In today's fast-paced and highly competitive business landscape, finding top talent cannot be overstated. The success, growth, and long-term sustainability of any organisation hinges significantly on the quality of its leadership. However, identifying, attracting, and securing the right executives for critical roles can be daunting and time-consuming. This is where retained executive search comes into play. This article will delve into retained executive search and its benefits. We will explore what retained executive search entails, its unique approach, the access it provides to hidden talent, its comprehensive process, and why the fees associated with it are often worth the investment.

What is Retained Executive Search?

A Tailored Approach

Access to the Hidden Talent Pool

A Comprehensive and Rigorous Process

Retained Executive Search Fees: Worth the Investment

Retained executive search is a specialised recruitment service provided by executive search firms. This service differs significantly from contingency search, where multiple firms often compete to fill a position, which can lead to a rushed and less thorough process. Often, the same candidates are approached, which can affect your company's reputation and leave external recruitment partners frustrated and less motivated to fill the position.

In contrast, retained search involves a single firm finding the right candidate for a specific executive role. This exclusive partnership ensures the search firm invests significant time and resources to understand the client's needs and identify the best-fit candidate. Like a lawyer or consultant, the firm is retained to conduct a comprehensive search and selection process. This commitment to a single firm allows for a more focused, dedicated, and in-depth search, leading to a higher likelihood of finding the perfect fit for the role.

How to choose the right search firm.

Many executive search firms will exclusively use retained agreements due to their extensive investment of time, however, some will offer alternative agreements such as Contingent and RPO.

One of the critical ingredients of a retained executive search is its tailored approach. Unlike other recruitment methods, which often rely on a one-size-fits-all strategy, the retained search focuses on understanding the unique requirements of the client organisation and the specific role they are looking to fill. This involves in-depth interviews with key stakeholders, including board members, senior executives, and other relevant individuals. The search firm takes the time to deeply understand the organisation's culture, values, and strategic goals. This knowledge allows the search firm to identify candidates with the necessary skills and experience and align with the company's vision. This tailored approach ensures a more precise match, reducing the risk of a misfit and increasing the likelihood of a successful hire.

If you’re a start-up and reluctant to engage in a retained agreement, many search firms will work on an exclusive contingent agreement. To discover more about exclusive contingent agreements, contact Oakstone.

We love it with a passion. Especially the responsibilities.

Not just our obvious accountability to the client – but also to all the other stakeholders in the process.

Think about the logistics…

For every person we place, our expert consultants may need to organise:

• 3 second interviews

• 5 first interviews

• 8 shortlisted professionals

• 16 phone interviews

• 50-80 long-list approaches to qualify the profiles of those expressing interest in the role.

This involves 200-400 phone calls to 75 people at around 30-50 different companies – for one role (and we typically need to fill 10 to 20 roles).

“It’s a numbers game!” I hear you say.

No. The highly skilled professionals we seek to place are quite obviously not numbers.

And this is no game. This is the structured methodology of our executive search process.

Retained executive search also allows access to a hidden talent pool. Top executives are often not actively seeking new opportunities and may not be visible on job boards or other traditional recruitment channels. They are the passive candidates, the people who are not looking for a new role but may be open to a new opportunity if it aligns with their career goals and aspirations. Retained search firms have extensive networks and relationships with industry leaders and executives, allowing them to tap into this hidden talent pool. By leveraging their connections and industry knowledge, search firms can identify and approach high-calibre candidates who may not be accessible through other means. This access to the hidden talent pool increases the chances of finding a candidate who can bring fresh perspectives and drive the organisation's growth.

Retained executive search is known for its comprehensive and rigorous process. The search firm thoroughly assesses potential candidates, including evaluating their qualifications, experience, and track record. This involves conducting detailed reference checks, verifying credentials, and assessing cultural fit. The search firm also provides ongoing support and guidance throughout the hiring process, including facilitating initial interviews, negotiating offers, and assisting with onboarding. This level of involvement ensures that the clients organisation makes an informed decision and secures the best candidate for the role. The comprehensive and rigorous process of retained executive search reduces the risk of a bad hire, saving the organisation from potential financial and reputational damage.

While retained executive search fees may be higher than other recruitment methods, they are often worth the investment. The exclusive partnership and tailored retained search approach significantly increase the chances of finding the right candidate for the executive role. Additionally, the cost of a bad hire or the cost of an open headcount can be much higher than the fees associated with a retained search. A poor hiring decision can result in lost productivity, decreased employee morale, and potential damage to the organisation's reputation. By investing in retained search, organisations can mitigate these risks and secure top talent to drive their success. The fees associated with retained executive search should be viewed not as a cost but as an investment in the organisation's future.

“Badly planned and poorly delivered recruitment campaigns not only risk an unacceptable result today – they muddy the waters for the future. This is one reason we recommend using a single executive search company. You get a properly coordinated recruitment drive – not a multi-agency free-for-all. People think using multiple partners is a shortcut, but it risks creating bad feelings among the people you’re targeting because of all the overlapping, duplication and mixed messages these bun fights can often generate. Ill feeling is more likely among those who don’t get the job. And that will almost certainly be amplified by the increased number of variables involved. The talent pool must never be polluted by ill feelings. It is hugely valuable and must always be treated with the utmost respect.” - Paul Rayner, Oakstone CEO.

Conclusion

Retained executive search is a powerful tool for organisations seeking top talent for their executive roles. Its tailored approach, access to the hidden talent pool, and comprehensive process make it a highly effective recruitment method. While the fees associated with retained search may be higher, the investment is often worth considering the long-term benefits and the potential cost of a bad hire. By partnering with a reputable executive search firm, organisations can unveil the secret sauce to finding top talent and gain a competitive edge in today's business landscape. In a world where the right leadership can make or break an organisation, retained executive search provides a strategic advantage in securing the best talent. 

“Outsourcing your executive search to a single agency makes life so much easier for your in-house recruitment team and all managers involved in the hiring process. There is one point of contact instead of half a dozen, and one trusted partner implements your recruitment instead of a handful of suppliers tripping over each other. All that thrashing around by different providers creates ‘noise’, which can damage your reputation in subsequent hiring rounds. Remember this – there is more than one measure of success in a good executive search campaign.

Success is not just the successful placement of winners who go on to achieve epic results (as crucially important as that is).It is also the positive feedback from those who did not secure the role. And their willingness to be there for you the next time you need them. It’s about creating a pool of people thirsting for success. Either quench that thirst by hiring them or tell them they’ll always be welcome back if they don’t make the cut the first time around. But whatever you do, don’t poison the waterhole with an ill-thought stampede.” - Paul Rayner, Oakstone CEO.