Executive Search vs Recruitment

---

Executive Search and Recruitment each have their place within a business. Read on to understand which one to use and why.

Seniority and Strategy

Recruitment focuses on the junior to low-level management roles. Generally anything below $150k annual salary.  

Exec search focuses on the mid-level management through to C-Suite. These roles are usually above $150k annually. The distinguishing factor is often the strategic importance of the role. The more strategically important a role is, the more important it is to have a detailed and thorough Search of the market to obtain the best available candidate.

Methodology

Recruitment focuses on the active talent pool (people either unemployed or actively looking) utilising job boards, candidate pools from previous roles, social media etc. The active pool accounts for about 40% of all candidates. Recruitment commits less time to the candidate sourcing and present what’s available.  

Exec Search starts with a deep understanding of your business. Once the business is understood and an ideal candidate skill set compiled, a map of the market is generated where a likely candidate is to come from. A list of potential candidates is created and skill sets cross-checked against the ideal. The best candidates from this pool are actively approached/headhunted as well as sourcing other candidates from the active and passive candidate pools. 

Specialisations

Recruitment often works best when it is industry agnostic. A recruitment consultant might cover admin staff, working on low level admin roles across any number of industries. 

Exec Search consultants often have specialisations, either because the consultant comes from the background, or they have spent enough time in it to be able to understand the specific challenges and technical information that go with that industry. Their focus also means they have a robust, relevant network of people they know and are able to develop candidates pools much faster. There are Exec Search generalists who use their robust process of developing client business knowledge and mapping the market to counter any shortfall in industry specific knowledge. 

Business/Fee Model

Recruitment works on a contingency model where a recruiter is only paid for a successful placement and may be one of many recruiters working the role. This works really well if a role is ‘low hanging fruit’ as it will be prioritised for quick returns by the recruiter. The easier a role is, the easier it is to commit resources knowing a potential pay-off is there. Hard-to-fill roles often get neglected and the quality of presented candidates can be poor. Recruitment fees vary from 13-18% of an annual salary package.  

Exec Search works on an exclusive and retained basis where an Exec Search consultant is the only one in the market working the role (exclusive) and they are paid in three instalments for their work rather than only if a successful placement is made. Instalments are made 1/3 on commencement, 1/3 on interviews, 1/3 on placement. Exec Search consultants can take as much time as needed to research and source candidates from the market as they know they are being paid for their efforts. No matter how hard a role is to fill, the consultant will work with the business to provide the research and information to inform and consult with them along the journey. Exec Search creates a much better process and represents your business in a much more professional manner to potential candidates. Exec Search fees range from 20-30% of an annual salary package. 

Reliability and Quality

Recruiters often operate quickly but are less reliable if the role is complex or senior. As they are often in direct competition with other recruiters they need to be agile and responsive but cannot afford to be thorough and reliable. If they happen to find a great candidate for a complex role, it is usually by chance, not by design.  

Exec Search firms commit time and resources to a hire. They aren’t in a race, nor are they chasing low hanging fruit, so an Exec Search firm should be able to complete more than 95% of the roles they take on. Their market knowledge, knowledge of the client’s business and deep research allows them to identify higher quality candidates with much greater consistency.