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 s vice president of human resources for your company, you're feeling the crunch. Three months ago the management committee decided it needed a new CFO, but there's no one inside the company to promote, and the job market is tight. The obvious answer is to hire an executive recruiter to find an outside candidate. Which search firm should you choose? Competition for managerial talent is intense these days. As companies recruit an average of one -- third of their managers from other organizations, human resource executives are pressured to identify and retain top talent. Although most HR professionals realize that an important executive hire can have a significant impact on their company's future, they often don't understand how critical their own role is in selecting a search firm that can professionally manage the recruiting process and successfully complete the assignment. With more than 7,500 retained search firms -- and an equivalent number of contingency recruiters and employment agencies -- clamoring for their business, human resource executives have an overwhelming array of recruiter options. Before hiring a recruiter, however, it's important to thoroughly understand what the search consultant is saying, detect the telltale signs of poor service and avoid firms whose modus operandi could create a major hiring disaster. Following are the four generic categories of executive recruiters:  Large brand-name search firms.Pro: Have five-star client list and hundreds of professionals. Medium-sized search firms.Pro: Offer great personal service and are eager for smaller jobs. Industry or functional specialists.Pro: Might have a bigger pool of executives in the category you seek. Small search firms.Pro: Personal, attentive service.  ARE THEY CONSULTING OR SELLING? The best executive search consultants: Do their homework on your company before they walk through your door; know the questions that potential prospects are likely to have about your organization and the position; and are prepared to discuss the position and search strategy options. If a recruiter dominates the conversation with stories of search successes, worldwide capabilities and research that "their people" will conduct to pinpoint your candidate, think twice. A recruiter like this won't know enough about your company, the position and the upside/downside of the opportunity to pitch it successfully to an executive who receives 10 other recruiting calls every week.  IS WHAT YOU SEE WHAT YOU GET? Although most large and mid-sized search firms have strong placement capabilities, they also have a two-tier structure -- an upper level of partners responsible for bringing in business and a lower level of associates and researchers who actually perform the data dredging, phone calling, interviewing and qualifying of candidates. So despite your having provided a detailed description of your company culture, dynamics, management style to the partner who sells you the search -- the researchers who actually conduct the assignment rarely receive this information. The results? Candidates who match the letter -- not the spirit -- of the job description; mis-hires who don't fit your corporate culture; and poor performance down the road.  WHOSE "EXPERIENCE" IS HANDLING MY ASSIGNMENT? When recruiters hear of potential new business at your company, their administrative staff shifts into high gear. They may print out an impressive list of assignments similar to yours that have been booked by the firm, packaged it between glossy covers with your corporate logo. The partner might claim extensive experience in your industry sector or functional area. But take a closer look: the list most likely represents the firm's collective experience. The recruiter himself may never have conducted a search in your industry. The searches listed in the proposal may not have been completed -- or may have taken months to complete -- and the executive placed by the search firm may have stayed only a short time.  HOW IMPORTANT IS MY SEARCH TO THIS RECRUITER? Retained search consultants -- those who handle the top-level assignments -- are paid on the basis of their billings, not their successful completions. Since search assignments are "billed out" after 60 days, recruiters have little incentive to monitor the successful completion of the search assignment. There's more money to be made selling more assignments. Three years ago, a typical search firm partner conducted seven assignments at a given time. In today's overheated economy, they may conduct 15 to 20 assignments simultaneously, overwhelming their associates and research staff. Unless your search is carrying the highest fees or is relatively easy to complete, it may be shunted to the bottom of the heap.  WHAT'S THE SEARCH PROCESS? Many search firms operate on a "don't ask, don't tell" basis, convincing companies that the search process is mysterious and incomprehensible. The reality is, recruiting isn't rocket science -- but it does require focus, perseverance and attention to detail. Given the volume of business they are handing off to recruiters, human resource executives need to closely scrutinize whether focus, perseverance and attention to detail are being applied on their assignments. Many recruiters don't discuss how they conduct a search or how long it will take to find suitable candidates until the client has signed a contract. In addition, the recruiter's process may or may not suit your needs. For instance, you and your company may prefer to review candidate resumes before allowing the recruiter to spend money on personal interviews. But some search firms won't show clients any candidates until 45 days after the search begins, even though they may have a stockpile of resumes and interviews after two weeks. Some search firms will only present candidate information to clients in person, which can involve air fare, hotel and entertainment expenses.  WHO'S FOOTING THE BILLS? Many search firm contracts contain vague references to expenses. Seldom do clients question a search firm's expense billings or what they include. Even more rarely do clients realize that these expenses can add another 20 percent of the search fee -- or more. While expense billings can cover legitimate expenses like airfare and telephone charges, they can also be a rug under which secretarial salaries, subscription expenses and fax machine depreciation can be swept.  WHAT'S THE COMMITMENT TO CLIENT SATISFACTION? Recruiting firms reward their partners for selling searches, not satisfying clients. In fact, the informal motto of several prominent search firms is, "Book 'em, bill 'em and forget 'em." If the fee for the search is fully collected, it qualifies as a successful search in many firms -- whether or not a candidate is placed. Consequently, what motivates the partner -- finding a client to bill -- runs counter to what motivates a company's human resource executive -- finding a high quality candidate quickly. It's important to remember that search firms are service providers. Determine the firm's commitment to your company, assess its process and unmask its hyperbole. Ask yourself whether this search firm is passionate about serving your company's needs and providing what you and your company want. And if the recruiter is evasive or refuses to answer the questions, it may be time to recruit another recruiter. |
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Pawlik/Dorman Partners |
