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ARTICLES:
International
Group
CHASEAMERICA, Inc.
Executive search firms sometimes get lumped together with employment agencies and contingency firms. This results from a lack of understanding of what executive search is and is not. Here are 10 key areas where retained executive search differs from the other types of practitioners. These differences can help senior managers know how to work with retained firms and why they can be your best friend.
Retainer executive search firms work for employers only. They do not represent the candidate seeking a job. If you are an HR person or retained executive search candidate these firms know what is going on in your market, which provides great market intelligence; and can make you aware of career opportunities into the future.
Retained executive search firms work on exclusive assignments. They are not in competition with other firms and do not paper clients with resumes of candidates they’ve never interviewed and pre-screened.
Retained executive search firms usually work at senior management levels, unlike employment agencies or contingency firms who work at low to middle levels.
Retained executive search firms maintain a database of executives in different industry sectors, depending on their industry practice, that are employed and have been recommended as quality people. They are constantly talking to execs in their markets and have relationships with them.
Retained executive search firms rarely recruit the unemployed.
Retained executive search consultants typically invest 40-160 hours per month per client in recruiting, evaluation, screening and client interaction. Contingency and employment agencies don’t invest much time in candidates; their goal is to push as many people within a couple of weeks to see if any stick.
Retained executive search firms may begin looking at 50 potential candidates and end up usually recommending 3-5 highly qualified and rank candidates to the client company in 4-8 weeks.
Retained executive search firm fees range from 25-33% of compensation (or flat quote) plus expenses and are paid in installments by the client company.
Retained firms get authorization usually by company management and human resources management for the search and provide rigorous selection criteria.
Retained firms offer a professional guarantee of candidate success and are committed to results, including the promise not to recruit candidates from the client company for competitors. Contingency firms and employment agencies are under no obligation to guarantee and their results are placement only.