An advertisement waits for people to come; a search goes to the people
A job advertisement works by waiting. The company puts out information, and people who are looking for work apply. For staff and first-level management roles this is often good enough, because qualified people really are looking.
For director-level roles, heads of division and business unit leaders, the situation reverses. The people you need most are usually employed, valued where they are, and not looking at anyone's vacancies. They do not apply. They have to be approached, spoken to with care, and persuaded that moving is a sensible decision.
This is where executive search starts. The firm maps who could realistically hold the role, approaches them directly and in confidence, assesses each one, and then presents a small number of tested candidates to the client.
Four tasks that set it apart
- Clarifying the role. Before looking for anyone, the firm sits down with the client to set out what results the role is expected to deliver, which requirements are truly binding, and what can be trained. A job advertisement usually copies the old job description.
- Mapping the market. The firm builds a list of people who have held similar responsibilities, at comparable companies and in adjacent industries. The list is longer than you would expect, and most of the people on it will never apply.
- Approaching and screening. The first approach is personal and protects confidentiality, both the candidate's and the client's. Screening is done through in-depth conversations, not by reading CVs alone.
- Presenting with a basis for assessment. The client receives a report on each candidate that explains why the person fits, what the evidence is, and what still needs to be checked.
When a company should use it
Executive search makes sense when three things come together: the position is decisive, the supply of candidates is limited, and a wrong choice is costly. Some signs that commonly appear:
- The position is new or has been restructured, so there is no internal comparison.
- An advertisement has been placed, but the applicants do not reach the level you need.
- The company does not want the market to know the position is being filled, for example because the current holder is being replaced.
- Shareholders or the board want an external benchmark before choosing an internal candidate.
- The role demands very specific experience, for example leading a transformation in a tightly regulated industry.
Conversely, if the position attracts many clearly qualified applicants, an advertisement or an internal search is often enough. Not every position needs a search, and an honest firm will say so.
Retained and contingent: the difference is who is paid for what
These two terms come up often. Under the retained model, the company pays the firm to run the search for as long as the process lasts, so the firm has reason to work thoroughly and to decline unrealistic mandates. Under the contingent model, the firm is paid only if its candidate is hired. The second model rewards speed, and often ends with as many CVs as possible being sent so that one is chosen.
For leadership positions, many companies choose retained because what they are buying is not a CV but the rigour of the process. Whichever model applies, make sure you understand what the fee covers, how long the guarantee period lasts if the placement does not work out, and who does the day-to-day work on the search.
Questions worth asking a firm
- How do you map candidates, and how many people do you usually approach for one position?
- How do you assess candidates, and what does the report I receive look like?
- Who handles my mandate day to day, and will it be the same person until the end?
- How do you protect the confidentiality of my company and of the candidates?
- What happens if the candidate who accepts withdraws or does not succeed in the early period?
What you buy from executive search is the rigour of the process and the willingness to turn down a candidate who looks good but is not right.
What no one can promise
No firm can guarantee that someone will succeed. What it can promise is a process that makes your decision more sound: a clear role, a mapped market, evidence-based assessment, and an honest report on the strengths and doubts of each candidate. Be wary of promises that sound too certain.
What the process looks like week by week
A leadership search is rarely finished in a matter of days, and that is normal. The time it takes depends on how scarce the role is, how ready the client is, and how quickly decisions are made. The sequence of work is fairly consistent.
- Week one: briefing, drafting the scorecard, and agreeing who decides. At this stage almost no candidates are contacted.
- Weeks two and three: market mapping and first approaches. Many of the people approached will decline, and that is not a sign of failure. Declines often tell you how the market sees the role and your company.
- Weeks four to six: in-depth conversations with interested candidates, assessment against the scorecard, and narrowing down to a few names.
- After that: presentation to the client, interviews, reference checks and an offer. This stage most often runs long because of the decision makers' schedules.
The timeline above is a general picture, not a promise. A very rare role can take longer, and an honest firm will say so from the start.
The role of confidentiality in a search
Confidentiality is part of the value a search firm sells. For the client, news that a position is being filled can affect employees, customers or the market. For the candidate, news that they are weighing an offer can damage their standing in their current job.
For this reason the first approach usually does not name the company until the candidate shows interest and both sides agree to continue. Documents sent to candidates and to the client are handled so that they do not leak through unnecessary routes.
What should raise suspicion
- A firm that sends many CVs within days without any assessment.
- A firm that will not explain how candidates are found and assessed.
- A firm that charges candidates a fee. In a search run on a company's mandate, the party that pays is the company, not the candidate.
- Promises of a particular result, such as a guarantee that the candidate will succeed or that the search will finish within a fixed time.
A note to put into practice
Before contacting any firm, write one page: what you expect this person to achieve in their first two years, three requirements that cannot be negotiated, and one thing that can be trained. That page will sharpen your conversation with the firm considerably, and it will often show that the role you have in mind still needs tidying up.
