Understanding Executive Recruiting

Executive recruiting or Executive search (sometimes called a "Headhunter") is a $12 billion industry today. The market is hugely competitive, with lots of action and demand. They control the majority of senior searches across industries. And while various research tools, proprietary databases and assessments help, trusted relationships are the most important capital to the industry's growth and success.

A key thing to remember: the best way to think about search firms is as a large number of consultants running their own “franchises”. Just because you know one does not mean anyone else knows of you. Be certain you know and are known by the consultants most relevant to the type of searches you wish to be called for. And remember, search firms are not paid to take risks. They will present you to their client if they are confident you will show well for them. Their reputation rides on how you do. So if they don’t know you, and no one has told them you are “good”, they are going to view you as a potential risky introduction.

The SHREKs

The top 5 executive search firms are colloquially called the “SHREKs”. These firms are large in size and scope, with global reach and a broad range of services. They often have teams of consultants specializing in various industries, functions, and geographic locations and work with the top executives at some of the highest-pedigree companies.

You should, almost without much exception, always respond to outreach from SHREKs. It is a great way to bolster your name-recognition with a leader in the talent space. Even if it’s just offering to think about the search and share ideas.

Boutique Firms

Boutique search firms, on the other hand, are smaller organizations who focus on specific industries or functions. They often have a more specialized and personalized approach, working closely with clients with niche industries or needs. They are typically smaller in size and scope but they may have deeper expertise and networks within their areas of focus. Some high-level boutique firms are True Search, DSG, TrewStar, MontaRosa, Audeliss, Miller & Boyd, Caldwell, and Rich Talent Group.

The difference between Retained Search and Contingency Recruiting

Unlike other forms of recruitment (particularly contingent models), executive search teams take a strategic approach and actively seek out senior-level candidates for roles that are usually difficult to fill and strategically important. The level of talent that Executive search firms are focused on is senior (C-suite and Board). They specialize in identifying and recruiting top-level executives for senior positions within top companies globally. Executive search firms engage with both clients and candidates, typically working on a retained or exclusive basis. It is important for these firms to build large networks and industry-specific knowledge to identify potential candidates, thus they focus on more senior-level executive roles, while contingency firms primarily focus on non-executive positions.

For contingency recruiting, firms receive service payments after a candidate has been identified and hired, so most take on as many searches as possible, ensuring they have multiple opportunities to get paid. This means the recruiter will be unable to give their full attention or may walk away if they receive a more lucrative assignment. For many of the “random” outreach you might receive via email or LinkedIn, it falls into a Contingency recruiter. Such recruiters are known to attempt to fill positions as quickly as possible, bypassing certain assessment and interview procedures or disregarding criteria and qualifications.

Additionally, there are some recruiters who specialize in placing temporary workers or contractors for short-term assignments or projects. These temporary recruiters focus on people who are seeking work and often recruit for a range of positions, from administrative support to specialized technical roles. Temp recruiters have a lower level of engagement with clients and candidates, as their placements are typically shorter-term and do not require the same level of diligence as executive recruitment.

How to think about yourself from a search perspective

There are a number of components that go into designing a search. These criteria and parameters are discussed extensively between the search firm and the client. Think about yourself as a candidate and how you might position yourself accordingly.

Type of Company

  • Public, private, private equity-backed, venture-backed, etc.

  • Every type of business has its own nuances and, likely, the company will want an executive who has demonstrated experience in working at a similarly structured organization.

  • Question to ask yourself: In what type of organization do I thrive? Large and structured? Smaller and more agile? A mix of both?*

Industry Expertise

  • In most cases, companies want executives with relatable industry expertise

  • In some cases, they may want to bring in an “outside” skillset from an adjacent or completely different industry

  • Question to ask yourself: In what areas might my expertise be especially useful? What areas/industries might I be able to make the most impact?

Size and Scale

  • There are usually parameters around the size of an organization that an executive has worked at/led

  • Depending on the specific role, size and scale could be measured by overall company revenue, the size of P&L they managed, or the size of team

  • Question to ask yourself: How much decision power have I earned? How big of an organization do I want to lead? At what size might my personality/skills fit best?

Geographic Reach: Global v domestic

  • Experience in certain markets – such as Latin America or Asia Pacific – can sometimes be of interest

  • Question to ask yourself: Do I have a unique perspective or experiences with cultures or countries outside of the U.S.? Do I want to be an impact maker here?

Specific Mandate

  • When making a key executive hire, there is always a mandate to accomplish - scaling the business, expanding geographically, driving a significant turnaround or transformation etc.

  • Companies want people to have demonstrated experience in carrying out a similar mandate

  • Question to ask yourself: Do I like to build from scratch? Drive growth out of something that is already built? Tear down to rebuild?