Is The Headhunting Fee Justified?

The role of a headhunter is to match the right candidate with the right job at the right time, matching employers with valuable resources that truly contribute to a company’s growth.

But many companies, especially those who already have hiring managers in place, feel that the services of headhunters are both overrated and overpriced.

If you feel headhunting agencies demand an exorbitant fee for their services, you’re not alone. Let’s see why the high headhunting fees are justified and crucial to hiring the right assets for your organisation.

Tapping into the Network of Passive Job Seekers

It’s always possible to hire a person good enough for a job without the use of a headhunter, but in that case, you’ll be hiring the best talent on the market, not the best talent in the market.

You’ll only be able to reach out to active job seekers who respond to job advertisements. But the most talented candidates are almost never actively looking for a job.

They are passive job seekers and seldom approach an employer. This means that the employer is expected to approach them. Headhunters can easily reach out to these ‘hidden’ candidates and convey your proposal.

To put it simply, if you hire a candidate without the involvement of a headhunter, you’re not hiring the best candidate from a bucket, but from a bowl.

Quickly Identifying the Best Candidates

By virtue of their experience, headhunters always know the perfect fit for a vacancy. Hiring an incompetent employee is obviously a burden on the company’s finances.

By using the services of a headhunter, the risk of hiring under-achievers is limited. This is made possible by the comprehensive screening process adopted by headhunting agencies.

As a result, the hiring manager need only interview a handful of shortlisted candidates who have already passed a preliminary assessment. This saves a significant amount of time spent in finding the right employee.


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Assuming Risk under a Contingency Model

Despite spending a lot of time and effort scouting candidates, headhunters are paid a fee only if the company actually ends up employing a candidate.

Since there is a high likelihood that a lot of their hard work might not result in any payment at all, the comparatively high fee is completely justified.

While it may seem that the fee charged by headhunters is too much, it is important to remember that recruitment agencies like Randstad India Private Limited, Adecco, Kelly Services, AON Hewitt and ABC consultants work with a lot of uncertainty involved and must be compensated for the risk they undertake.

After a thorough understanding of how headhunters work, it is safe to say that the fee charged by them for their services are entirely justified.

Making use of the services of headhunters is a win-win situation and you are likely to end up making more money than you spend when you hire right.


Image Credits: Google Images

Sources: Hyperlinked within the article


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