Effective executive recruiting approaches; what are the best? Do you have clients who want insight, market data, and strategic and tactical information with recommendations? Do you have clients who demand only “X” service(s) and nothing more? Do you find you have become Ms./Mr. Short-Order Cook creating an executive recruiting combo for hungry customers? Let’s examine consultative, transactional, or combination executive recruiting approaches.
For some old-school leaders, a transactional relationship with executive recruiting firms and in-house professionals are favored. S/he would like to be in charge of the entire recruitment process and information. There is no interest or desire to understand what the best-in-class firms are doing in recruiting, marketing, advertising, compensating, developing, and retaining with similar leadership opportunities. It is the straight-and-narrow approach. "I want X. Fill it. Next task. Click. Job filled. Move on."
The above has limitations. Job descriptions can be organizationally specific and not market sensitive - meaning the position can be so far out there that it does not relate to current job skills, experience, and where things are going in that field. Searches saddled with binders can take long time-to-fill cycles cause organizational branding issues for not being state-of-the-art, and turn off growing outside of the box for important avenues now being emphasized in a field and industry.
Counter point to the transactional approach, executive recruitment run from a “true partnership” as an advisor role to the client serves the organization, team, and leader for the short and long term. K. Gaspar, T. Murdoch, and J. Seldeneck suggest:
Companies must be ready to adjust to the changing trends in hiring which have been brought about by factors including world events and a talent shortage. Organizations that prepare for changes in talent recruitment by understanding the issues and developing creative strategies will be the clear winners.
The role of the executive search firm and in-house corporate recruiters is more important than ever as human capital partners in this “war for talent” atmosphere. In fact, developing a close working relationship with a search firm partner is an important element in a company’s strategy to gain access to the best available candidates. Search firms are best utilized in a true partnership and consultative role where they have access and input to their client’s strategic plans. This allows them to make suggestions on organizational structures, take a proactive approach to positions expected to become available, and offer a viewpoint on competitive marketplace events and information.
Compensation, as always, is a key point in securing top talent. Companies who want to attract top candidates need to be willing to structure attractive packages that have the right blend of base salary, performance based bonuses and long-term incentives. The search firm’s role as an advisor in this area is crucial since they have access to extensive competitive market data in terms of what others are doing.
The use of stock options has vastly altered due to new expensing requirements and employers and Board Compensation Committees are taking harder looks at the specific terms of employment contracts, change of control agreements, non-competes and company perks. It is a fine line between what it will take to attract top talent, and what the shareholders will tolerate in terms of reasonable packages.
Succession planning is another important strategy. Companies who prepare proactively for a change in leadership or corporate restructuring will avoid costly issues down the road created by a void in a key position. Forward thinking search firms can help in providing market intelligence and timing advice.
With the changing business environment, increased competitive pressures and a dwindling supply of executive level management talent, successful organizations will need to think ahead and be creative in order to hire and retain leaders who are ready to take them into the future. It is more important than ever to not only build strong recruitment and retention capability in-house, but also to establish a positive working relationship with an experienced and respected executive search firm.
Understanding the many issues at play, and making the necessary investment to insure that your company is able to find and attract talented leaders is pivotal to future success.
After many years in executive search, I find the best searches, the best clients, and the best candidates appreciate a consultative approach to align all parties. Let’s face it: executive search is the goo that binds the cracks of opportunity for the organization, hiring executive, and candidates. We can best advise everyone the direction each facet is going based upon the hiring needs, market shifts, and the best world-class talent. The reality of this is: we usually create a combo of transactional and consultative approaches.
What are your thoughts and experiences? I would love to hear from you.
Lee Maddox has been involved with human capital for 20 years. He has been a VP, Customer Services at The United Way in San Francisco. He was the Principal and Senior Engagement Consultant for Maddox & Associates (i.e., an HR consulting practice: OD/OE, Executive Recruitment, and Outplacement services). For the last 5 years he has been internally leading Kaiser Foundation Health Plan’s enterprise and regional Finance, National Facilities Services, and Community Benefit senior executive recruitment efforts. He is passionate about human capital strategy, recruitment, development, and retention.
Image: Ian Koh
