Executive search firms have been used by big businesses for decades, and smaller to mid sized business are also seeing the appeal at using an executive search firm to help attract the right people to their company. The trend to go outside of their own internal Human Resources department has been growing over the last few years. An executive search firm can help a business, big or small, to find the right candidates to fill the top-level positions that will help the company grow and succeed in today’s market.
CHOOSE THE RIGHT TYPE OF EXECUTIVE SEARCH FIRM
When it comes to executive search firms you have six choices to choose from:
1 – RPO Firms
RPO stands for Recruitment Process Outsourcing and is a relatively new type of executive search firm. RPO’s are a good option if you plan on hiring a number of people each month. With RPO firms you will be expected to pay a monthly administration fee along with a fee that will be charged when a candidate is successfully hired.
2 – Contingency Firms
Contingency firms are the most widely used executive search firms. With this type of firm you will only be charged when they can successfully place a candidate with you. Contingency firms work on a percentage basis, which typically runs from 20 to 30 percent of the candidate’s first year earnings.
3 – Container Firms
Container firms can be thought of as a hybrid between contingency firms and retained firms. In a container firm you will be charged an upfront fee and once a candidate has been selected an additional fee, which is based on the candidate’s first year earnings, will be required. Container firms typically charge 20 to 25 percent.
4 – Offshore Sourcing Firms
With an offshore sourcing firm you will generally receive bulk resumes of potential candidates. Most times these resumes are unscreened, but for a low monthly fee this can be a great way to do some in-house recruiting without listing or advertising the open position to the general public.
5 – Retained Firms
Retained firms are executive search firms that charge a retainer. They typically charge 30 to 35 percent of the candidate’s first year earnings, however since a retainer is required the 30 to 35 percent fee is split into thirds. The first instalment is the upfront retainer. The second instalment is paid when candidates are presented and the final instalment is paid when the position is filled.
6 – Contract Firms
You can also hire a full-time recruiter on a contract basis, this is known as a contract firm. With this option you can be expected to pay anywhere from $40 to $70 per hour.
Whether you are looking for retained search firms or contingency search firms or contract firms, here is pone good place where .
A good executive search firm will understand the role of the position you are looking to fill and will work with you to find the best candidate for the job. Ultimately it doesn’t matter which of six options you decide to enlist to as your executive search firm, the one thing to keep in mind is to make sure they understand your needs. It is always a good idea to ask for references and make sure you check them. Find out how satisfied their clients were with the firms performance and if the candidate worked out. Make sure you are completely satisfied with the firm before you enter into any kind of contract.
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