In employment matchmaking, headhunters help streamline compatibility analysis

It’s one of the most important functions in an organization, and it’s also one of the most time-consuming. Which is why more and more companies outsource it.

Employee recruitment. Finding the right person for the job. Executive search. Headhunting.

Whatever you call it, it’s a growing industry that’s only going to get bigger as baby boomers start second careers and as more mergers, acquisitions and downsizing drive highly qualified management onto the job market. Rather than invest hours in reviewing applications, holding preliminary interviews, checking references and interviewing again, many organizations use executive search firms to vet potential employees. Management gurus point to a trend in which companies are taking less time to develop people internally and are willing to spend more money to go out and find the best talent available.

Executive search firms were predicted to grow by 20 percent in 2006. It’s an interesting industry that relies heavily on networks, contacts, negotiation and not a little bit of subterfuge. Headhunters seal deals at the same time they break and form alliances. They go where corporate competitors cannot and carry messages among the players. They allow prospective employees and employers to maintain their confidentiality in the search process, and they do their best to make the best matches possible.

Most search firms charge clients (the companies seeking employees) a percentage—typically about 30 percent of the new employee’s first-year salary. They have relatively low marketing costs because they generally deal one-on-one with company presidents and CEOs. Their advantage is being able to capitalize on the growing need for highly specific skills and having the time to search and identify the best candidates with those special qualifications.

From the candidates’ perspective, most experts agree, only highly specialized job seekers will really benefit from headhunter services. Executive search firms work for the corporation or organization—not the candidate. There is a lot of competition among candidates, so just floating a resume will probably not produce many results—unless the job seekers’ industry and skills are technically specialized enough to reduce the number of candidates against whom they would compete.

Those who work in the staffing industry report that their satisfaction comes from making the right match and finding an employee who transforms the client organization. Companies are becoming more international, and the challenge of finding the right person who can really create impact is tougher. But when the right match happens, it makes both the search firm and the employer look great.

If you want to increase your chances of being “hunted,” experts say you should raise your profile because new privacy laws make it more and more challenging for search firms to get information. If you’re looking for work, find reputable Web sites on which to post your information, and make presentations at conferences to enhance your visibility. Serve in volunteer capacities for your professional organizations. And don’t let your skills drop. Stay current.

Headhunters find candidates by networking. They conduct in-depth online research, and they cruise trade associations and other directories looking for potential candidates. The majority of people they target are not really looking to reposition. They’re too busy working to post their résumés online. But working at a higher profile helps them get noticed more quickly.

And if a recruiter calls, even if you don’t think you’re interested, listen long enough to be sure that’s the case. Don’t burn bridges. You never know when the contact will come in handy.

As the saying goes, it really is who you know! v

Jim Gann is a counselor with Missouri Small Business Development Centers.