If you’re reading this article, it’s because you’re curious about executive search and how it works. Executive search is a process of recruiting top-level candidates for executive or senior-level positions within an organization, with executive recruiters usually working in firms, executive recruitment agencies, or executive placement services. Let’s dive deeper into the different types and what they entail: retained executive search, contingency executive search, internal executive search, and international executive search.
Types of Executive Search Firms
- Retained executive search is the most common type of executive search, where a company hires an executive search firm to find the best candidate for a particular executive position. Fees can go up to one-third of the expected salary for the position to conduct the search and typically is used for high-level positions that require a specific skill set or experience.
- Contingency executive search consists of multiple search firms competing to find the best candidate for a particular position. A benefit is that search firms are paid only if their candidate is hired and used strategically for mid-level positions that do not require a specific skill set or experience.
- Industry or specialty executive search offers recruiting executives for a specific industry or niche, for example, specializing in healthcare recruitment or recruitment in non-profit, usually needed for companies that require specialized knowledge and skills.
- International executive search is about recruiting executives for positions in different countries and requires experts of different geographies, cultures, languages, and laws. An executive search firm may have offices in multiple countries and a network of international contacts to help them find the best candidates.
Executive Search Trends
One of the most consistent trends in executive search is the increasing significance of data in the search process. Technology and big data analytics have allowed executive search firms to successfully gather and analyze a large amount of information about potential candidates, including their skills, experience, and online presence, which is then used to find and recruit the most competent candidates for executive roles.
AI has completely changed the way people are working, and machine learning is a way to use data in executive searches. Not only can AI help to automate certain aspects of the search process, like candidate screening and matching, which saves time and improves the efficiency of the search, but AI is also consistently improving and learning new algorithms, and analyzing data to detect patterns and trends, some of which may not be easily recognizable to human recruiters, making it easier to identify candidates who may have been overlooked with traditional search methods.
Another way that data is being used in executive search is through predictive analytics. By analyzing data on past successful hires and comparing it to current candidates, predictive analytics can determine which candidates are most likely to succeed in a particular executive role. This helps to reduce the risk of making a poor hire and guarantees that the most capable candidate is chosen for the position.
Data-driven decisions in executive search are expected to continue as more firms acknowledge the value that data can bring in finding and recruiting top executive talent. Effectively collecting, analyzing, and utilizing data will become an increasingly important skill for those in the field of executive search.
Understanding the different types of executive search is important for companies looking to hire top-level executives. Whether it’s a retained search, contingency search, internal search, industry search, or international search, executive search firms can help find the best candidates for the job, familiarize yourself with the different types of executive search can help you better understand your company’s hiring practices and strategies.
