Monday, June 8, 2009

Who uses a Headhunter?

WHO USES A HEADHUNTER?

I go through this thought process every once in a while… mostly when I am on a marketing initiative. I ask myself “Who uses a headhunter?” and more importantly “Why?” Finally, “Is there a way to categorize them?” I can’t say this assessment is perfect, but I think I have captured what I see as the three main categories of client. You can argue that there are subcategories of each and that there is some crossover, but for the sake of argument, here they are.

Be forewarned some may be shocked at my comments.

1. Cover Your Butt… It may sound judgmental, and have negative connotations, but I have never been one to mince words. These are clients who hire a third party to manage the process of hiring an individual and not because they cannot do it themselves. They certainly should and most often do have the expertise in-house to make competent hiring decisions, but they have a need for transparency in the hiring process. They are under the specter of public scrutiny. These searches occur mostly in municipal, provincial and federal government sectors at all levels. Candidates are usually plentiful and the search tends to become more of a selection process. The value a search firm brings in this area is in the completeness or rigor of the process, and they provide guidance to the organization in evaluating candidates.

There are a few issues related to “Cover Your Butt” clients. First, these clients often lack the willingness to make a meaningful decision for fear of internal political liability. Related but an additional issue none-the-less, these assignments tend to drag on beyond normal search assignments both because of the above as well as client commitment to hiring is secondary or perhaps even a much lower priority in their day-to-day work-life. Organizations who fall into this category tend to have sophisticated bureaucracy. This complicates the hiring process even after a final decision has been made. Theses delay can sometimes leave a candidate disillusioned and frustrated with the process. This poses a risk of candidate apathy and eventual disinterest.

To date, for the above reasons, I have tried to avoid these types of searches like the plague. Despite the lucrative market opportunity, and potential for repeat business, breaking into this market is very difficult. The same reasoning for using a third party firm, often leads these clients to choose the sanitized, cookie cutter solution model. The most sanitary proposal wins. The “hospital food” of the search business.

Our firm has recently begun work with a number of organizations related to government. Avoiding it earlier was an error on my part. It is a steep learning curve for us. However, we have found that once people discover the “flavour” we offer, they repeatedly return for more, and the satisfaction levels both personal and client are very high.

I will speak to developments in this area in the future, as we attempt to add spice to this market.


2. The Last Resort … These are clients who initially spend thousands of dollars on advertising in newspapers, on-line and waste countless hours sifting through unqualified resumes. They may have enlisted the help of contingency firms who have slung loads of low-hanging fruit at them. Feeling overwhelmed and having exhausted all avenues without finding the right person. Reluctantly they enlist the services of a Retained Search Professional firm to complete the assignment. The value of the headhunter in this situation is that often we are able to help the client understand their OWN needs better. Working with them, we can help to define the characteristics of the candidate beyond just a narrow job description, and there IS so much more to specifying the ideal exec than a mere job spec. We identify targets, research and proactively headhunt the best possible candidates using a professional and proven approach. We then screen and evaluate those candidates so that the client only meets the best of the best, leaving the client to spend their time on their core business.


3. The Valued Partnership … Often, this client begins life in one of the previous two categories. In this situation, the client recognizes that their time is valuable and they need to concentrate on doing what they do best. They understand the opportunity cost of conducting a search on their own is often greater than the fees associated with hiring a professional firm. These people are experienced and understand the process of a search. They articulate their organization’s needs very clearly, have realistic and mature expectations, and meet their obligations within the process. This latter client is our ultimate goal. Developing an ongoing relationship with people and organizations is the core of a sustainable business.

While all categories of clients have their specific challenges, I must say, my competitive personality gains a significant amount of satisfaction from helping a company find the “needle in the haystack” and succeeding where others have tried and failed. “The Last Resort” client usually becomes a trusting and trusted partner based on our success.

As I mentioned previously, these are broad categories and your circumstances may comprise more than one of these categories. As an example; you may have a need for transparency, quality candidates are not plentiful and you truly value the service and results professional headhunting brings to your project.

Whatever your circumstances, if you understand which category you fall into and what your motivation to use an executive search firm is, this will help you better articulate your needs to your new partner and lead to that great relationship where both are valued contributors.

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