The Secret of Executive Search

Prologue When I started working in executive search, I quickly realized that there was a great deal of ignorance in the market about this topic. Many people and human resources managers revealed a certain lack of knowledge and very vague and mistaken ideas about the service. When I asked them, they couldn’t name more than two multinational executive search companies, nor did they know of any executive search companies in Portugal.

What Executive Search is not

There are those who believe that the executive search process only involves maintaining close relationships with executives, getting to know their skills and motivations. However, considering the many thousands of executives in Portugal whose aspirations change rapidly, it is clear that these privileged relationships are only a small drop in the ocean.

So what is Executive Search?

Executive search aims to find and select the executive profiles most aligned with the strategic needs of organizations – in terms of results, mission, vision and values, organizational culture, strategic business vision – using specific headhunting methodologies. Headhunting involves direct research of candidates in the job market, in a more invasive way, reaching out to non-reactive candidates (usually those who will be on a shortlist) in a discreet manner.

Who is the Executive Searcher?

The executive searcher is an experienced professional in executive search and selection, with in-depth market knowledge and an exceptional ability to assess people and organizational contexts. They usually have a track record in senior management positions, which allows them to anticipate the alignment between candidates and the organizations they work for. He acts with rigour, excellence and ethics, highly focused on the superior organizational results sought.

The process and some metrics

An executive search process is extremely rigorous and demanding, going through several stages:

• Needs assessment
• Profile survey
• Assessment of organizational culture
• Defining the target market
• Search for candidates (many hundreds, usually)
• Referral requests
• First interviews (screenings, dozens)
• CBBI –Competency Based Behavioral Interviewing (8 to 15 candidates)
• Presentation of the shortlist (3 to 4 candidates)
• Market benchmarking for the role and in the sector
• Delivery of interview reports:
  • Candidate’s track record
  • Skills analysis
  • Behavioral profile
  • Ethics and integrity
  • Motivation for change
  • Expectations (project, challenge, salary and benefits)
  • Other relevant information
• Support in scheduling interviews
• Negotiation support (if and when necessary)
• 12-month replacement guarantee.

 

Advantages of Executive Search

• Quality: Carried out by competent and experienced professionals, guaranteeing the correct identification of technical and behavioural skills, cultural and people alignment for future organizational results.
• Confidentiality: The process is conducted discreetly, guaranteeing total secrecy in the handling of information.
• Assertiveness: Proactive strategies guarantee the identification of the best candidates, ideal for profiles of high rarity and strong impact on the business.
• Risk reduction: The meticulous process reduces the risk of a bad hire, increasing the likelihood of finding people who are aligned with the project. A bad hire of an executive profile can have a huge negative impact – even in the medium and long term – for the organization.

Challenges and costs

Despite the advantages, why do so few companies use this service? Mainly due to a lack of habit and not understanding the true impact on the business of a process that brings you excellent professionals capable of generating extraordinary results. Then there’s the cost and demands of the process. Executive search consultancies generally charge a third of the cost of the process when awarding the contract and fees of between 20% and 33% of the annual salary package of the professional to be recruited. However, it is undeniable that the process leads to successful results and the return on investment is practically immediate – as long as organizations are willing to trust the executive they have just hired and let him work his magic (but this is a topic for a future article).