- If the past two years of living with the pandemic have taught us anything, it’s that executive leadership matters in times of crisis.
- Whether you’re strengthening your C-Suite team for continued success and business recovery, or you need new blood to redefine your strategy in times of organizational change, you need an executive search firm that will connect you with the best talent in the industry.
- The cost of hiring the wrong person ranges from 30 to 50% of their salary. That’s a costly mistake that could be avoided altogether if you only have the right executive search firm to lend a helping hand.
- Finding a trusted executive search firm that will dedicate the necessary resources to conduct an effective hiring process is essential for the long-term success of an organization.
There’s a huge cost that’s accompanied by hiring your next business executive.
In this tight labor market and the volatile economic climate, just the mere thought of not having the right executive in your company should really raise some red flags.
The total cost of its financial and operational impact is enormous, especially if this senior leadership role is crucial in the company’s business recovery phase.
Zappos CEO Tony Hsieh once estimated bad hires had cost his company “well over $100 million.”
According to a Forbes article, hiring the wrong leader is the only thing more costly than dragging your feet on a critical hire.
With the right executives in place, companies can focus on strategies that will compound company growth, from raising capital to sales and marketing to mentoring the next in line for the leadership team.
Why hiring an executive firm is a smart business move?
Companies need to understand that every hiring opportunity can turn into a valuable asset that can transform their business—as such, hiring the right executive can make a significant impact on the future of the organization.
The cost of hiring the wrong person ranges from 30 to 50% of their salary.
That’s a costly mistake that could be avoided altogether if you only have the right executive search firm to lend a helping hand.
Finding a trusted executive search firm that will dedicate the necessary resources to conduct an effective hiring process is essential for the long-term success of an organization.
Here are several compelling reasons why companies should engage with an executive search firm:
REASON 1: Reach and Resources
Attracting the best executive talent is an executive search firm’s expertise. Executive search specialists spend a lot of time and effort cultivating long-term relationships and building their network in the industry. Executive search firms also have access to specific technology and specialist job boards to reach their target audience.
REASON 3: Time
Any good recruiter knows that a significant investment of time and resources are needed to properly evaluate, screen, and interview potential candidates. Most organizations do not have enough time to assess a sizeable executive talent pool. Since this is an executive search firm’s expertise, they’ll be more efficient in screening candidates. Thus, the time to hire an executive will decrease significantly.
REASON 3: Expertise
More often than not, the best executive talent would not be actively looking for their next role. That means they are not looking at job boards and might not even be active on LinkedIn. Unless the organization has the internal expertise to tap into passive talent pools, it makes more sense to hire an executive search partner to do it for them.
REASON 4: Guaranteed Service
Executive recruitment is a professional service. An executive search partner will most likely provide a replacement guarantee that serves as an added assurance that the person the organization chose fits the brief. Usually, the standard executive recruitment guarantee would range from 3 to 6 months. If the organization manages its executive recruitment directly, then there will be no guarantee.
Critical Success Factors in Selecting an Executive Search Firm
If the past two years of living with the pandemic have taught us anything, it’s that executive leadership matters in times of crisis.
Whether you’re strengthening your C-Suite team for continued success and business recovery, or you need new blood to redefine your strategy in times of organizational change, you need an executive search firm that will connect you with the best talent in the industry.
Here are several critical success factors in selecting an executive search firm:
SUCCESS FACTOR 1: They must have extensive experience in the industry.
To find a qualified executive for the company, organizations need an executive search firm that are experts in their specific industry. They need a firm with a thorough knowledge of the organization’s leadership positions, including the responsibilities for these roles and the attributes of qualified executive talent. Moreover, an executive search firm needs to stay on top of the news and trends in the industry and identify key opinion leaders and influencers by expanding its network.
SUCCESS FACTOR 2: They must be credible enough to foster the right connections in the industry.
An executive search firm needs to be credible enough to engage with thought leaders, trailblazers, and individuals capable of leading an organization to be an industry giant. More importantly, confidentiality is a critical factor in executive search. Ensure that your executive search firm has a proven track record of representing companies with professionalism and discretion.
SUCCESS FACTOR 3: They must have a well-thought executive search strategy.
Any good executive search requires a well-defined strategy. The executive search process is challenging and complex, and search firms should be able to find and recruit the best people in the industry, not just the people from their network. This is the critical differentiator between having a “good” versus a “great” pool of executive talent.
SUCCESS FACTOR 4: They must show a proven commitment to Diversity, Equity, and Inclusion (DE&I).
There has been a growing expectation to emphasize the importance of DE&I in executive leadership teams. McKinsey’s 2020 Diversity Wins report detailed how companies with more diverse executive teams are now more likely to outperform less diverse companies on profitability. While it’s easy to jump on the bandwagon, companies still need to ensure that their executive search firm understands the importance of building a diverse and high-performing leadership team.
SUCCESS FACTOR 5: They must give full transparency into the search process.
Choosing an executive search firm with a transparent approach to recruitment is essential. They must openly share information at every stage of the executive search process. Instead of merely saying that they have “good candidates in the pipeline,” executive search firms need to be willing to tell their clients the exact number of interested and engaged candidates in a detailed progress report.
SUCCESS FACTOR 6: They must have the right capabilities to grow with you.
It’s essential to choose an executive search firm that can do more than fill the organization’s leadership roles. Organizations also need an executive search firm to support the company as it grows throughout its entire lifecycle. These executive search firms will be more equipped to find the right candidate to push the business forward and play a key role in its success.
Tips for Getting the Most Out of Your Executive Search Firm
TIP 1: Choose the right executive search partner.
Executive search firms have different networks and expertise. It’s a smart move to choose highly specialized firms with a track record that are relevant to the company’s industry.
TIP 2: Align expectations from the get-go.
Keep communication lines open and discuss the process as thoroughly as possible. Help clients learn what they’re getting into and whether the firm can deliver on the client’s expectations from the get-go.
TIP 3: Engage in weekly check-ins.
Treat the organization’s executive search firm as a partner, not just as a vendor. There’s a need to provide constant feedback and alignment to get the best possible candidate for the executive role.
TIP 4: Speak up if you’re not satisfied.
In today’s tough market, it’s harder to reach top executive talent. While the search may take longer, it’s better to find the right candidate after a rigorous search process than be satisfied with a subpar talent pool.
TIP 5: Think for the long-term.
Executive search firms also need to grow over time as companies grow. Companies need executive search partners who are also looking ahead to the future, making them more equipped to fill more diverse roles as the organization expands.
Are you looking for the right executive talent? We’re here to help!
Curran Daly and Associates is one of Asia’s top executive search firms. We will help your organization find exceptional leaders who can navigate your firm into the future.
Our holistic and targeted approach to executive search service will help you find industry-leading candidates for the following roles: CEOs and other C-level executives (COO, CTO, CFO, CIO, CMO), Vice President, Directors, and other managerial roles.
Partner with us and tell us more about your recruitment needs.
Hansen, M. (2022). Council Post: How (And Why) To Find The Right Executive Search Partner For Your Business’s Needs. Retrieved 18 July 2022, from https://www.forbes.com/sites/forbeshumanresourcescouncil/2020/03/20/how-and-why-to-find-the-right-executive-search-partner-for-your-businesss-needs/?sh=2d2946243fb1
How to get the most out of your executive search firm. (2022). Retrieved 18 July 2022, from https://www.protocol.com/workplace/how-to-work-with-search
How to Select an Executive Search Firm: 6 Critical Success Factors. (2022). Retrieved 18 July 2022, from https://www.linkedin.com/pulse/how-select-executive-search-firm-6-critical-success-scott-aldsworth/Capital, K. (2022). Why Most Organisations Engage A Recruitment Partner | Kingston . Retrieved 18 July 2022, from https://www.kingstonhumancapital.com.au/why-most-organisations-engage-a-recruitment-partner