How to Successfully Open a Headhunting Agency

In the midst of a serious problem for companies due to the lack of workers, the establishment of a headhunting agency This can become a more than interesting activity. However, entering this sector requires an in-depth knowledge of the labor market, as well as a sufficiently solid network of contacts to be able to provide added value to customers.

In its purest sense, a headhunter – or head hunter– it’s a professional specializing in finding and recruiting exceptional professionals in different sectors: artists, engineers, web designers… All market segments can be sensitive to your activity, which makes a headhunting firm a very versatile profession.

However, not everyone is able to successfully enter the headhunting industry. Before entering this business, it is necessary to have some experience in human resources, as well as to have the information and knowledge of the market to successfully identify the most appropriate professionals for the client.

Also, against traditional HR agencies, headhunters they are usually specialized in the selection of middle managers and senior managersmaking it a more expensive, but often more effective, solution for their customers.

The keys to setting up a headhunting agency

Know your customers

Who uses a headhunting agency? This first question is one of the keys to success in this market. Although we tend to think that the clients of headhunters are only companies looking to recruit qualified personnelthe truth is that this sector also covers other types of profiles that can become quite profitable assets.

For example, there are many professionals who decide to work with a headhunting company looking for new opportunities jobs that allow them to progress in their careers. It is therefore a versatile company, at the service of companies and professionals alike.

How much does a headhunter get paid?

The prices of a headhunter vary quite a bit depending on the type of company, the time needed to find a specific professional profile, the difficulty of the sector… However, there are certain conditions that are usually common in the sector.

In most cases, headhunters charge their client a commission, which is usually a percentage of the agreed salary. Unlike recruiters, who typically receive 15-20%, a headhunter can earn up to 30% of the candidate’s annual gross salaryas Luis Truchado, a partner at Odgers Berndtson, explains in Expansión.

This condition makes the remuneration of a headhunter does not depend so much on the number of clients in the portfolio. For example, a senior manager may leave several tens of thousands of dollars in company accounts in one transaction, while multiple transactions with lower-paid middle managers may total less money.

headhunting agency

The conditions to be a good headhunter

Although headhunting agencies are generally very lucrative and profitable businesses, the truth is that devoting yourself to this sector requires professional skills that are quite difficult to obtain.

The first is a good network of contacts. A headhunter lives from his connections and his ability to find the right candidate for a position, often very well paid and affected by talent shortages. Therefore, meeting many people is one of the essential keys to success in this profession.

On the other hand, and although headhunters work in all market sectors, specialization in one of them is another of the fundamental factors to start succeed in a business of this type: Keep abreast of the needs of the sector, the companies that make it up, the average remuneration for each position…

International headhunter Agency: a business opportunity

The shortage of labor in certain sectors of activity favors the rise of new techniques for detecting international talent, a task in which headhunters play a key role. In this direction, specialize in various international markets this can be a new opportunity to take this business to the next level.

Lack of demand affects six out of ten companies, according to the latest data from Manpower. This is the worst figure in 15 years, and shows the seriousness of an international crisis that threatens to significantly slow the economic recovery from the pandemic, which should mark the global agenda in 2022.

The labor shortage does not only affect the most modern and specialized sectors. Spanish companies also have serious difficulties finding healthcare workers, pharmacists, welders, millers, drivers or forklift drivers.. In the latter case, the lack of demand in the logistics sector is particularly important, due to the boom e-commerce and last mile deliveries that have taken place as a result of the pandemic.

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