The importance of selecting the right headhunter
An essentially unregulated and unlicensed industry it is made up of many individuals with few professional qualifications who have invented themselves into their roles. That is not to say that there are no good minds and well-connected headhunters among the lot, but jobseekers need to pick them out with care.
For an individual jobseeker to approach a headhunter may be a bit strange. Headhunters usually represent their client companies, not potential candidates, and this could cause a conflict of interest.
Jonathan Baines, sector chairman of global financial services at Whitehead Mann, an executive search, assessment and coaching firm, says: "I do advise people when they are looking for a job that they are the ones who are going to find the job, not the headhunter. A headhunter will look at you as a source of information and a fee. Your mutual interests being aligned is largely a question of chance."
His advice to jobseekers is to think carefully about what it is they want, do their research on the firms and look at which ones are under-performing. Also, it is important to think about who they know and which individual might get them in front of the right person at a potential employer - and do not go to a headhunter.
Baines says: "The question is not how to choose the headhunter, but how to best use your network." However, he concedes that he does see individuals on occasion, usually when asked to do so by a friend.
Good headhunters will not normally see individuals unless they are known to them as an A or A+ player. Sometimes headhunters will see people who have come out of an important investment bank or other financial institution because they want to know more about it. They are unlikely to want to be landed with another problem to sort out, but jobseekers may find one useful if they know what it is they want and how to go about it.
The only hiring that is taking place in the financial services industry is where businesses are upgrading their people. In these markets, headhunters are as willing to see individuals who come to them as they are to be flexible on fees.
Ellen Yaffe, a director and head of capital markets at The Rose Partnership, a niche financial services search firm, says: "Candidates have to be very realistic that there isn't any headcount to be filled out there. It is about knowing which headhunting firms have the relationships - and finding a job means it is not just about relationships with the tier one firms."
A headhunter's reputation, track record and entrenched relationships with clients are all main elements to take into account, says Yaffe. Most of this information, she says, can be obtained from a jobseeker's own network - people working within the industry have all dealt with headhunters and know which ones have access at specific firms.
John Gilkes, director at DBM's International Director's Centre, a newly launched career transition facility, says: "The best way to approach headhunters is to network into them. Find someone who is giving them business to effect an introduction. This method is sure to succeed."
Yaffe argues that it is in the headhunter's interest to see as many good potential candidates as possible, even if it is not for a specific client. "After the most recent set of culling [in financial services] there are some fantastic people in the job market - we need to check them out and make sure we know who is good."
What is in it for the jobseeker? "We can see what the market thinks of them and let them know accordingly," she says.
Jason Chaffer, global leader at Spencer Stuart's financial services practice, says personal recommendation is the best way forward in choosing which headhunter to approach. He says: "Most of the best headhunters are known to each other. There may be issues of style and some have better access to specific institutions than others."
In line with the other large global firms, Spencer Stuart receives lots of unsolicited CVs, which usually come through a personal recommendation. However, most reputable headhunters will not encourage people to send in their CVs in this manner.
Closer relationships with their clients mean they will sometimes provide a free "counselling" service to those looking for a new job, says Chaffer. You can always ask the human resources department of the firm you are exiting for advice on headhunters, but you may find them unwilling to help.
Investment banks are often reluctant to comment on whether or not they pass on this kind of information.
A media spokesman at one large investment bank says: "Banks do have headhunters they regularly use, but to pass that information on to those who are exiting would be counter-productive for the bank."
Jobseekers have to trust their own judgment when it comes to finding a headhunter. Once they have narrowed the field by recommendation and reputation, establishing whether or not they have product and market knowledge is crucial.
Shaun Springer, chief executive officer of Napier Scott, a financial services search firm, says: "A good headhunter will understand the products you are involved in. It's not difficult to ascertain quickly whether someone is nodding like a dog in a car. The biggest clue to a duff headhunter is the questions they ask - they must be pertinent to your background and experience."
When speaking to a headhunter it should become apparent quite quickly whether he or she knows a candidate's peers in the same sector and industry.
Rupert Channing, managing partner of European financial services at Heidrick & Struggles, a global search firm, says: "As a candidate I would want to be reassured that the individual I spoke to had a genuine understanding of what I did, could demonstrate a gritty relationship with clients and explain why they would be interested in talking to me."
In any such discussion, one sad fact of life is likely to remain true. As Christian Sulger-Buel of Sulger-Buel & Co, a private banking and wealth management search firm, says: "Be careful. Neither the headhunter nor the candidate always tells the truth."
