How to Choose an Executive Search Firm

The firm that you select will be a direct reflection of your company and brand. Get to know the principals, their level of professionalism, and to the degree possible their reputation in the business community at large (ask for client references). These issues will directly impact a search firm’s ability to gain access to high level professional and executive talent…not to mention encourage positive (or negative) branding for your company.

Will your search be handled by the best people for your particular project and will your project be given a high level of priority? Will you have direct access to the recruiters handling your search? What are the professional credentials of these recruiters?

Does the search firm demonstrate a knowledge of your organization, its business units, products and services, corporate strategies and outlook. Do they know the competitive forces that you face and the type of talent that would give you a competitive advantage in the marketplace?

Knowledge of the industry and the skills and experience necessary to excel in a position are critical to search success. You will also want to know that the firm has the ability to leverage a well-established network of contacts.

Research on 181 jobs at 121 organizations worldwide showed that two out of three abilities vital for on-the-job success were emotional competencies — self-awareness, social awareness, adaptability and a talent for collaboration (Goleman, 2002). A search firm should have individuals who are professionally trained to evaluate talent for the presence of these skills.

Ask about the average time to compete a search, often referred to as “average time to fill.” How often can you expect progress reports? How long will it be before you can expect be begin interviewing the first candidates? What percentage of searches does the search firm actually complete? What is the search firm’s retention rate (stick rate) during the first twelve months following placement?

Post-hire integration of new hires into an organization is greatly facilitated when a search firm continues to follow-up on placed candidates. A good firm will stay in touch with placed candidates, helping to prevent and if necessary troubleshoot problems that often arise in the first 30 of starting a new position.

What happens if a new hire quits shortly after being hired? Most search firms offer a replacement guarantee if a new hire quits within a specified period of time following their employment. Also, how long does the search firm commit to work on a search?

It is a rare recruiter that can work over 5 searches at a given time without the quality of their search work beginning to decline. Be sure that your consultant can give your search the time that it requires. Bear in mind that this is impacted by the level of service that you are buying. A retained search will be given a higher priority than a contingency search.

Does the search firm offer a clear fee arrangement in writing? Which expenses will be billed separately? Are billed expenses really a hidden profit center for the company? While a search firms rates should be competitive, be wary of selecting a search consultant based solely on the quoted rate alone.

Professional search firms should not only qualify candidates based on skills and experience but also screen applicants using factors known to influence retention. Do they communicate regularly with the candidate during the post-hire integration phase to assist with retention? Research has found that the cost to replace an employee is normally 120-130% of that employee’s annual compensation. You want to avoid a candidate’s early departure if at all possible.

Large search firms or those who are overly saturated in a singular industry often cannot freely source the talent that you seek because of their off-limit restrictions. Off limit policies simply means that it is unethical for the search firm to source candidates from existing clients. A good rule to be sure but too much exposure in a particular industry can limit their effectiveness if asked to recruit for your organization.