How to select an Executive Search Firm
Selecting a search firm can be a daunting task for many companies.
The search industry is one where there are very few barriers to entry, so as a result there are many firms to choose from and they all vary in both size and in quality.
So how do you choose the right search firm for your company?
Here is my advice broken into steps.
1. Start by selecting people who are knowageable and passionate about finding talent.
These are likely people who may have reached out to you as a candidate.
Who were the ones that impressed you with their knowledge of your skill set, asked the right questions and were respectful to you as a candidate.
Chances are that they are also this way with other candidates and would act this way if they represented your firm.
It is also good practice to stay in touch with recruiters even when you are content in your position.
Not only will they be better able to understand you and your strengths, but they will also have a better understanding of what you require and better understand your corporate culture and what type of employee will work best in that environment.
Quite often executive recruiters will also feed useful information on what they are seeing in the marketplace from both a position perspective as well as an industry perspective. If you do not already have a short list of search people that you can call, you should then move directly to step 2.
2. Ask friends which people they like to work within the search industry.
It is important to ask what people as oppose to what firms because successful people will often leave large firms to start their own companies where they can become better compensated.
It is also best to ask people from outside your industry as firms that service the same industry typically do not contact candidates who work for their clients.
You will want to make sure that you are allowing yourself to select from the largest pool of candidates possible.
3. Once you get the names of as few potential search specialists pick up the phone and call them.
If they call you back promptly that is a good sign and this can also indicate how quickly they get back to candidates and keep them engaged in the search process.
Next it is important to phone screen these potential suppliers on the phone.
4. Ask them questions on their experience servicing clients that would be considered position or industry relevant.
During this call you will want to be able to look for some depth in their answers as oppose to listening to them give a sales pitch.
Ask questions that make them provide specific insight and observations regarding the position and or industry. These would be questions that a promoter would not be able to answer.
If you are a flooring company ask them about trends that they have seen within the construction industry or the floor covering business in general.
Someone with even some knowledge or someone who provides thoughtful answers to these questions is what you should be attracted to in a supplier.
Watch for vague answers or suggesting that other people on the team are the experts.
It is also important to get a decent feel for the passion and the energy of the individual.
This is vital because enthusiasm and a firm’s ability to market your company is the key to getting the best candidates engaged in the process and then presented to you.
If you are happy with both the enthusiasm as well as the general conversation you should next set up a meeting.
5. During the meeting with the search firm, did they tailor their presentation specifically for you?
Did they impress you with the homework that they conducted on your company as well as display knowledge on the industry in general?
If they came with a generic presentation than the firm is probably not the right fit for you.
6. During that first meeting and after you have explained the position and the firms needs to the search company, it is time to ask the potential supplier some key questions.
a.
How would you describe our needs as a client?
b.
How would you describe our business and culture?
c.
What do you see as the main challenges that you would face in this assignment? (They better provide more feedback than just that the salary is too low.)
d.
How would you describe the role to a potential candidate?
e.
How long do these searches take?
The answers to these questions should show thoughtfulness and should show decent preparation.
7. Then it is time to ask a couple of very important questions.
a.
What parts of the search will you personally handle? This will allow you to determine whether the knowledgeable and charismatic person will actually be working on your firms behalf or whether they will hand off the assignment because they are focused on business development for their firm.
b.
Who calls prospective candidates?
These are the people selling your company so it is important that they are knowledgeable and not too junior.
This is why it is often beneficial to go with a smaller company as often the person doing the recruiting is in attendance during that meeting and you can gauge their knowledge and enthusiasm right there.
If you select a large company it is recommended that whoever is calling potential candidates also meets with you so that they can better understand your needs and culture and this will also allow you to gauge their competency and enthusiasm.
8. Then it is time to ask about the key details.
a.
Ask about the fee.
What is the structure and how is it paid.
It is important to avoid any surprises.
b.
What about the billing expenses?
What is the expected amount?
Travel arrangement expenses etc.
c.
Ask about the terms of the contract
d.
Ask about the search process.
A defined process will allow complete transparency.
e.
Ask about the hands off policy (which companies they can and cannot approach.
You will also want to ensure they can target companies of interest for your firm)
f.
Ask about the frequency of search updates
Good luck!
Farewell,
Mike