Thriving is the goal.
How to make disruption work for you…
As your industry has changed, so has ours. The executive search business has witnessed massive disruption over the past decade. Those of us who have thrived have found ourselves keeping a keen eye on the horizon and flexing alongside our clients. Here are five trends we see shaping our collective future as we build out your leadership team:
1. Advancing technology
Will artificial intelligence eliminate the need for executive recruiters? The short answer is no. But will data and advancing technology help us continue improving at what we do? Definitely. Technology is a tool, used well in the research and outreach phases, that supplements a great firm’s overall market intelligence. It adds a third-party objectivity to our assessment. Technology, however, can never replace EQ – a vital link in finding the right leader for your organization.
2. Weighing price, process and time
Return on investment has taken on a new sense of urgency for clients and search firms. Recruiting organizations that insist on clinging to old pricing, process and timing models often find themselves with hands outstretched and mouths wide with shock as they are lapped by contingency search agencies and a new breed of highly responsive, retained search firms. Choosing the right fit often depends on the criticality of the hire. A contingent team’s pay-upon-receipt approach works for some. However, the cost of a bad hire can equate to 2.5 times salary and reputational risk in the marketplace. For that reason, many prefer a retained approach because the firm has “skin in the game” from the start, provides a deeper pool of candidates, and yields hires that better match their needs and their culture.
3. Decline of large, national firms
Bigger is definitely not better when it comes to our rapidly changing environment. Instead, today’s most valued commodities are agility, precision and speed of execution – traits found in boutique firms. Since large firms rely on volume to achieve the necessary incentives, this often leads to the recommendation of less qualified candidates. Look for a firm where you know and trust people personally and can rely on their assessments. They should have a deep network and knowledge of your sector.
4. Industry knowledge and reach
Industry knowledge and reach are more important than ever. A primary strength to look for is access to market information. Assessing potential candidates is a process that requires a meaningful understanding of a clients’ environment, industry dynamics and needs. This approach results in consistency, fewer surprises and the most appropriate finalist candidates.
5. Moving toward performance-based pricing
Selecting a search firm necessarily includes intangibles like the relationship you have with the firm, who you know there, who they know at your company and their knowledge of your industry. But increasingly performance-based pricing is emerging as a key decision point. Deeply rooted in a return on investment mindset, performance scores measure how long it takes to fill a position, the winning candidate’s tenure in the position and the client’s satisfaction at the midpoint and end of the engagement.