Businesses invest vast resources every year to find great talent—and with good reason. The right team makes all the difference to the success of a company, especially with a startup.

When it comes to hiring, you’ve likely come across the terms “recruiter” and “headhunter” a few times. Some people think they’re the same thing but they’re actually distinct roles.

Understanding the differences between them is an important aspect of talent acquisition.

What are headhunters?

Headhunters tend to leave a negative impression on job seekers, mostly because people don’t understand their role in the hiring process. All the same, they play a huge part in matching candidates to the jobs available.

They’re similar to talent scouts in that they source possible candidates and recommend ones they believe to be a good fit. Their main responsibilities include reviewing resumes and identifying who’s qualified. They pass the information along to upper management, though they may stay for the interview and beyond.

It’s common for companies to hire them when filling highly technical roles. This is because many headhunters specialise in niche markets where they build a talent pool in a specific area. While they’re associated with executive or senior positions, they fill roles of all levels as well.

They’re often used as a last resort, i.e. when a client is running out of time and/or budget for recruitment. The sense of urgency might lead the headhunter to rush the vetting, however, resulting in a placement that may not be the best fit.

On the other hand, this means they can’t publicise jobs as much as others. This limits the applicant pool to those who the headhunters have already evaluated, or those who are already within the industry. With fewer applications to check, hiring is faster and candidates are of better quality.

Who are headhunters?

The term “headhunter” may refer to staffing agencies or individual recruiters. Some consider themselves as all-rounders, where they work with all kinds of businesses to fill a variety of roles.

Others, as previously mentioned, specialise in a certain area, be it an industry, geographic location, level, position type, or search type.

What are these search types?

Sometimes, headhunters categorise themselves according to how they want to be compensated. These are either:

Contingent search

In this scenario, the headhunter has no assurance of payment for their work. They only receive payment once a candidate has been hired. There’s also a guarantee period that the new employee has to stay in the company for the hiring to be considered valid.

The terms of a contingency contract vary according to the headhunter. The most important ones are:

• Placement fees – a percentage of annual salary or a fixed fee
• Placement terms – temporary, permanent, part-time, or full-time
• Guarantee period – usually 3 to 6 months
• Guarantee type – refund or replacement candidate

Retained search

Unlike a contingent search, a headhunter receives upfront payment before they begin recruiting. Doing so proves that the client is committed, thereby establishing a stronger connection between both parties.

It is common with niche roles and executive-level positions which entail a more complex hiring process plus a smaller talent pool. It also takes more effort and time on the side of the headhunter.

In addition to the variables in a contingency contract, retained search also considers:

• Fee schedule – milestones for payments
• Exclusivity – necessity and duration of
• Recourse – compensation when a suitable candidate isn’t found

How are recruiters different?

Where headhunters work on a personal level, recruiters play a slightly different role. They find good candidates and figure out where exactly they fit in the organisation. They also hire for many positions at once, so they tend to have a broad speciality.

They’re more involved in the recruitment process as they partner with the hiring manager as well. Apart from reviewing resumes, they may conduct interviews and negotiate salaries too. There are cases where they help candidates apply for a different role where they’re a better fit.

It’s part of their job to provide every applicant with a positive experience, even if the person isn’t hired. They represent the organisation they’re hiring for, while a headhunter might identify as an employee of their third-party agency.

They aim to create a personalised talent acquisition strategy for each of their clients. Their goal is to help you hire people who fit in the overall culture of your company.

Which one is better?

Both of them assist you with your hiring needs. As for which one to choose, it depends on the type of recruitment you want done.

Choose headhunters when:

• You want to get high-quality applicants.
• You like to reach out to candidates more.
• You need access to a specialised labour market.
• You prefer paying a commission than a salary.
• You want them to perform sales functions too.
• You need them to focus solely on recruiting.

Choose recruiters when:

• You prefer a broader pool of talents.
• You need them to handle the initial stages of hiring.
• You want them to help candidates find the best role for their skills.
• You prefer to pay a salary than a commission.
• You want them to fill roles directly for you and not a third-party.
• You need them to work closely with your HR department.

Are they effective?

Both recruiters and headhunters can be effective in filling your open positions. If you really want to get the ideal employees for your team, why not hire both? The headhunter ensures that you have top-tier candidates, while the recruiter determines where these workers will be best utilised.

We at Remote Workmate specialise in connecting global clients with online recruitment professionals according to their specific business needs. See how we can help you make your hiring process faster and more efficient by finding you the right recruiter.