The Value and Mitigation of Risks in Partnering with Executive Search Firms

Partnering with a reputable Executive Search firm brings numerous advantages and helps mitigate the risks associated with critical hiring decisions for your business.

My aim below is to explore with you the value of working with a retained, partner driven executive search firm, along with importantly the risks associated with trying a contingent or DIY approach to senior executive recruitment.

We are consistently asked in a pitch process what the advantages are in a retained relationship, where we add value and how we price ourselves. So, with all our heritage in recruitment I thought I provide the following insight:

1.???Network and Industry Expertise: Executive Search firms possess deep industry knowledge and extensive networks, allowing them to tap into a diverse talent pool. Their connections and specialised knowledge increase the chances of finding top-tier candidates who may not be actively seeking new opportunities. This expanded reach significantly enhances the search process and ensures access to a wider range of talent. There is extensive research on how DIY solutions create little or no impact in relation to DEI.

2.???Passive Candidates: These are candidates who are not actively job seeking, often make exceptional executives. Search firms excel at identifying and engaging with them, leveraging their relationships and persuasive skills. By attracting passive candidates, organisations gain access to a broader pool of talent and increase the likelihood of finding a much broader slate.

3.???Sourcing: Beyond readily available data on platforms such as LinkedIn sourcing remains a true skill and without access across a broad range of c-suite connections the net is simply thrown across talent that is easily identifiable. If I was the buyer, I would question the added value involved in simply collating online research.

4.???Confidentiality and Discretion: Searches frequently involve sensitive information, such as succession planning or replacing underperforming executives. Search Partners understand the importance of confidentiality and maintain a high level of discretion throughout the process often reaching shortlist stage before sharing any information on the end client. They provide a controlled environment that safeguards sensitive information until the appropriate time, ensuring confidentiality is maintained.

5.???Customised Search Process: A tailored search process to meet the specific needs of your organisation, working closely with clients to understand their goals, values, and requirements. This enables us to identify candidates who not only possess the necessary skills and experience but also fit well within the company culture. This customised approach enhances the likelihood of finding executives who will thrive in the organisation.

6.???Thorough Evaluation and Assessment: Retained Search employs rigorous processes including but not limited to,

·????????assessment and insight tools such as Hogan or PROPHET

·????????in-depth interviews

·????????assessment of cultural fit

·????????verify qualifications

·????????independent reference checking

·????????onboarding and integration

This comprehensive effort minimises the risks associated with making wrong hiring decisions and ensures that candidates meet the organisation's requirements and align with its values.

7.???Time and Resource Efficiency: Partnering with an executive search firm saves valuable time and resources. These firms manage the entire search process, including tasks such as advertising, sourcing, screening, and initial interviews. By offloading these responsibilities, internal HR teams can focus on their core duties while relying on the expertise of the search firm to efficiently find the right candidates.

8.???Objective and Unbiased Approach: Search firms should provide an objective and unbiased perspective. The most successful ones are not seen as a supplier but as an extension to your team. Providing skills that you do not require on a fulltime basis but without whose insight you would struggle enormously to build a high performing team. They are not influenced by internal politics and offer valuable insights based on their experience and expertise. This impartiality ensures a fair and rigorous evaluation of candidates, increasing the likelihood of making well-informed durable hiring decisions.

9.???Private Company/Partnership v PLC: In the context of professional services and specifically recruitment businesses, the ownership structure has enormous impact on the relationship between Search Partner and Client. Having worked for a business that transitioned over 10 years from startup to PLC, I learnt a lot about the dynamics, culture, and politics placed on a listed business. The relentless quarterly pressure on maintaining market sentiment to appease shareholders, combined with significant additional costs to cover filings, compliance, audit, and corporate governance at not insignificant expense is quite some burden and one that is only passed on to the client. Private firms on the other hand, whilst ensuring good corporate governance, place most of their effort and energy into the relationship with the client and the solution to what in this environment are often game changing hires.

10. Contingent Recruitment: The fundamental difference here is exclusivity. Contingent firms operate typically on a non-exclusive basis with clients often briefing a number at the same time.?Whilst this can work at middle management level there are several risks worth considering with this first past the post approach to executive recruitment.

·????????Impact on your brand

·????????Depth of research

·????????Maintaining confidentiality

·????????Control of the process.

In summary, retained Executive Search firms provide numerous advantages that mitigate the risks associated by attempting to do it yourself internally or by using a contingent, first past the post solution. The value of their track record, extensive networks, industry expertise, thorough evaluation processes, and customised search approach cannot be overstated. Associated costs pale in comparison to the costs of hiring mistakes, delayed appointments, or suboptimal candidates.

Finally, slow down! Hiring into your leadership team is one process that is not about speed. Take the right amount of time to ensure the universe of potential candidates has been thoroughly researched. ?I raise this because we are picking up many failed searches where rapid outcomes have been promised with either no outcome or a failed hire.

The long-term benefits of finding the right executive in the right time, who will deliver a far greater impact on your organisation's long-term performance, will confirm that your investment in a retained partnership was a wise one.