Executive Search Vs Recruitment.

It is not uncommon for people to use the terms Executive Search and Recruitment interchangeably. However, while both processes lead to similar results in hiring the best possible talent, they don’t work in the same way. We will highlight some of the key differences that we have experienced.

How do they work?

Recruitment Consultancies

Many recruitment businesses typically specialise in hiring candidates for junior to mid-management roles; they are not always working exclusively on roles and may be in competition to fill positions with other recruiters, which can often dilute the process and the client’s brand. They might offer their expertise based on specific role types, industries and experience levels, such as entry-level and junior – mid-management. They are extremely necessary for the recruitment industry however not the best option when recruiting key executive positions.

Contingent recruiters are not generally as proactive in their approach when seeking possible candidates as they are more thinly spread managing extensive vacancies. Instead, they usually advertise open positions through online job portals such as Seek and LinkedIn. This approach requires that candidates reach out to recruiters and apply for a live and advertised position. Most recruiters also utilise their database to connect with active job seekers. A contingent recruiter will at times work exclusively with a specific candidate to get them multiple interviews with their different clients.

It is fair to say that recruitment agencies focus on numbers, whereas executive search companies are about quality and process. Recruitment firms usually need to fill a significant amount of positions. As a result, they do not spend as much time on the search process or scrutinising every application. In most cases, they aim to find suitable candidates as quickly as possible to fill an immediate need, therefore these positions can be filled very quickly.

Most recruiters follow contingent/fee on success pricing models, meaning their clients pay them only upon the successful placement of positions. A handful of recruitment agencies work on retainers, generally, if they have long-standing relationships with a client or if they are filling a niche or high-risk role.

Executive Search 

An executive search follows a more active approach. A company conducting an executive search will map the market and then contact potential candidates directly; they will also utilise referrals from their High-level networks. Executive search firms will focus their searches on passive talent, including people who aren’t looking for a change however are potentially open to opportunities. Passive talent accounts for often more than 60% of the entire talent pool, and in some cases, a final shortlist may be 100% candidates who have not responded to advertising. Executive searches are often conducted confidentially or not advertised; however, should it be beneficial for the position and client, Executive Search firms will advertise a position alongside the search process.

Executive search consulting firms work in partnership and on a retained basis with businesses to attract candidates for High-level positions. Executive and Non-Executive positions, C-level roles, and highly technical roles often fall into this category. While recruitment firms can have limited geographical reach, executive search firms are generally national or global in their approach and utilise networks, research and talent mapping to identify their target audience.

The role of an executive search company is to find the best possible fit both technically and culturally for a given position through a more in-depth and rigorous process. They carry out extensive discussions with their clients and partner with them to provide the candidates with in-depth detail about the position, company and expectations of the role. They also spend a lot more time on the assessment process of each candidate and provide them with a more detailed briefing. Therefore, a search process generally will take a lot more time than a contingent recruitment process.

Executive search companies work on the retained pricing model. Clients generally will pay in three retainers, one-third on commencement of the assignment, one-third upon presenting a suitable shortlist and the balance of the fee upon completion of the assignment once the candidate has accepted the position. The fee, in most cases, is a percentage of the overall annual salary package or, in some cases, a fixed fee will be agreed upon.

Summary

Whether an employer needs the services of a recruitment firm or an executive search company generally depends on the role that needs to be filled:

• Recruitment agencies focus primarily on numbers, needing to fill a significant amount of roles – usually junior to mid-management. Their goal is to find suitable candidates as quickly as possible to fill an immediate need – by advertising and promoting to active job-seekers.

• Executive search companies are about quality and process focusing on specific industries and higher-level roles. Their goal is to find the best possible fit both technically and culturally for a given position through a more in-depth and rigorous process. Executive search firms will focus their searches on passive talent, including people who aren’t looking for a change but are potentially open to opportunities, sourcing the perfect person for the role.

If you would like to find out the best approach for your business, contact us today for a confidential discussion. Ph +61756193796 Email:enquiries@archertalentpartners.com