Recruiters typically focus on sourcing junior positions up-to and including lower-level management. Within this broad remit, some choose to differentiate themselves by specializing by experience level, for example, entry level or graduate jobs, or intermediate or experienced non-managers. Senior, Executive or Top-Level Management roles are a high-risk proposition for recruiters due to their preference for contingent-based business model. The type or roles filled vary with industry and organizational size, but if the role involves supervising employees, or the role itself reports into an individual with no direct reports, then consider appointing a recruitment agency who serves your local area.

Executive Search Firms, as their name implies, focus on attracting highly skilled and experienced senior managers and executives to fill strategically important roles within an organization. Typical titles includes C-suite, President, General Manager, Vice President (all guises) Director (all guises) and Senior Management. If the role has strategic oversight, either for the entirety of the organization (top-level management) or for a division or department (middle-level management), consider appointing an Executive Search Firm specializing in your industry or business function.

Confused by the difference between executive search and recruitment? You’re not alone.

The terms are frequently used interchangeably, even by those working within the staffing industry. However, while Executive Search Firms and recruiters share the same objective – finding the right person for the right role at the right time – there are subtle differences in their business model and methodology. However, choosing for working with an Executive Search Firm will likely depend on these criteria:

Candidate level

Executive Search Firms, as their name implies, focus on attracting highly skilled and experienced senior managers and executives to fill strategically important roles within an organization. Typical titles includes C-suite, President, General Manager, Vice President (all guises) Director (all guises) and Senior Management. If the role has strategic oversight, either for the entirety of the organization (top-level management) or for a division or department (middle-level management), consider appointing an Executive Search Firm specializing in your industry or business function.

Methodology

Executive Search Firms, in contrast, employ proactive search methodologies targeting both passive talent – candidates who are either employed or not seeking a role change – and “stealthy” – candidates who are not yet applying for roles but are networking. Passive candidates and tiptoers comprise approximately 60% of the talent pool and are not actively interviewing. They might even work for a direct competitor! This makes passive candidates and tiptoers a desirable talent pool. However, in recent years, pioneering firms have extended their coverage to active job seekers, using job adverts and other traditional channels to complement the search (providing the search is non-confidential). This ensures they reach out to the best candidates irrespective of their circumstances. As the industry continues to evolve, some Executive Search Firms have expanded beyond tradition search and selection to provide their clients with leadership advisory services.

Business model

Executive Search Firms, on the other hand, operate on a retained business model. This means they charge an upfront fee which typically equates to 33% of the fee total. This initial investment reflects the rigor of the search process and the resources required to deliver it. Your executive search partner should take the time to understand your market offering – your mission, values, culture – as well as establishing the skills, experience and competencies essential for success in the role. Together with a signed-off performance job description, the consultant can take your role to market. The remaining fee will be payable on placement (a success-focused fee) or paid as instalments during key milestones in the search, for example, after submitting a shortlist of candidates.

On the rare occasion that a search is unsuccessful, a reputable Executive Search Firms will provide a shortlist free-of-charge. An Executive Search Firms offer a guarantee period whereby they will redeliver a search should an individual they place leave their role prematurely. This guarantee period typically lasts three months after offer acceptance.

Don’t get me wrong, I’m all for an energetic and competitive market, and there’s a space for everyone who’s enterprising enough. It’s up to businesses though to understand and align their needs and expectations. For example, a company might an office assistant who can be a fresh grad or with less than 2 years’ experience; there’s really no need to spend fees on a specialist to help you find one. However, if you’re looking for a Senior Site Director with solid experience in Supply Chain projects, it’s not quite so easy.

In our Executives United case, we’ve been fortunate that we have a list of clients who see the value in our service; it puts us in a good place where we can thrive on competition and push standards higher.

Companies should seek win/win relationships from their Executive Search firm and engage specialists, not generalists. In the end, it is not the price and fee that is important, however finding and committing the right candidate to the company. Let’s face it, every month that the vacancy is not filled costs a company a multiple of the Executive Search costs.

Pay peanuts, get monkeys? No absolutely not, our advice is to make it a high priority to fill the vacancy correctly and thoroughly with a candidate who can develop himself and therefore stay longer.