Why First-Time Retained Search Engagements Fail: A Partner’s Perspective
By Shawn Cole, Executive Recruiter & Cowen Partners Co-Founder — Shawn Cole is a trusted thought leader and premier authority on executive recruitment, visionary leadership, turnarounds, culture fit, C-suite assessment, executive compensation, and more across all industries. As President & Co-Founder of Cowen Partners, Shawn Cole is a pioneering leader and visionary thinker in C-Suite recruitment, known for sourcing exceptional talent while uncovering new insights into today’s executives and industry leaders.
Nearly 40% of executive searches fail to place a candidate in the needed position, according to research by ESIX. The problem isn’t usually the search firm’s capabilities. It’s the client’s lack of experience with the process.
Like a new driver who ignores their instructor’s guidance, first-time buyers of retained executive search services frequently fail to leverage the partnership effectively. After placing hundreds of executives across industries, one factor predicts success more than any other: coachability.
The Partnership Gap: What First-Time Buyers Don’t Understand
First-time buyers often don’t understand what they’ve purchased. You’re not buying a stack of resumes.
You’re buying expertise, market intelligence, and access to passive candidates who aren’t looking for jobs. A retained search firm becomes your strategic partner in one of the most consequential decisions your organization will make.
The problem: first-time buyers often treat retained search firms as vendors rather than partners. They sign the contract, expect the firm to “handle everything,” and then wonder why the engagement struggles.
Retained executive search works when clients understand their role in the partnership. The search firm can’t succeed without active participation, strategic input, and a willingness to be coached on market realities.
The Problem of Confidence Without Experience
Imagine someone who just got their learner’s permit. They’ve watched other people drive for years and think they understand how this works. Then they get behind the wheel and realize driving is harder than it looks.
The instructor tells them to check their blind spot. They ignore the advice because they “can see fine.” Pretty soon, they’re creating dangerous situations, not because they lack intelligence, but because confidence without experience is a liability.
First-time buyers of retained search services behave exactly the same way. They’ve seen other executives hired and interviewed candidates before, so they think they understand talent acquisition. Then they engage a retained search firm and realize executive-level hiring operates by completely different rules.
The search consultant explains that their compensation range is below market for the caliber of candidate they’re targeting. The client dismisses this because “we’ve always paid in this range.” The consultant warns that their seven-round interview process is too lengthy and will lose top candidates. The client insists on keeping it. The consultant flags that their job description is too rigid. The client refuses to adjust because “these are our requirements.”
The clients who succeed in their first retained search engagement recognize they’re novices in an expert’s domain. They listen, ask questions, and implement recommendations even when those recommendations feel uncomfortable.
Common Failure Points That Doom Engagements
After placing hundreds of executives across industries, certain failure patterns emerge with predictable consistency among first-time retained search clients:
1. Resistance to Market Reality
The most common failure point is clients who won’t accept market reality. They want a CFO with Big Four experience, such as 15 years in their specific industry, proven M&A leadership, and public company expertise.
Their budget is $225,000 in a market where that profile commands $350,000-$400,000. When the search firm explains this gap, the client insists on proceeding anyway because “surely someone will take a pay cut for our opportunity.” Ultimately, no one does, and the search fails.
Or the client wants a COO but has designed the role with no real authority, reporting to the CEO but unable to make operational decisions without approval. The search firm flags that qualified COOs won’t accept a glorified project manager title. The client proceeds anyway. Top candidates decline interviews once they understand the lack of autonomy.
Market reality doesn’t care about your internal constraints. Clients who succeed adjust their expectations, compensation, or role design to match what the market will accept. Clients who fail dig in and insist the market is wrong.
2. Unrealistic Candidate Expectations
First-time buyers often want the impossible. They want someone with deep industry expertise who will also “bring fresh outside perspective.”
They want a change agent who will “fit our culture perfectly.” They want an aggressive growth leader who is also “risk-averse and methodical.” These aren’t criteria. They’re contradictions.
3. Poor Hiring Fundamentals
Some clients have terrible hiring fundamentals, and no search firm can overcome that deficit. Different stakeholders want different things and no one has aligned on what “success” looks like in the role.
Candidates get conflicting feedback from different interviewers. The client takes three weeks to schedule first-round interviews, another two weeks to debrief, another three weeks to schedule second rounds. Top candidates accept other offers during the delays, and the client complains that the search firm “couldn’t keep candidates interested.”
A retained search firm can source exceptional candidates, but they can’t force clients to run an effective hiring process.
Questions to Ask Before Engaging Retained Search
Coachable clients ask: “What are we missing?” “How does our process compare to best practices?” “What should we change to attract stronger candidates?” They implement recommendations even when those recommendations challenge their assumptions.
Before you sign a retained search agreement, ask yourself honestly:
- Is our compensation competitive for the candidate profile we’re targeting?
- Are you within 10-15% of market for the experience level you want? If not, will you adjust compensation or adjust expectations?
- Can we commit to a responsive, efficient interview process? If not, expect to lose top candidates.
- Are we willing to be coached on market realities?
- When the search firm tells you something you don’t want to hear about your compensation, role design, or requirements, will you listen?
If you can’t answer these questions affirmatively, fix these issues first, then engage the search firm.
The Mutual Responsibility for Outcomes
Retained search firms can’t succeed alone.
A search firm can source exceptional candidates but can’t make you interview them promptly. They can provide market data on compensation but can’t make you adjust your budget. They can advise you on process improvements but can’t force you to implement them.
The search firms that consistently achieve high success rates succeed because they’re selective about client relationships. They assess client coachability during the intake process and decline engagements where red flags suggest the client won’t be a true partner.
First-time buyers who approach retained search with humility, responsiveness, and openness to coaching succeed at remarkably high rates. First-time buyers who approach with unrealistic expectations, poor fundamentals, and resistance to expert advice fail with equal consistency.
The difference isn’t intelligence or resources. It’s coachability.
How To Find Your Competitive Advantage
Cowen Partners Executive Search stands at the forefront of executive search, dedicated to sourcing visionary leaders who not only demonstrate exceptional qualifications but also embody the cultural and strategic vision of your organization. As a premier executive search firm, our mission is to empower companies to achieve sustainable success through leadership that aligns with their core values, drives transformation, and fuels long-term growth.
Specializing in executive search, Cowen Partners Executive Search excels at connecting clients with the top 1% of leadership talent. We focus on identifying individuals who possess not only the skills to expand market share but also the cultural fit that is critical to fostering cohesion and sustained impact. By sourcing leaders who can scale organizations, create value, and deliver results, we build teams that thrive together and propel businesses forward.
Our search capabilities span diverse industries, supporting companies of all sizes—from early-stage ventures to publicly traded corporations and nonprofit organizations. We provide strategic placements across the C-suite, including private equity CEOs, VPs, and director-level leaders, ensuring that each executive aligns with your organization’s distinct objectives and long-term vision.
Cowen Partners Executive Search is recognized for its pioneering approach to executive search, offering state-of-the-art resources that enhance our ability to identify and retain leaders who not only meet the demands of today’s business landscape but who are also poised to shape its future.
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