On the face of it, it looks like a tough call, but if you understand the difference between a “BIG BRAND” and a “BOUTIQUE”, then the choice should become less obvious.

Now I know I’m biased. I have a vested interest, but it’s relevant that I used some of the “BIG BRANDS” in a previous life (see my LinkedIn profile) and my experience was so bad, that I saw an opportunity when I started up on my own. This is my experience of a “BIG BRAND” and how they function:

“BIG BRAND HEADHUNTER” OPERATIONS:

You have a role to fill. You contact “BIG BRAND” who drop everything and come to see you. Very smart and Personable Person calls in. High in confidence and presentation skills. Rolls out companies they’ve worked with and talk about their networks. The sale is designed to give you confidence they have the firepower and the experience to help you. It’s quite compelling and you agree a fee linked as a percentage to the full salary package on offer. This fee usually starts at about 30% of the annual salary and payable in 3 equal stages. You agree a brief and they scuttle off to make a start.

Back at base (in an expensive city office with some very nice Fritz Hansen furniture), Personable Person, is delighted. They’ve made a sale. They call in their team. Among them is the Researcher, often a very bright business graduate keen to work hard and ambitious. They share some ideas and contact points. Personable Person briefs the team and Researcher gets to work. The briefing was cut a little short because Personable Person has to get off to the next sale….

Researcher delves into databases and starts making calls. They may also place an ad in the Sunday Times which will be expensive and won’t get published for 2 weeks. Some of the early questions start to get raised by sources and candidates but Personable Person is busy. Start to see the cracks appearing?……..

2 weeks later the ad appears in the Sunday Times. Hundreds of CV’s land and break up the work flow. The candidates already found are now left behind to deal with the rush. Nuggets are found, but there’s an awful lot of irrelevant CV’s – there’s a lot of desperate people out there!

Now the Personable Person hasn’t agreed a deadline with the client (to be fair most don’t – I do) and feedback is irregular at best (remember this is my experience). The Researcher is working their socks off, but they’re not experienced enough to deal with the heavy-duty people you need for this role. Personable Person becomes involved, but they and the Researcher assume the other has made contact with the best candidates, and things begin to unravel……

Look. I do realise that every search isn’t like this, but the moving parts in a big operation have more gaps between which things slip. They’re very busy and managing the process is at risk simply because there’s so many moving parts.

Finally, the internet has made massive changes to the world of the Headhunter. The CV database that “BIG BRAND” used to treasure has now been made virtually redundant by CV databases and social networks such as LinkedIn – all of which are available to every hunter – including the “Boutique”

“BOUTIQUE HEADHUNTER” OPERATIONS

You have a role to fill. You contact “BOUTIQUE HEADHUNTER” who drops everything and come to see you (Yes, just like BIG BRAND – we’re all eager at least!). Smart and Pragmatic Person calls in (Pragmatic Person has probably been a senior manager in a past life and has worn the T-shirt – but is NOT cynical). High in questions about the role and the company, Pragmatic Person asks loads of dumb questions – they know that when they leave, they will have to do the research, so they leave no stone unturned. The questions should give you the confidence they know what they’re doing. It’s the start of a process and they need the building blocks in place. You agree a fee linked as a percentage to the full salary package on offer (although that may be translated into a fixed fee so you know where you stand when the final bill comes in. This fee usually starts at about 24% of the annual salary and payable in 3 stages, although you can probably negotiate away from 3 equal stages and link more of the fee to success. You agree a brief and they scuttle off to make a start.

Back at base (in their local office – with some furniture!), Pragmatic Person, is delighted. They’ve made a sale. They don’t call in their team – they don’t have one. What they sell, they execute.

Pragmatic Person delves into databases and starts making calls. They don’t place an ad in the Sunday Times because it only attracts an audience that’s looking for work – the right candidate probably has a job and they’re not looking right now.

Pragmatic person is using the internet to build a network of candidates and sources new to this search. They’re on the phones and using their commercial experience for early screening and to engage those that look most likely

Because the Pragmatic Person has their arms around the assignment, they know what’s going on and client feedback is regular and friendly. If they think there’s any risk that the agreed deadlines might be in jeopardy, they can flag that up quickly.  The Pragmatic Person is working their socks off, and they’re experienced enough to deal with the heavy-duty people you need for this role.  A shortlist is constructed and delivered on time.

Again, I realise that every search isn’t like this, but this is a very much simpler process not diluted down by the moving parts of a bigger operation.

The internet has made massive changes to the world of the Headhunter and the bright boutique will be nimble enough to have taken advantage.

IN SUMMARY

Both BIG BRAND and BOUTIQUE will probably offer guarantees, but BOUTIQUE will run a more focussed and straightforward process. Don’t confuse complication with success – the two rarely make good bedfellows.

I would contend, and I would say this wouldn’t I?, that BOUTIQUE comes with less risk, not more, and that BIG BRAND comes with complication and costs the client just doesn’t need.

Oh, and the Boutique will cost less.

Written by Martin Ellis - martin@corporatehandyman.co.uk

My experience is that canny HR people know about LinkedIn and how to find people, they think that Headhunting is a piece of cake and it’s something they can bring in-house, save money, and make themselves a right-regular hero – and who can blame them?….

….until they try it for themselves……

The truth is that it’s far easier to find candidates these days, but engaging and motivating them in a modern recruitment process is now much more challenging. Good people are surrounded by more chatter, bright lights and attractions than ever before. They need a personal touch that engages them, listens to them and their needs, and actively responds and engages. My experience is that HR people don’t have the time, and the polish to connect with this internet savvy people and make them warm to their vacancy. I should be careful to say that I’m not saying HR people can’t be warm – but I am saying they’re not recruiters and they’re not professional networkers whose job isn’t to manage a cadre of high level candidates and keep their trust and interest.

LinkedIn exists and it is changing headhunting – BUT IT’S NOT REPLACING IT!!!

Clients should be expecting a faster, swifter service, with much more focus on hitting deadlines and, to be blunt, at a better value. I can now deliver more successful headhunts than pre-LinkedIn times with lower expenses.

Some headhunters still pretend that it’s who they know that makes the difference, but frankly, and to use a quaint old English phrase – That’s bollocks!

Written by Martin Ellis - martin@corporatehandyman.co.uk

If you’re considering an international placement, here are some of the issues and questions you should be aware of as you choose who to help you in your search:

1. Is the international structure and network the headhunter claims real, or is it convenient loose network of smaller organizations trying to look bigger? These days is very easy to construct a virtual network that presents an international impression, but where the systems, processes and organizational values are not aligned. Test the headhunter you’re talking to. See who they really know in the network and ask them who they’d work with again. Ask them if they have common systems and process and look for evidence that supports their claims.
2. Is the Headhunter you’re meeting aware of the consequences of cultural and governmental issues that impact on international and cross-border management structures, and activities? While nobody will be aware of every issue in every country, they should be able to give you real examples that illustrate their awareness. This may include the provision of pensions (which can be different country to country), the provision of company cars (did you know the purchase tax on new vehicles is 198% in Denmark – v. frightening!), or that in the UK for example, London prices and wages tend to be higher by around 10% than in the rest of the country?
3. What are the headhunters access to language skills? Having a network doesn’t mean the members can communicate with clarity between themselves. Does the company or network have a preferred language.
   
4. If you’re searching across borders utilizing a number of headhunters at one time, will they be able to deliver a consistent delivery of candidate, reported in a standard format, with the same systems (such as psychometric analysis) so you can really benchmark your candidate options? This is vital. Make sure you understand how the shortlist will be measured and reported before they’re presented to you.

It could be argued that IT systems and the internet makes the presentation of an international network easy to present. The reality of it’s values, processes and understanding have to be tested if you are to have the best chance of a well executed search assignment.

Buyer beware!

Written by Martin Ellis – martin@corporatehandyman.co.uk

The market will change. It will get stronger. So now is a great opportunity to get high quality people in place, at the right price, and put your company in a strong market position ready for the uplift – it is coming.

If you’re negotiating with a headhunter, it’s as well to know where they will draw their battle lines:

Exclusivity: This is probably immovable in most cases. If you find a headhunter who will give away exclusivity, they’re probably desperate – They come with a health warning!

Fees: These will be negotiable. Just watch out for hidden costs at the end on expenses, media advertising, advert copy-writing and design, and psychometrics. Make sure you’re not gaining on one hand and giving away with the other. Read the Offer Letter and contract properly and check anything you’re not sure about. You should be able to negotiate at least 10% – 15% off their normal fees in real terms.

Fee Structure and Retainer: The Retainer fee will be closely guarded. It gives any headhunter the scope and headroom to do their job properly, BUT…..it’s normally 33% of the total fee – you may be able to get that down as a %age. Indeed, you may be able to keep a retainer of 33%, but use that to get bargain on the total fee. USE YOUR IMAGINATION!

Fixed Fees: A definite possibility here. You may also be able to roll in some expenses or variable costs so you and the headhunter are sharing risk. Fixed fees are attractive because they reduce the risk of surprises at the end of the assignment.

Quality: Don’t give way on quality – There’s no need. Keep the specification high and demand an SLA. The market is brimming with excellent candidates who are looking for new opportunities or career paths – you can be fussy, so don’t let the headhunter make shortcuts.

Salary levels: This is a competitive market. Look to do a deal on salary with prospective candidates, but don’t be too greedy – strike a sensible balance with the candidate to make sure they see you as a challenging, but fair, boss.

T’s & C’s: You should be able to get slightly improved terms and/or an improved guarantee. Anything that helps cash and provides a safety net is worth having in your back pocket.

This market will change, and, I suspect, quite soon. What applies in negotiating with a headhunter in July 2009 may not apply in just  few weeks.

If your judgement is that you need to position your company now for improving market conditions with new, high quality DNA, then now is the time to start looking and dealing.

Good luck!

Written by Martin Ellis – martin@corporatehandyman.co.uk

But……….

…………what happens after the search? How can you be sure you have a safety net when things don’t turn out as planned?

Make sure you get a guarantee that, if the candidate doesn’t work out, the headhunter will find you a replacement at no extra cost.

If the headhunter has done their work right, then the chance of things going awry are thin, but even so, the best laid plans of men often go astray. A good headhunter will stand by their work because they know they are likely to have chosen well, so the risk to them is low. You should get a 3 month guarantee without blinking; a 6 month guarantee may take more haggling, but stick to it. If they won’t guarantee their work, you’ll know exactly what to think and go elsewhere. There may be some sensible conditions, like not changing the job description after they’ve started, but don’t let that stand in your way.

Get a guarantee and get it in writing. It makes great business sense and will sort out those those who have the balls to stand by their work.

Written by Martin Ellis – martin@corporatehandyman.co.uk

Headhunting, as a service, is no different in that sales people will tell you their service is the best – so how can you be as sure as you can that’s the case before you appoint them? (probably on an exclusive basis which may limit your options should you feel stuck in a corner with nowhere to go!):

CHECK THEIR REFERENCES

Make sure you know their references and how relevant they are to the here and now. Ask to talk direct to a reference so you can get a better feel for how they perform.

DO THEY PROVIDE AN SLA (Service Level Agreement) AS STANDARD?

Every service provider should have an SLA as a matter of course. It must include measurable standards to all the stakeholders – including how they handle the candidates, as this headhunter will be representing you to lots of key people in your sector.

If their SLA is a two way document that includes specifications for responses from the client – great – this headhunter knows they will need your support to get the job done on time, and sees you as a vital part of the process.

WILL THEY MAKE SHORTLIST DELIVERY COMMITMENTS?

If the headhunter is ready to commit to a specific delivery date at the point they’re appointed, it’s very possibly a sign that they are confident of their processes and standards, and are not using haphazard methods to reach a conclusion.

BE CLEAR ABOUT WHAT MAKES UP THE FINAL SHORTLIST

Be very clear that the headhunter will provide a shortlist that hits the following 3 standards as a minimum, assuming that all the candidates will have been face-to-face interviewed before being presented to you:

1. That all the shortlist is motivated to do the job on offer.

2. That all the shortlist have the skills and experience as specified at the start of the assignment.

3. That all the shortlist salary expectations fall within the parameters of the search brief.

I appreciate this all sounds blindingly obvious, but there’s no job so simple it can’t be done wrong!

It is not unknown for the shortlist to be delivered in the form of a pile of CV’s. You need to be confident that the three standards above are specifically addressed and understood to be your minimum standard.

Most headhunters are committed to high service levels, but you can’t know which is which unless you make sure their service standards are specified. To be fair, in my experience, SLA’s are still more uncommon among headhunters than should be the case, but that doesn’t mean you can’t agree some specified standards from the outset.

Written by Martin Ellis – martin@corporatehandyman.co.uk

The Headhunting Industry has managed (somehow) to convince the market that sector or industry specialization is key to a successful search. This view is even promoted by the trade associations and, to be blunt, it is (generally) self-serving stuff and nonsense!

DO NOT BE FOOLED!

Sector specialization can have it’s place. For example, running an agency for temporary workers does require some extra skills and awareness of the market, the season, and legislative requirements. But…..

The Drawbacks of Sector Specialization:

Sector specialists claim to know all the right people. My perspective is that they know all the SAME people and simply bring a narrow view and an ever-diminshing gene pool to their work, and hence, to their customers.

They claim they have the networks and contacts to get a search done. Then they place an expensive job ad in The Times, or The Sunday Times – now why would you do that if you had all the right contacts?

Some headhunters are set in their ways and won’t think creatively about where they might find the right people who can get the job done. They won’t find candidates who will come with an open mind when they start their new job – a mind that’s looking for new opportunities and niche positions to improve their market and commercial positions.

I’ll let you into a secret – Networking is the key – NOT sector specialization:

Sector specialists will tell you they already have the network, then often waste anything up to 4 weeks waiting for an expensive ad to appear in the printed media.

I’ll now tell you something that goes unspoken: It takes only a few days to build a new fresh effective network. If I use the internet right, search engines right, social websites right, ask lots of questions and spend quality time on the phone, then I can build a network that will talk to me.

A fresh network brings energy, vibrancy, and NOWISM. Old networks are dark, damp, musty places that have been visited far too often before.

People talk to me because I’m a headhunter (I’m a nice bloke too, but that doesn’t matter). They give me information; they give me names; they will help me – because one day I might help them. Everybody stands to gain from the arrangement if they’re transparent about what they’re up to.

I am not the only headhunter doing this. There are people out there who will help you and do the job right, in the right way, on time, and in budget.

Make sure you’re sure:

Really question the headhunters you meet. Challenge them and the status quo. Don’t believe everything they tell you. If they stand up to your probing, GREAT, you probably have a good one that’s on your wave length and willing to get stuck in.

If they are grey and tired and traveling in the same circles, go elsewhere.

Networking is the Power behind a good search. Recyling the same old faces is not always good for the environment!

Written by Martin Ellis – martin@corporatehandyman.co.uk

In the last two years alone I’ve worked with chemical companies, off-shore wind generation, building transaction insurance, transport for Africa, furniture manufacturing, coffee retail, IT, tyre retail….. etc, etc, … The variety is stimulating and interesting, and I can bring my business experience to bear in every job in which I get involved. I can’t think of many (actually, any) jobs that bring a greater motivation to get up in the morning.

The variety just keeps getting broader. One of my fellow Partners, Richard Greenacre has just started an assignment to find a General Manager for a world leader in the manufacture and supply of fully automated weighing, grading and packing machines for the Food Industry.

This new role is something Richard will get his teeth into, and prove once again that we don’t need sector experience . We just the means to build a network and a process we can stick to find the best candidates for the job.

Richard is looking to fill this role while I’m looking to close on an assignment for a chemical company. I’ve also sold two international roles recently which are going well in Belgium and Germany. Other Partners are working on a role for a large financial institute, a coffee franchise, an IT company from Taiwan and a beer equipment manufacturer.

What’s next? I don’t know. And I don’t want to know. Handling and succeeding with the unexpected brings greater enjoyment than I expected before I started doing this. I also suspect the other Partners feel much the same, and that our motivation is another reason that we’re a little different in what is, I admit, a busy market place.

Written by Martin Ellis – martin@corporatehandyman.co.uk

Now I’m a headhunter, I find things are different: As long as I have a good tight brief, a client who understands their needs, a phone, an Internet connection, enough time to research, some common sense and an eagerness to work hard, then I can get candidates to meet a brief, on time, and on budget.

If you’ve been thinking about appointing a headhunter, here’s some questions I’d be asking……..

“How will you search for candidates for me?” – Be aware that the Internet gives people to ability to search for CV’s en masse. Some people will deliver a pile of CV’s gathered from CV databases and the like. This is credible, but it misses out on the community that isn’t looking for work – which can actually contain the strongest list of potential candidates. It also means they can deliver an impressive pile of names, but their pre-qualification may be limited. A real headhunter will build a network specific to the role and look for people who are the best candidates – whether they are looking for a new job is almost irrelevant. They will then interview them before they present them to you to ensure they meet your skills, experience and cultural needs.

“Who will be doing the headhunting?” - Sometimes the person who will be selling will not be doing the headhunting. This will then be delegated to an office based researcher. This does leave the potential for the brief to become diluted and the search to go off track. It also adds to the assignment costs.

“How will you advertise the role?”- More often than not expensive media advertising just isn’t needed. A good headhunter will build a network to hunt for the best candidates. Advertising in the appointment pages of a heavy duty newspaper will add time and costs that may just be unnecessary – and they might well just be publicising the headhunters business.

“What are your fees?”- Fees may be expressed as a percentage of the role’s OTE (On Target Earnings) plus out of pocket expenses. Expenses can include media advertising which can include some surprises when the final invoice gets delivered. Fees are commonly in the range of 30-35% of OTE (we are about 60-70% of our competitors fees) and you should check what is included in the OTE because that could pump up the salary, which will, in turn, bump up the fee. Ask for clarity on the fee structure and ask for a fixed fee if you want to stop costs running away.

“How long will this search take?” – if they say “it depends” they’re buying time which will slip between your fingers. Get commitment to a first interview date right from the outset. It will take longer than four weeks (although my record is 3 weeks from assignment start to first interview – but that was because of a mix of hard work and luck), but normally shouldn’t take more than eight weeks. The other biggest impact on time could be the notice period on the candidates current contract. Depending on seniority that can extend to six months.

OK, so this is only 5 questions, but depending on the answers you’ll get, they’ll lead to more questions and a better understanding that you and the headhunter are on the same wavelength.

The UK headhunting market is very competitive. There will be somebody you can trust to help you find the right people. Do some Internet research and ask questions over the phone. Don’t appoint a headhunter until you’ve met them face to face and they can reassure you they will really do what they say they will do.

We can help, but there is a lot to choose from……

Written by Martin Ellis – martin@corporatehandyman.co.uk