Common Myths

Through our hands-on experience in the Executive Search business since 1994, we have learned that there are some misconceptions the business world has about services provided by executive search companies.  Following are some common Executive Search industry myths:

A large proprietary candidate database is vitally important.
Many large search firms brag about their huge databases of prospective candidates.  however, even the largest of databases rarely yield a viable candidate for any number of reasons.  These databases yield, at best, a ten percent (10%) success rate on actual placed candidates.  There is simply no substitute for experience in the industry and making an aggressive but professional, presentation to qualified candidates both inside and outside the recruiter's known network about the client company’s opportunity.  While the database is helpful and an excellent networking tool, effective searches also need good old fashioned cold and warm calling and utilizing cutting edge internet marketing to attract the best talent available.

A generalist recruiter or firm can do the same job as an industry specialist.
We think, not.  A generalist firm after considerable research may know all the common places to look for people, but does not know where the “hidden” or “behind the scenes” candidates are located within specific industries.  Also it is difficult, if almost impossible, for a generalist firm to evaluate a candidate’s qualifications if they are not familiar with the industry.

The best Executive Search companies work on a full-retainer fee structure.
First, a full-retainer search company normally requires one-third of the estimated fee as an up-front retainer, with the remaining two thirds usually paid at thirty (30) day intervals during the search.  Under this method there is less motivation to deliver the highest caliber candidate because the search firm is paid the full fee, even if they are unsuccessful in finding the candidate or if the search is cancelled for any reason.  Also, these searches tend to take longer.  Why?  If you know you are getting paid a full fee whether you find a candidate or not, meanwhile just having received one-third of the fee up-front, what is the incentive to work quickly?

Contingency search firms can do the work cheaper.
Most contingency firms aren’t specialists so you will waste time explaining to them the position and your industry.  Contingency firms usually don’t do much in the way of preliminary screening nor do they have the knowledge to ask the right questions.  You may also waste your time in evaluating, and in some cases interviewing candidates that don’t fit or have not been properly screened by the search firm.  How much is your time worth?  Why work with a contingency firm that comes and goes?  Also, let’s face it, if a search is difficult a contingency firm will just fade away and move on to another search that is easier.  Why?  They aren’t getting paid.

What is the success rate of full-retained search firms?
Industry publications put the completion rate of searches at large full-retained search firms between 65% to 70%. This means that only 65% to 70% of their searches end with a hired employee.  20-20 Foresight’s success rate has been 95%.  Why, we do the work.

Why do some searches drag on for 6 months to a year?
This answer is simple; the search consultant is not doing the necessary work to complete the search.  Ten years ago it would take at most 50 to 75 calls/contacts to make a placement.  In today’s job market to obtain three (3) quality candidates who are also motivated to change jobs it may take 200 to 400 contacts.