The services of outside professionals are used by leading companies for legal, accounting, and many other special needs within an organization. Executive recruiters should be viewed in the same light: as skilled specialists who can identify the best candidates to fill important positions within the company.
There are many types of recruiters across what recruiters call DIG’s. This acronym stands for Discipline, Industry, and Geography. It’s important to identify what type of position you are filling and the type of specialist you may want to engage.
Discipline
This refers to the area of focus for example; Engineering or Accounting are just two examples.
Industry
Some firms are specialists in Medical Devices for instance or in the case of our firm we specialize in all things Furniture and big and bulky home products.
Geography
Does the firm specialize only in a narrow area of the country or do have experience working across the domestic U.S. and or Globally?
For example; we always recommend that you target a Recruiter with expertise in your industry. I get many calls from companies reporting they engaged a recruiter only to find out they had little to no relevance in terms of contacts and candidate access within our industry.
The sign of a great firm can mean that they will refer you to another specialist much like a lawyer or accountant will refer you to areas outside of their expertise, knowledge base, and reach.
Recruiters can bring many benefits to the table…
Confidentiality and discretion:
In some cases, organizations may need to fill a key executive position discreetly or navigate sensitive situations such as replacing an underperforming executive. Executive recruiters are experienced in handling confidential searches and can maintain discretion throughout the process, protecting your company's reputation and minimizing disruptions. Organizations with a key opening can be vulnerable. Confidentiality can keep competitors from being tipped off to management shake-ups, and new product and market initiatives, and can protect against employee and supplier apprehension. Recruiters value the sensitive information they become aware of during the search process and respect their client’s vulnerability.
Access to a larger candidate pool:
Recruiters can tap into an extensive network of contacts. Executive recruiters have extensive networks and access to a wide range of candidates, including passive job seekers who may not be actively looking for new opportunities. They have established relationships and connections with professionals in various industries, allowing them to tap into a diverse talent pool that may not be readily accessible through traditional recruitment methods.
Most often, the best candidates are already employed, and many of them will deal only with a recruiter. They appreciate the worth of third-party representation, confidentiality, and professional mediation. Recruiting superior candidates can be a complex process and is best performed by a professional.
Time and resource savings:
Recruiting for executive positions can be a time-consuming and resource-intensive process. Executive recruiters handle the entire recruitment lifecycle, including sourcing candidates, conducting initial screenings, assessing qualifications, and coordinating interviews. This allows your internal team to focus on core business operations while the recruiters handle the time-consuming aspects of the search process.
The benefit of using a recruiter can be weighed against the cost of preparing and executing an advertising campaign, screening, and qualifying candidates, and operating without a needed employee for an extended length of time, compared to the relative insurance of getting the right person for the job. The use of recruiters is an investment in improving the quality of an organization’s staff.
But even beyond that, the risk of not using recruiters can be great. For smaller companies – where one hiring mistake can have disastrous results – using recruiters is sometimes more important than for very large companies. People are a company’s more important assets. They can make or break the fortunes of a business.
Objective assessment and evaluation:
Executive recruiters employ rigorous evaluation methods to assess candidates, including in-depth interviews, reference checks, and skill assessments. Their expertise allows them to provide an objective and unbiased assessment of candidates' qualifications, fit with the organization, and potential for success in the role. This reduces the risk of making a poor hiring decision and increases the likelihood of finding the right candidate.
Negotiation and closing:
Executive recruiters can facilitate the negotiation process between the hiring organization and the candidate, helping to ensure a mutually beneficial agreement is reached. They have experience in handling compensation packages, contract terms, and other critical aspects of the hiring process, improving the chances of successfully closing the deal with the desired candidate.
Overall, utilizing an executive recruiter can enhance the efficiency, effectiveness, and success of your executive search process, enabling you to secure top-tier talent that aligns with your organization's strategic objectives and long-term vision.
When hiring an executive recruiter, it's important to consider several guidelines to ensure you choose the right partner for your executive search.
Here are some key guidelines to follow:
1. Define your needs:
Clearly articulate your organization's needs, including the specific position you are looking to fill, the desired qualifications and experience of the ideal candidate, and any unique requirements or challenges associated with the role. This will help you communicate your expectations to potential executive recruiters and ensure they understand your specific hiring needs.
TIP: If the firm does not conduct a thorough needs assessment they may be just a resume-matching type firm. We call them Post wait meaning that they generally operate by taking e job orders posting them to job boards and wait for candidates to apply.. These are generally high-volume firms that perform what is called Contingency search.
2. Evaluate their expertise:
Look for executive recruiters who specialize in your industry or have experience in filling similar executive roles. Assess their track record, reputation, and success rates in placing executives in positions comparable to what you're seeking. Remember DIG from above.
3. Confidentiality and professionalism
Executive recruiters should demonstrate a high level of professionalism and maintain strict confidentiality. Inquire about their protocols for handling sensitive information and ensuring confidentiality during the search process. Trust and discretion are critical when dealing with executive-level positions.
4. Fee structure and terms
Understand the executive recruiter's fee structure, including any upfront costs, retainer fees, and success rate.
Clarify the terms of the agreement, including the duration of the search, any exclusivity clauses, and guarantees regarding candidate placements.
Review the contract carefully and ensure you have a clear understanding of the financial arrangements.
Professional recruiters can deliver the right people for today’s highly competitive business environment.
I always tell clients that when they hire our firm to think about the fee as an investment. We are engaged with you for generally a 45 to 90-day period depending on the project scope. We are consultants and experts so we will act as your talent arm and an extension of your team.
Let me provide an example of what the costs are for one full-time talent acquisition person in the United States which can vary based on several factors, including the specific location, industry, level of experience, and the company's size and budget.
On average, a talent acquisition specialist's salary in the United States can range from $50,000 to $100,000 per year.
Benefits:
In addition to the base salary benefits may include health insurance, retirement plans, paid time off, and other perks. As a rough estimate, benefits can amount to 20-30% of the employee's salary.
Payroll taxes:
The employer's portion of payroll taxes can range from 7-10% of the employee's salary.
Recruitment expenses:
These expenses can include job board fees, recruitment agency fees (if applicable), background checks, drug tests, and other pre-employment screening costs. The amount spent on recruitment expenses can vary based on the company's recruitment strategy and specific requirements.
Overhead costs:
overhead costs associated with employing a full-time talent acquisition person, such as office space, equipment, software tools, training, and professional development.
Bottom line:
I estimate this number to be closer to $90.0 to $110.0 on average per year depending on geography and other variables. I think there are a few areas of the country that may be lower based on geography and the labor market.
So there you have it, just a few tips for hiring an executive recruiter.
By following these guidelines, you can select an executive recruiter who has the right expertise, resources, and approach to effectively assist you in finding top-level executive talent for your organization. There are many times when I will refer potential clients to other firms if it falls outside of my expertise. I hope that these tips will help you determine who is best suited for your next search.
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Bill O’Malley is President of Connector Team Recruiting a firm headquartered in Charlottesville, Virginia specializing in the Furniture | Appliance and Sleep verticals. Connector Team is a full-service Search Firm offering permanent placement recruiting and interim staffing solutions.
Feel free to contact Bill at bill@connectorteamrecruiting.com.
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