About Headhunters

There are three categories of headhunters in the UK: Search, Selection and Agency (or Contingency). Each category operates with a different methodology, and it is important to understand how they differ in order to manage/select them properly.

Search Firms

Search firms represent companies, not candidates. They are usually retained on an exclusive basis to actively research a defined segment of the market (the ' Research Universe'), approaching candidates on an agreed 'Target List' (or Long List) to see if they would consider moving to the client firm.

Exclusivity means that, once the Search firm has been mandated, all candidates are obliged to enter the search process, even if they write directly to the client company. In return for exclusivity, Search firms usually offer an 'off limits' guarantee to the client, which means that they may not headhunt any employees from the client company. So most Search firms only have between five and ten clients - otherwise they would have insufficient firms left to hunt in!

After completion of the research process, Search firms will present a 'Short List' of candidates for the client to interview and assist the client in contract negotiations.

• Search firms are most effective where the candidate is likely to be situated within a clearly defined segment of the market, with a specific career history;
• Search is also most effective for senior or business-critical positions, where it is important that the Short List is benchmarked against the wider market to give the hiring firm comfort that the candidates presented are indeed the best available in the market.

Selection Firms

Selection firms also represent companies, and recruit through advertising campaigns, 'selecting' a short list of candidates from the responses received. Most firms combine Selection with either Search or Agency headhunting - there are few Selection-only firms. Selection is effectively an outsourced HR function, and selection firms are usually also retained on an exclusive basis.

• Selection firms are able to source candidates from a wide variety of sectors and are best used when the Research Universe cannot be clearly defined or is too broadly-defined for a Search;
• Selection is most effective for positions where the hiring firm is open-minded about the candidate's specific work experience, and is more concerned about generic transferable skillsets.

Agency (or Contingency) Firms

Agency headhunters are effectively 'brokers of people'. They are the only type of headhunters that represent candidates in the sense that they are able to actively market candidates to a large number of firms simultaneously. Like Securities Brokers, Agency firms maintain regular contact with a large number of firms on a sporadic basis, to better understand their hiring requirements. They rarely receive exclusive mandates, introducing candidates on a 'no hire-no fee' (or 'contingency') basis.

• Agency headhunters are able to provide a quick and cost-effective service for more junior positions;
• Agency is best used for opportunistic hiring, when companies do not need to benchmark a candidate - either because their reputation is already clearly established or because the role is not business-critical.

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