefits in kind are various non-wage compensations provided to employees in addition to their normal wages or salaries...
, recruitment
Recruitment
Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.The recruitment...
, etc.) -- or in a specific role focusing all their time on recruiting. They can be permanent employees or hired as contractors for this purpose. Contract recruiters tend to move around between multiple companies, working at each one for a short stint as needed for specific hiring purposes. The responsibility is to filter candidates as per the requirements of each client.
Third party recruiters
A third party recruiter (sometimes known as a "headhunter") or an employment agencyEmployment agency
An employment agency is an organization which matches employers to employees. In all developed countries there is a publicly funded employment agency and multiple private businesses which also act as employment agencies.-Public employment agencies:...
acts as an independent contact between its client companies and the candidates it recruits for a position. These firms or individuals specialize in client relationships and finding candidates, with minimal or no focus on other HR tasks. Most recruiters tend to specialize in permanent, full-time, direct-hire positions or contract positions, but occasionally in both. The responsibility is to filter candidates as per the requirements of each client.
Executive Search
An executive searchExecutive search
Executive search is the consultative process of recruiting individuals to fill senior executive positions in organizations. Executive search may be performed by an organization's board of directors, or by an outside executive search organization....
firm is a type of company that specializes in recruiting executive personnel for their client companies in various industries. Executive
Senior management
Senior management, executive management, or management team is generally a team of individuals at the highest level of organizational management who have the day-to-day responsibilities of managing a company or corporation, they hold specific executive powers conferred onto them with and by...
search agents/professionals typically have a wide range of personal contacts in their industry or field of specialty; detailed, specific knowledge of the area; and typically operate at the most senior level of executive positions. Executive search professionals are also involved throughout more of the hiring process, conducting detailed interviews and presenting candidates to clients selectively, when they feel the candidate meets all stated requirements and would fit into the culture of the hiring firm, as well. Executive search agencies typically have long-lasting relationships with clients spanning many years, and in such cases the suitability of candidates is paramount. It is also important that such agencies operate with a high level of professionalism.
Executive search agencies often also provide clients with (legal) inside rumors gleaned from contacts within their clients' competitors.
Compensation
Remuneration
Remuneration is the total compensation that an employee receives in exchange for the service they perform for their employer. Typically, this consists of monetary rewards, also referred to as wage or salary...
methods for recruiters specializing in direct hire placements fall into two broad categories: contingent and retained. Contingent recruiters are paid only upon the successful completion of the "search." Retained recruiters are paid for the process, typically earning a recruiting fee in 3 stages. 1/3 of the fee for initiating a search, 1/3 of the fee for delivering finalist candidates for a position, and the final 1/3 of the fee when a job offer is presented to the selected job candidate. Legitimate search firms are always paid by their clients (the company doing the hiring) and never by the candidate or job applicant. The days of the "employment agency" are gone since professional recruiting firms always represent the client and not the job candidate.
Retained search
High-end executive search firms get a retainer (up-front fee) to perform a specific search for a corporate officer or other senior executive position. Typically, retained searches tend to be for positions that pay upwards of US$100,000 and often far more.Search fees are typically 30% of the annual compensation of the recruited executive. Fee payments may be made in thirds, 1/3 of fee paid on initiation of the search, 1/3 paid thirty days later, and the final 1/3 paid thirty days later or upon placement of the candidate. Alternatively the fee may be paid upon the new employee starting work with a clawback if they leave within a defined period, sometimes with a clause in the contract which states that the search firm will find an alternative if the first employee fails to remain with the employer for the initial period.
In a retained search the fee is for the time and expertise of the search firm. The firm is employed to conduct the entire recruitment effort from startup until the candidate has started working.
Retained recruiters work for the organizations who are their clients, not for job candidates seeking employment, in some countries, such the UK, recruiters are not legally permitted to charge candidates. In the U.S. job candidates may pay an up front retainer to consulting or counselling firms to assist them in their job search. Such firms are not typically known as retained recruiters but may provide recruiting services to organizations and therefore share the descriptive nature of the title.
Search firms generally commit to off-limits agreements. These agreements prevent a firm from approaching employees of their current clients as candidates for other clients (for instance, if a headhunter recruits the new CEO into Boeing
Boeing
The Boeing Company is an American multinational aerospace and defense corporation, founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing Corporate headquarters has been in Chicago, Illinois since 2001...
, they will agree not to recommend Boeing executives to other companies). Since they act as management consultants working in the best interests of the clients for whom they conduct searches, it would be counterproductive to simultaneously remove talented executives from those client companies. Search firms may decline assignments from certain companies, in order to preserve their ability to poach candidates from those companies. Some large search firms may insist on guarantees of a certain number or dollar value of searches before they will put an entire company "off-limits".
One trade association for the retained search industry is known as the Association of Executive Search Consultants
Association of Executive Search Consultants
The Association of Executive Search Consultants is the worldwide professional body representing the retained executive search industry. Founded in 1959 in the United States, it is today a global organization with its international headquarters in New York City, and a European office in Brussels.-...
(AESC) and is based in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
.
Delimited or engaged search
Another form of high-end executive search, delimited or engaged search, is often improperly categorized as retained search, although there are distinct differences.Similar to retained search firms, delimited/engaged search firms require an up-front fee before engaging the search. Unlike a conventional retainer, however, the delimited/engaged search commitment fee is refundable if the recruiter fails to achieve a hire or other deliverable specified in the contract. Moreover, the delimited/engaged search commitment fee does not follow the typical 1/3, 1/3, 1/3 model of retainers, but rather is a relatively small up-front fee which is discounted from the final placement fee of 25-35% of the successful candidate’s first year compensation.
Both retained and delimited/engaged searches involve partial payment prior to filling the job, and the contracted recruiter has the search exclusively. Therefore, the search can be customized to the client organization’s needs, with the search professional providing a consultative service throughout the process.
While both retained and delimited/engaged searches serve client employers rather than job-seeking executives, delimited/engaged search contracts always (as opposed to sometimes) state a future date when the project must be completed or the downpayment refunded.
Contingent search
As stated, contingent search firms are remunerated only upon the successful completion of the search -- typically when the candidate accepts the position. These recruiters may earn 20% to 35% of the candidate's first-year base salary or total remuneration as a hiring fee; the fee may also be calculated to include the candidate's (that is, the successful hire's) median or expected first-year bonus payout. In any case, the fee is (as always) paid by the hiring company, not the candidate/hire.Relative advantages
Clients (companies seeking to hire) often tend to work with contingent search firms when filling mid-level positions. As contingent search firms generally rely heavily on their contacts, and seldom work on an exclusive basis, it is not rare for a client to work with a large number of contingent recruiters on the same search at the same time, in order to maximize the volume of candidate (job seeker) resumes they receive. Beyond the increased volume of candidates that such an approach allows, contingent firms do not get paid until the placement is made (a candidate is successfully hired), and thus the search risk is shifted almost entirely to the search firms. Moreover, contingent search firms often work with clients on Higher percentage fee basis, relative to retained and delimited search firms as they shoulder more risk.For senior level roles, clients often prefer to work with Recruiters who have performed in the past for them and usually will end up in the hands of a retained or delimited recruiter. By working exclusively with one firm on such searches, the client generally develops a much deeper relationship with the recruiter, and receives a much higher level of service. With all methods, retained, delimited, and contingency, clients rely on search professionals to provide not just resumes, but also insightful, consultative information about the market in general.
A delimited search is often preferred by clients who are seeking a retainer-style service level, while not willing to accept the level of risk that retained search entails. While delimited search does entail up-front fees, they tend to be much smaller than total pre-placement fees that retained search entails. Moreover, delimited search professionals shoulder the risk of their own failure to execute the search within a specified time-frame, offering to refund the up-front fees in such an event. While delimited search is not as desirable for searches that are open-ended in nature, the “ticking clock” is often seen by clients as an incentive that motivates delimited search recruiters to stay more active and involved throughout the hiring process.
Specialization
Executive recruiters tend either to be generalists or specialists in a particular niche, with some recruiting firms also specialising in a geographical region as small as a city, and others recruiting worldwide. Niche recruiters may specialise in a specific industry or type of employee, such as medical specialists, information-technology professionals, senior-level executives, or sales professionals.