292: Pros and Cons of Using a Third-Party Recruiter

Pros and Cons of Using a Third-Party Recruiter

I get a lot of questions about using recruiters in my clients’ job search, so I wanted to dive into this topic and my perspective on the role of recruiters in your job search. 

First, some “recruiter” definitions are in order.

I am talking about a third-party recruiter rather than a person who works in the company you want to work for as a recruiter. Third-party recruiters work for a recruiting firm and find candidates for a large number of employers.

In its most simple form, there are two types of third-party recruitment firms: Retained Search and Contingency.

Retained Search firms are hired with exclusivity by a company to find a candidate for that company. They are paid regardless of the outcome of the search and are often involved in every aspect of the hiring process including market research, evaluating internal bench strength, locating candidates, conducting initial interviews, and bringing 2-3 top candidates forward to the company. They may also negotiate compensation packages. Retained Search firms are typically used for jobs at about $150K and above annual salary.

A retained search recruiter, often called an executive recruiter, will only be reaching out to people to possibly match the criteria laid out by the company they are currently hiring for. Because these searches are highly specialized and labor intensive, an executive recruiter doesn’t have the bandwidth to spend much, if any, time getting potential candidates into a database for possible future positions. They are working on the job search right in front of them — and they will only conduct a handful of these each year.

Contingency firms are one of many — a company may send their job notice out to a half-dozen firms to increase the likelihood of finding the best candidate quickly. Only the firm that puts forth the winning candidate gets paid, so it is a race. Because of this, you may get contacted by contingency recruiter not for a currently available position, but to get you in their database for future roles — so be sure to ask about this if you are contacted.

When I am working with a client to create their customized job search strategy, they are often surprised that I have “reach out to recruiters I already have a relationship with” as a passive job search strategy — they think it should be an active strategy.

The reason I consider reaching out to recruiters as a passive job search strategy is because you have no control over what positions they are hiring for at that time. Recruiters tell me that, for every position they have available, they have 6-10 qualified candidates or more. Also, recruiters don’t make their money from you — they make it from filling roles sent to them by employers. They are not in business to help you.

Note that I said “reach out to recruiters I already have a relationship with” — trying to find a recruiter who is looking for you at the same time you are looking is like looking for a needle in a haystack. If you have existing relationships with recruiters, by all means let them know you’re in the market and send them an updated copy of your resume.

Otherwise, I don’t consider hunting down recruiters to be a good use of your time and job search energy. A better use of your time, in my opinion, is to have a top-notch LinkedIn profile that acts like “recruiter flypaper” — bringing recruiters that are looking for people with your skills, education, and experience TO YOU — while you’re busy engaging in other job search activities. 

Now for the “pros” of working with a recruiter:

1. Access to job opportunities: Recruiters often have access to job openings that may not be publicly advertised, which can increase your chances of finding relevant opportunities. This is particularly true at the executive level, where the only way to find out about an opening is through the executive recruiter.

2. Industry expertise: Many recruiters specialize in specific industries or types of jobs, giving them in-depth knowledge about trends, companies, and hiring practices in your field. 

3. Time savings: A recruiter can save you time and effort by matching you with suitable job opportunities, streamlining the application process, and providing valuable insights into the hiring company.

4. Interview preparation: Recruiters can offer guidance on interview preparation, how to present yourself, and what to expect during the process.

5. Negotiation assistance: Recruiters can help with salary negotiations and benefits discussions, ensuring you receive a competitive compensation package.

6. Feedback and coaching: Some recruiters will provide feedback on your resume and interview performance to help you improve your chances of landing a job.

Now for the cons: 

1. Limited control: When you work with a recruiter, you may have less control over the job search process because the recruiter WILL prioritize their clients’ interests.

2. Not all industries use recruiters: In some industries and regions, using a recruiter is less common, such as situations where there are many more candidates than openings or jobs with excessive turnover.

3. Limited company options: Recruiters have relationships with specific companies and may not be able to expose you to a wide range of job opportunities.

4. Quality of service varies: The quality and professionalism of recruiters can vary widely, so it is essential to choose one with a good reputation and track record. I’ve personally heard a lot of horror stories about recruiters ghosting candidates — even when the recruiter reached out to the candidate unsolicited.

5. Employer requirements: Often, recruiters are tasked with bringing forth 2-3 qualified applicants, so you have built-in competition.

If you decide to work with a recruiter, do your research, ask for recommendations, and choose a reputable recruiter who specializes in your industry or job type. Also — don’t rely solely on recruiters for your job search.

DIY vs. DFY

DIY:

The DIY I want to talk about has to do with developing long-term relationships with recruiters. 

Remember, I talked about reaching out to recruiters you already have a relationship with — how do you develop those relationships?

1. Keep the door open. Just because a recruiter reaches out at the wrong time for you or has a position you aren’t interested in doesn’t mean you can’t still cultivate a relationship with them. Whether you should cultivate this relationship should depend on your homework — what is this recruiter’s reputation? What industries/job functions do they specialize in? Are they accessible?

2. Quid pro quo. Think about ways you can offer value to that recruiter — send her qualified candidates, keep her updated on trends or current events in the industry/job function she specializes in, reach out periodically with no agenda in mind.

3. Be willing to have the conversation. Before saying no, at least listen to the recruiter. If you ignore them or refuse to speak with them, they will likely remove you from their list. 

The Noah’s ark analogy is appropriate here — he didn’t wait for it to start raining before he started building. Cultivate relationships with a few key recruiters when the sun is shining.

DFY:

I mentioned earlier the importance of having a top-notch LinkedIn profile that acts as recruiter flypaper. To get there, I highly recommend a professionally written profile from me or another experienced professional.

Writing an effective LI profile isn’t just about the words you use, but where you put what to get the maximum visibility by recruiters. My clients almost always see a significant uptick in both the quantity and quality of recruiter contacts after I write their profile for them.

Also, a little curb appeal never hurts — a customized background really helps here.

If you would like to speak with me about writing your LI profile and possibly some training on how to maximize LinkedIn to achieve your job search or career goals, here’s the link to my calendar: https://calendly.com/lesaedwards/zoom-meetings2