Definition: Executive search involves finding potential candidates for high level positions within an organization. Various methods for recruiting senior-level executives such as posting vacancies on job boards or running ads are available but they are now considered as outdated. Therefore, various companies hire an executive search firm to recruit such candidates from outside the company.
Process: The organization has to provide a detailed description of the position for which the recruitment process has to be carried out to the executive search company. This description should include the qualification details as well as the knowledge and skills required in the candidate. The hunt for the "deserving" candidate begins with a deep search of the database for professionals with the required skills. They inform the eligible candidates about the vacancy. These candidates are interviewed and a written report on each individual is created by the executive search company and is given to the hiring firm. Then the short-listed candidates are interviewed by the hiring firm. If the appropriate candidate is found then the search is ended otherwise it is continued until a suitable match is found.
Types: Mainly there are two types of executive search firms- contingency and retained. This division is done on the basis of payment. Contingency firms are paid only and when they find the required candidate. While the retained firms are paid on the basis of number of hours spent by them in the search process and are paid regardless of whether they find a suitable candidate.
Delimited: Hiring firm has to pay a small fee to initiate a delimited search. However, if the executive search company cannot fill the position or meet some other condition as mentioned in the contract then it is liable to refund the fees to the hiring firm. The final placement charge is usually 30 to 35 percent of the successful applicant's first year compensation. Also, delimited search agreements include the last date by which the search has to be completed. It means that the fee should be refunded to the client if company does not get success in recruiting a potential candidate till the specified date.
Benefits: Hiring executive search companies is an efficient way to extract the best candidates for top management positions in a firm. They have an experience of assessing the skills. Simply advertising the job opportunities is not enough to get the best candidates for such high positions because suitable candidates may not be interested in searching a new job due to their satisfaction with the ongoing jobs. In that case executive search companies can approach directly to potential candidates with successful careers. They can conduct the search more confidentially and can provide thorough reference and background checks.
Process: The organization has to provide a detailed description of the position for which the recruitment process has to be carried out to the executive search company. This description should include the qualification details as well as the knowledge and skills required in the candidate. The hunt for the "deserving" candidate begins with a deep search of the database for professionals with the required skills. They inform the eligible candidates about the vacancy. These candidates are interviewed and a written report on each individual is created by the executive search company and is given to the hiring firm. Then the short-listed candidates are interviewed by the hiring firm. If the appropriate candidate is found then the search is ended otherwise it is continued until a suitable match is found.
Types: Mainly there are two types of executive search firms- contingency and retained. This division is done on the basis of payment. Contingency firms are paid only and when they find the required candidate. While the retained firms are paid on the basis of number of hours spent by them in the search process and are paid regardless of whether they find a suitable candidate.
Delimited: Hiring firm has to pay a small fee to initiate a delimited search. However, if the executive search company cannot fill the position or meet some other condition as mentioned in the contract then it is liable to refund the fees to the hiring firm. The final placement charge is usually 30 to 35 percent of the successful applicant's first year compensation. Also, delimited search agreements include the last date by which the search has to be completed. It means that the fee should be refunded to the client if company does not get success in recruiting a potential candidate till the specified date.
Benefits: Hiring executive search companies is an efficient way to extract the best candidates for top management positions in a firm. They have an experience of assessing the skills. Simply advertising the job opportunities is not enough to get the best candidates for such high positions because suitable candidates may not be interested in searching a new job due to their satisfaction with the ongoing jobs. In that case executive search companies can approach directly to potential candidates with successful careers. They can conduct the search more confidentially and can provide thorough reference and background checks.
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