The shortage of qualified workers is becoming an increasingly serious problem. Even though unemployment numbers are rising again in Germany, there continues to be a lack of qualified professionals. According to a study by Korn Ferry, the global talent deficit could reach 85.2 million people by 2030, leading to potential revenue losses of 8.452 trillion US dollars. This trend is observable in all sectors of the economy, from technology and finance to healthcare and manufacturing.

The exacerbation of this shortage poses a challenge for internal HR departments that can sometimes become substantially detrimental to companies. HR professionals are often unable to quickly find specialists with the required qualifications. In such situations, companies turn to the services of headhunters.

Despite the high costs of headhunter services, this is a necessary investment for many companies. If a company is unable to grow due to the absence of key specialists, the costs of hiring a professional headhunter may be cheaper than missed growth opportunities. The headhunter starts as a hired hunter with a targeted search for exactly the “head” that the company needs to achieve its strategic goals.

What is Headhunting

Headhunting is a method of direct search and selection of highly qualified professionals and executives for companies. It is a targeted process of identifying, evaluating, and attracting specific experts who are typically already employed and not actively job searching.

In simplified terms, headhunting can be compared to a “hunt for talents.” Imagine your company needs an experienced CFO with experience in international corporations. Such individuals are not sent by the employment agency. They also do not respond to job ads because they themselves maintain very good networks, where new options constantly arise when needed. So instead of posting a job advertisement and waiting for applications, the headhunter begins an active search for suitable candidates. They explore the market, find potential candidates in other companies, contact them directly, and try to interest them in the new opportunity.

Thus, a headhunter will ideally approach a successful CFO from company X and offer them a position in company Y that offers a higher salary, an expanded benefits package, and opportunities for professional development. In this way, headhunting enables the search for “hidden” candidates, who do not respond to ordinary job ads but may be interested in new career opportunities.

Who is a Headhunter and what do they do

Society's attitude towards headhunters is ambivalent. People often fall into two camps:

1. There are those who do not like headhunters. The reason for this is that they typically call when someone already has a job and begin to take up their time. The potential candidate is busy with their workday, and they may not be interested in changing jobs because they are satisfied with their current position.
2. And there are those who have been working at the same place for more than three years, begin to feel "stuck," and would not mind changing jobs. They just need the right push. In this situation, the candidate is in an advantageous position: on one hand, they have a job and a stable income, and on the other hand, they have the opportunity to move to better conditions and accept new professional challenges.

A headhunter is a specialist in recruitment of senior personnel. They can work independently or at a specialized headhunting agency such as HRM Consulting GmbH. The main task of a headhunter is to find and attract highly qualified specialists for client companies.

The work process of a headhunter includes:

• Market analysis and search for potential candidates
• Contacting candidates
• Conducting interviews and assessing professional skills
• Presenting suitable candidates to the client
• Assisting in the hiring process

The compensation for the services of a headhunter typically amounts to 20% to 35% of the annual salary of the specialist being hired. This percentage can vary depending on the difficulty of the search, level of the position, and the reputation of the headhunter or agency.

Working Methods of a Headhunter

Headhunters employ various methods to find and attract highly qualified professionals. Their work starts with a careful analysis of the job market, observing key players in a specific industry, and identifying potential candidates. Networking plays an important role in this process - utilizing professional connections and contacts to receive recommendations and information about promising professionals.

Modern headhunters actively use professional social networks like LinkedIn, which have become the digital tool for searching and initially evaluating candidates. After identifying potential candidates, headhunters reach out to them directly, even if they are not actively looking for a job.

A key element in a headhunter's work is conducting an in-depth interview where the candidate's professional skills, experiences, and personal qualities are evaluated. Heiko Mühle, a headhunter, provides insights in an expert interview on how this process unfolds. This process is complemented by a thorough review of the provided references and collecting additional information from former colleagues or superiors. Based on the gathered data, the headhunter prepares detailed reports on suitable candidates for the client company.

The work process of a headhunter does not end with presenting the candidates. They actively participate in overseeing the hiring process and assist in negotiations between the candidate and the employer to reach beneficial conditions for both parties. To make their work more effective, headhunters use specialized databases and professional tools, especially when searching for rare specialists. They also apply targeted search strategies by focusing on specific companies or departments where the needed specialists could work. Finally, headhunters continuously monitor career changes of key specialists in the industry, helping them identify potential candidates for future positions.

How to Respond to a Headhunter's Call

Headhunters are known for their persistence and determination. Similar to Adriano Celentano in the movie "The Tame Unruly," they can be very insistent by asking questions and concluding with phrases like "So, what will your positive answer be?"

Such an unexpected call can catch you off guard, especially when you are at the workplace. There is a risk of saying something wrong in front of colleagues, and then your boss could find out through the "rumor mill." Even if you had not planned to change jobs before the headhunter's call, your boss might think that you are already actively looking. Consequently, you might be excluded from important meetings, miss out on some information, and eventually find yourself sidelined because it is assumed you will leave soon. Not a pleasant situation to unintentionally find yourself in.

Hence, it is essential to control the situation and know your own worth. Here are some tips on how to respond to a headhunter's call:

1. Maintain calmness and professionalism. Listen to the offer silently.
2. Do not give an immediate response. Instead, say: "I currently do not have the opportunity to discuss this with you. Please send me the information via email. I will respond at the earliest convenience."
3. Remember that the headhunter is paid by the employer, not by you. This means that even if you are interested in the offer and have invested time and energy in interviews, there is no guarantee that you will get the new job.
4. Reflect on the offer carefully. Evaluate it considering your current situation, career goals, and personal preferences.
5. If the offer interests you, conduct your own research on the company and the position before continuing the conversation.
6. Be honest with yourself and the headhunter. If you are truly not interested in a job change, politely decline and thank them for the attention.
7. Seize this opportunity for networking. Even if you are not interested in the current offer, nurturing professional contacts can be beneficial in the future.

Remember, a call from a headhunter is an opportunity, not an obligation. You always have the right to choose and control your career path. But once you are in the conversations, a dynamic may develop that may not lead to what you truly want in the end.

Pros and Cons of Collaborating with Headhunters

For the Employer

Collaborating with headhunters opens up new opportunities for companies in personnel search. One of the main advantages is the access to passive candidates, highly qualified professionals who are not actively seeking jobs. Furthermore, the employer saves considerable time as the headhunter handles the entire search and selection process. The market expertise of headhunters is also invaluable: they can provide valuable information about trends and salary levels. In cases where confidentiality is required, especially in the search for high-level positions, the services of a headhunter are invaluable.

However, this recruitment method also has its disadvantages. First and foremost are the high costs of headhunter services compared to traditional recruitment methods. It is also important to note that headhunters may focus on specific market segments, limiting the selection of candidates. There is also a risk that the headhunter could poach the hired employee to another company in the future.

For the Candidate

For candidates, collaborating with headhunters opens up access to hidden job offers that are often not publicly advertised. This can be an excellent opportunity for career development. Additionally, headhunters provide a professional assessment of the candidate's skills and experiences from a market perspective and often act as career advisors, offering valuable advice on career development. It is also worth mentioning that headhunters often offer positions with better conditions than the candidate's current job.

However, there are also drawbacks for employees when collaborating with headhunters. At the forefront is the lack of control over the process: the candidate does not have influence over when and what offers they receive. Some headhunters may apply pressure to bring about a decision, which can be uncomfortable. There is also a risk to current employment: if the employer learns of the employee's communication with a headhunter, it may jeopardize their position. Finally, there is no guarantee that collaborating with a headhunter will lead to the desired position.

Some candidates strategically use the costs of a headhunter when changing jobs for top positions to negotiate an entrance bonus with the new employer. If a headhunter receives about three months' salary in commission, negotiating an entrance bonus of 1-2 months' salary upon starting a job that was not mediated by a headhunter can be argued. It may seem audacious from the applicant's side, but it can work for certain positions.

Conclusion

Headhunting is an effective method for finding highly qualified professionals and executives. It provides employers access to passive candidates and exclusive job offers and career opportunities. However, the high costs of headhunting services require a balanced approach to their utilization.

When selecting candidates, headhunters place special emphasis on soft skills and motivation. For successful interaction, it is important for candidates to respond appropriately to contacts and present their skills. Despite the development of other recruitment methods, headhunting remains a sought-after tool in the job market and effectively connects talents with suitable opportunities.

For those looking to enhance their chances when dealing with headhunters, we have compiled a series of articles to prepare for job interviews and write an effective resume. These materials will help you competently present your experiences and skills, create an impressive resume, answer challenging questions, and make the best impression during the job interview.