Some business leaders are reluctant to pay Headhunters’ fees. However, rather than focus on short term cost we strive to emphasize long term value.
Such fees are not small change. For a six figure salary package typical fees can range from £25k to £60k and this cost will impact bottom line profitability. Consequently some organisations will try alternative approaches – and almost all of these incur cost, time and usually frustration.
Vanessa Merit Nornberg set up Metal Mafia in 2004. The company markets costume jewellery and Vanessa used to avoid the cost of a Headhunter. As she said:
“For me, recruiters have traditionally been out of the question because I figured they would be a waste of time and never be as good at sending me the right people for the job, as I would be in reviewing resumes myself. They’re also too expensive for my small budget.”
Vanessa’s attitude changed completely after, as a last frustrating resort, she did engage a Headhunter. Since which time Metal Mafia grew to become a Fortune Top 500 Company selling their products in 23 countries.
The Corpex Group has a client organisation in the healthcare sector and in 2008 we were engaged to identify, attract and recruit a top flight Managing Director. At that time the business was stagnating with annual turnover of £24 million and declaring EBITDA of £1.8 million.
Since recruiting the Managing Director we have been engaged to successfully recruit an Operations Director and also a Business Development Director.
Results for 2012 are impressive with annual turnover at £82 million and EBITDA is £9.4 million. Realistic plans are in place to grow this business to £120 million turnover by 2015.
The fees paid for three senior appointments are c. £80k, but those costs are long since forgotten by delighted shareholders. They regard our fees as exceptional value and a very worthwhile investment.
Of course you have the option of “doing it yourself” when faced with a senior and key appointment. However, in our experience the costs involved, including management time, will ultimately be similar to our fee. Most DIY approaches will only target candidates that are “on the market”. Using The Corpex Group means we cast the recruitment net much more widely and have conversations with the best talent “in the market”.
Let’s leave the last word to Vanessa Merit Nornberg who now regularly engages the Headhunter to strengthen her management team:
“The cost suddenly became much less, because I saved so much time in the process, and because I got a pool of candidates who were decidedly better to choose from than in the past. Even more interesting perhaps, was an insight the selected candidate shared with me during the interview process. When I asked why she had chosen to work with the recruiter rather than post on job boards, she said ‘because recruiters make sure your resume gets seen, while submitting via the internet is like sending your resume into oblivion’. Vanessa concludes by saying “it looks like I’ve got an essential new hiring strategy”.