Should a Startup pay Headhunters for Any Hiring?

When starting any new business venture one is faced with a whole lot of tasks, not the least of which is hiring the right staff. After locating appropriate business premises and furnishing the office, the next step would be to fill the empty desks and chairs! Computers may be the need of the day to get work done, but one also needs manpower to operate them. So you now have to decide the number of staff and what particular qualifications, expertise and experience you require.  Perhaps you already have selected candidates to fill a few slots. The burden of setting up a new company may not leave you with enough time to advertise, then shortlist and conduct interviews. Thankfully in today’s business world the chore of finding the right candidate for the right position can be lifted from your shoulders.  Recruitment agencies or headhunters as they are also popularly known are people who specialize in the recruitment arena.

So what does a recruitment company do? Basically they fill the staffing needs of companies by sending candidates for interviews with the background and experience required by the particular company. From where do these recruiters find such candidates? People on the lookout for jobs send in their resumes to different recruiting companies in the hope that they will get a suitable opening. The benefit of such job-seeking people is that they do not have to pay the recruiter any fee for this service. The recruiter charges the company for whom a person has been hired.  There are corporate headhunters who are employed by a company; and there are third party recruiters who are subcontracted. The fee to be paid to third party recruiters is split into two payments; one half at the start and the balance once the search for the right candidate is fulfilled. Corporate recruiters are on the company payroll. A third category of recruiters is the Contingency recruiters. This category only gets paid if the company hires the candidate.

No doubt a startup company may open on a modest budget. Can they then afford to pay a recruiting company fee? The owner may try other means to find the right staff. He may try to get someone already on the payroll to wear two hats on the work front. Or try training a junior member of the staff to handle a more responsible post.  Obviously word has gone around through contacts and acquaintances for any suitable people looking for a job. If the only failure has been met so far, it is time to consider more professional options. As stated above, advertising for and interviewing a long line of candidates may put a strain on an already overburdened boss. So it would be best to look for a recruiting company to fill this need. The way to work around this (what may be considered as) ‘an unnecessary expense’ – would be to include the expense in the original budget when setting up the company. At that stage the expense would fit in neatly and would not stick out like a sore thumb and hurt.

Recruiters, also called as Headhunters are an experienced and professional group of people. They go through every stage of recruitment – from interviewing, to checking backgrounds, to ensuring that the company is sent only the very best and professional candidates for final selection. When all this basic work is taken care of, it becomes easy for the company’s head to make a quick and final decision on staff hiring. Time is money, and if you count the time saved by not having to interview dozens of hopeful candidates and still not be able to select anyone, you can definitely say you have saved money too. So hiring a recruiter would definitely be a wise step.


Read also: Why is a Good Job Description Important for a Startup?


Article contributed by Startup Jobs Asia‘s Team.

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