MarketingHow To Successfully Open A Headhunting Agency

How To Successfully Open A Headhunting Agency


A headhunting agency can become big business at a time when there is a huge shortage of workers for companies.

In the midst of a serious problem for companies due to the lack of workers, setting up a headhunting agency can become a more than interesting business. However, entering this sector requires extensive knowledge of the labor market, as well as a network of contacts that is solid enough to be able to add value to clients.

In its purest meaning, a head hunter -or head hunter- is a professional specializing in the search and recruitment of outstanding professionals in different sectors: artists, engineers, and web designers. All market segments can be susceptible to their activity, which makes a headhunting agency a very versatile business.

However, not everyone is capable of going into the headhunting industry successfully. Before entering this business, it is necessary to have some experience in human resources, as well as to have the information and knowledge of the market to successfully identify the most suitable professionals for the client.

Also, unlike traditional HR agencies, headhunters are often specialized in recruiting middle managers and senior executives, making them a more expensive – but often more effective – solution for their clients.

The Keys To Setting Up A Headhunting Agency

Know your customers

Who uses a headhunting agency? This first question is one of the keys to success in this market. Although there is a tendency to think that the clients of headhunters are only companies that seek to recruit qualified personnel, the truth is that this sector also includes other types of profiles that can become quite profitable assets.

For example, there are many professionals who decide to work with a headhunting company in search of new job opportunities that allow them to progress in their careers. Therefore, it is a versatile business, serving both companies and professionals.

How Much Does A Headhunter Get Paid?

The rates of a headhunter vary quite a bit depending on the type of company, the time to find a specific professional profile, the difficulty of the sector… However, there are some conditions that are usually common in the sector.

In most cases, headhunters charge a commission to their client, which usually corresponds to a percentage of the agreed salary. Unlike recruiters, who normally receive between 15 and 20%, a headhunter can earn up to 30% of the candidate’s gross annual salary, explains Luis Truchado, a partner at Eurogalenus/ECI Group, in Expansión.

This condition means that the remuneration of a headhunter does not depend so much on the number of clients in the portfolio. For example, a senior executive can leave several tens of thousands of euros in the company’s accounts in a single operation, while several operations with lower-paid middle managers can add up to less money in total.

The requirements to be a good headhunter

Although headhunting agencies are usually very lucrative and profitable businesses, the truth is that dedicating yourself to this sector requires professional skills that are quite difficult to obtain.

The first one is a good network of contacts. A headhunter lives on his relationships and his ability to find the right candidate for a position, often highly paid and affected by a shortage of talent. Therefore, meeting many people is one of the essential keys to success in this business.

On the other hand, and although headhunters work in all sectors of the market, specializing in one of them is another of the fundamental factors for successfully starting up a business of this type: Keeping up to date with the needs of the sector, the companies that make it up, the average remuneration in each position …

International Headhunter: A Business Opportunity

The shortage of workers in some sectors of activity is fostering the growth of new international talent detection techniques, a task in which headhunters play a key role. In this sense, specializing in several international markets can be a new opportunity to take this business to the next level.

The lack of demand affects six out of ten companies, according to the latest data from Manpower. This is the worst figure in the last 15 years and shows the seriousness of an international crisis that threatens to considerably slow down the economic recovery after the pandemic, something that should mark the world agenda in 2022.

The shortage of workers is not only affecting the most modern and specialized sectors. Spanish companies also have serious difficulties finding health workers, pharmacists, welders, millers, drivers, or forklift operators. In the latter case, the lack of demand in the logistics sector is especially important, due to the boom in e-commerce and last-mile deliveries that has occurred as a result of the pandemic.

Frequently Asked Questions About How To Open A Headhunting Agency

Starting a recruitment agency with no experience?

1. Hire an assistant to help you manage your workload.

2. Know when to hire and when to let go.

3. Prepare to invest tons of time into building your network.

4. Network is a verb.

5. Don’t get discouraged or lose faith if you don’t get any jobs right away.

6. If you want to run a profitable business, you need to know how to find clients.

7. Networking is about establishing trust.

How to process recruitment agency registration?

1. Create a document that will be handed over to a prospective employer as part of a formal application process.

2. Keep it brief.

3. Include information about your professional skills and experience.

4. Mention how you can solve a problem or resolve a conflict.

5. Make sure the job description matches the skills and experience you’re able to offer.

6. Create a unique identifier that makes it easy to identify you.

7. Don’t forget to include any references or letters of recommendation.

8. Write a well-researched letter to the recruiter explaining why you’re interested in the job.

9. Don’t be afraid to ask for advice on how to improve your resume.

10. Always keep in mind that you’ll get multiple offers.

11. Make sure to attach your LinkedIn profile to your email, even if you don’t know anyone there yet.

12. Take care of any outstanding debts before sending out CVs.

Starting a recruitment company from home?

1. Create a dedicated space for interviews.

2. Have a specific process to follow for each candidate.

3. Don’t let candidates dictate the interview process.

4. Always set a time limit for each interview.

5. Create a good work environment.

6. Remember that you’re only as good as your last interview.

7. Have your own office space.

8. Prepare for success.

9. Network, network, network.

10. Have a team of recruiters who can support each other.

Recruitment agency startup checklist?

1. Write down what you’re looking for.

2. Have a good cover letter.

3. Have a compelling profile.

4. Have a video.

5. Have a demo.

6. Have references.

7. Have an objective.

8. Have a strong network.

9. Have a job.

10. Have a good story.

11. List your desired qualities for your candidate.

12. Ask interviewees how they’d describe themselves.

13. Set expectations upfront and ask for references.

14. Always follow up in writing and in person.

15. Do your research before interviewing people.

16. Have your team review job descriptions.

17. Provide a safe environment for job candidates.

18. Ask questions about their career paths and goals.

How to start a recruitment agency with no money?

1. Find a business that fits into your niche.

2. Write up a proposal that explains what you do and why it’s beneficial to the company.

3. Send out emails to recruiters and managers to let them know that you are starting a new company.

4. Ask your network to spread the word about your new business.

5. Talk to people at events you attend to find out if they need any help.

6. Follow up with those who are interested to learn more.

Do I need a license to start a recruitment agency?

1. Don’t call yourself a recruitment agency if you aren’t licensed.

2. Find out what it takes to get the license.

3. Don’t open your own agency without having all the necessary licensing.

4. Hire a lawyer to review your plans before you open.

5. Get a CIMA (Certified In Management Accounting) or CA (Certified Accountant) to help you stay on track with the books.

6. Use a payroll service.

7. Check out some of the services available for free online.

How to open a recruitment agency?

1. Choose a niche.

2. Hire someone who can build your brand.

3. Build your network.

4. Go after opportunities you’re passionate about.

5. Ask for help.

6. Network as much as possible.

7. Take risks and be brave.

8. Find a mentor or coach.

9. Learn how to market yourself.

Is recruitment agency a good business?

1. Recruiters get paid to sell the same people they sold when they were students.

2. Recruiters often have a harder time finding work than job seekers do.

3. The job placement rate of recruiters is low compared to the number of people they recruit.

4. Recruitment agencies are good at getting you into interviews but not so good at helping you get the job.

5. Recruitment agencies typically don’t get the candidates’ pay or benefits negotiated.

How do you set up an agency?

1. Pick your business model wisely.

2. Focus on the right business plan.

3. Pick the right co-founders.

4. Find the right team members.

5. Create a website for your agency that looks amazing.

6. Create a company culture that works for you.

7. Choose your pricing wisely.

8. Give your clients what they want.

How do I start a recruitment agency?

1. Identify your core audience.

2. Find jobs and companies that are missing what you have to offer.

3. Use social media to target niche markets and build a brand.

4. Build your brand by using influencers.

5. Create landing pages and optimize your site.

6. Start a blog and generate more leads.

7. Develop an opt-in form and build your email list.

8. Get creative with your marketing strategy.

9. Hire people who are motivated to learn and want to help.

10. Offer clear, competitive pay and benefits.

11. Provide training and development opportunities.

12. Provide a fun, dynamic environment.

13. Give people room to shine.

14. Build a team of like-minded individuals.

15. Provide feedback on your work.

16. Don’t be afraid to ask for help.

17. Create an effective referral network.

18. Have fun!


For those who want to open a headhunting agency, it requires a lot of hard work and dedication. Even if you have the necessary qualities, it may still take you many years before you can successfully run such a business. Some tips you need to bear in mind include: setting the right standards for your staff; training your staff thoroughly; recruiting the right candidates; and maintaining an organized business environment.


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