Headhunter

Headhunter: What They Do and How They’re Paid

A headhunter (also called an executive recruiter) is an individual or firm hired by an employer to find and recruit candidates for specific roles—typically high-level, specialized, or hard-to-fill positions. Employers use headhunters when they need specialized talent quickly or when internal recruiting efforts aren’t producing the right candidates.

Key takeaways
* Headhunters work for the hiring company, not the candidate.
* They often recruit passive candidates—people already employed elsewhere.
* Typical fees are contingency-based (paid only if a hire is made) or retainer-based (upfront or partial payment).
* A good headhunter should discuss the role’s salary range, not press you for past compensation.

What headhunters do
* Identify and target candidates who match specific skills and experience requirements.
* Source candidates through networks, competitor organizations, social media, and job boards.
* Screen and vet candidates, coordinate interviews, and sometimes help negotiate offers.
* Maintain candidate pipelines for future openings and frequently nurture relationships with top talent.

How headhunters are paid
* Contingency: No fee unless a candidate is hired. Typical commission is about 20–30% of the new hire’s first-year salary.
* Retainer: An upfront or staged payment to begin the search, common for difficult or senior-level searches. This reduces risk for the recruiter.
* Hybrid (“container”): Combination of retainer and commission.
* Executive searches often carry higher fees—around 25–35% or more—reflecting the complexity and stakes involved.

What to look for in a headhunter
Good signs
* They contact you with a clear match between your skills and the role.
* They provide the role’s salary range and ask if it’s a fit.
* They’ve done homework on your background and communicate professionally.
* They stay in touch and maintain a relationship if you’re a strong candidate.

Red flags
* Asking for your current or past salary instead of sharing the role’s range.
* Unprepared or on-the-fly interviews that indicate poor research.
* Rudeness, poor communication, or difficulty reaching them.
* Aggressive or excessive demands that suggest they prioritize speed over fit.

Differences between headhunters and recruiters
* Headhunters: Typically focus on senior, specialized, or executive roles and actively target passive candidates.
* Recruiters: May fill a wider range of roles and often work with active job seekers; can be in-house or third-party.

Alternatives to using headhunters
* In-house recruiting teams handle sourcing, screening, and hiring—more common at larger companies.
* Networking, employee referrals, and direct advertising can also find qualified candidates and may reduce cost.
* Headhunters are more expensive but can provide industry expertise, deeper networks, and faster results for specialized or urgent searches.

Bottom line
Headhunters are valuable when you need targeted, often confidential searches for senior or hard-to-fill roles. They are usually paid as a percentage of the new hire’s first-year salary (or via retainers) and work on behalf of the employer. Evaluate headhunters by their professionalism, knowledge of the role and market, and the transparency of their process.