Headhunters: Six Reasons to Use Them

A potential insurance client based in Maryland called me this past week and asked me, “Rob, you were referred to me by an existing client of yours…but, please tell me, why should I spend good money to hire a headhunter (executive recruiter) when my HR department already does this…?”

I also had a senior insurance producer yell at me over the phone on Thursday that he “hated headhunters” and never to call him again.  

The last time someone did that to me the same guy called me back two months later profusely apologizing and informing me that he had just been terminated due to his firm getting acquired. I wished him good luck!  

Here are six reasons why hiring authorities and candidates alike should consider an executive recruiter:

Targeted Recruiting (Clients): When an employer has targeted an individual from a competing firm for a critical need, they had better hire a recruiter to do this in secrecy, otherwise, you can bet they will poach from you as well.  This provides my client with plausible deniability. 

I call this the “hired gun” search.  A client simply hires me to do their dirty work of stealing top talent from their competitor.  The ugly truth is that every firm does this.  Top talent determines which companies win or lose.

Confidentiality (Candidates):  My firms only recruits candidates who are “passive” meaning they are currently employed. The last thing a candidate wants is for their supervisor or colleague to find out they are looking for a new opportunity.  Being discovered could lead to an immediate termination. 

We go to great lengths to protect a candidate’s identity and to communicate with them in a safe and secure manner sometimes even using an encrypted platform such as Signal or WhatsApp.  A good recruiter is trained to protect the candidate’s identity at all costs.

Replacing a senior executive (Clients): When replacing a poorly performing executive, one has to be careful not to create internal drama and uncertainty during the process.  

If not careful, the rumor mill will start generating misinformation leading to dissension among the staff. Better hire the replacement before giving the executive his/her walking papers.

A discreet executive can shield the client’s identity and operate in secrecy and without anyone knowing internally that an executive search is ongoing.

Access (Candidates):  A good recruiter specializing in a specific location, industry, and job function, can provide an individual with instant and credible access to a hiring authority at a particular firm bypassing the dreaded Human Resource gatekeepers. 

Expectations can be properly set by the recruiter on both sides.  For example, someone may not be ready to depart their existing firm, but may want to discreetly test the waters and confidentially talk informally with a hiring authority with a competitor firm.  Arranging discreet meetings is precisely what a good recruiter does. 

A New Vertical (Clients): Many times, a firm will decide to branch out into a new product or geographic area requiring an entirely new set of skills and experience not currently found internally.

This could be a P&C insurance agency expanding into employee benefits or life insurance.  A recruiter with subject matter expertise many times can craft a job position and conduct a time sensitive discreet search much more efficiently than an internal HR department recruiter.

Urgency (Clients & Candidates): A key executive abruptly departs leaving a huge talent gap at a key position. Alternatively, a key executive is restructured after his/her firm has been acquired.

Now what?  Panic mode sets in. 

We take on these client (and candidate) searches all the time. Engaging an experienced recruiter with an existing network and expertise in your functional area within your industry can swing into action on your behalf immediately.

This past March a senior employee benefits insurance producer had his sales commissions significantly reduced, his account manager terminated, and his territory given to someone else after a merger was completed. 

He called me in a frenzy and I had him interview with three of my best insurance brokerage clients inside of one week.  Within 30 days, he was back on the streets selling insurance at a fair and reasonable commissions rate structure with my client – with his previous account manager!

Bottom Line: Smart firms will use search firms to stack top talent in key positions because they know that 20% of the people do 80% of the work. Search firms find that 20%. 

As always, thanks for reading and for your continued feedback and ideas.