Key positions filled professionally
Not every recruitment process is the same. When important vacancies and key positions are open, company success is particularly closely tied to successfully and promptly filling them. In this search for suitable candidates, nothing can be left to chance – and this is where executive search comes in.
Executive search is a process for recruiting employees for high-level or hard-to-fill positions. In this article, we explain what executive search is, how it differs from other recruiting processes, and how it works.
Executive search – what is it anyway?
Recruiting loves anglicisms. This one is easy to explain: The term ” executive search ” contains the word “executives,” which is the English term for senior managers. Literally translated, executive search simply means the search for senior managers. This term once primarily referred to upper management, but now executive search is also used for specialized specialist positions.
Executive search is a form of direct search, meaning it involves a proactive search process. Specialists and executives are difficult to find and often not seeking new career opportunities themselves, so they rarely respond to job advertisements. Executive search consultants (also known as headhunters or HR consultants) leverage their global networks and other active search methods to locate these talented individuals and approach them directly.
The most important reasons for an executive search
Not every search requires an executive search. For regular positions and positions that can be filled without active search methods, a simple recruitment agency may be sufficient. Executive search, on the other hand, is particularly suitable for filling key and leadership positions that have a significant impact on your company’s success.
Therefore, ask yourself the following questions to find out whether an executive search is the right option for you:
1. How important is filling this position?
Executive search is an investment that should be worthwhile. Therefore, you should only consider it for positions that are central to your company’s success.
2. How expensive would it be to fill this position incorrectly or not at all?
In senior positions, a misfill or non-fill can quickly become expensive. Therefore, compare the costs of an executive search with the costs that could be incurred otherwise.
3. How difficult is it to fill this position?
Particularly critical positions that are difficult for you to fill without assistance could also be a significant challenge for a recruitment agency. The chances of success are significantly higher with executive search.
4. How important is a discreet search to you?
Especially in technical and management positions, it may be necessary to poach talent from other companies. Executive search consultants are experienced in proceeding discreetly in such cases so as not to jeopardize your company’s reputation.
The differences between recruitment and executive search
Recruitment agencies are service providers who place personnel. They are only paid when a position is filled, thus working on a contingency basis. They generally do not provide consulting services in addition to the search. Working on a contingency basis makes more complex search methods like direct search less attractive for recruiters—after all, they are not paid if they are unsuccessful. This makes recruitment particularly suitable for simple positions that can be filled using traditional search methods such as job advertisements.
In executive search, however, the search is conducted on a contract basis, with payment being made in installments. The one-third model is particularly popular: Clients pay one-third upfront, one-third after suitable candidates are introduced, and one-third after a successful placement. The costs are generally higher than for direct recruitment, but in return, executive search consultants use time-consuming and more effective search methods. They often specialize in specific industries and have global networks with numerous suitable candidates.
The process of an executive search
An executive search is a systematic, multi-step process. A typical process looks like this:
Profiling & needs analysis
First, executive search recruiters create a precise profile of the position to be filled. This takes into account not only technical competencies, but also soft skills and cultural fit. Other aspects of the search are also discussed here: If talent is to be poached elsewhere, companies can specifically specify which competitors they should (or should not) search.
Direct Search
Once the applicant profile is finalized and the search strategies have been defined, the recruitment consultants begin their search. They only approach talents who exactly match the desired profile. In addition to the previously defined target companies, they naturally also search for suitable candidates within their industry network.
Contact/Poaching
Contact is then made directly through all channels available to recruiters, from telephone to social media. If the talented candidates are already employed, executive search consultants must discreetly recruit them.
Pre-selection of talents
After the initial interview with the potential candidate, recruiters must assess whether they are suitable for the desired role and should be presented to the company. They must also review the candidates’ professional qualifications and references.
Presentation & Selection
Executive search consultants then present the best talents to the target company. They must present all the key advantages of the candidates to make the company’s decision-makers understand why these particular candidates perfectly match the profile and will stay with the company long-term.
Further support
Executive search consultants typically also support companies during interviews and subsequent negotiations. They also provide assistance with drafting the employment contract. The engagement ends with the signing of the contract – some HR consultants also assist with onboarding.
Now you know what distinguishes executive search from regular recruitment, when you should consider it, and what you should keep in mind.
As an executive search specialist, Riverstate finds top talent with the right blend of experience, leadership skills, and character to help you fill key positions in your company quickly and sustainably. Contact us now for a free, no-obligation assessment of your situation.
Executive Search: Frequently Asked Questions
Executive search refers to the direct approach of specialized specialists and executives by a specialist HR consultant. It is therefore a form of HR consulting that is primarily tailored to management positions, but can also be used to find key specialists. Recruiters use innovative search methods and specially established networks to identify and directly approach particularly high-caliber talent.
In contrast to traditional job placement, executive search is a direct search, meaning it’s a search method that actively engages talent. Good specialists and managers are often not actually looking for new career opportunities and therefore rarely respond to “passive” job advertisements. Executive search consultants can reach such talent by actively identifying them and making them aware of the target company and its vacancy.
Through executive search, companies can also reach applicants who aren’t actively looking for a job, significantly expanding their reach. They can fill vacancies—especially specialist and management positions—more quickly with better talent.
A typical executive search process begins with profile creation and needs analysis. Working closely with the target company, the recruiter creates the most accurate candidate profile possible. This serves as the basis for the direct search: Talents who fit the desired profile are pre-selected and sensitively approached, for example, via social media. Finally, HR consultants introduce all promising candidates who meet the majority of the criteria to the target company. They can also support the company with interviews, salary negotiations, and the drafting of the employment contract.
Building networks is one of a recruiter’s core competencies, and it’s especially important for executive search. After all, the desired candidates are often sought-after specialists and executives who aren’t actively looking for a job. Good recruiters reach this passive job market, among other things, because they have built a talent network over the years that they can contact when needed.
Discretion is especially important when recruitment consultants poach talent from other companies. Recruiters protect their client companies’ reputations with a number of precautionary measures: For example, they can agree that employees of certain companies (e.g., competitors with whom the client company cooperates) are not to be contacted. Recruiters also exercise caution with the name of the company on whose behalf they are acting: Companies often do not want competitors to learn about vacancies, or they are concerned about their reputation if it becomes known that they are poaching talent from other companies. Discretion is also important for talented individuals: They naturally do not want their current employer to know about their intention to change jobs.
HR consultants use a number of criteria to assess candidates during executive searches. First, there are the client company’s specifications and the jointly developed candidate profile. This includes specific technical criteria, degrees and qualifications, as well as soft skills. Second, executive search specialists naturally also rely on their experience—and the insight into human nature that is so crucial for the job—when it comes to pre-selecting promising candidates. They only present their clients with applicants who have the potential to be an ideal fit for the company and the role in question.
Executive search consultancies typically charge fees of 30-35% of the annual gross salary for the position sought. Proportionately, the costs of executive searches are therefore no different from other recruiting methods—but because executives earn more, the costs are naturally higher.
An executive search is particularly worthwhile for filling important specialist and management positions where traditional search methods such as job advertisements have failed. Because these positions are crucial to your company’s success, you shouldn’t leave anything to chance when filling them. And because vacancies also cost money, conducting an executive search can even be financially worthwhile, as it generally allows you to fill open positions more quickly.
