how headhunters are paid
headhunters typically only make money when they are successful in placing a candidate in a job independent third party recruiters are often paid on contingency meaning they do not get paid unless their candidate is hired the typical fee is 20 to 30 of a new hire s total first year salary as headhunters work for the employer they have the incentive to please them rather than the candidate some headhunter firms may also charge an upfront retainer to defray the costs of the search this can reduce the risk for the headhunter especially if the role is difficult to fill a retainer arrangement ensures that the headhunter receives some pay for their work even if the search is unsuccessful a container arrangement is a hybrid of a commission and retainer 1there is no licensing necessary to become a headhunter or recruiter so anyone can become one less established recruiters often compete with professional ones that possess large networks of clients and candidates they may operate in a similar way such as an unsolicited email call or linkedin request headhunters typically charge a commission for recruiting candidates ranging from 20 to 30 of the new hire s first year of salary this is only paid out if the new hire is a successful fit for the job 