The term headhunter mostly refers to recruiters or HR consultants, who recruit professional staff and managers for companies – either as permanent employees or as freelancers. Placement through a headhunter is free of charge for the applicant. In the event of a successful placement, the headhunter receives a significant commission from the employing company. This is typically equivalent to a third of the annual net salary that the new hire is due to receive. The use of headhunters is becoming increasingly important where there are shortages of skilled staff and in the "fight" for top talent. Headhunters are used particularly for leadership positions that are not to be advertised publicly, as well as in the search for unusual profiles.
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