More and more companies are using executive search firms to secure top talent, not only for management positions like directors and outside directors, but also for talented managers and executive officers. But what is executive search, and how does it differ from regular recruitment?
In executive search, experienced consultants with industry-specific expertise receive specific requirements from the hiring company’s management. These consultants then research candidates from all channels, carefully source and introduce them to the company. This article will introduce the purpose of executive search and the features of JAC Group's executive search services.
What is Executive Search?
Executive search is a recruitment method for top management positions. It focuses on finding and recommending talented people with advanced expertise and leadership skills.
Unlike regular recruitment agencies that introduce candidates from existing job seeker databases, executive search finds candidates through various networks. Executive search consultants carefully select candidates based on a deep understanding of the hiring company and its needs, and then approach them. When recruiting for management positions, the target person is not necessarily thinking about moving to another company. Consultants at executive search firms utilise their wide network and experience as headhunters to contact potential candidates. Then, they work with the company to further narrow down the candidates, ultimately creating a meeting point between the target person and the hiring company.
The key advantage of executive search is that it can secure a commitment from top management talent, something that is difficult to do through regular recruitment activities. Mismatches in the recruitment of top management can have a major impact on a company's future. Furthermore, delays in recruiting for important positions can also have immeasurable consequences. By utilising executive search, you can grasp the candidates available in the market at that time and carefully select and recruit the most suitable candidates within a certain period of time, which is a major plus for company management.
Executive search is an important method for companies looking to recruit talented top management. To maximise its effectiveness, it is essential to partner with a reliable recruitment agency.
In many cases, executive searches are requested as confidential cases by a single executive search firm. When recruiting top management, not only the candidate's background and skills, but also compatibility with the company culture and vision are very important factors. Therefore, an executive search consultant who deeply understands the intentions of the management team (including the head of human resources) of the client company will understand the characteristics of each candidate on behalf of the very busy management team of the hiring company, carefully select candidates, and convey the attractiveness of the hiring company to the candidates, leading to successful recruitment.
Successful recruitment in executive search does not end with the candidate joining the company. For executive search consultants, it is also an extremely important mission to maintain relationships not only with the management team of the client, but also with the candidate they introduced, and to support the organisation building.
What is an Executive Search Firm?
An executive search firm is a recruitment agency whose goal is to find and introduce top management and executive-class talent that companies are looking for.
Unlike typical recruitment agencies, executive search firms utilise their global networks and extensive experience to research talent in accordance with the needs of their client companies.
The biggest feature of executive search firms is that they have a wealth of information and know-how to select candidates that are suitable for a company. Through close communication with clients, they can find people who match the required leadership, expertise, and management philosophy.
The services of executive search firms tend to be more expensive for companies than typical fee-for-performance recruitment services, but when it comes to recruiting top management, they offer a great advantage. Because the success of the recruitment will have a major impact on the business, executive search firms can introduce the desired class of candidates within a specific period of time. Interviews and negotiations with candidates are conducted by experienced executive search consultants, who play the role of accurately matching the requirements of the client company.
By utilising an executive search firm, companies can effectively acquire excellent top management and executive talent, which is expected to contribute to the growth of the company and improve its competitiveness.
There are two main types of executive search firms: retained search firms and contingency search firms.
Retained Executive Search
The most common contract type for executive search services is the retained search.
Recruiting top management, who significantly impact corporate management, demands meticulous recruitment activities and typically spans several months to a year. To ensure timely and successful recruitment without disrupting operations, executive search consultants dedicate themselves fully to the project for a set period. This involves investing substantial time in candidate targeting, longlist and shortlist creation, progress reporting, candidate outreach, in-depth interviews, and occasionally, assessments.
Consequently, a retained search fee is charged at the outset of the recruitment process, followed by a success fee upon completion, as stipulated in the initial contract. Due to the high confidentiality of retained-based projects, engaging multiple executive search firms is not advisable. Generally, only one firm is entrusted with a retained-type contract. Our commitment to consistently providing exceptional candidates has fostered enduring partnerships with leading global companies.
Contingency Recruitment (performance-based payment type)
The contingency model is a widely used recruitment service. It caters to job openings requiring swift, short-term recruitment for a broad spectrum of non-executive positions, such as managers and specialists.
Unlike retained executive search, there's no upfront fee; however, a success fee becomes payable upon successful placement. While contingency-type services are prevalent in executive search, they don't encompass market research or longlist/shortlist creation, relying instead on introducing talent from existing networks and databases. In such cases, the breadth and depth of each agency's network and database significantly influence recruitment success.