When a company needs to fill a top-level position, such as a CEO or vice president, they often turn to retained executive search firms. These firms specialize in finding and recruiting highly qualified candidates for executive-level positions.
Retained executive search firms work on a retainer basis, which means that they are paid a fee upfront to conduct a thorough search for qualified candidates. This fee also ensures that the firm will only consider the best candidates for the position Ð those who have the necessary experience, skills, and qualifications.
One of the main advantages of using a retained executive search firm is their extensive network. They have connections with top talent in various industries, and can often find candidates who are not actively seeking employment but would be interested in the opportunity. This network also allows them to identify candidates who may not be an obvious choice but would be a great fit for the position.
Another advantage of using a retained executive search firm is the level of expertise they bring to the search. They have a deep understanding of the specific industry in which the company operates, as well as the skills and qualities needed for the position. This allows them to identify qualified candidates who not only have the necessary experience but also possess the right cultural fit for the company.
Retained executive search firms also save the company time and resources. They handle the entire recruitment process from start to finish, including creating job descriptions, sourcing and screening candidates, conducting background checks, and negotiating contracts. This frees up the company’s HR department to focus on other essential tasks, such as employee retention, training, and development.
It’s important to note that retained executive search firms are not the same as contingency search firms. While both types of firms work to find qualified candidates, contingency firms are only paid a fee if the candidate they recommend is hired. This can lead to a “spray and pray” approach, where the firm sends numerous candidates to the company, hoping that one will be hired. Retained executive search firms, on the other hand, work more closely with the company to ensure that only the most qualified candidates are presented.
One of the challenges of using a retained executive search firm is the cost. The initial retainer fee can be expensive, and some firms may charge additional fees for expenses such as travel and lodging. However, the cost can be justified if the firm is successful in finding the right candidate for the position. Additionally, the cost of a bad hire can be much higher than the cost of using a retained executive search firm.
Retained executive search firms provide a valuable service to companies looking to fill top-level positions. They bring expertise, a broad network, and a thorough recruitment process to identify the best candidate for the job. While the cost may be high, it’s important to consider the potential cost of a bad hire. By using a retained executive search firm, companies can ensure that they are finding the right person for the job and investing in their long-term success.