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Executive Search Firm Manual
Types of Executive Search Firms
Selecting an Executive Search Firm & Individual
How Executive Search Firms Perform a Search
Working with an Executive Search Firm
Expections for an Executive Search Firm
Categories of Executive Search Firms
Types of Executive Search Firms
There are thousands of search firms in North America. Executive search firms are classified by the way
they earn their fees: retained or contingency.
Contingency firms work on behalf of the applicant. Generally, their business model is to actively solicit
junior and middle management positions from companies, while at the same time, seeking resumes that
they try to match against these openings. The process is applicant-driven and fees are collected from the
hiring company after the person is placed. They service middle-manager and lower positions.
Retainer firms work exclusively on behalf of the company. Their activities are driven by the needs of the
company. Retainer firms are used to fill very specific senior management and executive-level positions.
These firms will spend a considerable amount of time learning about the functional requirements of a
position and its cultural environment to develop a detailed position description. Their next step will be to
develop a list of target firms from which to recruit. A retainer (about 1/3 of the candidate's first year
compensation) is paid up-front to the search firm and in most cases, a slate of qualified candidates is
presented to the hiring firm for evaluation.
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Selecting an Executive Search Firm & Individual
There are a variety of ways to identify appropriate search firms. Think about both your function and your
industry. Ideally you would like a firm that has an expertise in both your target function, industry, level and
geography. Most large International firms handle most industries, functions and levels.
Typical methods of identifying firms include the following:
1) Contact search firms who have called you in the past.
2) Talk to colleagues, job seekers and other executives in your industry to gain company and contact
names.
3) Search database of executive search firms (e.g. careerjournal.com, searchfirm.com, or Kennedy
Group, Directory of Executive Recruiters) - include both contingency and retained search firms.
4) Review websites of search firms to see some or all of the following: marketing materials, typical
positions handled by the firm, bios of recruiters, list of previous clients and some open searches.
Once you have identified a target list of search firms, choosing the right firm and an individual consultant
to work with requires research. During your research, consider the following factors.
Size vs. Capability: It is generally accepted that the number of offices or consultants does not
necessarily impact the ability to handle a search assignment successfully. It is more important to
understand the capability of the firm to provide the resources needed by its professionals to research and
identify the best possible candidates.
Overall Track Record: References and a firm's track record in your industry and function are important.
The firm's reputation, and more specifically the individual consultant handling the assignment, can be
evaluated through comments on past performance or the percentage of repeat business.
Guarantees & Liabilities: Remember it is misleading for a search firm to guarantee that you will be
placed in a position. Be cautious of search firms that over promise.
Qualities of Consultant: Consultants should have excellent communication and presentation skills;
sufficient industry and functional knowledge to make sound recommendations; perception and
assessment skills; determination and tenacity; persuasiveness; and honesty. In determining if the search
firm and the consultant have these skills think about the following questions:
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Will the search firm/consultant be a credible ambassador for you?
Are you comfortable with the approach of the firm and the consultant?
Does the consultant understand you and your interests, concerns and limitations?
Does the firm/consultant have the right experience to handle your search?
Will the consultant give you top priority?
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How Executive Search Firms Perform a Search
Once an executive search firm has been selected by a company, the multi-step process of professional
executive recruiting begins. Each step is managed by the search firm in partnership with the client team.
The key stages of executive search include: evaluation of the employment need, research, candidate
screening and reference checking, candidate "short list" identification, interviews, negotiations and hiring.
To understand the process, it is necessary to understand the incentive structure at search firms. Fees are
generally split based on who generated the lead and who solved the search. Based on this fee structure,
most recruiters prefer to solve the searches for the leads they generate. By solving their own searches,
they are credited with the full fee. However, there are exceptions to this practice. Some of the more senior
recruiters may generate more than they can handle and may pass on the execution to more junior
consultants.
More specifically, the search begins with extensive evaluation of the client need. The search firm works
closely with the client to arrive at a thorough understanding of the company, its culture and organization,
and the specifications of the position to be filled. Job specifications include title, department definition,
reporting structure, and details of compensation. Most importantly, they focus on competencies/skills
required to do the job well.
Once prepared, a draft of the position description is submitted in writing to the client team for approval. It
is imperative that the job description reflect a clear understanding and agreement between the client and
search consultant before proceeding.
When the job description is finalized, the intensive research phase of the search commences. The search
firm engages in extensive industry research and networking; existing sources are contacted, leads are
vigorously pursued. If the client wishes, an internal search of the client company can be performed to
identify company employees suitable for possible transfer or promotion.
Based on research well underway, the search firm contacts prospective candidates by telephone and
begins screening interested and promising candidates. Personal interviews ensue in parallel with
thorough reference checking activities. The consultant in charge of the search will manage the potential
candidates - from the initial approach call to taking up references. This builds trust throughout the
assignment.
Good consultants regularly report their progress and, at some agreed-upon point, present a strong
candidate pool to the client. Consultants sometimes recommend the best candidate(s), though the client
and recruiter often arrive at an initial selection of the most promising candidates. Client interviews are
usually arranged with the best three to five prospects. The search firm prepares the client to meet the
candidates and may or may not attend the interviews.
After the successful candidate has agreed to accept the position - and when candidate and client have
agreed to acceptable terms - the dynamic aspect of the search effort is complete. Although a search is
not closed until the candidate shows up for his/her first day of work. Most search firms "guarantee" their
executive candidates for 60 days (contingency firms) to a year or more (retainer firms). The search firm
will replace an executive should he/she leave the client company for any reason. Often these
replacement searches are free or at a greatly reduced price. The search firm stays in touch after the new
hire comes on board to help smooth the transition and assure client satisfaction.
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Working with an Executive Search Firm
One of the biggest factors thwarting a candidate's ability to open the door to a recruiting firm is his/her
own self-awareness. Candidates should not send a resume for every job a search firm has. It is not
possible for the candidate to be qualified for everything. In other words, to market yourself effectively,
candidates need to know who they are and what they're all about. Before approaching a search firm,
know what you are looking for and how to present yourself in a package. Be able to articulate and
highlight your experiences and accomplishments - including your education and other credentials.
Making contact with a search firm can be challenging. Start by contacting search firms that specialize in
your field, function or geographic area. Increase your visibility among recruiters as well as professionals
by joining an industry association, attending initiative speaking engagements, writing articles for industry
trade or professional publications and sending your resume to a list of recruiters. Many recruiters attend
professional organization or alumni meetings to network. Always try to respond to a recruiter's request for
a referral. By supplying a name or by being thoughtfully polite and helpful you will make it onto their radar
screen.
Try to identify the consultant or researcher who specializes in your industry. Some firms have a detailed
listing of consultants and their area of expertise on the company's website. Many of the large International
firms expect those at the director level and below to post their resume and complete a questionnaire on
their website.
Not every resume received by a search firm is entered into its database. The criteria for inclusion is strict including the quality of the resume and cover letter, previous accomplishments and experiences, the
salary requirements, resistance to relocation, etc. Salary is typically the biggest stumbling block. Most
retained firms do not accept assignments for positions paying less than $100,000 annually, while
contingency firms maintain a lower minimum salary level for the candidates they represent.
While your file is being used by a retained recruiter for an assignment, no other recruiter at that firm can
contact you, even if you would be the perfect candidate. As a result, you are unlikely to be under serious
consideration by a firm for more than one or two positions a year, at most. In addition, some recruiters
may be extremely guarded of their prime potential candidates, wanting to draw on them when they have
an appropriate search. This makes it necessary to often establish more than one relationship within major
firms and to personally enter your resume into their database.
Be aware that many consultants at top firms will not talk to candidates unless the candidate has been
referred. In addition, search firms are typically only interested in the job-seekers who fit their current
openings. Research indicates that it is best to mail a resume with cover letter, and follow up by telephone,
e-mail or mail. If you follow-up with a telephone call, have a tailored 30-second introduction and attempt
to set up a personal meeting. Be sure to write a thank you note.
If search firms want to speak with you, it is helpful to be prepared for the type of questions you will
encounter. The search firm is screening you to determine whether your job history matches your resume
and if you'd be a good fit. Questions could include some of the following:
 "What is the biggest misperception people have about you?"
 "If I was to call your boss, and asked them about you, what would he or she say?"
 "What motivates you at work?" / "What gets you up in the morning?"
 "Take me from college to the present in your career."
 "If your internal business clients were going to spend money on your training and development, what
area might they spend it in?"
Furthermore, if you are changing industries, ensure you prepare for conversations with search firms by
having in-depth knowledge of your desired industry, including common jargon, networking with industry
experts and demonstrating your functional expertise. Some functions/positions are seen as being more
transferable across industries (e.g. CFO, CEO, CIO, etc). By focusing on competencies/skills to do the
job, you may jump industries or functions.
Recruiters engage in behavioral-based interviewing around the competencies/skills required for the
position. Using past experiences and accomplishments as an indicator of future performance, they focus
on specific examples of how you did something. Having great stories to illustrate your abilities in the
desired competencies is a must whether being interviewed by phone or in person. The best way to
prepare is to realize there's often a motive -- something the recruiter is trying to learn about you -- behind
each question, no matter how simple. If you take the question at face value and don't think about what the
recruiter wants to gauge, your answer could trip up your candidacy. Honesty is always the best policy if
you have a skeleton in your closet or other issue that might damage your chances. Executives who know
themselves well and are self-confident tend to fare best when talking with recruiters. Typically they have
little to hide and other options besides the job in question, so they aren't nervous about responding.
Remember, search firms may want to speak with you to assess you as a candidate, to identify who the
best people are for an assignment, take up references or even just update their information on an industry
or function. Take advantage of the opportunity to develop the relationship - regardless of the purpose of
the contact. Establishing yourself as a credible source of candidates is an excellent way to develop and
nurture a solid relationship with a search firm.
Once you gain an entrance into the search firm, remember the process is not a one-way street. To
facilitate the process and advance your standing abide by the following tips:
Present yourself professionally as if you were on an actual job interview
 Bring copies of your resumes to any meeting with a search firm
 Educate yourself - on the search firm and the client organization
 Understand the areas of expertise of the firm
 Understand the candidate assessment process used by the recruiting company and executive search
firm. Determine precisely what a search firm is going to do to assist you. Have realistic expectations understand the process takes time and you are not the only candidate.
 Negotiate in good faith
Be honest and open with consultants about your background, education, salary and interests
Remember the firm works for the employer and not you
Never pay a fee to a search firm
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Expectations for an Executive Search Firm
A small number of students get positions through executive search firms. For the Class of 2004, less than
2% landed their position through an executive search firm. As such, it is important to remember to focus
your job search time and energy proportionally. In addition, the biggest mistake students make is thinking
a search firm is going to get them the job. The search firm is going to fill a position at their client
organization. Only if you meet their needs and the client's needs, will you get lucky and land a position.
Once you have passed the screening process and are considered a candidate, you should expect the
following from a search firm:
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Confidentiality: To ensure this confidentiality, the consultant should obtain your authorization
before submitting your name to a client organization.
Full Disclosure: You need to know as much as possible about the search firm you are talking to,
the position and the client organization. This requires full and open disclosure from the search
firm to you regarding the nature and requirements of the position, the compensation package,
whether relocation is required and pertinent information regarding the client organization.
Timely Communication: The completion of an executive search assignment can often take
several months or more. The search firm should communicate with you in a timely manner at
each step of the process.
Feedback: The consultant should give you an honest appraisal of where you fit the opportunity
and where you do not fit.
Adequate Process Details: You are entitled to know what to expect as the process unfolds.
Respect for Your Time & Position: The consultant and the client should demonstrate respect
for your time, position and responsibilities.
Consistency between the Search Firm & Their Client: The consultant and client should always
do their best to be on the same wavelength regarding the information they present to you.
No Pressure: The consultant should not hurry or pressure your decision. However, the
consultant should inform you of any client deadlines and the implications for not making a
decision prior to those deadlines.
Conclusion to the Search: If the client decides to hire you to fill the position, the search
consultant plays a key role in negotiating the package. Both client and candidate actually benefit
from the retained recruiter's dispassionate perspective. If the client decides not to hire you, most
consultants will want to keep you in their pool of candidates for future assignments. The
relationship with your consultant does not end with a successfully negotiated package. You
should maintain a relationship with this consultant throughout your career.
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