Should a recruiter or headhunter run my job search?
A recruiter or headhunter will work your search only for the roles an employer pays them to fill. The employer pays the fee, usually 20% to 25% of first-year cash pay on contingency or about a third on a retained search, so a recruiter costs you nothing. Recruiters suit senior, executive and niche roles, not a broad search.
By the editors of The Handoff Updated First published
- Paid by
- The employer
- Paid to
- The search firm
- Works for
- The employer
- Cost
- Nothing to you. The employer pays a fee, often 20% to 33% of first-year pay.
Who does a recruiter work for?
A recruiter works for the employer. Robert Half's annual report says its placement fees are paid only by the employer and that it charges candidates no placement fee Robert Half SEC filing. The executive search trade body AESC says its member firms hold an exclusive agreement with the client for each assignment AESC.
That does not make a recruiter your opponent. A recruiter only gets paid if a candidate is hired, so a good one will coach you through that employer's process. But they will not shop you to companies they have no agreement with, and they will drop out once you are not a fit for their open roles.
What kinds of recruiter will you meet?
| Type | Who pays | When they are paid | Usually used for |
|---|---|---|---|
| Contingency agency | Employer | Only when they place a candidate, usually 20% to 25% of first-year cash pay SHRM | Mid-level and lower-level roles AESC |
| Retained search firm | Employer | A retainer plus payments at set milestones, about a third of first-year pay, whether or not a hire results Heidrick & Struggles SEC filing | Senior and executive roles |
| Staffing or contract firm | Employer | An hourly rate for hours worked; you are the firm's employee Robert Half SEC filing | Contract and temporary work |
| In-house recruiter | Employer | Salary from the employer | That company's own openings |
| Reverse recruiter | You | A monthly fee, sometimes plus a share of salary Find My Profession | Job seekers who want someone to run outreach for them |
The last row is the exception. A reverse recruiter is paid by you and works for you. Find My Profession, for example, charges $1,500 a month plus 8% of first-year salary after you accept a job, or $3,000 a month with no success fee Find My Profession. That is a service you buy, so judge it like a coach or an agent, on what it does each month for the price.
When is a recruiter the right call?
- You are senior or an executive. Companies hand many senior searches to retained firms, which find candidates rather than wait for applications.
- Your field is narrow. In specialist areas a few recruiters see most of the openings. Being known to them is worth more than any number of cold applications.
- You want contract work. Staffing firms employ contractors directly and place them with clients.
- You are open to moving and not in a hurry. A recruiter's call costs you nothing, so taking it is cheap even when you are not looking.
When is a recruiter the wrong call?
- You want someone to apply to many companies for you. A recruiter only works the roles a client pays them to fill; an AI job agent or a reverse recruiter works for you.
- You are early in your career. AESC notes that contingent recruiters handle mostly mid-level and lower-level roles AESC, but many entry-level roles are hired directly through applications.
- You are changing fields. A recruiter is paid to present close matches, which a career change rarely is. A career coach fits better.
How do you work with a recruiter?
- Ask who the client is and what the role pays before you share much.
- Ask before they submit your resume anywhere, so two recruiters never send you to the same company.
- Keep your LinkedIn profile current and specific: title, stack, location, and whether you are open to work.
- Never pay an upfront fee. The FTC tells job seekers to walk away from a placement firm that asks for one Federal Trade Commission.
The fee details, with a worked example, are on how recruiters get paid.