Connecting Employers and Employees
Headhunters play a crucial role in pairing employees and employers. Every employer is looking for qualified employees to fill their open positions. Additionally, potential employees are looking for job opportunities. The network can be broken down into a Network exchange where an employee and employer negotiate whether to make a deal on a job. The Headhunter plays the crucial role of bringing the two parties together and matching them up so they are likely to make a deal. The Headhunter only makes money if the two parties agree, so, they must find compatible parties that are willing to make a deal.
The two parties are more likely to make a deal if the deal suits both of their interests. An employer is looking for an employee who will be qualified at a manageable cost. The employee is looking for a job where they are qualified for and they make a desired amount of money. The headhunter must balance these demands when setting up the pairing. If the employer has a lot of potential employees trying to get the job, it is unlikely for the suggested employee to get the job since the employer has so many outside options. Additionally, if the potential employee has multiple companies offering them jobs, it is unlikely they would accept the job offer at the offered salary since they could leverage all their opportunities into a better offer. The headhunter must carefully consider all these possibilities when setting up the match or the deal won’t get completed and they won’t make any money.
Source: https://www.bls.gov/careeroutlook/2007/winter/art03.pdf