How do headhunters work?
i keep hearing this but i'm not sure what they do. Are there separate headhunters for banking and for buyside recruiting or do they do everything? How do you know which one is good? Do they take a big portion of your fee if they get you a job so you dont have a bonus for that year?
Here is how it goes:
A headhunting firm is hired by a company (investment bank, PE shop, etc.) to fill a particular position or a set of positions. Different headhunting firms specialize in different sectors and levels. Some focus on everything. Some focus on financial services, some on IB, some do low level positions, some do C-level professionals.
Given the relative ease of getting email addresses of investment banking analysts and the knowledge that you will be looking for a job at the end of your 2/3 years, you're a prime candidate for them. If a headhunter reaches out to you and you choose to work with them, or if you reach out to a headhunter, the next step will be for them to collect information from you. This information includes a resume, G.P.A., SAT, GMAT, School, current employer, group, bonus $$$, rank in class, references, what type of position you're looking for, etc. After they collect the information, they will set up a 30 minute interview with you. The interview will be pretty basic stuff. Tell me about yourself/bankground, a high level overview of your banking experience, and what you're looking for in your next position. You then go into the headhunter's database.
From there, you're in limbo. As a headhunter is looking to fill a position, they will go back to the database and select candidates that they feel are a good fit. They will ask the candidates they select if they are interested in that particular position, and if they are, the headhunter will then present those candidates to the company they are representing. The company will then handle the interview and offer process in the usual manner. Sometimes they will use the headhunter to reject you, other times they will do it themselves. Sometimes the headhunter will coach you on the position and give you advice such as "this PE shop will have you do an LBO model on the back of your resume." It all depends on how they are feeling and who you get.
So, obviously they need to get paid. From my experience with headhunters, they generally take a 33% cut of a PE associate's base salary and 33% of the 1st year bonus. This is paid by the company and NOT the associate. So if you made a $90k base / $120k bonus in your first year as an associate, the headhunter would get $30k when you were hired and $40k after a year. Again, you are not responsible for this fee.
That's pretty much it. The important thing to remember is that the headhunter is working for the company and not for you. They get paid when they fill the position, but they get repeat business from their clients when they fill positions with good people. So you always want to approach headhunters in the same way you would approach a prospective employer: Be professional and tell them what they want to hear.
always wanted to know, if you have a meeting with a headhunter, are you supposed to dress professionally (full out suit), or do they realize you're coming from work where a suit isnt required so a shirt / jacket is sufficient? also, bring a professional folder or is notebook w/ resume ok? thanks.
Treat it like an interview.
Headhunter Etiquette (Originally Posted: 03/18/2013)
I've been at a buy-side asset manager for about a year now and am thinking about jumping ship. I sent my resume to a few recruitment shops a week ago and heard back from two recruiters today. One happens to be located just down the street from my current office; we agreed to get lunch tomorrow. Two questions:
Should I step up my dress for the meeting with the recruiter? Its business casual at the office. I'm a guy. I am located outside of NYC.
Do people typically communicate with multiple recruiters? How do you handle inquiries from multiple recruitment firms?
Really appreciate any insight you all might have.
Just wear your normal work clothes so as not to raise suspicion at the office.
Yes, you should work with multiple recruiters as they generally have separate opportunity sets.
Fine to work with multiple recruiters. Of they know you are interviewing elsewhere it could really help move the process along. Depends, I would step the dress up a bit. At minimum an dress shirt with no tie. First impressions mean a lot and the more they honk you will get the gig the harder they will push for you. If your credentials are really solid and your firm is good than I wouldn't worry about dress too mug especially if they know your dress code is casual whih I'm assuming they do since they are down the street.
Sorry typing on iPhone. Autocorrect.
Wear your normal attire, and yes work with as many as possible (to a point...try to stay within the realm of the good HHs). It actually lights a fire under their ass if they think you're wanted by multiple HHs and pushes the process along which is nice.
This should be a fun time for you, I loved the headhunter blitz. Enjoy it and be confident.
Recruiter Etiquette? (Originally Posted: 03/14/2015)
I got hit up by a recruiter yesterday. Never been contacted by one before. Meeting with her Monday. How does this shit work? Anything I should know before we meet?
Is this a recruiter for as specific firm, or a general headhunter?
The first meeting with a recruiter is a "get to know you meeting". It's an interview before the interview. This is where he/she will run through your background, the opportunity and deem if you are right fit to present to their client.
Headhunters are pretty useless for the most part. Remember they work for you and the company. You don't have to dress up or impress, you don't necesseraly need to bring a resume with you - it's called an email, and you will send it to them by email afterwards. A lot of the time they are just wasting your time and trying to gather information from you, especially at the junior level. Some headhunters get paid by banks to do this - information gathering, pretty unethical but that's life.
Try to establish right of the bat if they have an actual job they are interviewing for, and tell them about yourself.
Most importantly RELAX, it's not an interview.
PS: Disregard all the above if this is not actually a headhunter, but a recruiter who works for a specific company. In this case, this is an interview and take it seriously
So I got my first full time offer yesterday. I have interviews and the headhunter meeting lined up for next week. Should I tell her I already have an offer or nah?
You don't have to, wait and see what she has to offer first. If she does have a job, and you tell her that you already got an offer, she will be less inclined on wasting her time with you
Don't mention it, and just see where the meeting goes.
@Easy C, I used to see those military recruiting letters come into my unit addressed by billet, not even for specific people haha. Every 6 months, my personnel would bring the mail and I'd see 8 identical letters, addressed to S2 Officer, S3 Officer, etc. Into the trash bin they went.
Contacting Recruiter Etiquette (Originally Posted: 03/07/2012)
My situation: I want to reach out to several recruiters to establish a relationship before I start recruiting (probably next year). I'm in an analyst role right now. I'm looking to send them an intro email with brief description of my role/background asking for a meeting. Is this how you would typically go about it? I'm a bit hesitant to send my resume as I've heard stories of resume circling around and managers finding out. If I don't attach the resume is the brief description not sufficient to get a meeting?
Please answer if you have experience in dealing with third party recruiters. Thank you.
Send a link with your linkedin
That's a pretty good idea...thanks
Etiquette to do with Headhunters within same firm – Require Advice from Professionals (Originally Posted: 10/16/2014)
Just wondering what the etiquette is in terms of dealing with headhunters within the same firm. There’s this global firm that I’m dealing with so they have vacancies for a variety of postings across the globe – my CV is in their system and if the staff comes across my name, they can reach out and contact me to see if I’m interested.
There are probably a bulk of opps I’m interested in since I want to move over to the buyside – at the same time, I don’t know whether they’re going to hit with the firm itself, and if it does, and I don’t end up getting the position – whether the headhunter will see me in a negative light and not approach me for further positions anymore?
Also, is it frowned upon to say “Yes” to pretty much everything? Have you guys ever said “No” and what were some of the reasons you declined a potential opp for them to send over your CV to the firms?
Thanks for the suggestions/advice.
Headhunters work for the client, not you. Their job is to show the client the best candidates and not waste the client's time.
If they show you to a firm, you get an interview, but don't do well, that is a real problem for you. Some of that can be improved with practice, but if they get negative feedback, i.e., you weren't prepared, that headhunter has no incentive to show you anything else.
It is frowned upon to say "yes" to pretty much everything, although less of an issue if you are junior. It shows that you don't have a ton of direction and will likely fail when in an interview and asked "why this company / job". For someone looking to jump to the buyside, that hurdle is lower.
I have said "no" to jobs that don't fit what I'm looking for. Just b/c I am at a HF doesn't mean I'm interested in a HF position covering large cap European CPG companies.
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