Before any business can agree to use an outside service they need to understand the value it will provide for their organization. There need to be compelling reasons why each supported department or team member will use or receive support from the service. Not surprising is that the reasons can be pretty varied. This is definitely true when organizations consider the value of executive search firms.
The needs of owners and members of the executive team differ from those in Human Resources and can change again for individual managers. Yet, businesses use and rely on executive search firms every day. If working with a recruitment firm is something new for your organization you may wonder about the value they can provide you. And it’s a smart question to ask when starting.
Deciding to outsource your talent recruitment needs is one thing. Being confident in the value you will directly receive from this decision is another. Keep reading to learn what those benefits are.
Before we discuss the value of executive search firms for your business and respective members, it is important to know there is more than one type under the very broad umbrella of recruiting.
The first distinction is in the primary focus of their business, and specifically the career levels of the positions they seek to fill. Executive search firms focus on senior-level positions with many catering only to the C-suite level and above. Others in the executive-level category will assist a broader range of clients to also include mid-level managers. On the other side of the recruitment spectrum, are firms that are agnostic to experience and position levels, and specialize in high volume placements. There is also a great deal of variety in the specific services various firms provide, from direct placement to contract employment to temporary employment.
The second distinction is in the fee structure. Most executive search firms are retainer or contingency-based, but the premise is the same. With contingency recruitment, the firm charges a percentage of a new hire’s first-year salary and only collects their fees if a candidate is hired by the client company. Retained recruiters collect a portion of that fee upfront with the balance either paid in intervals throughout the search process or in full once a candidate is hired.
Learn more about recruitment fees and the pros and cons of each pricing model.
The primary responsibilities of hiring managers are leading the smooth operations of their team or department. The scope of their work can be pretty broad, and therefore these individuals know the inner workings of their organizations incredibly well. However, this also means that sourcing, recruiting, and vetting candidates for potential fit aren’t likely tasks they are specifically trained or experienced in. While most can quickly estimate how a candidate might perform in the available position, interviewing and hiring isn’t something they do daily. Even if they did, it certainly isn’t something they can dedicate large amounts of time to.
Executive search firms offer hiring managers support and guidance with tools and the right structure to ensure they make the best candidate selection possible, especially for senior-level roles. They have a trusted advisor and ally working alongside them when bringing on new talent. We describe this as having someone sitting with you on the same side of the table.
The value of executive search firms for HR professionals is quite different from hiring managers since they are well versed in all aspects of the hiring and interviewing process. This group may also be the ones that understand the value best. For them, executive search firms are consultants that aid in improving their hiring process as well as their talent development and employee engagement efforts. They rely on the consultative input of executive search firms for industry information, talent advisement, and guidance through business changes like acquisitions, expansions, mergers, or restructuring efforts.
Executive search firms also act as an extension of the HR department so that internal resources are better allocated. Senior-level professionals generally don’t respond to mass hiring calls but are much more selective and strategic when looking for new career opportunities. This means hiring companies need to proactively and confidentially find them, instead of waiting for their resumes or direct inquiries — something executive search firms are especially good at.
Likewise, executive search firms are valuable resources when hiring those hard-to-fill positions due to location, specialization, needed experience or education, or for newly created positions where historical benchmarks haven’t been set yet.
Business owners and senior-level executives typically aren’t involved in much of the hiring process until the very end, and for some roles not at all. However, as business professionals overseeing large areas of an organization, they do have specific needs where executive search firms are incredibly valuable.
One, is the ability to keep their organizations flexible and adaptive to market changes and workforce needs. It’s a partnership that allows them to exponentially increase the size of their human resource department to hire at scale when the need arises.
Second, is the ability to hire top-level talent with discretion and exclusivity. There are key times when acquiring talent for specific key roles needs to be conducted in strict confidence until an organization is ready to announce the new addition to their company. Executive search firms allow companies to keep this process confidential.
If working with a recruitment firm is something new for your organization you may also wonder about the value we can provide you. Another smart question to ask when starting.
As a recruitment agency, we are an executive search firm that directly places candidates from mid to executive-level positions within client companies. From sourcing to recruiting, evaluating to hiring, onboarding to engagement, we are a full-service firm you can rely on for all your talent acquisition and development needs.
Our pricing model benefits clients with a flat hourly rate and an open communication structure that keeps you in control of the hiring process. This means a low-risk engagement and easily scalable service which our clients, new and long-term, appreciate. When you work with us, our executive search services can be stopped and started as your business needs dictate.
What business professionals appreciate even more is our complete transparency and dedicated resources. As a client, you will have access to real-time reporting detailing all the work performed for your searches, including unlimited access to all candidates in the pipeline. You will also have a highly-trained specialist dedicating their resources on a daily and weekly basis to your specific hiring needs.