Headhunter Services: Expensive or Cost-Effective?
A Long-Term Perspective
03/10/2025
In Vietnam’s increasingly competitive talent market—especially for mid- to senior-level positions—finding the right candidate has become a major challenge for many companies. Faced with two options: in-house recruitment vs. hiring a headhunter, the question often arises: Are headhunter services really expensive, or are they a worthwhile long-term investment?
1. The Cost of In-House Recruitment – Seemingly Cheap but with Hidden Expenses
Many companies assume that doing recruitment in-house saves money. In reality, the costs are often higher:
- Job ads & promotions: Posting on job portals, running ads on social media.
- Internal HR cost: HR staff spend extensive time screening, interviewing, and contacting candidates.
- Opportunity cost: While a position remains vacant, productivity drops and workflows stall.
- Hiring mistakes: The biggest hidden cost. A wrong hire often leaves within 3–6 months, wasting training resources and disrupting business performance.
Total in-house costs can far exceed initial estimates.
According to Ms. Pham Phuong Thu, Director of HR Services, NIC Global: “Many companies think headhunter fees are high. But when you account for the hidden costs of a bad hire—lost training, reduced productivity, and replacement within 3–6 months—the fee actually becomes much cheaper.”
2. The Cost of Headhunter Services – A Strategic Investment
Headhunter fees typically range from 15%–25% of the candidate’s first-year total compensation. While this may seem high, especially for executive-level roles, companies benefit from:
- Access to high-quality candidates – Headhunters maintain extensive databases, including senior talent rarely active on job boards.
- Professional screening – Saves time by presenting only the most suitable candidates.
- Faster hiring – Cuts time-to-hire by 30–50%.
- Replacement guarantee – Free candidate replacement if the hire leaves during probation.
From a financial perspective, this fee is less of a “cost” and more of an investment in hiring the right person for the right job.
3. Cost-Benefit Comparison: In-House vs. Headhunter
Criteria | In-House Recruitment | Headhunter Services |
Direct Costs | Low (mainly ads) | Medium–High (15–25% annual salary) |
Hidden Costs | High (bad hires, lost time, low productivity) | Low (with replacement guarantee) |
Hiring Time | Long (months) | Shorter (30–50% faster) |
Candidate Quality | Unstable, depends on applicants | High, pre-screened & targeted |
Long-Term Impact | High risk | Stable & sustainable |
Clearly, the long-term costs of in-house hiring are often higher, despite seeming cheaper upfront.
4. Long-Term Effectiveness
The right hire is not just about filling a current vacancy—it creates long-lasting value for the company:
- Organizational stability – Lower turnover rates.
- Improved management capacity – Competent hires strengthen business operations.
- Competitive advantage – High-quality talent becomes a strategic asset.
Ms. Pham Phuong Thu emphasizes: “Headhunter services not only bring the right candidates today but also help businesses build a sustainable HR strategy. A right hiring decision creates long-term value, while a wrong one can cost billions of VND.”
Headhunter Services in Vietnam
So, are headhunter services expensive or cost-effective? The answer depends on perspective:
- In the short term, they may appear costly.
- But from a long-term efficiency standpoint, they are a wise investment—saving time, reducing risks, and maximizing performance.
In today’s talent-driven market, partnering with a trusted headhunter is the key to hiring the right people for the right roles and building a sustainable foundation for growth.
For contact and support:
Facebook: NIC Global – Human Resource Solutions
LinkedIn: NIC Global Sourcing JSC
Website: www.nicvn.com
Email: info@nicvn.com
Hotline: (+84) 981.23.43.76
Address:
- Hanoi Office: No. 3A Thi Sach, Hai Ba Trung Ward, Hanoi, Vietnam
- Ho Chi Minh City Office: Dakao Center Building, 35 Mac Dinh Chi, Sai Gon Ward, Ho Chi Minh City, Vietnam
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