Most companies start by advertising. It seems logical: write a job ad, post it on LinkedIn, and wait for applications. And for many roles, that is exactly the right approach.
But for other roles, advertising is not just ineffective – it is actively counterproductive. The problem is not that the ad does not work. The problem is that the person you are looking for never sees it. Because they are not looking for a job.
According to LinkedIn data, only 30% of the workforce is actively job-seeking at any given time. The remaining 70% are what is known as passive candidates – satisfied in their current role, but open to the right opportunity if it comes to them. And it will never come through your job ad.
That is where headhunting starts to make sense.
What is the difference, exactly?
Advertising and headhunting solve fundamentally different problems:
Advertising opens a door and waits for the right candidates to walk through it. It is a passive method that works best when there is a broad pool of qualified candidates on the market, and when the role does not require a very specific set of competencies.
Headhunting – or executive search, as it is called for senior positions – is an active method. It involves systematically mapping the market, identifying the strongest profiles regardless of whether they are looking for a job, and making proactive contact. You do not wait for candidates. You find them.
When should you choose headhunting?
There is no single right answer, but there are clear situations where headhunting consistently delivers better results than advertising.
1. The role is critical to the direction of the business
A new CEO, CFO, or VP of Sales is not just an employee. It is a decision that shapes the company for the next 3–5 years. The risk of a bad hire – in terms of lost time, missed business opportunities, and the direct cost of running a new recruitment process – far exceeds the price of a thorough headhunting process.
The more important the seat, the more important it is to see the entire market – not just the 10–15% who happen to be job-seeking the week your ad runs.
2. The pool of relevant candidates is small
Are you looking for a Supply Chain Director with specific experience from the medtech industry and knowledge of Nordic markets? Then you may be looking at 40–60 profiles across all of Scandinavia. Advertising hopes that the 5–10% actively job-seeking within that group happen to see your ad. Headhunting maps all 60 and contacts the 15–20 who are the strongest match.
3. Discretion is required
Are you replacing a sitting leader? Is the person being replaced still in the role? Or do you want to avoid competitors and clients knowing you are in transition? Headhunting operates without public job postings and with full confidentiality. That is not possible with advertising.
4. Previous advertising has not delivered
Have you run an advertising campaign without finding the right person? That is a strong signal that the candidate does not sit in the active job-seeking pool – and that headhunting is the next step.
5. You are looking for a profile that is difficult to define precisely
Sometimes you do not know exactly what you are looking for – you just know that what you have is not working, and that the business needs a fresh perspective in the leadership team. An experienced headhunter can help define the profile and identify candidates you would not have thought of yourself.
When is advertising the right choice?
It is important to be clear: advertising is not an inferior method. It is simply a different method – and the right one in many situations.
Advertising works best when:
- The role does not require a highly specific niche profile
- There is a broad market of relevant candidates
- The level of the role means many people are actively looking
- The timeline is tight and cost is a primary consideration
- You want maximum visibility and a large pool of applicants to choose from
An internal HR coordinator, a finance officer, or a project manager in a well-established industry – here, advertising is typically the efficient and cost-effective route.
Can you combine the two?
Yes – and in fact this is the approach many experienced recruitment partners recommend for roles in the grey zone.
A combined process starts with an active search (headhunting) that maps the passive market, supplemented by a targeted advertisement that captures active job-seekers. This gives you the broadest possible candidate field and increases the likelihood of finding the best possible person – rather than just the best available one.
At Compass HRG, we always work with a structured recruitment process that combines market mapping and direct contact with both active and passive candidates. You can read more about our approach here.
The practical question: What does it cost?
Headhunting typically costs more than advertising – that is a fact worth being honest about.
But the price needs to be seen in relation to the value of the role. According to analysis from the Chartered Institute of Personnel and Development (CIPD), a bad hire at C-level costs on average 2.5 times the annual salary in direct and indirect costs. For a director-level position at £120,000 per year, that is a potential loss of up to £300,000.
Seen in that light, headhunting is not a cost. It is an investment in getting it right the first time.
Three questions to help you decide
Before you make a decision, it is worth asking yourself three questions:
1. Is the candidate likely to be actively job-seeking?
If yes → advertising may work.
If no, or you are unsure → headhunting.
2. What is the consequence of a bad hire?
Low consequence → advertising is sufficient.
High consequence → headhunting significantly reduces the risk.
3. Have you tried advertising without success?
Then the answer is almost always headhunting.
Conclusion
Advertising and headhunting are not competitors – they are tools that solve different problems. The question is not which is better in general, but which is the right fit for the specific role and situation.
As a rule of thumb: the more important the seat, the narrower the candidate market, and the greater the need for discretion – the stronger the case for headhunting.
At Compass HRG, we have completed over 800 recruitments across the Nordics in the past year, across six industries. We are happy to help assess which approach makes the most sense for your specific situation.
