![]() ![]() A good executive search firm can locate candidates that most companies cannot. Board positions, c-level positions and senior executive management roles are the ones that most companies utilize recruiters to fill. Why do companies work with executive recruiters?Ĭompanies typically utilize executive search firms when they have a high level or critical executive position to fill. With retained search firms sometimes the entire amount is due whether the position is filled or not, so obviously it is imperative to get all the details up front and make sure and read the fee agreement thoroughly to avoid potentially losing a large sum of money. Billing arrangements vary greatly among firms, but the common arrangement is that the retainer is non-refundable regardless of whether the position is filled or not. So, referring back to our example $30,000 would be due up front, $30,000 would be due at the midpoint of the search and finally the last $30,000 would be due upon successful completion of the search. With retained search firms the rest of the total fee is broken down into two more payments – one being due at around the midpoint of the search and the last payment at the end of the search. In other words this fee is lost regardless of whether or not the position is filled. This amount would be due up front before the search begins and it is typically non-refundable. So, as an example if the total fee is expected be $90,000 then $30,000 would be the retainer. This portion of the fee is referred to as the retainer. The way a retained search firm typically operates is that they charge a fee up front which is typically equal to about one third of the total fee that will be assessed. On the hand with retained executive search firms a fee will be due regardless of whether the position is filled or not. If a candidate is not hired, a fee is not due. This is the business model that most companies prefer as there no risk or financial obligation. The client does not pay a fee unless a candidate is hired into the position. Essentially if the position is not filled, the client or company is responsible for nothing. The way most contingency search firms operate is fairly straight forward. Retained search firms and contingency recruiting firms share some similarities as well as some major differences. ![]() Most larger firms have Vice Presidents or Directors who are in more of training position who assist new recruiters in learning the business. On the permanent placement side, they will usually have a Regional Perm Director, a National Perm Director and then various Vice Presidents who are over both the permanent and temp side of the business. In additional to local roles, a national staffing firm will typically have several layers of management. There will typically be an administrative worker who answers the phones and assists the other recruiters within the office. ![]() Staffing managers are sometimes degreed and other times not as it does not seem to be as hard and fast a requirement as it is for the higher level executive recruiters. They may also be involved in contract type positions. You will then often have staffing managers that are more focused on lower level positions and often temporary and temp-perm type roles. This is a job that is relatively unsupervised in the sense that if the executive recruiter is making money and their billing dollars are high enough they are generally left alone by management and allowed to work freely. These recruiters typically have college degrees and often their business background aligns with the positions that they recruit on. In each office, there will typically be several executive recruiters focused on permanent placement positions. A larger national executive search firm will have offices throughout a particular country. Generally speaking the more critical the nature of the position, oftentimes it the larger the geographic area of search. On the other, when it comes to an executive level with publicly traded company it probably makes the most sense to go with a nationwide firm or international firm that can present as many highly qualified candidates as possible regardless of their current location. For example a lower level accounting role in a particular could be best handled by a smaller firm local to that area who specializes in nothing but accounting and finance type positions. Smaller firms sometimes only operate within a particular metropolitan area. Other firms operate in one particular country and may have several locations within that country. They often have hundreds of offices around the world and operate in many different countries. Large, publicly traded search firms are often international in scope and size. International, national or local staffing firm? ![]()
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