The short answer is – it depends.  Below is the long answer.

Even if you like your job, it’s a good idea to keep your career options open and be receptive to opportunities that recruiters present.

According to one survey, average annual salary merit increases were roughly +3%. But for those who change companies and get a higher salary, that average salary increase is about 5x larger:  +14.8%. Strictly in terms of salary, it can definitely pay to leave – especially if you do this every 2-3 years.

Let’s first distinguish between two different types of recruiters:
Type #1: The Recruiter
Type #2: The Headhunter

The Recruiter

For this post, imagine Lucy is a recruiter at Ladybug LLC.  Ladybug LLC is a large company that has many departments, including sales, supply chain, and accounting.  Lucy’s full-time focus is filling empty roles across these departments at her company, Ladybug LLC.  When she contacts potential candidates, she says something like, “My company is looking for a sales rep.  Would you be interested in learning more about joining our team?”  Lucy has a specific set of minimum qualifications needed for the roles she’s looking to fill.  She will also oftentimes have a pre-determined salary range for each role. 

The Headhunter

Now, let’s consider Heidi.  Heidi is a headhunter at Head Honchos LLC.  Heidi’s company’s sole purpose is to fill open roles at other companies.  She could even work with Lucy to help Lucy find candidates for openings at Ladybug LLC.  When Heidi contacts potential candidates, she says something like, “A company I’m working with is searching for a sales rep.  Would you be interested in learning more about joining their team?” One advantage of headhunters like Heidi is that they often know exactly what the company’s salary range is and can share that with candidates early in the process.

If Heidi finds and sends a great candidate to Lucy, and Lucy hires that candidate to work for Ladybug LLC, Heidi will get a commission from Ladybug LLC. 

Headhunter Benefits

There are some sketchy headhunters out there who primarily care about placing candidates so they can collect a commission. Aside from these folks, there’s tremendous value in a good headhunter:

1. They’re looking for a good fit for you. Both recruiters and headhunters alike want a good fit. As Geoff Smart & Randy Street discuss in their New York Times Bestseller: “Who”, one wrong hire can easily cost a company hundreds of thousands of dollars or more in wasted hours and turnover costs. If a headhunter finds a candidate that eventually gets hired, both the company and candidate are happy. As a result, the candidate is more-likely to refer business to the headhunter and the company is more-likely to request the headhunter’s service in the future.
2. Résumé improvement & interview preparation. Since your interests are aligned, they want you to shine both on paper and in person.
3. They are well-connected. Many headhunters specialize in specific industries and can suggest relevant opportunities in the future.
4. They can tell you if you’re underpaid. Assuming they’re familiar with your industry and know the salary range of the role they’re headhunting for, they can help you make more-informed decisions when it comes to compensation expectations. You may currently make $50,000, but they disclose that your skills and background make you a great candidate for a position they’re looking to fill that pays $80,000 (a +46% increase). Knowing this in advance is valuable info so you can maintain your composure and ensure your jaw doesn’t hit the floor when the company tells you the salary.
5. They’ll work to get you the highest offer. Since they oftentimes get a percentage whatever your pay is, the more you make, the more they make!
6. They only share info you disclose to them with your explicit permission. You can share info with your headhunter so they can help you strategize your next move, but it’s prudent to request they keep your info confidential unless you give consent on a case-by-case basis.

Recruiter Pitfalls

Be cautious of recruiters like Lucy at Ladybug LLC when it comes to navigating how to discuss salary. In many states, it’s illegal for companies to ask candidates how much they currently make. Instead, companies often ask, “What are your salary expectations?”

NEVER answer this question from a recruiter like Lucy at Ladybug LLC. Instead, deflect and respond with, “I’m sure if I’m fortunate to be offered this role, I’ll be offered a competitive salary commensurate with my background and the value I bring to the table.” If you’re working with a good headhunter, they should be able to give you a good ballpark estimate. You should also do your research and see what similar roles pay.

If you respond to a recruiter like Lucy at Ladybug LLC with a number, you run the risk of low-balling or “anchoring” yourself to that number. Wait for them to make the first move.

Key Takeaway

So, should you disclose your salary? If it’s to a recruiter like Lucy from Ladybug LLC, the answer is NO. If it’s to a headhunter like Heidi from Head Honchos, the answer is YES. A great headhunter can be a tremendous asset.

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