Executive search (headhunting)
Executive search, commonly referred to as headhunting, is a specialized recruitment service focused on identifying and attracting candidates for positions that require specific skill sets or expertise, often beyond the reach of conventional hiring methods. This recruitment process is typically conducted by third-party firms or individuals who are specialists in finding talent, rather than the organizations themselves. While the term "executive search" implies a focus on high-level positions, it actually encompasses a broader range of roles, including department heads and technical specialists.
Executive search firms may operate under various contractual agreements, such as retainers or contingent fees, depending on the needs and preferences of the hiring organization. Retained search firms often charge upfront fees and may require a structured payment system that ties compensation to the candidate’s successful tenure in the role. Alternatively, contingent firms are compensated only when a position is successfully filled. These firms also utilize professional networks, such as LinkedIn, to enhance their recruitment efforts.
Although predominantly serving the private sector, some executive search firms have also begun to work with government entities, reflecting a diverse approach to talent acquisition. The nature of executive search fosters a nuanced understanding of specific industry needs, making it a vital resource for organizations seeking to fill challenging roles efficiently.
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Executive search (headhunting)
Executive search is a subset of human resource management, devoted to the recruitment of candidates to fill specialized positions in organizations. It is nearly always done by third-party individuals or organizations who specialize in recruitment, rather than internally. Despite the name "executive search," the service rarely focuses only on filling executive-level positions, and is instead focused on filling positions with specialized needs; this includes department heads who may not be numbered among the senior management within the client organization, specialists in unusual fields, and any other positions that would be resource-intensive or especially inefficient for the client organization to recruit through their normal means. Executive search recruiters are informally called "headhunters."
Overview
Executive search recruiters may work under various terms of service, depending on the needs of the client organization, the norms of the industry, and other preferences. Boutique executive search firms, some of which may specialize in a particular industry, or which are hired to recruit corporate officers and other highly paid positions, often charge a retainer for the search, and may charge a large sum even if the position is not successfully filled for some reason—though a detailed contract will spell out the conditions under which this will occur. Usually such firms use some kind of structured fee agreement, such that the firm is not paid the full amount until the hired candidate has served in the position for a full year (and has not been fired without cause in that period). A contract that allows for a repayment of the fee if the firm fails to find an appropriate candidate according to specific criteria agreed upon in advance is called a delimited search contract, and is preferred by some client organizations.
Firms that work with the same client organization on a regular basis may agree to an "off-limits" arrangement, meaning that they will not recruit employees of that organization for positions at another organization. However, executive search recruiters clearly must be careful with which client organizations they make this arrangement, or risk placing too many limits on their available recruitment pool.
Other firms may be engaged on a contingent basis, in which case they are paid only if the position is filled, with the fee usually a percentage of the candidate’s first-year salary. In the case of senior management positions, the fee may take into account expected bonus payouts, since for these positions salary is often a small part of the overall compensation package.
Executive search firms ultimately work for the client organization whose positions they fill, but in some cases individuals seeking new work opportunities may also pay them a fee to be "matched" with an appropriate position. Professional social networks like LinkedIn and contacts in human resource departments in various organizations are invaluable tools to expert headhunters. While executive search firms have traditionally worked for the private sector, a small number have also specialized in working with government agencies.
Bibliography
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