7 Advantages of Using Executive Search Firms

By Alice Muigai

In this article:

• Advantages of using executive search firms

1.  They help in securing top talent
2. You get to save on time and money
3. Executive Search Firms Help with Securing Experienced Personnel
4. They are Comprehensive and Transparent in the Recruitment Process
5. Executive Search Firms Help in Preventing Damage to Brand Image
6. They Perform a Rigorous and Thorough Background Check
7. Executive Search Firms Help with Filling a Vacant Position Quickly

• How Do Executive Search Firms Secure Top Talent?
• Are you looking for an executive search firm?

As we usher in 2021, and the economy gradually climbs its way into recovery, more and more businesses are putting up the ‘help wanted’ sign. However, many companies, especially those in the health and pharmaceutical industry, are cautious about filling vacant positions and rightly so.

The process of recruiting staff members can be costly, not to mention time-consuming. For instance, at a senior level, a ‘bad’ hire can cost a company upwards of £50,000 (approximately Ksh.7.5 million). In some industries, this figure could rise to $2.7 million.

Even worse, hiring a CEO for the long run could prove to be a risky move. According to multiple surveys, 3 out of every 5 newly appointed CEO's struggle to make an impact or live up to their billing.

In many ways, recruiting top talent is becoming challenging with each passing year. Additionally, organizations receive hundreds or thousands of applications which take a lot of time to screen. Not only that but studies show that 78% of recruiters say that half the resumes they receive belong to unqualified candidates.

These factors have led many corporations and businesses alike to look for better and sustainable solutions to human resource staffing. Instead of wasting time and resources, corporations have opted to use executive search recruitment agencies.

Such services are extremely effective in ensuring companies meet their human capital demands. Additionally, search firms help businesses find the right candidates or prospects that will fit right in from a given pool.

Here are 7 benefits of using an executive search firm in 2021.

Advantages of Executive Search Firms

They Help in Securing Top Talent

Many companies believe that they have the resources and skills to hire an executive on their own. However, this is not the case as the appointment process can be tricky. Simply posting open jobs on the company’s website is not sufficient to attract top talent.

In fact, top executives rarely spend their time searching through job portals for open positions. Many top executive search firms such as Flexi Personnel have a wide and comprehensive database that features highly skilled individuals. As a result, finding a talented senior is easier with executive search firms’ help, as they have specialized in such areas.

Additionally, top executive search firms like Flexi Personnel have access to high-level contacts in many industries. This allows them to cast a wide net that targets candidates that other companies would not have known.

Linked in published a report that showed 48% of businesses got their high-quality hires from referrals. Hiring the traditional way might not be enough to make up for the lack of talent.

According to Manpower Group, an estimated 45% of employers find it challenging to find the workers with the skills they need. From 2006, studies have shown that more and more companies are finding it difficult to fill positions that need top talent.

Such factors have pushed organizations and businesses to employ the services of an executive search firm. Such services help you secure top talent, but they will save you a lot in time and revenue.

You Get to Save on Time and Money

It takes money to make money. This could not be truer than in the case of hiring and maintaining employees. The cost of hiring an employee is one of the most expensive parts of running a business. Not only that but the process of screening and hiring future employees is time-consuming.

According to Toggle Hire, small business owners spend about 40% their total time on activities that do not generate income such as hiring. The same study showed that it takes about 42 days to fill a position vacated by an employee. In some cases, it can take up to six months to fill a senior position.

A study by the National Association of Colleges and Employers stated that companies with less than 500 personnel spend approximately $7,645 when hiring an employee. Other studies have shown that this figure revolves around $4000.

It doesn’t stop there. After hiring employees, companies often include training programs. According to the Manpower group, 54% of employers provide additional training programs to compensate for the lack of talent. Such training programs are also pricey.

Hiring is an expensive and time-costly affair. For such reasons, it would be in a company’s best interest to use executive search companies. Executive search organisations help you save on time and resources when hiring.

Executive Search Firms Help with Securing Experienced Personnel

Recruiting experienced candidates is becoming challenging with each passing business year. As mentioned above, the process can be time-consuming and costly.

Before COVID-19, the current employment rate in the United States stood at approximately 3%. In light of recent events, the current employment rose to 6.7%. This means that corporations in this market are continually competing for the experienced and skilled personnel.

Unlike other countries with high unemployment rates, securing experienced and skilled personnel in such markets is exceptionally challenging. However, with the help of an executive firm such as Flexi Personnel, the odds of landing an experienced candidate in such a competitive market are high.

They are Comprehensive and Transparent in the Recruitment Process

It is understandable to have concerns about the hiring process. But another advantage of using an executive search firm is that they are transparent in the hiring process.

This means that you or your company will avoid liability that could arise during the hiring process. Not only that but in some countries like the United Kingdom and Kenya, the selection process should meet the requirements as dictated by laws on equality.

According to a study by Mckinsey, companies with racial and ethnic diversity are more likely to outperform competitors. For this reason, businesses prefer recruiting candidates from different ethnicities and races.

Failure to do so only results in a tarnished brand image and huge fines depending on the location. Professional search firms like Flexi Personnel have a plethora of candidates from all backgrounds that target equal opportunity when hiring.

Executive Search Firms Help in Preventing Damage to Brand Image

The current market place is a battleground for recruiters looking to hire top talent. This is done to sell a given employer’s brand. Additionally, a company’s brand or reputation influences a candidate’s ability to accept a job offer.

Recent surveys show that approximately 69% of all job seekers will not apply for jobs with companies that have a bad public image, regardless of the state of their employment. So, how does a global executive search firm help with this?

When a specific job position especially a senior managerial position, remains open for an extended period, questions about its nature emerge. This ultimately affects the brand’s image. Additionally, if the corporation is unable to retain its top talent

But by using an executive search firm, the organization gets to fill that position quickly preventing damage to the brand’s image. You see in the current world dominated by social media; you cannot afford to use long and tedious hiring processes.

It is as easy as leaving a negative comment on its web page, or Twitter handle. Instead of risking the brand image, it would be best to use the services of an experienced headhunting firm such as Flexi Personnel. This will help you quickly secure top talent while giving you a competitive advantage over your rivals.

They Perform a Rigorous and Thorough Background Check

It would be wrong to assume that companies fail to perform background checks during the hiring process. In fact, a recent study by the National Association of Professional Background Screeners (NAPBS) showed just how serious organizations are about avoiding potentially ‘bad’ hires.

Actually, 95 per cent of all companies reported performing some kind of background check. However, all these checks lacked the robustness and due diligence that they deserve. For instance, 4 out of every ten companies do not bother with a candidate’s education as displayed on their profiles.

This comes in the wake of candidates and applicants falsifying documents, including educational information. According to Jefferson Maguire, 46% of all applications contained some type of false information.

Another 6 in 10 do not perform international background checks. Shockingly, 3% of all companies do not bother with criminal records. So, to a certain degree, companies do not perform rigorous and thorough background checks when staffing. This could have dire consequences as such corporations could eventually end up with ‘bad’ hires.

On the other hand, executive search firms perform a host of background checks to ensure that you do not end up staffing ‘bad’ hires. Additionally, such checks ensure that your company is prevented from liability issues.

Executive Search Firms Help with Filling a Vacant Position Quickly

The process of hiring especially executive managers is a lengthy one. According to a LinkedIn study in 2017, the process could take anywhere between 4 to 6 months on average.

And as mentioned above, this process could be costlier with a ‘bad’ hire. Take the case of a CEO, for example. The person acting in this capacity controls about 45% of all company operations both in the short and long run. This is one of the many roles that such individuals play in an organization.

However, hiring a ‘bad’ CEO could result in huge losses. According to studies, 3 out of every four newly appointed CEO's struggle with performance in their first 18 months.

Hiring a CEO is not good enough because acquiring top talent backed with a proven track record and industry expertise is vitally important. In such a scenario, a company should consider interim management, a new and effective trend in management.

With that said, it would be best to seek advice from an executive search consultant regarding top talent acquisition. Not only do they help with professional recruitment in an executive position, but they achieve this feat quickly

How Do Executive Search Firms Secure Top Talent?

The primary purpose of executive search firms is to locate highly talented candidates from different parts of the world. They then vet these candidates to ensure that they present the strongest and most viable options to clients.

Executive search firms have many perks. But how are they able to secure top talent quickly? For one, these businesses look beyond the resumes and CV's. When hiring traditionally, hiring managers often depend on resumes to make an informed decision about their credentials.

However, there are many other factors to consider, including social media and referrals that executive search firms use. As a result, these companies are able to make better recommendations with regards to placements and assignments.

Secondly, executive search firms do a lot of networking. In the process, they are able to build a vast database comprising of top talent from across different parts of the world. This is made possible by technology and valuable connections.

In Conclusion

Executive search firms are growing in popularity and rightly so. Companies that fail to use search firms in their hiring process risk bad hires which can be costly to the company.

Alternatively, you should consider an interim manager. Placing these individuals on a small retainer fee could be the answer to your managerial problems in the short term. Additionally, they are vital in business transformation and filling managerial gaps. You can read more about interim managers and their mission here.

There are a ton of benefits to be enjoyed by employing executive search services. They include timely hires, cost-efficient processes and employment of top talent. So, should you use executive search firms to help you with recruitment? Absolutely!

Are You Looking for An Executive Search Firm?

Great leaders are hard to find and retain. Not only that but managing the hiring process to ensure you secure C-suite level candidates demands a certain level of professionalism and mastery.

So, if you are looking for a new senior executive, partnering with a trusted executive search firm, such as Flexi Personnel is undoubtedly your best bet. We are biased, but we believe that you should strongly consider partnering with us!

Flexi Personnel is the number one provider of professional HR management solutions in East and Central Africa. We have over 12 years’ experience in this industry, helping companies such as Uber and Siemens diversify their human-capital while attracting top talent.

We would like to work with you too on your next project! Feel free to contact us at Flexi Personnel for Board, C-Suite, Executive and senior management solutions.