How Do I Select An Executive Recruiter?

a. What are the benefits of utilizing executivethousand dollars or more), when difficult to fill or
recruiters?requires a thorough recruiting effort, when it requires
Experts in recruitmentstrict confidentiality, or when locating the best
Executive recruiters are specialized professionals.candidate is more important than filling the position
They work at the recruitment process exclusively, andquickly.
survive on their ability to get results in a highlyContingency recruiters
competitive marketplace. Most executive recruitersContingency executive recruiters derive their name
bring years of experience to their work, and arefrom the fact that they work "on contingency."
intimately familiar with every aspect of candidateEmployers only pay for their services if an employer
identification, sourcing and selection.hires a candidate referred by their firm. If there is no
Executive recruiters are hired to cast a wider net andhire, then there is no fee due.
approach accomplished candidates who are busyMost contingency recruiters work quickly and uncover
working and not looking. Many candidates are invisiblemany resumes. They tend to provide more of a
from where employers sit, and will not approach aresume referral service, and spend less time with each
public job opportunity without the safety andclient. Because there is no financial commitment from
confidentiality of third-part representation.employers to support up front candidate research,
Executive recruiters have the advantage of meetingcontingency recruiters tend to move on to new
with candidates outside the interviewing arena whereassignments more quickly once a job opportunity
they can build trust and rapport in a neutral andbecomes difficult to fill. Contingency recruiters find it is
protected environment. They have mastered theusually more cost effective to market exceptional
delicate art of persuading well-paid, well-treatedcandidates to locate job opportunities than to recruit
executives to give up good corporate homes forfor employers and locate difficult-to-find candidates.
better ones.Most contingency recruiters fill lower to middle
Executive recruiters remove a tremendous recruitmentmanagement positions where candidate marketing can
burden from management by presenting a limitedresult in greater chances for success due to the
number of qualified candidates who are usuallygreater number of job opportunities. However some
prepared to accept an offer. They also are skilled atcontingency recruiters will not market candidates and
dealing with counter-offers, and managing candidateswill only recruit for employers.
until they are safely on board with their new position.The relationship between contingency recruiters and
Committed to confidentialitytheir clients is usually less intense, with less personal
Executive recruiters understand the privilegedcontact and a lower level of mutual commitment. It is
relationships they have and are committed to strictnot uncommon for an employer to use several
confidentiality -- both by professional ethics andcontingency recruiters on a single search, while
common sense.continuing to try and fill the position on their own.
Many employers want to keep hiring decisions andContingency recruiters usually manage eight to twenty
initiatives confidential from competitors, customers,assignments at a time, and maintain a one year
employees, stockholders or suppliers to protect against"candidate hands off" policy. They will usually present
unnecessary apprehension. Management resignationscandidates to multiple job assignments, and often face
are often private matters and require immediatepressure working similar assignments with different fee
replacements before the resignation becomes publiclevels. Contingency recruiters generally guarantee their
knowledge. Sometimes employees need to beplacements for thirty to ninety days, but some offer no
replaced without their knowledge. For theseguarantee. Although the placement fees are usually
assignments, an executive recruiter is usually the onlytwenty five percent to thirty five percent a candidate's
confidential solution.annual compensation, many contingency recruiters are
Candidates also need the confidentiality whichwilling to negotiate their fees and some charge as little
executive recruiters can provide. Many candidates areas fifteen percent.
willing to hear of outstanding opportunities, which couldIt is best to utilize a contingency recruiter when the
advance their careers, but few are willing to exploreposition is entry or mid-level management, when filling
those opportunities on their own in fear of jeopardizingthe position rapidly is more important than locating the
their current position. An executive recruiter is a"ideal" candidate, when filling multiple positions for an
third-party representative that knows how to gain theemployer with the same skill set, and when it is
confidence of nervous candidates.important to fill the position at minimum cost.c. Where
Objective professional counselto look for an executive recruiter
The objectivity and feedback from an executiveThe best place to find a good recruiter is to begin with
recruiter is invaluable to an employers. Recruiters knowan in-house referral. Talk with the human resource
how to advise and counsel management so that thedepartment and employer managers to see what
best hire gets made -- the choice with theexperience they have had with executive recruiters.
longest-range likelihood of mutual benefit andCheck with colleagues in other departments, peers at
satisfaction. They can help employers evaluate theirother employers or the local trade associations for
expectations, and bring industry expertise to assist withadditional recommendations. Another place to find
the development of job descriptions, reportingcomprehensive lists of executive recruiters is to
relationships and compensation programs. They canpurchase one of the major recruitment directories
also usually provide investigative reports on candidates,such as The Directory of Executive Recruiters, by
third party referencing, personality testing, foreignKennedy Publications, Hunt Scanlon's Executive
language proficiency assessment, relocationRecruiters of North America, or visit the many Internet
assistance and other specialized services.directories of recruiters such as the Recruiter's Online
Executive recruiters help balance the emotionalNetwork at What to look for in selecting an executive
reactions and biases of corporate management.recruiter
Likewise, the recruiter can act as a skilled intermediaryA proven track record. A good recruiter should have
-- a diplomat, if you will - to clear up misunderstandings,up to seventy five percent in repeat customer
straighten out miscommunications, and tactfully conveybusiness, and completion rates that exceed eighty five
each party's concerns to the other during negotiations.percent.
Cost effective investmentSearch results. For each assignment, find out how
The use of executive recruiters should be viewed asmany candidates will be sourced, contacted and
an investment in improving the quality of aninterviewed, and how many finalists will be presented.
organization's managerial might. The right choice canAvailability. If a recruiter is working on more than three
dramatically increase a employer's value; and thatcurrent assignments, you can expect limited attention.
value rises exponentially moving up the managementJunior associates are no substitute to the quality
chain. The fees associated with any particular searchrecruitment offered by an experienced pro.
become almost incidental considering the ultimatePerformers. Recruiters should be doers not overseers.
payback.They should conduct the entire search from initial client
A good way to view cost is to measure the cost of adiscussions to research, recruitment, interviewing and
bad hire. When an incompetent new employee makesfinal selection. Many recruiters will send their most
bad decisions, hundreds of thousands -- even millions --accomplished recruiter or "rainmaker" on presentations
of dollars may be lost. This employee will have to beto secure the assignment, but quickly pass on the
replaced and the overall downtime for having thework to junior associates. Find out if others will be
position unproductive can be staggering. Employersinvolved with the assignment and what their roles will
often engage executive recruiters to ensure that suchbe.
trauma and expense are kept to a minimum.b. TypesA recruiter not a recruitment firm. The recruiter is the
of Executive Recruitersone performing the search, not the firm.
There are basically two types of executive recruiters:Industry specialists, not generalists. Specialty recruiters
retained fee and contingency fee. Both retained andare more capable of completing an assignment quickly.
contingency fee recruiters perform the same essentialKnowing where to go to find the best talent, and
service. However, their working relationship with theirhaving the ability to quickly gain their confidence of
clients is different, and so is the way these recruiterstalent is essential for a timely result. Recruiters that
charge for their service. Retained and contingency feespecialize within the employer's unique segment of
recruiters each bring certain advantages andindustry are often more effective.
disadvantages to particular kinds of executiveAppropriate position specialists. Recruiters often
searches. Cost in fees is basically the same (twentyspecialize in lower, middle or executive level
five percent to thirty five percent of a candidate's firstassignments. Find a recruiter that specializes in the
years compensation), with the exception thatlevel position the employer is looking to fill.
out-of-pocket expenses are usually reimbursed forTrade association involvement. Association
retained recruiters.involvement helps establish a recruiter's reputation and
Retained recruitersnetwork of contacts. Find out what personal
Retained executive recruiters derive their name frominvolvement and contributions the recruiter has made
the fact that they work "on retainer." Employers paythrough participation in trade committees, writing articles
for their services up front and throughout thefor trade magazines, giving talks at industry events,
recruitment process. Retained recruiters are typicallyand other prominent networking avenues.
paid for the search process regardless of theTwelve month guarantee. Make sure if the new hire
outcome of the search, however most retainedresigns or is terminated within twelve months, the
recruiters allow employers to cancel the search at anyrecruiter provides a replacement at no professional
time for prorated rates.fee.
Retained recruiters provide a thorough and completeRecruiters with good references. Validate recruiter
recruitment effort, often involving multiple researchersclaims of successes and industry involvement. Speak
and recruiters on a single assignment. They usuallyto references that can discuss recent
create detailed reports on the employer, the position,accomplishments, ethical recruiting practices, and prove
their research and recruitment efforts, candidatelong-term, repeat business.
resumes, interviews, reference checks and otherPremium service. Cost is usually the lowest factor on
tangible services that add value to the search process.any hiring survey when employers are questioned on
They tend to work in partnership with the employer,the most important factors looked for in selecting an
offering expert counsel throughout the search, andexecutive search. The old adage, "you get what you
requiring exclusivity and control over the hiring process.pay for" is true in most cases when hiring an
The retained recruiter may participate in all clientexecutive recruiter.
interviews with candidates, all related discussions withinReasonable blockage. Check "off limit" policies. Find out
the client employer, all negotiations, offers, andwhat firms are "off limits" to the recruiter (protected
settlements. While the process may take three or fourfirms that cannot be recruited from). If those firms are
months, the hire is typically guaranteed for a year orlikely sources to fill the position, do not work with a
longer. Because a retained executive recruiter spendsrecruiter who cannot touch those executives.
so much time on behalf of each client employer, sheNational capability. A national recruiter can often recruit
can only work with a few clients at a time (usually twoa localized market effectively, but a local recruiter
to six). Retained recruiters will usually presentrarely can recruit a national market effectively. It is
candidates to only one employer at a time and willeven far more important to find a successful recruiter
maintain a two year "candidate hands off" policy.who will locate the best candidates than one who
It is usually best to hire a retained recruiter when anhappens to be based nearby.
assignment is critical or senior in scope (seventy five