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TRANCHED: Life after CDOs, Week 10


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own experience of HH's is mixed; some (or shall I say a very few) are very polite, straight-forward and honest. Others are simply vultures.  Read all comments »

Just when I thought I had seen every dirty trick in the murky world of recruitment, it seems we have now begun to plunge to new depths. A lot of this is supposition and I can’t verify a word of it, but if my suspicions are correct then we have entered a very dark period indeed.

If you are sitting comfortably, then I will begin. Our story revolves around one of the headhunting firms that has displayed a number of high-profile roles through their own website and elsewhere. My involvement with the firm came through an ex-colleague, who gave me the name of a headhunter she recommended at this firm. I made the call, sent over my CV and gave a brief introduction to the consultant who had been recommended.

Over a period of a number of weeks I chased the consultant I’d sent my details to and heard nothing. Given how busy headhunters are, this has become a common occurrence, part of the new reality that I have come to accept and deal with. This week, out of the blue, two consultants from the firm, who I hadn’t spoken to before, called and left urgent messages for me to contact them.

I made the call and expected the usual polite invitation to come into their offices, walk through my CV and discuss roles they have on at the moment – putting a name to the face. Instead, I got a barrage of questions as to where I’d been interviewing and the names of the hiring managers I’d spoken to at these firms.

Their excuse was that they needed to ensure that I don’t get my CV sent through to the same people from multiple headhunters. This is normally a sound policy and one that protects against embarrassing overlap.

I may be being intensely paranoid (redundancy can have strange effects on one’s psyche), but I am almost convinced that this group of crooks are using potential candidates to scope out potential recruiters. The heavy insistence on knowing the names of the people who are recruiting, combined with an apparent lack of desire to get me into their own offices to outline my position, are very suspicious.

Unless I am much mistaken, the recruitment model works as follows: headhunter retained by employer to find suitable candidates, suitable candidates approach headhunter and ultimately headhunter matches candidate with employer to earn a fee. The idea that headhunters are now using candidates to find recruiters breaks this simple paradigm.

I appreciate that for many of you hardened bankers this will come as no surprise and may even prompt a smirk as just another demonstration of the dog eat dog nature of the financial sector. However, even as someone who until recently sold CDOs for a living, I think this behaviour shows a level of morality on a parallel with that of stealing gold teeth from corpses.

Driven by my long-held natural cynicism about the headhunting profession, I made up a few names and sent them through, and if my suspicions are correct these consultants will waste a few precious hours trying to track down non-existent hedge funds and people at bulge-bracket banks with mildly comic names.

What if I am wrong about this? I have been wrong before, and after this extended rant (even by my own standards) a large amount of hat eating would be required. On balance, though, my instinct tells me that shady practices are afoot and that the motto of the City, caveat emptor, now applies in spades to the field of recruitment.

On a slightly more positive note, friends and contacts have been brilliant this week – nuggets of hope are beginning to appear amongst the sediment left by the credit crunch. More about these next week. Until then, I urge vigilance.

COMMENTS

Anon, Capital Markets,  Tue 15 Jul 08

Interesting article - thanks for sharing.  My own experience of HH's is mixed; some (or shall I say a very few) are very polite, straight-forward and honest.  Others are simply vultures who are imho, akin to the much loathed estate agents who were much villiansed not too long ago.  I have now come to expect certain HH's not to return calls and emails and on the very rare occasion that they phone or email, I have to, through gritted teeth, be polite to them in the vain hope that they will present an opportunity.

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A Reputable Headhunter, HR & Recruitment,  Tue 15 Jul 08

Sadly this practice does exist in some cases but what needs to be appreciated is that different tiers exist in the headhunting and recruitment industry. The best, most professional firms are retained by their small group of clients to identify and attract the best candidates for any specific position. So called 'ambulance chasing' is a practice sometimes adopted by recruiters lower down the food chain who are more candidate driven and so will get hold of a good person and then use them to open as many doors as possible.

Headhunter is a term often used as a catch all for the recruitment industry and this is not the case. Any candidate should take the time to identify the best headhunting firms in any sector and be very selective about who they speak to. You many then find that we are not all as bad as people seem to want to report. The best firms face a constant challenge to cement their reputation as being honest and professional and a world away from some of the shadier operators in the industry. It would be nice to see this recognised in print once in a while.

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giles.percy,  Tue 15 Jul 08

This is not news. Even when a HH has a genuine opportunity, they will often pump for names of old employers in order to increase their leads. Most headhunters are salesmen who sell people, and will do whatever it takes to "always be closing".

Recruitment is a numbers game for most agencies, because it is a pretty effective strategy. You trawl for CVs, get leads, arrange interviews, and then make a sale on a proportion of those meetings. Your preferences as a candidate are irrelevent when the supply of candidates is large, and the number of jobs is small.

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Anon, Equities,  Tue 15 Jul 08

I had the exact same experience with what I am pretty sure is the same HH....Got the call at some very odd hour asking for who I have interviewed with and all...also had my CV with them for weeks but never received a phone call for specific roles...yet they advertise the most front office jobs amongst all HHs I have come across....this HH needs to know that people are clocking on to their devious ways. If there was any ounce of regulation in place, these guys will out of business no time...they are that bad

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anon, Credit,  Tue 15 Jul 08

I get the call every few weeks, definite one way street on the information flow......funny enough, I spoke with one of  "the team" his morning, once again a waste of my time.

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In-house recruiter, Hedge Funds,  Tue 15 Jul 08

Here's how the model works at this grubby, non-retained end of the recruitment market.  So-called headhunter taps you up on your other interviews, then sends in his own candidates in the hope they'll edge you out of the interview process.  So-called headhunter gains names of your interviewers who he earmarks as potential clients OR candidates.  So-called headhunter also garners enough info from you to be able to advertise the vacancy himself.  So-called headhunter watches as the new CVs roll in, in response to his (semi) made-up advert, for a firm he's not mandated by, and probably has never met.  And then he calls up all those new advert respondees, and taps them up too...

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Anon II, Capital Markets,  Tue 15 Jul 08

Even if people clock in on their evil ways, if they are presented with the right opportunity, I don't think a candidate would turn it down due to the reputation of the HH.

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Anon, Investment Banking / M & A,  Tue 15 Jul 08

I know who you are talking about. They are so unprofessional and absolutely USELESS!!!!!!!!!!!!!!!

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ANON, HR & Recruitment,  Tue 15 Jul 08

It is very interesting - but very old news.

This is a typical case of a bad experience ruining the industry. Unfortunately though, no matter what happens recruiters are needed in a very big way.

All I would say is......would you buy a car from Asda? If the answer is yes, you get what you pay for.......

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ChasDarwin,  Tue 15 Jul 08

100% right. I'm looking for work at the moment. At least twice had recruitment conultants ring up and pump me for names at past employers and what other jobs I've been put up for. With the excise that "they build a negtwork of contacts and the more names they have the better it is for everyone and where all scrathing each others backs" and so on." One said he was going to send me a Job spec never got it. You can tell the difference  between recruitment firms, the crap ones sound way desperate.

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