Executive search is typically used to fill strategically important, senior roles, including CEO, CFO, COO, HRD, and CIO. Executive search differs from the recruitment of more junior talent, when an organisation will usually work with a recruitment consultancy on a contingency basis to find suitable candidates. Contingent search works on a fee-for-win basis, meaning the agency gets paid only after finding the right candidate for the job. The candidate who is successful in securing the position will usually be an active job seeker who applies for the role.
And while contingency recruitment works for filling many roles in an organisation, your senior leadership team needs to be made up of the best people – and these people can be ‘passive candidates’ – in other words, open to discussing a new opportunity but not actively looking for a job. This is why executive search exists.
Executive search seeks out the perfect match for both the role and the company – whether the candidate is actively looking for a new position or not. An organisation develops a long-term partnership with an executive search firm, which acts as an extension of their business identifying and engaging suitable candidates on their behalf.
Executive search involves working with a third party, typically an executive search firm, who can identify and engage the best senior executive talent in the market to match your business requirements.
Executive search is relationship driven. An executive search firm will work closely with you to understand your requirements and advise on the most effective strategy to ensure they deliver the most suitable talent. A search firm will tend to have extensive knowledge of and access to board directors and senior executives across industries and functions, allowing them to build a large pool of top executive talent.
In retained search, the executive recruitment firm is paid an upfront or scheduled fee and works exclusively on the search. In a retained search agreement, a client pays the executive recruitment firm a proportion (typically a third) of the estimated fee upfront to begin the research and mapping part of the process. A further portion (typically a third again) is paid once a shortlist of candidates is delivered. The remainder of the fee is paid on the successful placement of a candidate. The fee is usually a percentage of a candidate’s first year annual compensation and benefits package. By comparison, a retained search fee is generally higher than a contingency search fees.
A retained search approach makes room for a strong partnership between the client and agency, and it turns the executive search recruiter into an ambassador of the company’s employer brand. This relationship can prove invaluable when looking for high-profile talent, as the recruiters have an exceptional understanding of the brand’s culture, values, and requirements and may be better poised to find the perfect fit.
Executive search is not just about filling an immediate need. An executive search firm should be like a partner, a strategic advisor with a relationship built and invested in over years.
A good executive search firm will strive to gain a deeper understanding of your business, your culture, the gaps you are looking to fill, and provoke new thinking. Your search partner should know your company inside out; how your business operates, your goals, your values, and your people. This will help them to find the most suitable candidates to help your company grow and evolve.
Functional expertise
A good executive search partner will have an excellent understanding of the market, rather than just one industry or market segment. They will have deep, functional expertise in their area that they can bring to every assignment.
To be successful in today’s marketplace, organisations increasingly need a blend of people in their top team. A diverse top team will have a larger pool of experience and points of view to draw from, meaning they can help you find new solutions to problems and generate new ideas that could catapult your business forward. A good executive search firm will be able to use their knowledge to encourage organisations to think differently and present you with candidates who can arrive with new ways of thinking.
Strategic advice
As part of helping to drive your company forward, a good executive search partner will be able to provide you with additional support in the form of things like succession planning, organisational design, and executive coaching. Their understanding of your business, coupled with their extensive knowledge of the market, means they are well-equipped to provide a more complete people solution for your business.
Professional service
Your executive search partner will represent your company to candidates, so it is important that they know you well enough to promote your company in a positive, accurate, and honest light so that candidates want to work with you. As the right candidate may not be actively looking for a new position, your executive search partner needs to give the very best impression of your company. This also means providing a well-managed, efficient, and professional search process, as this will add to your credibility as an employer and help build your employer brand in the market.
The executive search approach typically combines six key elements:
1. Establish search priorities
The executive search team determines the skills, knowledge, and abilities required, offering insight and fresh perspectives on how the organisation can think about their needs.
2. Develop a customised brief
The executive search recruiter develops a customised brief for the position alongside a candidate specification that details the company, the role, responsibilities, goals, and key challenges for the position, as well as the experience, qualifications, and competencies required for success.
3. Determine search strategy
The executive search team conducts targeted research into companies and sectors to find people with the relevant skills, experience, and qualifications. The executive search recruiter develops a long list of the best-qualified prospects for the role and contacts prospective candidates to identify and qualify them.
4. Attract and evaluate candidates
The executive search recruiter approaches potential candidates to evaluate their interest in the role and then conducts rigorous competency-based and technical interviews based on the proven skills, knowledge, abilities, and aptitudes outlined in the position specification. They develop a shortlist of candidates with the qualifications and interest in the position.
5. Present most qualified candidates for client interview
The executive search recruiter presents the organisation with the most qualified candidates based on their analysis and appraisal against the specification, and perform an executive capabilities assessment.
6. Complete the search
Once the organisation selects their preferred candidate, the executive search recruiter conducts thorough background checks and referencing to further assess competencies, strengths and weaknesses. They assist in salary and renumeration negotiations and other terms to help conclude the search.
They communicate regularly with the organisation and shortlist field during the transition, and once the search is closed, checking in on ongoing fit and progress of the transition.
The benefits of working with an executive search firm are plentiful. An executive search team works in partnership with you to attract and recruit the right leadership talent to evolve your organisation and drive long-term success. They do this by:
Mapping the market - An executive search firm can provide you with access to a top network of otherwise inaccessible industry-leading candidates by mapping the market and benchmarking for particular skills, roles and salaries. This can include new geographies for a client or to inform a decision such as where to locate or relocate operations.
Delivering solutions, not CVs - An executive search firm matches talent to the distinct needs of your organisation, considering the goals you are trying to accomplish as a business and seeking out people with the right mix of knowledge, skills and abilities to help you achieve those goals.
Offering an objective approach - It can be easy for organisations to fall into the trap of recruiting people who fit the same profile as their predecessors, but executive search firms can encourage you to think outside the box to find people who will help your business to grow and evolve.
Approaching suitable candidates on your behalf - An executive search firm acts as an extension of your organisation for the duration of the search, making professional and qualified approaches on your behalf.
This report takes the views of 200 C-suite individuals and major transformation and strategy players working across the UK, and explores the key themes and trends surrounding transformation.
