Executive Search

- A term used by the recruitment industry to justify walloping fees in return for poor service, high risk and no guarantees.

We have a better way, but first, let's examine why executive search has become so widespread and take a look at what really happens.

More commonly known as "Head Hunting", this dodgy practice also commands the highest fees in the recruitment industry.

Here's what's supposed to happen.

A client has a vacancy for a high level (or sometimes just highly specialised) position, often a board level director or senior manager.

The theory goes that certain Executive Search firms have an established network of known candidates waiting to be approached when the right opportunity comes along.

It's all very hush-hush of course. A nod here, a wink there and some very secret meetings outside of the work environment.

The fee structure is interesting.

Usually, an executive search firm will charge a 30% placement fee.

One third of that is payable upon acceptance of the client assignment. At this point, the consultant will visit the client (maybe) and take a job specification.

Another third is payable on presentation of short-listed candidates.

Not bad, so far the firm has pocketed 66% of the fee and the client has taken an enormous risk, as there are no guarantees and nothing has been delivered yet.

The final third usually becomes payable upon acceptance of the job offer by the candidate.

Given that many higher level executives have a three or six month notice period, the executive search is getting all of their money up-front.

There aren't usually any refund clauses, though a reputable firm may agree to finding a replacement candidate at reduced rate or perhaps even free if things wrong prior to the start date.

So far, we know about the fee structure. What about the work of finding the right candidate?

Is it true that the firm has a lot of contacts? Possibly, though unlikely.

It's all smoke and mirrors really.

Executive search firms do exactly the same as a normal recruitment agency. They advertise on job boards and in the press under different names, or they have a subsidiary recruitment agency with a large database of candidates.

In order to find the elusive, not currently looking for a new job kind of candidates though takes some research.

For this, the firm might have a team of researchers, whose job it is to go through CVs of registered candidates and look at the line of command to discover the names of managers and directors who might do a similar job to the one being offered.

Sometimes, that research is outsourced. Sometimes, the outsourcing agent is abroad in places like India or China.

The trick to head hunting is simple. You have to make  the candidate feel as though he has been specially chosen as a target for the big important job.

A lot of ego stroking goes on at this point and the candidate is always told that somebody has recommended that they contact them.

Bear in mind that all of this completely untrue. A researcher might call an existing candidate and ask about the chain of command, or ask who they should contact at high level in the organisation for a reference.

It's all sneaky stuff.

But, during this phase, where potential talent is being courted (a lengthy process in some cases), nobody has actually been screening the candidate against the role.

How could they? They didn't take the spec from the client. That person was simply selling the concept. From that point on, the whole process becomes diluted, because nobody has a thorough understanding of the role.

Come to actually setting up interviews and getting the candidate to start work and things inevitably start to get difficult.

Remember, these are candidates who were not looking to move (allegedly).

The candidates might be perfectly happy where they are.

Will flattery alone be enough to get their loyalty?

Then there's the case of the salary.

Because they've been "head hunted", they feel they can demand a much higher salary.

Who'd leave a job and work for less? Nobody really, so you begin to see why Executive search is not really all it's cracked up to be.

Senior executives love it of course and part of the reason they are keen to progress with this kind of recruiting method is because deep down, they believe that the head hunter will remember who they are and come looking for them.

In fact, I've seen several situations where an executive search assignment is being sold to a client, only for the hiring manager to end pitching himself for any positions that might become available in the future.

Executive search is the riskiest and least efficient form of recruiting available.

There are much better ways. Cheaper ways. They involve specialist recruitment advertising.

Let us show you how. Call David Carter on 01564 824554 or mobile 07800 790427 and I'll happily show you how to save enormous amounts of money at the same time as increasing your recruitment efficiency.