An executive search firm is an agency that helps companies search for the right candidate to fill top-tier executive positions. Anytime you see something like “recruiting agency” or “recruitment firm” referred to, it means they are operating as an executive search firm.
Executive Search Firms work with both their client organisations and job seekers, helping them find matches and move into new positions.
There are many reasons why you should hire an executive search firm to help you find your next superstar employee. While it may seem like a costly option, the benefits far outweigh the costs and will set your organisation apart as a top employer in your industry.
Here are some reasons why you should work with an executive search firm.
1. Executive Search Firms Are Highly Trained At Matchmaking
Executive search professionals are experts at matching skills and experience with open positions. Not only do they have the knowledge to match highly skilled individuals with companies, but they also have an extensive network of potential candidates.
2. Executive Search Firms Save You Time
Recruiting for executives is time-consuming and often very complex. Even with the right job posting in place, finding a quality candidate can take months of research and networking. Executive search firms have extensive knowledge about the market and will know exactly where to look for qualified talent.
3. Executive Search Firms Have Extensive Knowledge Of The Market
There are over two million executives in the United States alone. For job seekers, that means the competition is intense. However, executive search firms know exactly where to look for qualified talent and can bring you in front of them within days.
4. Executive Search Firms Have Extensive Networks Of Candidates
With millions of executives in their networks, executive search firms are bound to have the right person for the job, whether they are actively looking or not! This means there is no need to wait months to find a qualified candidate.
5. Executive Search Firms Have Extensive Networks Of Clients
It’s all about who you know, and an executive search firm can put you in touch with some of their top-tier clients within days. By teaming up with an executive search firm, you have access to a vast network of companies in your industry or upcoming industry.
6. Executive Search Firms Work With Top-Tier Candidates
Executive search firms know what it takes to attract and seal the deal with top-tier candidates. They handle all of the dirty work for you, screening out unqualified candidates and focusing only on the very best that the market has to offer. This cuts down on both your time spent finding qualified talent and the time it takes to close an offer.
7. Executive Search Firms Are Trained At Negotiating Salary
Not only do executive search firms know how to find qualified talent, but they also are trained at negotiating salaries. Since running a company is all about numbers, you must have someone on your side who knows how to get you the best deal.
8. Executive Search Firms Deal With All Of The Paperwork
All of the responsibility falls to executive search firms when it comes to legal issues. They know how to put together a solid contract and all the necessary paperwork for your offer letter, saving you from dealing with complex human resources issues.
9. Executive Search Firms Understand Company Culture
Executive search firms understand what it means to be a part of an organisation and know-how important company culture is. So they work hard to find the perfect fit for your organisation, which means more than just checking off boxes on a list of qualifications.
10. Executive Search Firms Have Professional Networking Skills
Networking is an essential skill in the executive search business. Executive search firms know how to network with executives and build relationships that can influence your hire.
How Do Executive Search Firms Work?
Executive search firms build long-standing relationships with qualified candidates and utilise their extensive networks to find the perfect fit for the open position. They use a multiple phase process that begins with a candidate search and ends in a personalised closing presentation. Finally, they present your ideal hire to you, armed with all necessary information about their experience.
The Costs of Using an Executive Search Firm
Executive search firms charge a fee based on the salary of your open position. They typically charge 10-20% of your first year’s salary plus expenses. With the average cost to replace an employee being 1/3 their annual salary, hiring through an executive search firm is more than worth it!
What are the Costs Not Covered by an Executive Search Firm?
Executive search firms do not cover any interview expenses, such as travel, accommodations and meals. They also leave it up to you to decide which background screening companies you want to work with and present for the first initial phone call or in-person meeting.
How Often Should You Use an Executive Search Firm?
Depending on your company’s needs, most companies find that using an executive search firm every two years is the perfect amount of time between searches. Keeping your candidate pool fresh means, you will have access to top talent when you are ready to hire again.
Who Else Can Help Me Find the Best Recruit?
HR recruiters are also a great option. While they do not have access to the same professional networks as executive search firms, they can assist with initial screening, vetting interviews and writing salary offers. In addition, they may be able to help you complete some of these tasks for less than an executive search firm would charge for their services.
How Do I Know If My Company is Ready for An Executive Search Firm?
If you are looking to fill a position requiring high-level expertise or specific industry experience, an executive search firm is the better option. However, if you’re open to either method, it’s important to always choose the candidate who can most successfully do the job.