In some ways, headhunting is a very simple business. A law firm tells a search firm about its hiring needs and the recruiter tries to identify prospective candidates who are interested. But a good recruiter does much more.

A good recruiter will conduct an in-depth interview to determine the candidate's interests and strengths; help the candidate to articulate what he or she wants; help the candidate draft a compelling resume and deal sheet (or litigation summary); prepare a strong cover letter introducing the candidate and highlighting the candidate's strengths and motivations; anticipate questions an employer might have; educate the candidate and the client about the market; and help with the process.

Although the candidate and the law firm both benefit from these services, in legal recruiting the fees are paid by the law firm.

While law firms occasionally conduct retained searches (paying a predetermined amount that is not contingent on making a hire), for the most part, law firm recruiting is a contingent-fee business. As such, the search firm is compensated only if three conditions are met: (1) the search firm has introduced a candidate that the employer would like to hire; (2) it has made this introduction before the candidate has been introduced through other means; and (3) the candidate accepts the offer and remains on the job.

In order to earn a commission, a search firm must be the "procuring cause" of the candidate's employment. Without getting into a lengthy legal discussion, suffice it to say that law firms do not automatically owe a fee simply because a recruiter has presented a resume.

Consider the following:

1. A candidate asks a recruiter to forward his resume to Smith & Jones. Unbeknownst to the recruiter, the candidate has already shown her resume to a friend at the firm, but she still wants the recruiter to make the introduction. What the candidate does not know is that the friend has already forwarded the resume to the law firm's recruiting coordinator. The recruiter is not credited with making the introduction.

2. Recruiter A calls a candidate about Smith & Jones. The candidate meets with Recruiter A and does not mention that she has also sent her resume to Recruiter B (before meeting with Recruiter A, she gave permission to Recruiter B to make an introduction to Johnson & Davis but they did not discuss Smith & Jones). As it turns out, Recruiter B presumed that the candidate wanted to be marketed more widely and submitted the resume to Smith & Jones. In this case, Recruiter A will not be entitled to a fee if Smith & Jones hires the candidate.

Although recruiting fees are due soon after a candidate starts (usually within 30 days), a portion of the fee is generally at risk for a guarantee period (frequently six months). If the candidate leaves before the end of this period, the recruiter will need to refund at least a portion of the fee to the client. This can happen if the candidate is fired. But it can also happen if the candidate is dissatisfied with the new firm and decides to return to his old firm or make another job change.

Search firms are only compensated if an introduction results in a hire. While top law firms are selective and reject a considerable number of candidates, sometimes candidates will drop out of the process (e.g., if a family member gets sick or a spouse gets a great job overseas). Sometimes, the problems at an existing firm are fixed and a candidate stays put.

Even when a recruiter is successful in helping a candidate to get a coveted job offer, there are many reasons why the placement fee may not come to fruition. Sometimes a candidate accepts a counter offer from his existing employer. Perhaps the candidate accepts a job where another recruiter made the introduction.

Recruiters are compensated for the results they achieve. Unlike most lawyers, recruiters do not bill for their time. While this means that a recruiter can make a significant investment in a candidate or law firm without receiving compensation, in the long run the total fees that a search firm collects are a reflection of the overall effort that a recruiter puts into trying to match talent with hiring needs. At the same time, contingent fees create a strong incentive for search firms to do what law firms want: identify and introduce the best talent.

Stephen E. Seckler is managing director of the Boston office of BCG Attorney Search, a national recruiting firm. He counsels associates and partners on lateral moves and maintains a blog at www.counseltocounsel.com. He can be reached at seckler@bcgsearch.com.

More Career Consult Articles by Stephen E. Seckler:

Frequently Asked Questions About 'Going In-House'

Broken Promises in Lateral Hiring

What to do when the offer comes too soon

E-mail: Career Opportunities And Pitfalls

A Career Audit For Associates

What I Did On My Summer Vacation

Learning NOT To Communicate Like A Lawyer

Inexpensive Ways To Build Business Relationships

Finding The Right Way To Explain A Negative

Is Anyone Out There Happy?

Overcoming Resistance To Change

Learning How To Close 'The Deal'

Lateral Hiring: Making The Most Of Your Investment

10 Ways To Reciprocate In Networking

Meditation, Mediation, Marketing And Medication

Survival Tips For Your Next Lateral Move

Finding A New Home For Your Practice

Ways To Leverage Your Network

Striving For 'Professional Mediocrity'

Teaching 'Soft Skills' Can Be Hard, Worthwhile Work

Some Tips For Job Hunting In A Recession

Responding To Criticism: Survival Strategies

Questions To Ask When It's Time To Listen

Dating — And Networking — Etiquette

Managing Your Career in a Declining Market

Lawyers See Benefit in Professional Coaching

Have You Gone For Your Annual Career Checkup?

In-House Salaries Are Not Always Evenhanded

Bush v. Gore: Career Lessons From Campaign 2000

In-House Salaries: Getting a Fair Deal

Marketing As A Career Development Strategy

Unplanned Problems When Changing Jobs

Help in Finding an Entry Level Job

In Search of Work/Life Balance

On Salary Inflation: Funds vs. Fulfillment

Evaluating A Job Offer--Non-Financial Issues

Offering Some Belated New Year's Resolutions

The Delicate Matter of Reducing Your Hours

Making a Practice-Area Switch