How to Evaluate Your Headhunter Relationships - Advice for Candidates: Early Signs that You Might Need to Cut Ties
A new market paradigm means past performance is not indicative of future returns and even headhunters are not off limits!
SETTING THE STAGE
In an era where quantitative easing (QE) is all but a distant memory, quantitative tightening (QT) has become the catchphrase of the day, an era when central banks are locked in fierce battles with rampant inflation and layoffs are no longer taboo but a very likely reality. In this era, your relationship with your headhunter is more critical than ever before. In a market where clients are becoming increasingly selective, patient, and the competition for top-tier talent is at an all-time high, it's time to evaluate the quality of your headhunter relationships seriously.
As CEO of Onyx Alpha Partners, I've spent a decade forming deep connections with quantitative trading talent across the globe. That's why I understand how important a good headhunter relationship can be – but also how detrimental a bad one can be. I'm here to share some insight into the early warning signs that it may be time to cut ties with your headhunter. But don't worry, we'll keep this light-hearted too, because isn't every market correction just an opportunity in disguise?
1. They Don't Understand the New Norms:
If your headhunter still talks about the days of rising asset prices and unencumbered trading performance with a twinkle in their eye, it might be time for you to cut them loose. It's 2H 2023. Making money is harder, the markets have changed, and so have the rules of the game. Your headhunter needs to understand that the easy days of QE have given way to a tougher QT reality. If they are not aware of the impact of rising interest rates and the fight against inflation, you might end up being served opportunities that are no longer relevant and therefore their advice renders obsolete. Move on.
2. A One-Size-Fits-All Approach:
Every quant researcher, quant trader, portfolio manager, and engineer is unique, possessing different skill sets, aspirations, and career paths. A headhunter who doesn’t tailor their approach to your specific needs is like a trader it's like an options trader selling naked calls on every earnings announcement. It's a blow up waiting to happen. The tell tale signs are asking yourself, how much time are they spending getting to know the inner-workings of my individual skill set, what drives my performance and how things I do are valued in the market?
3. Poor and Outdated Market Knowledge:
The dynamics of the financial sector have been further complicated by the recent economic shifts. Landing interviews when the markets are at all time highs contrast to getting meaningful introductions when the market cools: not every interview is a winning trade. A good headhunter must be well-versed in these new realities and must be able to guide you through them. If your headhunter is oblivious to the shifts and cannot foresee the implications of these changes, it might be time to reevaluate your relationship. Do you find yourself unable to hold conversations longer than 5 minutes, often only talking about a vague job brief and generic questions on your CV? If so, pull the plug immediately as this is NOT added value.
4. The Ghosting Game:
Ah, ghosting. It’s not just a dating phenomenon anymore. In a market where layoffs are increasing, a headhunter who keeps disappearing might be more of a liability than an asset. A reliable headhunter should be as constant as a blue-chip stock, always adding value and helping you grow. If they're not consistently available or take days to reply to your messages, it's a sign they're not invested in your success. Remember that as the number of clients hiring dries up, so does their chances of making money so if you have spoken about a number of firms and weeks go by without a message, email or text - chances are that’s the last you will hear from them and in many case they have not adequately represented you.
5. They Don’t Get You:
While a dash of humor can lighten up discussions on Markov Chains or Black-Scholes models, it's the mutual trust that truly solidifies a relationship. Trust, in this context, is not only about confidentiality or honesty, though those are non-negotiable. It’s about the headhunter taking the time to understand you on a deeper level.
If your headhunter seems more interested in placing you quickly to earn their commission than in understanding your career objectives, skills, and the kind of work environment in which you'd thrive, then you have a problem. A headhunter who places you in an ill-fitting role harms your career more than it helps. They should understand that your career path isn't just a simple geometric Brownian motion, predictable and easily modeled. It's complex, multifaceted, and unique to you.
If you find your headhunter is more akin to an erratic day trader, jumping at every job that comes their way without considering if it's the right fit for you, it might be time to "close your position" and move on.
BONUS TIPS
3 Key Questions to Ask a Headhunter?
Having read the above, you should now be well-equipped to assess the quality of your headhunter relationships. But we're not done yet! Let's look at three key questions you should ask your recruiter to gauge how valuable they really are. These aren't gotcha questions, they're "due diligence". After all, you wouldn't buy a stock without checking the fundamentals, right?
What is your understanding of the current financial market and its implications on my career path?
Can you provide me with examples of how you've navigated a challenging market shift in the past?
What will be our strategy if I'm not getting the opportunities I want or if a placement doesn't work out?
Armed with these questions, you will be in a better position to assess the value your recruiter brings to the table. Remember, in this market, it's all about ensuring your recruiters have skin in the game and are as committed to your career success as you are.
CONCLUSION
Take the opportunity to find a partner who understands the market, is poised to help you navigate the shifts, and above all, understands you. And, as the saying goes, “In the midst of chaos, there is also opportunity.” There's no better time to reassess, recalibrate, and reinvent your career strategies.
One final thought, remember that you're not just a quant researcher, trader, portfolio manager, or engineer - you're a pioneer in a rapidly evolving field. It’s your headhunter’s job to ensure that potential employers see you as such. So, don’t settle for less. If your current headhunter isn’t making the cut, it's high time to let them go and find a partner who will help you thrive amidst the new era we find ourselves in.
Today, exceptional talent is in high demand with companies vying to secure future leaders and innovators. At Onyx Alpha Partners, we believe in investing in trust, understanding your unique ambitions, and aligning them with your career trajectory. We emphasize the importance of personality fit and cultural assessments, recognizing that the best candidate on paper may not always be the best fit for a particular team or company culture.
As you brace for the disruption of the coming business cycle, remember - your career planning will define your success. Connect with us and discover how our approach to headhunting can equip you for a successful journey through the ever-changing financial landscape.