Understanding Headhunting: What It Is and Why Companies Use It

November 19, 2024

There are many reasons a company might move away from the traditional form of recruitment. Rather than posting a job opening online and waiting for applicants to find them, using a headhunter means that the job opening is not public at all. Instead, a specialist recruiter identifies qualified candidates and approaches them directly.

Companies turn to this method for a variety of reasons, and this is the topic of our blog post today. We’re exploring that role of headhunting in modern recruitment, how it works and why companies choose to find employees using this method.

What is headhunting and how does it work?

When companies want to hire a new employee, the most common method to fill the role is to advertise the role and then wait for candidates to apply. It is then down to the employer to process the applications and create a shortlist for the interview stage. Eventually, they will whittle down a long list of applicants to just one person.

Headhunting turns the recruitment process on its head and requires employers to go looking for suitable candidates – even those who might not be actively looking for a job. As the name suggests, headhunting involves approaching candidates and pitching the role to them. The candidate is in the position of power and is often employed by another company, so it’s down to the hiring company to make them a better offer.

Why take this approach?

There are lots of reasons a company might choose to headhunt for a role rather than advertise it publicly. This could include:

• The role is highly specialised and niche, so the candidate needs to be uniquely qualified. With a smaller recruitment pool, it’s far easier to go directly to the candidate rather than sift through applications from unqualified candidates.
• The role is strategically sensitive. Sometimes, companies don’t want competitors or investors or the public to know they are hiring for a specific role. This could be the case if the role is related to structural changes in the company, or if the role is related to a strategic expansion. In this case, you might choose to headhunt so that the role is not public knowledge. 
• Traditional recruitment has failed in the past. If you are looking for a candidate that can hit the ground running in their role, you might prefer headhunting over traditional recruitment. With traditional recruitment, candidates might be looking for the next step in their career, so they aren’t quite qualified for the role but are looking for a role that will allow them to grow. With headhunting, you can select a candidate that has already proven themselves in a similar position.
• The role is high up within the organisation. It would be fairly uncommon to hire for C suite executives using traditional recruitment channels. Instead, headhunters help to find the ideal candidates that will help to drive a company forward.

How does headhunting work?

The process of headhunting is managed almost entirely by a recruiter. They are given a specific candidate profile and will use their network and tools available to them to reach out directly to potential candidates.

This is often a delicate process, and the recruiter may need to secure non-disclosure agreements before they can reveal details about the role such as the hiring company or the job description.

They will identify suitable candidates and then reach out to find out if they are interested in having a conversation. Some candidates will be nervous about this, as they might be fiercely loyal to their current employer. If this is the case, they might need some reassurance that the conversation will be confidential.

Once suitable and interested candidates have been found, it’s possible to start the interview process, just as you would with any other role. However, it’s worth remembering that you reached out to the candidate, not the other way around. This means that the interview will be more about convincing the candidate that you can deliver a better offer than what they currently have.

It’s still important to check that the candidate is qualified and interested in the role, but the questions will be related to future ambition and vision for the role, rather than determining if the candidate is capable.

What are the downsides of headhunting?

The biggest downside to headhunting is the cost. It is a very labour-intensive process that requires the help of a skilled recruiter. It takes a lot of experience to be able to identify the right candidate for a role based on a candidate profile.

It’s also much harder to stick to a recruitment schedule, as the process will take as long as it takes. For those trying to stick to a strategic deadline, this could be a source of stress. It could take longer to find the right candidate, and they might be locked in to a notice period, which means you might not be able to find someone who is ready to get started immediately.

One final downside to headhunting is the additional cost of matching a candidate’s current salary and benefits package. If you are going to hire a candidate who is already employed, they will want to see a competitive package if they are to be convinced to move to a new employer. This means you might need to be flexible on your budget for the role if you want to hire the best possible candidate.

Conclusion

There is a time and place for headhunting in the modern recruitment world. While it might not be the ideal method for every role, it offers some distinct advantages in certain circumstances.

If the role is strategically sensitive, or if you’re looking for a very specific candidate profile, this could be the ideal way to find your next hire. It’s a great method for hiring C suite executives to drive your business forward. Likewise, if you aren’t on a strict deadline and it’s more important that you find the right candidate, this could offer the ideal way to find the best possible candidate. 

Looking to fill a senior or specialised role? Connect with CMD Recruitment to access expert headhunting services and connect with exceptional talent that drives your business forward.