30/08/2024
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What are Executive Search firms?
Executive Search firms specialize in recruiting candidates for senior-level positions such as C-suites executives and Directors. They have specialized executive search team composed of headhunters, and dedicated tools to help companies find the ideal candidates for key leadership roles by leading the recruitment process for them.
Executive Search firms are used for filling senior management and executive roles, difficult to fill roles and confidential positions.
The step-by-step Executive Search process
Client meeting and job brief
The Executive Search process starts with an initial meeting. The Executive Search firm engages with the client (company) to understand their specific needs, including the role's requirements, company culture, and strategic objectives.
Together with the client, they define the role and write the job description, key qualifications, and competencies required for the position.
This first step allow the Executive Search headhunter dedicated to this mission, to better understand the corporate culture and the context of this new position, refining the search for skilled candidates who are potentially suited for this environment.
Research strategy and candidate identification
Executive Search firms have several dedicated tools to conduct thorough market researches. Sourcing and market mapping will help them identify potential candidates by comparing similar roles in comparable companies.
Market mapping is useful but often not enough for C-Suite roles as they need specific profiles, they also use headhunting.
Headhunting is the specialization of executive search firms and it consists in direct approach, meaning that the firm directly approaches potential candidates, typically those who are not actively seeking new positions. This is often done confidentially to avoid alerting competitors.
Networking is also another technique used by Executive recruiters. By leveraging their extensive networks, the specialized consultants may also receive referrals or recommendations from industry insiders.
While researching for a specific mission, headhunters create talent pools, which are a list of potential candidates, including both active job seekers and passive candidates who are not currently looking for a new role. This will help them have a “database” of top talent for a variety of roles.
Screening and assessment
Once they feel like they have enough profiles, they start the initial screening process. The executive search consultant will conduct initial interviews to assess the candidates’ fit for the role, focusing on their experience, skills, ambitions, and alignment with the client’s culture.
Executive Search firms are also known for the quality of the candidate profiles they present to the client. Therefore, they often use unique assessment tools or psychometric tests to evaluate candidates on specific topics related to the role or the company’s fit and make sure it's a perfect match.
For executive positions, it is essential to carry out reference checks to validate candidates' experience, give their application greater credibility and strengthen their case.
Presentation of shortlist to the client
The firm compiles a short-list of qualified candidates meeting the requirements of the role and its context within the company. Each profile is often presented through a detailed report on its background, strengths, and areas of development.
If the client company is interested in the selected candidate, it takes over the recruitment process and conducts other, more in-depth interviews.
Negotiation and placement
As the consultant has had an in depth contact with the candidate throughout the process, the firm often acts as an intermediary in salary and benefits negotiations between the client and the candidate.
Once terms are agreed upon, the firm helps finalize the placement, ensuring a smooth transition for the candidate in his new role.
Onboarding & follow-up
It is very important for Executive Search firms to make sure that the candidate is well integrated. Therefore, the firm typically follows up with both the client and the candidate after the placement to ensure a successful onboarding. They may offer additional support or coaching if needed.
Overall, the Executive Search recruitment process is designed to ensure that the client gets the best possible candidate for their leadership needs, with the least amount of disruption to their business. For the candidates, the process is designed to match their ambitions and upgrade their professional situation, offering a more advantageous long-term position, either in terms of compensation or evolution possibilities.
How much does an Executive Search cost?
Filling a high-level position within an organization is a strategic decision with high stakes. The most common Executive Search fee structure used is with a retainer fee.
In a retained fee arrangement, the client pays a fee to secure the services of the executive search firm. This fee is generally calculated as a percentage of the candidate’s estimated first-year compensation, usually ranging from 25% to 35%. The fee is typically divided into three installments, with each payment tied to specific milestones defined by the firm.
This fee structure provides clients with cost certainty based on the role while also sharing the recruitment risk and reward with the executive search firm. The firm is incentivized to deliver tangible results at each stage while being retained ensures their dedicated focus on the role.
Executive Search Firm VS Recruitment Agency VS Staffing Agency
An Executive Search firm is specialized in the recruitment of senior executives to fill strategic and C-Suite positions for companies. Most of the time, Executive Search firms have areas of expertise that focus on specific industry to have specialized consultants that understand every aspect of the position to be filled.
Executive Search firms are used for filling senior management and executive roles, difficult to fill roles and confidential positions. They focus on the hard and softs skills but also the leadership skills of the candidate.
Recruitment Agencies are usually used for junior-level positions where the focus is on the skills of the profile. Usually, the companies are looking to fill the position quickly in comparison to Executive roles.
Staffing Agencies maintain a pool of candidates across various sectors so that they can quickly present the right profiles tailored to the needs of the company. They usually work on a temporary contract basis.