Money motivates and therefore so does new business from either a preexisting client or a new one. And new business is developed in many ways. Headhunters may invite prospects to dine in order to get better acquainted. They also socialize at select clubs and gatherings where they can meet influential people who may retain them or introduce them to someone who can. Even the executive who doesn’t get the job has been known to use the recruiter because he was impressed with the way he operated, a flattering occurrence. Candidates are all potential clients. Headhunters lecture, publish, review periodicals in their field looking for ideas, are active in professional organizations, and very infrequently answer a “blue bird” call (a company calls them with a search need). Searches have been given out on golf courses, tennis courts, in first class airplane seats, by conducting wine tasting seminars, and of course, by making voluminous cold calls via the telephone.
Another motivant is filling positions and doing good work, that is, finding the best candidates or those who meet the client’s wishes.
The previously mentioned dynamisms give headhunters the desired prestige and power among clients, peers, subordinates, and the general public which spurs them on to continued efforts.
Consultants enjoy meeting different and interesting people who are typically above average in intelligence and success, if not occasionally very human and vulnerable, and who find unusual ways of coping with extraordinary situations. For example, there was a Jewish economist who was offered a position with a West German bank. His in-laws, however, had lost family in the concentration camps, and he was sensitive enough to ask them whether it would upset them for him to accept. They said “no,” so he said “yes.”
There are no stereotypes, and headhunters encounter highly successful business people with overt or covert idiosyncracies.
An executive was to be flown in a company plane from his home in Cleveland to New York City to meet the search committee of a prospective new employer’s board. Shortly before his arrival time, the headhunter received the following call. “I’m sorry, but I can’t come. I thought I could get up the courage to get on the plane given the circumstances. But I can’t overcome my fear of flying. The only way I can come is if I take my wife with me for support . . . and if I also have a few pops on the flight.” This made both the candidate and the headhunter look bad in the eyes of the board, the candidate was dropped. The consultant later referred him to another client who was understanding and more concerned with the man’s achievements than his phobias.
Another example was when a headhunter placed a gifted and successful executive who used to suffer with manic-depressive bouts, but whose use of a stabilizing drug has prevented his ailment from interfering with his career.
Working on new and varied assignments stimulates and challenges search consultants.
A former Special Forces officer, now a headhunter, received a call from a former CIA executive. “I want to retain your services. I need 12 men. They must be experts in light weapons, United States and foreign, as well as hand-to-hand combat. The group must include a pilot, a navigator, a communications expert, and a medic. The boys must be in good shape and be 10 or more years out of the service. Can you do it?”
“What’s their mission?”
“They’re going to go into a Third-World country. It’s a one month job. The pay is $100,000 tax free for each man.”
The headhunter calculated the fee, $30,000 for each man or $360,000. Although he knew he could deliver, he was skeptical about the effect on his firm’s reputation if they fulfilled this request. He brought the proposal to his senior management. They agreed with him and turned it down.
Headhunters enjoy elegant dining and travel although both are so tied to business dealings that they can’t always enjoy them to the hilt. In fact, in terms of eating the consultant must develop self-discipline, exercise regularly, or get fat.
A headhunter spent a few days in Chicago and Los Angeles interviewing candidates over breakfast, lunch, and dinner¡ªin top restaurants. His wife and children were jealous. His parents were proud. His in-laws thought he was a big shot. But when he returned home from the trip, he took two Alka-Seltzers and went straight to bed.
WHAT DO HEADHUNTERS EARN?
They are typically paid a salary plus a bonus. Depending on the size of the executive search firm, an estimate of a partner’s total annual earnings may range from 25 to 50 percent of the fees which he generates. Typically, the larger the percentage paid to the recruiter, the smaller the firm. Why? Big executive search companies with established names and public relations assistance enable headhunters to do more business. The headhunter pays dues by getting a smaller percentage of a bigger pie. This doesn’t mean that one headhunter earns more than the next. In general, partners earn about $75,000 to well in excess of $300,000 in some instances. The $100,000 plus level is not uncommon. Salaries range from about $50,000 to the $200,000 level. Of course, the founding partners earn much larger undisclosed sums.
The nonpartner, professional staff earn from $25,000 to approximately $75,000. Base salaries start in the $20,000s and range to the $60,000s. Bonuses make up the difference.
Other nonsalaried compensation may include a 40IK (a tax shelter where you usually put aside a percentage of your salary and the company matches all or part of it), diverse investment programs, stock options, profit sharing, and so forth. Perks are often provided that may include a car or car allowance, clubs, an expense account, special health benefits, and so forth.