Tech Capital Partners Blog

At some point during a company’s life cycle there will likely come a time when the need to engage an Executive Search Firm arises.  Too often I have seen companies make the decision to engage a search firm, and then once the decision has been made they move too quickly to engage a firm without appropriately screening those being considered.  With this in mind I will suggest a few things to consider for those new to Executive Search.

Why Use Executive Search?

There are a number of reasons that you may choose to engage an Executive Search Firm.  A few of these may include:

• The need to engage an experienced professional to source, attract or entice those individuals with the appropriate skill set, competencies, and qualifications that you can not get to on your own otherwise.
• The organization is in a period of change or flux that demands the expertise of a search firm with experience placing top executives in specific industries.
• The need for confidentiality which may not be achieved if you were to engage the search on your own.
• And for some, the assistance provided in handling all screening interviews, managing candidate concerns, referencing, offer negotiation and closing the deal.

Selecting a Search Firm

Time taken up front to identify, screen and select the appropriate search firm will be saved through the search process by working with a firm that is appropriately matched to your needs.  The following are some things to consider when selecting a search firm:

• Company alignment – Which firm is best aligned with your organization, that has the appropriate professionals by way of reputation and past experience, with an ability to identify and access those individuals with the right skill set and competencies demanded by the position being recruited for?
• Organizational understanding – Which firm has a solid understanding of your  business and the culture of your organization, and appreciates the challenges you face – strategically, operationally and organizationally?
• Confidence – Which firm instills the confidence that they can get the job done, that they have the appropriate resources and search methodology in place to execute, will prioritize your search relative to others they are working on, and will approach the search in a way that aligns with your organization?

Evaluating Search Firms

I would suggest a few things to consider when evaluating your shortlist:

• The Basics – There are a few important basics you should consider.
  • The size of firm – I am less concerned with the size of the firm, as I am with the ability of the firm to meet and deliver on your needs.
  • Geographic area covered – What is the geographic reach of the firms you are considering?  Not where they say they can go, but where they have gone in past with proven results.
  • Industry knowledge and specialization – Don’t settle.  Find a specialist that has the appropriate domain knowledge and expertise to meet your needs in searches where it’s necessary.
• Benchmark searches – Look at their track record – relevant searches, relevant positions, appropriate industry and appropriate stage of company if it is important.
• Search strategy - What will the firms approach be to the search?  How many candidates will they present? What level of status reports can you expect (verbal, written, to what frequency)? And what is their approach to the market with your search specifically?
• Hands off clients – Who are their past clients they have worked with and can’t touch? It would be important to know if any companies that may employ the type of person you are looking for is on their hands off list.
• Guarantee – It would be prudent to understand what the firms position is with respect to guarantees.  How long will the firm offer a guarantee? Will they replace the candidate? What if you don’t feel they have the capability to replace the candidate, will they credit fees? When will they consider the job description to have been changed substantially enough to warrant a new search (in which case they may ask for a new retainer)?
• References - Ask for minimum of three to five professional references.  Get comfortable with the references yourself.
• The Firm – Do your research on the firm.  What is their reputation in the industry?  Get an understanding of who your account manager will be and what their level and capability is within the organization. Ensure it aligns with the needs of your organization and search.

Finding a Search Firm to work with

There is no shortage of options when it comes to Executive Search Firms.  The key is to find the firm that is appropriate for your company and your current requirements.  Board members, advisors and investors will have suggestions on who to engage and will have had good and bad experiences they can reference with firms so they are a good starting point for referrals.  Lean on your network for referrals, ideally lean on those that operate within the same market or product environment, for suggestions on who they have had success and challenges with in past.  You can also reference the Worldwide Association of Executive Search Consultants, a professional association that represents retained and executive search consulting firms worldwide.

It is best to consider Executive Search as an engagement as opposed to a transaction. It is best to evaluate which firm you can establish a working relationship with that will allow you to achieve the desired outcome that suits both parties.

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