Are you looking to fill a key leadership role in your organisation? Do you need to find a high-caliber candidate with the skills and experience to take your business to the next level? If so, you may want to consider reading our guide to executive search.
But what exactly is executive search, and how can you find the right executive search firm to partner with? In this ultimate guide to executive search, we’ll take a deep dive into the world of senior-level recruitment and explore the secrets of finding top talent for your business. From understanding the executive search process to choosing the right firm and evaluating candidates, we’ll cover everything you need to know to make the most of this powerful recruitment tool. So let’s get started and discover the secrets of recruiting top talent through executive search.
When it comes to filling senior leadership positions, many companies turn to executive search firms for assistance. But with so many options to choose from, how do you know which search firm is right for you? Here are some questions to consider when selecting an executive search firm:
Executive search is a specialised recruitment process that is used to identify and attract highly qualified and experienced professionals for senior-level or executive positions within an organisation. This process is typically carried out by a third-party search firm, also known as an executive search firm or headhunting firm, which is hired by the organisation to find suitable candidates for the position.
What is executive search?
Executive search firms use a variety of methods to identify potential candidates, including networking, database searches, and direct outreach to individuals who may not be actively looking for a new job. They often have extensive industry knowledge and expertise, and are able to evaluate candidates based on a range of criteria, such as their skills, experience, leadership abilities, and cultural fit with the organisation.
The goal of executive search is to identify and attract the most qualified candidates for a senior-level or executive position, and to provide the organisation with a shortlist of candidates who are a good fit for the role. This can be a complex and time-consuming process, but it is essential for organisations that want to find the best possible candidates for their leadership positions.
In our guide to executive search we explore all the questions you should ask to get this right!
What is an executive search firm?
An executive search firm, also known as a headhunting firm, is a specialised recruitment company that helps organisations to identify and attract highly qualified and experienced professionals for senior-level or executive positions.
Executive search firms are typically hired by organisations to conduct an executive search on their behalf. They have a team of experienced recruiters who use a variety of methods to identify potential candidates, including networking, database searches, and direct outreach to individuals who may not be actively looking for a new job.
These firms often have extensive industry knowledge and expertise, and are able to evaluate candidates based on a range of criteria, such as their skills, experience, leadership abilities, and cultural fit with the organisation. They may also use psychometric assessments and other tools to help evaluate candidates.
The goal of an executive search firm is to provide the organisation with a shortlist of highly qualified candidates who are a good fit for the role. This can be a complex and time-consuming process, but it is essential for organisations that want to find the best possible candidates for their senior-level or executive positions.
How to choose between executive search businesses?
When looking for an executive search firm, you want to find one that has experience in your specific industry and understands the unique challenges and nuances of your business. It’s also important to find a firm that has experience filling the type of role you’re looking to fill, whether it’s a CEO, CFO, or other senior leadership position where you might need a specific industry focus.
When choosing an executive search firm, there are several factors to consider. Here are some tips to help you make the right decision:
- Industry expertise: Look for an executive search firm that has experience and expertise in your industry. This will help them to understand your specific needs and requirements, and to identify candidates who have the relevant skills and experience.
- Track record: Check the firm’s track record and success rate in filling similar roles. Look for testimonials, case studies, and references from previous clients to get an idea of their success rate and the quality of their work.
- Search methodology: Ask the firm about their search methodology and process. Look for a firm that uses a comprehensive and thorough search process, including a detailed brief, a targeted search strategy, and a rigorous screening and evaluation process.
- Cultural fit: Consider the firm’s cultural fit with your organisation. Look for a firm that understands your values, culture, and vision, and that can help you to find candidates who will fit well with your organisation.
- Communication: Look for a firm that communicates clearly and regularly throughout the search process. You should feel comfortable asking questions and providing feedback, and the firm should be responsive and transparent in their communication.
- Fees: Consider the fees charged by the firm. Look for a firm that is transparent about their fees and that offers a fair and competitive pricing structure.
By considering these factors, you can choose an executive search firm that has the expertise, experience, and methodology to help you find the best possible candidates for your senior-level or executive positions.
What is retained executive search?
When an organisation hires a search firm on a retainer basis for a senior-level or executive position, they pay an upfront fee to the search firm for their services, regardless of the outcome.
Retained executive search is typically used for high-level and complex executive searches, where the organisation needs to find the best possible candidate for the position. This type of search requires a significant investment of time and resources, and the search firm needs to have a thorough understanding of the organisation’s needs and requirements.
During a retained executive search, the search firm will work closely with the organisation to define the role and create a detailed job specification. They will then use their network and expertise to identify potential candidates, and will conduct a rigorous screening and evaluation process to assess the candidates’ skills, experience, and fit with the organisation.
The search firm will provide the organisation with a shortlist of highly qualified candidates, and will typically assist with the interview process and negotiations with the chosen candidate.
Retained executive search can be an effective way for organisations to find the best possible candidate for a senior-level or executive position. It provides a high level of expertise and support throughout the search process, and ensures that the organisation has access to the best possible candidates for the role.
What is a typical executive search process?
The executive search process can vary depending on the needs and requirements of the organisation and the complexity of the search. However, here is a general overview of the typical executive search process:
- Defining the role: The first step in the executive search process is to define the role and create a detailed job specification. This involves working closely with the organisation to understand the key responsibilities, required skills and experience, and cultural fit.
- Identifying potential candidates: The search firm will use a variety of methods to identify potential candidates, including database searches, networking, and direct outreach to individuals who may not be actively looking for a new job.
- Screening and evaluation: The search firm will conduct a rigorous screening and evaluation process to assess the candidates’ skills, experience, leadership abilities, and cultural fit with the organisation. This may include psychometric assessments, background checks, and interviews.
- Shortlisting candidates: The search firm will provide the organisation with a shortlist of highly qualified candidates who are a good fit for the role. The shortlisted candidates will be presented with a detailed brief about the role and the organisation.
- Interviewing candidates: The organisation will conduct interviews with the shortlisted candidates to further assess their suitability for the role. The search firm may assist with the interview process and provide feedback and guidance to the organisation.
- Selecting a candidate: Once the interviews are complete, the organisation will select a candidate for the role. The search firm may assist with negotiations and the final offer.
- Onboarding: Once the organisation selects a candidate, they will collaborate with the search firm and the new hire to ensure a smooth onboarding process and a successful transition into the role.
Overall, the executive search process is designed to help organisations find the best possible candidates for senior-level or executive positions, and to provide support and expertise throughout the search process. Hopefully our guide to executive search can give you all the insights you need to ensure you get this process right.
Why do companies use executive search firms?
Finding the best candidates for a senior leadership position can be a challenge. You want to work with a search firm that has a strong network and understands how to identify and attract top talent. Look for a firm that can demonstrate a successful track record of identifying and placing top candidates.
Companies use executive search firms for several reasons, including:
- Access to a broader pool of candidates: Executive search firms have extensive networks and expertise in identifying and attracting top talent, including candidates who may not be actively looking for a new job. This allows companies to access a broader pool of candidates and find the best possible fit for their executive or senior-level roles.
- Expertise and support: Executive search firms have a deep understanding of the talent market and the skills and experience required for senior-level and executive positions. They can provide expertise and support throughout the search process, including defining the role, creating a job specification, screening and evaluating candidates, and negotiating the final offer.
- Time and resource efficiency: Executive search firms can save companies time and resources by handling the entire search process, from defining the role to onboarding the new hire. While ensuring an efficient and effective executive search process, this allows the company to focus on other important business priorities.
- Confidentiality: Executive search firms can provide a high level of confidentiality during the search process, which can be important for senior-level and executive searches. They can also help companies to navigate any potential conflicts of interest or sensitive issues during the search process.
Overall, companies use executive search firms to find the best possible candidates for their senior-level and executive positions, and to provide expertise, support, and efficiency throughout the search process.
What is changing in executive search?
The executive search industry is evolving and adapting to changing market conditions and new technologies. Here are some of the key trends and changes in executive search:
- Diversity and inclusion: There is an increasing focus on diversity and inclusion in the workplace, and this is also impacting the executive search industry. Many companies are looking for executive search firms that have a track record of promoting diversity in their searches, and are seeking candidates from diverse backgrounds and with a range of perspectives.
- Technology: Technology is transforming the executive search industry, with many search firms using AI and machine learning algorithms to identify and evaluate potential candidates. This can help to streamline the search process and provide more accurate and data-driven insights into the skills and experience of potential candidates.
- Virtual recruitment: The COVID-19 pandemic has accelerated the shift towards virtual recruitment, including virtual interviews, assessments, and onboarding. This has also impacted the executive search industry, with many search firms now conducting virtual searches and interviews.
- Increased competition: The executive search industry is becoming more competitive, with a growing number of search firms and recruitment platforms entering the market. This is leading to greater specialisation and differentiation among search firms, as well as greater pressure to provide high-quality and efficient search services.
- New business models: The traditional retained search model is facing competition from new business models, including contingency search, project-based search, and hourly-based search. These models offer greater flexibility and cost-effectiveness, but may not provide the same level of expertise and support as the traditional retained search model.
Overall, the executive search industry is undergoing significant changes and transformations, driven by shifting market conditions, new technologies, and changing business models. Companies that are looking to partner with executive search firms should be aware of these trends and changes, and look for firms that can provide the expertise, support, and innovation needed to navigate this evolving landscape.
What questions should you ask when selecting a recruitment firm?
You can use these questions to evaluate the expertise, experience, and approach of an executive search firm, and to ensure that you find a firm that best fits your organization’s needs and requirements.
- What is your experience in the industry and in conducting searches for the type of role we are looking to fill?
- What is your process for identifying and attracting top candidates?
- How do you evaluate and screen potential candidates, and what assessments or tools do you use?
- Can you provide references or case studies from past clients who have hired for similar roles?
- What is your track record of successfully placing candidates in similar roles?
- How do you ensure confidentiality and protect sensitive information during the search process?
- What is your approach to promoting diversity and inclusion in the search process?
- How do you provide support and guidance throughout the search process, including during negotiations and onboarding?
- What are your fees and payment structure, and how do they compare to other search firms in the industry?
- How do you measure and evaluate the success of your search process?
How much do search firms charge?
Executive search firms typically charge a fee for their services, which is usually based on a percentage of the candidate’s first-year compensation package. The fee can vary depending on the seniority and complexity of the role, the industry, and the location.
For executive-level positions, the fee can range from 20% to 35% of the candidate’s first-year compensation package. However, it’s important to note that these are only general guidelines, and fees can vary significantly depending on the specific search firm and the specific circumstances of the search.
It’s also worth noting that some executive search firms may charge additional fees for expenses such as travel, research, and candidate assessment tools. It’s important to clarify the fee structure and any additional fees with the search firm before engaging their services.
In addition to traditional retained search fees, some executive search firms may also offer alternative fee structures, such as hourly or project-based fees, which can be more flexible and cost-effective depending on the specific needs of the organisation.
In the end, executive search firms charge fees as an investment in finding the best possible candidate for the role. You should weigh these fees against the potential value that the candidate can bring to your organisation in the long term.
Who are the biggest global executive search firms?
There are many global executive search firms, each with their own strengths and areas of specialisation. Here are some of the largest and most well-known executive search firms:
- Korn Ferry: Korn Ferry is one of the largest executive search firms in the world, with over 7,000 employees across more than 100 offices in 50 countries. They offer a range of talent solutions, including executive search, leadership development, and organisational design.
- Spencer Stuart: Spencer Stuart is a global executive search and leadership advisory firm with over 60 offices in 30 countries. They specialise in executive search, board and CEO advisory services, and leadership assessment and development.
- Heidrick & Struggles: Heidrick & Struggles is a global executive search and leadership consulting firm with over 70 offices in 30 countries. They offer a range of talent solutions, including executive search, leadership development, and organisational culture transformation.
- Russell Reynolds Associates: Russell Reynolds Associates is a global executive search firm with over 50 offices in 30 countries. They specialise in executive search, board and CEO advisory services, and leadership assessment and development.
- Egon Zehnder: Egon Zehnder is a global executive search and leadership advisory firm with over 70 offices in 40 countries. They specialise in executive search, leadership development, and board and CEO advisory services.
Other notable global executive search firms include Odgers Berndtson, Boyden, and Norman Broadbent. We also have a handy list of search contacts that we are happy to share, you can request this at email@example.com which forms part of our guide to executive search.
OUR FOCUS ON LONG-TERM PARTNERSHIPS
At re:find we believe that recruitment is not a one-off transaction but rather a long-term partnership. We aim to build long-term relationships with our clients, providing ongoing support and advice to help them find and retain the best talent for their organisation.
We understand that every organisation is unique and that there is no one-size-fits-all solution when it comes to recruitment. That’s why we offer bespoke recruitment solutions that are tailored to meet the specific needs of each client. Whether you need help with a single hire or a full recruitment campaign, we can help.
We are committed to providing our clients with the highest quality service. We take the time to understand your organization’s culture and values, as well as the specific skills and experience needed for each role.
For more information on our guide to executive search please get in contact with our Managing Director, James Cumming.