How to Select the Right Executive Search Firm

In a perfect world, your firm would find the best candidate and conduct the right executive search with ease. However, the reality is that the failure rate of executives at new firms is increasing. You know that making a hiring mistake without the right executive search firm can cost you time and your company direct and indirect costs. It’s a tough hiring market, but the process doesn’t have to be challenging to find the best candidate for your executive position. 

What’s the solution? Choosing the right executive search firm. Here’s how you can do just that and reduce your hiring risk. 

What Are the Main Functions of an Executive Search Firm?
When seeking out the right executive search firm, it’s important to first understand what these search firms provide for you and your company. 
Reputable executive search firms do the following: 

• Tap into their network of contacts within the industry to find the best candidates.
• Conduct extensive interviews to thoroughly screen candidates.
• Confirm previous employment and seek out references.
• Partner with your company to oversee the entire search process—from conducting the first initial meeting to coordinating the offer and acceptance. 

Interested in learning more about flexible leadership options? Read, ‘4 Reasons to Consider an Outsourced CFO.’

Benefits of Using an Executive Search Firm
Developing the right executive search for open positions is crucial, and the right executive search firm can save you time and potential losses by handling the search. Executive search firms serve as recruitment specialists and do all the behind-the-scenes work when it comes to hiring. Their approach is much more specialized and they work closely with clients to ensure they are recruiting only high-level and high-quality candidates with the skills and experience desired. 
The benefits of conducting an executive search with the right company are many: 
1. The right executive search firm has access to a hidden network of high-performing professionals.
Especially when companies have exhausted their list of network connections and referrals, calling in the right executive search firm to expand the list of potential candidates is beneficial.  

2. When you do not have adequate in-house resources to conduct a high-level candidate search, the right executive search firm can save you time and money.
These firms are highly skilled at reviewing resumes and CVs properly to identify whether candidates have the best skills and demeanor to lead within your organization. 

3. It’s no secret that the implications of hiring the wrong person can significantly impact your organization, the overall morale and productivity.
Leadership positions are too important to not invest in an executive search, especially when seeking C-suite positions. 

4. It can be difficult to attract high-level candidates who bring diversity and knowledge to your company.
With the right executive search firm, a skilled search team can help fill the knowledge gap and bring greater diversity into the top-level positions at your organization. 

5. Experienced executive search firms thoroughly screen candidates to ensure that they have the drive and the skills to become long-term employees.
Turnover is expensive, so putting more time and effort into an executive search can help improve retention and reduce that turnover. As a result, both your company and the chosen candidate can achieve long-term success. 

6. Conducting an executive search discreetly is often a challenge when you are utilizing in-house resources.
That’s why it’s critical that you choose an executive search firm that is reputable and can be trusted. Outsourcing high-level executive positions relieves you of workplace secrecy without giving up the trust and control. You get the opportunity to work with an impartial team who is aware of the qualities and skills you desire in a candidate. 

How Do Executive Search Firms Find the Right Candidate?
While it is true that many executive search firms have an expansive database of qualified candidates, it is also true that finding the right candidate involves much more than scouring an existing network. 

The process of finding the best candidate and conducting an executive search involves: 

• Identifying key qualities of executives in similar positions at similar companies.
• Drafting a detailed ‘litmus’ for the position.
• In-depth candidate screening and vetting.
• Reference checking.
• Creation of behavioral profiles.
• Developing interview questions.
• Interview scheduling.
• Completion of candidate ranking grid and top candidate slate.
• Coordination of the acceptance process.

Deep research is a necessity when conducting an executive search and that begins and ends with communicating thoroughly with clients to determine the qualities, skills and experience of the ideal candidate. 

What You Should Look for in an Executive Search Firm
When you make the decision to partner with an executive search firm, selecting the right executive search firm may seem like a daunting task. Begin by creating a checklist of what you truly need from these experts. 

Consider these questions to narrow down your choices: 

• What is the executive search firm’s process?
• What is the executive search firm’s reputation within the industry? 
• Which individuals will be in charge of handling the executive search for your company?
• Does the team fully understand the strategic, financial and operational importance of the search?
• What is the executive search firm’s knowledge base regarding the position and your company?
• Does the executive search firm offer any post-hire services?
• How does the executive search firm charge for services (retained vs. contingent) ?
• What metrics are in place to evaluate recruitment and retention rates?

Another consideration when seeking the right executive search firm for your company is to determine which type of firm has a proven track record in your  industry.

Types of Search Firms
Search firms are often classified as contingent or retained, with varying specializations. 

A search firm classified as contingent is only paid when a candidate is hired. In some cases, contingency firms can fill a position more quickly. 

Another type of search firm is one that is hired on a retained basis. For example, once you retain this type of search firm, you pay at the onset or at key points of each search, which usually results in a hire, although not always.
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Choosing the Right Executive Search Firm
While it does take ample time to conduct a successful executive search, know that by choosing the right executive search firm, you will gain a return on your investment. 

At Lauber Business Partners, we understand what it takes to find, approach, and secure the right executive leaders to advance our client’s goals. If you have any questions regarding our executive search services or want to learn more about how your organization could benefit from a Lauber Business Partner, please contact us.