Retained Executive Search: What It Is—and What It Isn’t

Retained Executive Search – Erroneous Beliefs and Truths (and My Favorite Saying: “That’s Why They Call It Search”)

We are in our thirtieth year (yes – year 30).  When people ask me what I do for a living, I respond with three words, Retained Executive Search.  I am often greeted with blank stares or a comment that includes the term headhunter, a slang term that actually dates back to the 1950’s in its association with the Retained Executive Search world. 

While not intending to give a history lesson, here is a brief history of the term headhunter:

• 1950’s – the term started to show up as pejorative slang for people that took executives from one company and placed them at another.  This recruiting process was compared to the more common and ‘polite’ practice of running an ad to reach people open to a change. 
• 1960’s – the term became widely recognized when referring to Retained Search (though the industry itself did not use the term).
• 1970’s and 1980’s – the term had fully entered the business lexicon and became shorthand for senior-level, confidential recruiting. 

Firms from the 1980’s forward branded themselves differently, however, preferring the label of Executive Search Consultants to emphasize the confidential nature of the work, the advisory role played and the long-term client orientation.  That is very descriptive of where we are today/what I do for a living. 

So Many Misconceptions – Let’s Address Some Of Them

We advertise (and the ‘right’ candidates are looking)

Let’s start with NO – we do not advertise.  (This is true for my firm; some of the retained firms we know will advertise – we do not see advertising as a best practice.)  I refer to advertising as ‘Post and Pray’ – posting a job and praying that the right people see it. 

Job seekers look at the ads all the time.  While there is nothing wrong with the people overtly looking for a job or people who simply read the want ads, retained search firms proactively reach out to people based on their credentials and present the opportunity to them. 

Please note – job seekers often feel they are qualified for every position they encounter.  Candidates who are happily employed are often more discerning, an attribute we prefer. 

We have a database of candidates that are perfect for every position

Wouldn’t that be great?  A database that matches a new executive search with all of its nuanced requirements – experience with all of its specifics (relating to size, scope, ownership structure, past accomplishments, etc.), education and cultural fit – with the perfect candidate.  That assumes we already have that person in our database.  Technology is great – but we are not even close to this (and AI is not ready for this task). 

We have worked on over 750 specific executive searches across multiple industries and functions.  Each search has specific requirements and while our database is extensive, each search involves specific research resulting in the identification, addition and contacting of new people.  Our clients assume we are looking for the right match and we do so in a very thorough manner.  Assuming we already know the person/have that person in our database might be quicker, but it would not be the best for our client.  Our client (the customer) wants a comprehensive search – and that is what we do. 

Our job, quite bluntly, is to search, not just fetch from our database.  Search is a simple term but implies a comprehensive process.  One of the common things we say in this firm is ‘that’s why they call it search’.  Search is truly consulting – understanding the need with all of its nuances, and working hard to find the right people to assess – and then assessing each possible candidate in many ways/through many interactions.  

We are great to network with

We do indeed know hundreds/thousands of people.  That said, if you are referred to us or reach out to us to network, referring you to people we know well/have relationships with based on a short interaction is not a transfer of the relationship.  It is at best a cold call name with an explanation of how we got your name. 

True networking is best when the person you are networking with can actually endorse you/give examples of what you do and how you do things (and the results of your work).  Networking with us is not much better than a cold call.  (Networking to build a long-term relationship is different – those meetings can be fun and productive.  The time to network is not when you truly need us to help you find a job.)

We work for candidates

Organizations come to us with very specific needs.  We do not send out resumes (ever) in the hope that a company will want to hire you.  That is a very different business and not one we are in.  Our fee is paid by the hiring organization – our true and only customer. 

We know how the search will end

When I started in this business (29+ years ago), I would have said yes to this statement.  I learned quickly (during our very first searches) that this is not the case.  Each search takes its own path.  Feedback from our client at each interaction gives us more data and insight into the type of person we are seeking. 

Candidates also have their own careers to manage.  I’d love to tell you that every candidate that says they are open to a conversation and potentially ready to make a move (based on the position we are discussing) is indeed ready.  I referenced earlier that we like candidates that are discerning.  Employers are equally discerning.  Our goal – work hard every moment on every assignment to find the match regardless of the undulating path the search might take.  

The Truth

Our job is to take the time to truly understand the need.  As stated above, organizations come to us with very specific needs for varying reasons.  No one has ever come to us with an easy assignment and a long timeframe.

Here is a partial list of reasons organizations retain search firms:

• This is a very senior and highly impactful role.  We don’t know where to begin and want to ensure we look in a comprehensive manner. 
• This is a specialized position/industry and will be a difficult position to fill; candidates are rather scarce as a result. 

• Internal Human Resources staff do not have the time to devote to a full search effort.

• Confidentiality is critical.

The search field, especially the retained search field, can be easily misunderstood.  Feel free to ask me any questions.  I’m happy to remove the mystery and see if we can be of value – now or in the future.