Work at Home Idea:
Start an Executive Recruiting Business
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Companies are constantly searching for talent. As an executive recruiter (also known as a headhunter), you'll help both companies and people connect and collect a nice fee in the bargain.
This guide will show you everthing you need to get started. How to get search assignments. Where to find canidates. And what questions to ask both parties.
In addition to a healthy income, most executive recruiters get a great deal of satisfaction out of helping others build their careers.
This guide from Entrepreneur.com is necessary before diving into this home business venture.
Book Excerpt
We all keep hearing about how frequently workers now change jobs, so it should come as no surprise that executive recruiters (those folks also known as headhunters) are rapidly increasing in numbers. The more people change jobs, the more work there is for recruiters. Unfortunately, the business can also be terribly competitive.
In this chapter we’ll give you an idea of what the executive recruiting business is all about. We’ll start with an overview of the industry, including how much money a recruiter can expect to make and what the competition is like. We’ll also look back at how this business got started and take a peek into the future.
Recruiting 101
In a nutshell, a recruiter is someone who is hired by a company to find people quali-fied to fill a job opening—candidates. Often, companies hire recruiters only after they’ve tried to fill the positions themselves. Recruiters usually work on a project-by- project basis. The client company pays the recruiter a percentage—between 20 and 35 percent—of the annual salary of the candidate who accepts the position. While the recruiter finds and screens candidates for the job, the client company makes the final decision on which person to hire.
Recruiters generally work in one of two ways: contingency or retained. If a recruiter works on contingency, it means they take an assignment on spec—a client asks them to fill an open position, but will pay them only if they find the candidate who eventually accepts the job. For recruiters who work on retainer, the client pays the recruiter before they start the search. A retained recruiter pretty much has to guarantee that he or she will fill the client’s position. Between two-thirds and three-quarters of the recruiters in the United States work on contingency. The rest are retained or a combination of retained and contingency.
Working on retainer is generally viewed as the more prestigious billing method, and client companies generally retain recruiters for filling those positions at the top of the corporate ladder. Contingency recruiting is the bailiwick of new recruiters and those who place lower-level employees.
“The retained recruiters are considered the silk slipper people of the industry,” says Paul Hawkinson, editor and publisher of The Fordyce Letter, a newsletter for recruiters, “to the extent that they generally work these higher level openings, and they’re dealing with CEOs and presidents and CFOs.”
Recruiters tend to specialize in one industry, such as electrical engineering, finance or law enforcement. Doing so allows them to understand one industry and the players in that industry thoroughly.
Recruiting is an unregulated business, so industry statistics are difficult to come by, but Hawkinson puts recruiting at a $10 billion—and growing—industry. There are about 5,000 recruiting firms in the United States, he says. A few very large firms dominate the industry, but most are very small: The average-size recruiting company has between two and three people. While some clients always prefer to go with big names, many others use smaller firms because of the usual advantages small businesses offer—more personal service and often a lower price. Also, the big firms generally use the retained payment structure, so clients who want contingency recruiters will use smaller firms.
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This guide from Entrepreneur.com is necessary before diving into this home business venture.
Disclaimer: The information presented and opinions expressed herein are those of the authors
and do not necessarily represent the views of Work-at-Home-Business.com and/or its partners.
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