“I am convinced that nothing we do is more important than hiring and developing people. At the end of the day you bet on people, not on strategies.” LAWRENCE BOSSIDY – AUTHOR AND FORMER CEO
The vast world of search firms, or as some people call them, “head hunters,” can be quite confusing. I am often asked the questions, who are they, what do they do, and can they really help me. If managed appropriately, and your expectations are aligned with those of the firms, engaging a search firm can be very beneficial throughout the entire length of your career and not just your next job.
RETAINED VERSUS CONTINGENCY
Before engaging a search firm for your next career move, it is important to understand that there are two types of firms that exist in the marketplace. There are “retained” search firms and “contingency” search firms. Retained search firms work for their “client,” while contingency firms work for the “job seeker.”
For some companies, finding that right candidate to fill an important role can be very time consuming and tedious. As a result, a company will hire a retained search firm (exclusively) to manage all aspects of the talent acquisition process, such as sourcing candidates, interviewing candidates and making recommendations on top talent. Retained search firms are contracted out for a fee and paid by the company, typically a percentage of the first-year cash compensation of the candidate hire. It is important to keep in mind, the search consultant within this retained model works for their client (the company) and not you (the job seeker), so do not expect the retained search consultant to find you a job. They will not. The quickest way to fall off of the radar of a retained search firm consultant is to ask them to find you a job, especially those consultants from the top executive search firms in the industry. If they are working on a search engagement where your background meets the minimum criteria, they will find you.
On the other side of the search spectrum are contingency firms, where search consultants will indeed put an effort towards finding you a job. Why? They do not collect a paycheck unless the candidates they recommend get hired. Typically search consultants on the contingency side of the industry will engage a large number of job seekers for the sole purpose of submitting a significant number of resumes to a company in hopes that one of their candidate recommendations gets hired. Typically, the contingency firm model is a 100 percent commission-based income structure for the consultant, which can put a lot of pressure on the consultant to submit large number of résumés to a particular company.
CONTROL WHERE YOUR RÉSUMÉ GOES
Whether you are engaged with a retained search firm or a contingency search firm, it is extremely important to manage where your résumé goes. If you are conducting a passive or confidential search, you do not need your résumé showing up on the wrong person’s desk and revealing your search activity. As a result of the large number of candidate submissions, when working with a contingency firm, ensure that you dictate when and where your résumé is passed along to a specific company for review and consideration. Ensure that you speak in detail with the search consultant you are working with to understand who the company is, what the role is and who will be reviewing your information. On the other hand, search consultants from retained search firms want to evaluate you as a candidate for a specific role and company first, before they make a recommendation to their client. They want to make sure you are an interested and viable candidate for the search, so as to not make a bad recommendation to their client. As a result, you will know when and where your résumé is going prior to it being submitted.
TREAT EVERY CONVERSATION LIKE AN INTERVIEW
Keep in mind, the search consultant you are engaged with is the gate-keeper of your next job. It is important that you perform well with this individual for them to become your trusted advisor. They ultimately have to make key recommendations on talent, so if they do not think you are a viable candidate for a role, they are not going to put their reputation on the line. As a result, treat every conversation you have with a search consultant like a first-round interview. Provide strong and insightful responses to their questions (utilizing examples) and ask really great questions.
WHO TO ENGAGE
There are many search firms in the marketplace: public and privately held, large and small and some boutique firms who specifically work within an industry niche. It is very important to conduct your research of a particular firm prior to engaging at a high level. You want to make sure any firm that you establish a relationship with is one with a good reputation, has an established client base of reputable companies and one that spends a significant amount of time with you on the front-end, getting to know who you are and the value that you can offer their clients. Some of the top retained and executive search firms in the industry consist of Korn/ Ferry International, Spencer Stuart, Egon Zehnder, Boyden and Heidrick & Struggles. Top contingency firms in the industry consist of Lucas Group, The CSI Companies and Robert Half.
Establishing a relationship with a reputable search firm can significantly impact the marketability of your background and career path. If managed appropriately, you may never have to look for another career opportunity in the future again…that career opportunity will find you.
CRAIG W. PETRUS joined the Hough Graduate School of Business in June of 2009. As Director, Craig is responsible for the day-to-day operations of Graduate Business Career Services and ensuring the delivery of quality career development programming and services to students within the Hough Graduate School of Business at the University of Florida.