According to Digitate, new employees are more likely to leave an organisation that drives them through a negative hiring experience when combined with poor onboarding.
Your company does not want this to happen to it.
Replacing employees, particularly executives, is an expensive endeavour.
You’ll need to improve executive onboarding and hire correctly the first time!
Using executive search firms benefits your company by ensuring a smooth and professional hiring process.
This business blog article discusses the following topics:
- Core differences between executive search and contingent recruitment
- Why and when to use an executive search firm
- The benefits of using executive search firms, aka head-hunters
Executive Search vs. Contingent Recruitment
Organizations hire executive search firms to find the best candidates for specific executive positions.
Search firms’ recruitment process is not the same as contingency recruitment.
In executive search campaigns, for example, the ideal candidates are usually not actively looking for a new job.
It is the head hunter’s responsibility to approach them directly and explain why they should consider their client’s role.
Executive search firms put in a lot of effort to build their candidate database.
They also actively monitor candidate movements so that they are always aware of their current role and how to contact them.
Executive search is distinguished by the use of a discrete approach to contacting employed executives about new positions.
For example, an organisation that removes an executive from a position will rely on the discretion of its head hunter to find a replacement without becoming public knowledge, i.e., the role vacancy ends up in the public domain before the organisation wishes it to be publicised.
Sole Agency Basis
Another key distinction between executive search and contingency recruitment is that most job vacancy campaigns are conducted on a sole-agency basis, i.e., exclusively and for a fee. A retainer is a portion of the success fee paid at the start of an executive search campaign.
When it comes to contingency recruitment, businesses are usually fine with more than one agency competing to fill their open job positions.
Contingent recruitment is concerned with filling open job positions.
This type of search is typically conducted through job boards, online databases, and other potential applicant sources.
Rather than focusing on finding the best person for a specific role, the goal is to fill positions with qualified individuals.
This method is quicker and less expensive than executive search, but it may result in a less experienced candidate.
Companies consider their budget, timeline, and goals to determine the best approach for their needs because executive search is more expensive than contingency recruitment.
Avoid Bad Hires
Businesses benefit from using top executive search firms to avoid ineffective hiring processes that result in a mismatched hire.
When and Why Use Executive Search?
When organisations need to hire or contract managers and high-level specialists, they rely on the expertise of executive search firms.
Furthermore, businesses benefit from executive firms’ market knowledge, where they can gain valuable insights into hiring trends, employee benefits, and workforce management.
Companies will typically hire an executive search firm when they have a specific need, such as roles for:
- Senior executive or management
- Highly competitive specialist
- New leadership
- Niche specialist
Are Executive Search Firms Expensive Compared to Contingent Recruitment?
Executive search firms are more expensive than contingent recruitment firms. However, the results from executive search firms are more effective, so the cost is justified. You should budget up to 50% of the candidate’s first-year salary.
Executive search firms, with their experienced team of consultants and extensive network of contacts, provide businesses with numerous advantages over traditional recruitment methods.
Where do executive search recruiters come from?
Head hunters are frequently in the position because they previously held executive positions in a specific industry and are intimately familiar with it. Alternatively, they are career recruiters who began in contingency recruitment. Executive search consultants are well-trained and experienced in the recruitment process.
Among their abilities are:
- expert communication skills
- competent in digital marketing and sales
- good negotiators
- industry knowledge, often specializing in a sector or role
The role of a head hunter necessitates discretion. For example, if a multi-national company needs a CEO, they will tap into their extensive network of professionals with the necessary skills and experience to fill the position without making it public that the client is looking to replace their current CEO.
Unparalleled Access to Candidates
Executive search firms do not rely solely on their recruiters’ market knowledge.
They also invest in secure emerging technology to maintain active executive-level professional databases.
Recruiters, including the top search firms, take data loss prevention seriously.
Comprehensive Research and Screening Capabilities
Executive search firms have the resources and capabilities to conduct extensive research and screening processes that assist them in identifying, evaluating, and recruiting the best candidates for executive positions.
They are frequently regarded as experts in their field due to their access to a wide range of resources that can assist them in uncovering valuable information about potential candidates.
These resources include professional resume databases, social media profiles, and industry publications.
They also have relationships with key personnel at companies that are recruiting or conducting searches in order to gain insight into the most qualified individuals for a specific role.
Typically, the research is thorough and detailed.
This ensures that only those with relevant experience and expertise are considered for a position at the senior level. A detailed review of the candidate’s qualifications and talent is typically included in the screening process to identify the best fit for a specific job.
Furthermore, these companies have assessment tools and techniques to evaluate potential candidates’ skills, competencies, and traits.
This assists them in identifying individuals who have the right combination of knowledge, experience, skill set, and personality to be successful in an executive role.
Behavioral assessment tools, such as psychometric testing or personality profiling, for example, can be used to assess candidates’ abilities, aptitudes, and potential.
They may also conduct in-depth interviews with candidates and contact references to confirm their qualifications and skills.
Unbiased Perspective during Recruitment
Because executive search firms are third parties, they are uniquely positioned to provide unbiased perspectives during the hiring process, assisting businesses in making sound hiring decisions.
They are free of the internal biases that can occur during the recruitment process.
Today, DEI (diversity, equality, and inclusion) is important, and hiring managers may favour those of the same ethnicity or educational background as them.
They may also make rash decisions based on someone’s physical appearance or social standing rather than their qualifications for the job.
When hiring top talent, executives, and specialists, organisations can use the resources of executive search firms.
The main advantages of using a search firm over a contingency recruiter are discretion and professionalism.
Executive search can assist your company in identifying and securing the talent it requires, as well as avoiding negative hiring experiences, such as selecting the wrong candidates.
Organizations save money, time, and resources by utilising executive search firms to fill high-level positions quickly and efficiently.