Why Use Recruiters

Welcome to Headhunter Secrets, where I’ll share perspectives about the search business. We hope you’ll use our services to execute searches. Nonetheless, I wanted to give you some insights I’ve gained from doing search work since I was 23 years old.

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Why Use Recruiters
I asked AI for an answer

A client, the board chairman of a very successful business, called to ask my thoughts about an issue he was having.

The company was struggling to find worthwhile sales people. Turnover in sales was high, and many hires were not meeting expectations.

Outside of using me to find them a CFO, the company didn’t use recruiters. It was against the president’s policy. My client wanted me to send him some bullet points on why using recruiters to find people was productive and cost effective.

He had the good sense to realize that turnover was costing the business money. He ran the numbers and realized hiring a recruiter would likely save money, but he wanted my help in articulating exactly why so he would make his case to the president.

This “why use recruiters” question has been around forever. Recruiters feel they provide significantly more value than clients seem to believe. For most companies, saving money on a fee feels like an accomplishment; but this doesn’t take into consideration if the hire actually worked out, much less exceeded expectations.

Instead of “talking my book” on why to use recruiters, I outsourced it to my knowledgeable assistant, Claude. Here’s what Claude had to say, with a few of my edits thrown in:

Reduced hiring costs and risks: Search firms meaningfully lower the risk of expensive hiring mistakes. A bad hire can amount to significant productivity losses, organizational disruption, lost training time and the need to reinvest time and money into hiring someone again. Search consultants’ vetting processes and industry expertise help avoid costly hiring mistakes.

Faster time-to-hire: Human resources departments often lack the networks and specialized knowledge to identify top talent in their specific industry or for a specific role. Search consultants can compress hiring timelines and increase the number of candidates considered that match a company’s industry and fit a company’s need. Search consultants offer the client a better, and more swiftly assembled, selection of candidates to choose from.

Access to passive candidates: Many of the most qualified candidates are not actively job searching. Search consultants can approach candidates who would never respond to a job posting.

Market intelligence and benchmarking: Search consultants provide valuable compensation data, competitive market intelligence and industry insights that help companies make informed hiring decisions and structure competitive packages.

Specialized expertise: Industry and role-specific search consultants bring deep knowledge of select industries, functional areas and capability competencies that internal HR teams may lack, particularly for niche or highly-unique roles.

The economic value typically becomes clear when considering that executive search fees (usually 25-35% of first-year compensation) are often less than the cost of a single hiring mistake or the productivity loss from an extended vacant position. Hiring mistakes reduce revenue and profit potential.

Thanks, Claude! Looks like you nailed it. But I would add one more point of value: A good search consultant is an adept and sophisticated matchmaker.

The matchmaking aspect of search work is actually where most of a consultant’s real economic value lies, though it’s often underestimated. To help me articulate the economic value of a great search consultant’s matchmaking skills, I again tapped Claude:

Cultural fit assessment: Beyond skills and experience, consultants evaluate personality, leadership style and cultural alignment. A technically qualified executive who clashes with company culture can derail teams and strategic initiatives, making this “soft” matching crucial for ROI.

Two-way relationship building: Good search consultants don’t just sell candidates to companies; they also help candidates understand whether the opportunity truly fits their career goals and working style. This reduces the risk of early departures and ensures both parties enter with realistic expectations.

Stakeholder alignment: Senior hires often need to work with boards, investors and other executives. Search consultants map these relationships and assess interpersonal chemistry, which can be critical for success in complex organizational dynamics.

Timing and readiness: Skilled consultants understand when high-potential candidates might be ready for a career move, even if they’re not actively looking. They can identify executives who are approaching natural transition points in their careers or organizations.

Managing expectations and negotiations: Like good matchmakers, they help both sides navigate sensitive conversations about compensation, equity, relocation and other deal terms while maintaining positive relationships.

Long-term relationship value: The best search consultants build lasting relationships with both clients and candidates, creating a network effect where successful placements lead to future opportunities and referrals.

This relationship-building and intuitive matching capability is difficult for companies to replicate internally and often determines whether an executive hire becomes transformational or merely transactional.

DAMN that’s good. I’m going to have to give Claude a raise! A testament to the wisdom of outsourcing to an efficient expert who’s got skills you need.

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Hope these insights are helpful. 

We at Leyendecker have been doing search work for 40 years. We’ve completed over 100 C-level searches, most for CFOs. Most have been PE portfolio companies, but we’ve also helped owner/managed and publicly-held companies. Our placements have helped their employers go through almost 50 successful liquidity events.  

Keep us in mind when you seek talent that will get you over the goal line! Hope you have a great year!

Doug