Three Reasons to Engage a Retained Executive Search Firm
For even the most experienced Human Resource Managers, finding qualified candidates to fill positions is often challenging. Traditional search methods, such as job postings, often tap into a pool of candidates who are seeking employment, but they do not necessarily yield the most qualified candidates or the best fit for the positions. And when one considers that nearly 96% of the working population is currently employed, the pool of potential candidates appears to be even more restricted.
So how might hiring managers alleviate the stress and limitations of these traditional practices, particularly when hiring at an executive level? One common approach is to outsource the search by hiring a recruiting firm.
In today’s post, we will share three reasons why you might want to consider a retained search firm and provide a guide to help determine when to engage a retained search.
The Level of Position
Most often, retained recruiting firms are the best solution when companies or organizations are looking to fill positions that require a unique skill set, are in high demand, or are at an executive level (C-Suite). Because these firms are comprised of more experienced search consultants with extensive business acumen, they are better equipped to address their clients’ needs. Furthermore, retained consultants understand how important it is that they appeal to potential candidates.
When retained search firms reach out to potential candidates, there is a perceived value of the position and of the company. According to business advisor, Cameron Harold, these candidates tend to “take a call more seriously” because the company is willing to invest resources up front to find the correct fit. These executives understand retained searches offer premium services and that the client is committed and willing to go through the best channel to fill the position.
Given their level of service and attention to detail, retained search firms will ensure that conversations with candidates focus predominately on company goals and how the role they are filling is needed to help achieve those goals. Top performers know what they can bring to the table, but they want to hear how their skillset may be an asset to a potential employer.
Retained firms recognize and respect that executive candidates are extremely busy. As a result, candidates typically find the interview process to be very positive with these firms and know that they will receive timely feedback at this level.
Access to More
Retained firms excel at targeting the right and most exclusive candidates. Because these positions often require a unique skillset or are in high demand, the number of candidates that possess the correct backgrounds are limited. More often than not, the best candidates are not actively looking for a change in company or role. These candidates are busy and lack the time and/or desire to look at job boards for new positions. The best candidates are focused on being successful in their current positions or with their current organizations. Companies cannot rely upon finding the most qualified candidates among the unemployed – it is imperative that they have access to a greater percentage of the workforce.
Hiring to fill a position is analogous to purchasing real estate. In real estate, clients have certain criteria for a new home. They may engage a realtor who traditionally scours the MLS to identify current listings that meet the client’s criteria. The problem with this approach is that the MLS is limited to what its available now, not necessarily showing all properties that meet the client’s criteria, including those not on the market. To truly add value and provide the buyer access to all homes, the realtor would need to conduct research to identify all homes, and then knock on the doors or call the homeowners see if they would be interested in selling.
A retained firm will “knock on the doors” of candidates who meet the client’s “buying” criteria. The firm will share with them what is happening in the marketplace, particularly as it pertains to the specific client, and ask if they are willing to “sell”.
Assistance Beyond the Resume
The level of service that clients receive from retained search firms is unparalleled. The Association of Executive Search and Leadership Consultants summarizes this well:
“Executive search firms operate on an exclusive, client-centered basis and bring a deep level of expertise – inclusive of industry knowledge and job functionality – to each assignment. They are engaged in all aspects of the process, from defining the search through candidate integration.”
Retained recruiters do not simply rely on resumes to determine candidates’ qualifications. They develop and employ additional tools, including success profiles, written assessments, and behavioral assessments.
In addition to utilizing the tools above, retained consultants will assist clients with the development of an interview process. The process not only evaluates candidates on the right areas at the right phase, it also creates an experience for the candidates that is positive and leads to hiring. Furthermore, clients are able to take comfort in knowing that they have a dedicated resource developing and executing a search strategy on their behalf. This enables the clients to focus on their day job and use their time evaluating and selecting candidates as opposed to managing the sourcing of candidates, managing multiple contingent firms, and screening candidates.
Finally, retained firms are skilled at consensus building. There are times when clients struggle to find candidates because there are competing interests or biases that interfere with the hiring process amongst members of the interview or selection team. For example:
A non-profit organization, looking to fill an Executive Director position, may be comprised of a volunteer board that includes a CFO and a Marketing/PR Executive. The CFO may feel that finding someone who has a financial background so that they oversee proper spending of the organization’s assets is of utmost importance. The Marketing/PR executive may feel that a candidate with externally facing and relationship builder skills are the most valuable ones required for the position.
Unfortunately, these two skill-sets can be somewhat mutually exclusive and trying to find a candidate with all those attributes could be problematic. Retained search firms serve as third party facilitators in these circumstances. They can hone in on client goals and determine what skill-sets are truly necessary for the role and, thus, mitigate competing interests.
Their Goal is Your Goal
In conclusion, if there is a strong possibility that the organization needs to hire a search firm to fill executive level positions, hiring a retained firm is probably the best option. Clients receive the best value for their investment when they hire retained firms. Not only are the overall fees similar between retained search firms and other providers, but they go above and beyond to put their clients’ interests first. Other providers only receive compensation when their candidate is hired, so their goal is for the client to hire their candidate, not necessarily the best candidates. Retained firms, however, are able to provide unbiased feedback without fear of jeopardizing their fee. This factor enables them to look out for their clients’ best interests and be fully committed to achieving the clients’ goals – something hiring managers should definitely keep in mind! A retained search firm’s goals are the same as the client’s goal - which is about hiring the best candidate.
Ready to hire a retained search firm? Feel free to contact 180one and we’d be happy to assist!
