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Making the right hire can significantly impact your company’s success. For a critical position, it can make or break your company. So, when should you use a headhunter, and when is it better to recruit internally? Here’s a strategic guide to making that decision.
Critical Positions Only
Headhunters should be used for positions that are pivotal to your business. These roles are often leadership or senior-level positions with high stakes, and the need for the best talent is paramount.
For example:
- Controller: Your Controller manages your company’s financial risks. A mistake in this role can be catastrophic, so it’s essential to have the best possible candidate.
- Chief Revenue Officer (CRO): Responsible for driving revenue, the CRO is crucial for your company’s financial health. A top-tier CRO can significantly enhance your revenue streams and growth prospects.
- VP of HR: This role shapes your company’s culture and talent strategy. A highly skilled VP of HR can improve employee satisfaction, retention, and overall company performance.
In contrast, positions like Account Executives, Staff Accountants, and HR Generalists, while important, do not typically require the same level of expertise and can often be filled internally.
Cost Considerations
Using a headhunter comes with a cost. Therefore, ensuring a return on investment (ROI) is vital. For critical roles, the ROI is often clear: the right hire can lead to significant business growth, operational efficiency, and competitive advantage.
Self-Sufficiency
Maintaining an efficient internal recruitment system for the majority of your hires promotes self-sufficiency and reduces long-term costs. This system should be able to handle the volume and repeatability of hiring needs for roles that are not mission-critical.
The 90/10 Rule: A Balanced Approach
At Potere Search (PS), we advocate for the 90/10 rule. Most of our clients handle 90% of their recruiting internally and outsource the most critical 10% to us. This approach provides a balanced solution that maximizes efficiency and minimizes costs. Here’s why it works:
- Internal Efficiency: By managing the majority of hires internally, companies can build robust recruiting processes that are scalable and repeatable.
- Cost Management: Outsourcing only the most critical roles ensures that the expense of using a headhunter is justified by the value added.
- Specialized Expertise: Headhunters bring specialized expertise and extensive networks, and they can pursue all of the best candidates, making them ideal for filling critical positions that require a high level of skill and experience.
The Unique Differentiator of a Headhunter
A survey by LinkedIn found that 70% of the global workforce is passive talent that is not actively looking for jobs. Headhunters have the expertise to engage with this passive talent, which is often where the best candidates for critical positions are found. Research from Glassdoor shows that companies that invest in strong recruiting processes enjoy 3.5 times more revenue growth than those that don’t.
What This Means
Using a headhunter is a strategic decision that should be reserved for positions that can make or break your business. For these critical roles, the expertise and extensive networks that headhunters provide are invaluable. By following the 90/10 rule, companies can maintain internal efficiency and cost-effectiveness while ensuring they have the best possible talent in their most crucial positions.
At Potere Search (PS), we are committed to helping you find exceptional leaders who will drive your business forward. Contact us today to learn more about how we can support your critical hiring needs.