What is a Recruiter in the Finance Industry and How Can They Help in Your Job Search?
There doesn’t seem to be any middle ground when it comes to recruiters – you either hate them or love them (or at least tolerate them enough to work with them). There are a lot of myths and misconceptions about recruiters and what they actually do. What is a recruiter in the finance industry? Who do they really work for and how do they get compensated for their work?
Recruiters or headhunters are hired by financial firms such as private equity firms and investment banks to screen and hire potential candidates for employment. Recruiters work for the firm that is hiring people, and are paid directly by the hiring firm, never the candidate. The recruiter is highly motivated to find viable candidates that are likely to fulfill the requirements of the hiring firm, and get paid for placing the candidate with the firm.
The recruiter starts the recruiting process by contacting potential candidates directly and pre-screens the person to see if they are a good match for the position they have available. Recruiters are looking to find the candidate whose skills and qualification match the job exactly.
Recruiters are more prevalent in the financial services field for several reasons:
- Like other industries such as technology firms that have tens of thousand of employees, the finance industry is a large employer, especially in New York City. According to an article by Edward L Glaesar in City Journal, “In 2008, 44 percent of Manhattan wages were earned by workers in finance and insurance; the following year, even after the financial crisis and economic downturn had battered the industry, that share stood at a still-enormous 37 percent.”
- One of the highest salaries of any industry- even junior-level finance employees can make over $100,000 from salary + bonuses.
- High turnover in the finance industry and switching firms multiple times over the course of a career results in recruiters being an ongoing part of the hiring process.
Whether an employee is just starting out or is switching firms and seeking out new opportunities, they will probably work with recruiters in some capacity. The job seeker should do their own research on the company they want to work for, but a recruiter can be an important piece of the job search puzzle. They have a lot of valuable connections in the finance industry services world, and can help a job seeker and firm find the perfect job match.
By Wall Street Services Staff