Headhunting

What it means

Headhunting is the targeted search for and approach of candidates for key or hard-to-fill roles, often people who are not actively looking for a job. They are typically managers, specialists or experts with rare skills whom an ordinary job advert would not attract.

It is done by specialist agencies for a fee usually calculated as a percentage of the annual salary of the role filled. For senior roles, part of the fee is often payable when the search starts and the rest once the candidate joins.

Unlike ordinary recruitment through adverts, a headhunter actively maps the market, approaches people working for competitors and persuades them to move. Strong employer branding helps, because a successful professional is only interested in a company that has something to offer.

How it works in practice

Before engaging an agency, define the role, required experience, salary range and reasons why a candidate should join. The contract should set the fee, when it is due, a guarantee to replace a candidate who leaves during the probation period and a non-solicitation clause.

Candidates often compare the whole offer, including benefits, flexibility and development, not just pay. For hard-to-fill roles a signing bonus is sometimes offered, and selection may include an assessment centre or reference checks.

The agency fee is a deductible recruitment expense for the company. An agency providing paid employment placement needs a permit in Slovakia, and the company should check this so as not to pay for a service provided unlawfully.

What to watch out for

Headhunters process personal data of candidates they often approach through professional networks without prior contact. They must inform them about the processing and keep data only for a reasonable time, and the client company should agree clear data protection terms with the agency.

Approaching competitors' employees is legal but must not breach their confidentiality or non-compete obligations. If a candidate brings a former employer's trade secrets, it can lead to a dispute involving the new company too.