What Is A Headhunter? Defining the Different Types of Recruiters

Your phone rings, and the person calling says they’re a headhunter (or a recruiter). That’s great, because recruiters (aka headhunters) are people who help source candidates for employment in companies. If you’re looking for a new job or would consider leaving where you are for a better opportunity, then this is the call you want to get. But job seekers need to understand what kind of recruiter they are dealing with. There are differences in the types of recruiters you will encounter.

The goal of this blog is to provide some clarity about the different types of headhunters and outline their key differences so you’ll know which one to use. Below, our Toronto recruitment experts describe the different types of recruiters.

What are the Different Types of Headhunters?

Headhunters are known by many different names, such as recruiters and executive search consultants.

Headhunters/recruiters can be classified in several ways based on the services they offer or their area of specialization within the recruitment industry. Here’s a list of the most common types of headhunters:

Search firms
External headhunters
Contingency recruiters
Retained recruiters
Corporate recruiters
Temporary staffing agencies
Outplacement agencies

What are Search Firms?

Organizations hire search firms to find employees for them. They earn income either on a retainer or when they place a candidate. Search firms split into two main types of agencies: Contingency and Retained Recruiters. Some companies, such as IQ PARTNERS, work as both contingency and retained recruiters, depending upon the needs of the company we’re searching for.

What are External Recruiters?

External recruiters are professionals or search agencies hired by employers to help them find, attract, and hire qualified candidates. They are not employed by the company itself and work independently or as part of a recruitment firm.

What is a Contingency Recruiter?

When a job candidate gets hired, the recruiter gets paid. That’s how it works for contingency recruiters. Their fee is “contingent” upon one of their candidates being successfully hired. So if a contingency recruiter gets you a job, he or she is paid either a flat fee or a percentage of your first year’s salary by the company that hired you. You don’t pay anything as a candidate.

Remember, recruiters do NOT work for job seekers. They work for the employer with the job opening. However, if you’re a strong candidate and the right fit for the position, then they’ll work hard to get you in the door.

What is a Retained Recruiter?

A retained recruiter has an exclusive relationship with an employer. They are hired for a specific period of time to find a candidate for a job, generally for senior-level positions in a company or for positions that are difficult to fill. They are paid expenses, plus a percentage of the employee’s salary, regardless of whether the candidate is hired. As a jobseeker, you don’t have to pay a fee. Retained recruiters work very closely with the client to find the best person for the job with exactly the right skill set and experience.

What are Corporate Recruiters?

Corporate recruiters work in-house for a company’s HR department and are paid a salary and benefits just like any other employee. They often have titles such as HR manager or hiring manager. Their job is to find new employees for the company they work for, usually large companies with a lot of hiring needs.

What is a Temporary / Contract Staffing Agency?

Temporary (temp) agencies find employees to fill temporary jobs for their clients. Temps are often hired when companies have rush, short-term projects, for seasonal increases in business, or to cover vacations or illnesses.

When a temp agency places you in a position, they pay all your wages, taxes, insurance and benefits and charge the employer an hourly rate for your time. Many temp agencies are set up so that if an employer wants to hire a candidate full-time who’s worked for them as a temp, the agency can handle that as well.

What is an Outplacement Agency?

If you lose your job because you were downsized by your company, you may be referred to an outplacement agency. Employers hire an outplacement company to help their recently downsized workforce find jobs. Outplacement agencies provide career counselling, along with assistance on resume writing, interviewing skills, and job hunting. Once again, there is no fee to you as a job seeker.

A Final Word About Headhunters

Understanding the different types of headhunters and recruiters can help you in your job search. Knowing who you’re dealing with helps you set the right expectations, communicate effectively, and make the most of each relationship. Whether you’re actively seeking a new role or simply open to hearing about opportunities, being informed about how recruiters operate ensures you’re prepared to take full advantage when that important call comes in.