Finding the ideal candidate to fill a job vacancy can be as tricky as identifying a needle in a haystack. With the technology available today, you might be wondering how that could be true. Yet, there are a few key reasons - despite the availability of advanced recruitment technology solutions - that it is tougher than ever to identify, attract, and retain the ideal candidate.
Firstly, online job boards and social networks have broadened the talent pool for recruiters. While this exposes HR teams to the talent they have not encountered through employee referrals or applications via the corporate career page, it also invites applications from a larger number of applicants - many of which may be unqualified for the position. Parsing through a higher volume of resumes takes significant time and can lengthen the overall hiring process. It may also contribute to qualified candidates being overlooked.
Another reason that it can be difficult to identify the best applicant for a job vacancy is that the channels where listings are posted have multiplied. In the past, hiring teams focused on sourcing talent internally, through employee referrals, for the corporate career page, or at job fairs. However, online job boards and social networks such as Indeed and LinkedIn have increased the channels through which candidates are looking for jobs.
Learn more about five channels that HR departments and recruiters should be using in their hiring efforts, here.
This is making it necessary for HR teams to post job listings and monitor these channels as well to ensure that they are not missing out on top talent. With applications coming in from so many different sources, it can also be hard to know which channels are leading to lasting hires. Uncovering the source of hire is essential for HR departments in order to allocate resources to the most deserving channels.
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Competition for talent is another significant reason why it can be exceedingly difficult to find the right candidate for a job vacancy. In the tech sector, for example, a lengthy talent shortage is growing worse as tenured employees retire in greater numbers, fewer students are going into tech careers and industries outside of tech begin to seek the same talent to drive digital transformation efforts.
This is a notable concern as companies make strategic plans for the future. Without competitive benefits, a compelling vision or a strong reputation, it can be near impossible to attract the right talent to drive innovation and long-term growth.
The final difficulty for HR departments is how employee loyalty has slowly waned over time and tenures have shortened. This has made it harder for organizations to commit to hiring for permanent positions and investing in talent long-term if they are not certain that the employee would remain at the company for a long period.
While there are several reasons for this trend, the most common are lackluster employee benefits packages, stagnating wages, and observations by employees that hopping from one role to another can actually yield higher pay than staying with the same organization.
Even the C-suite is joining the “Great Resignation” after the unprecedented stress and pressure brought by the pandemic. As an article by Oliver Wyman experts notes, “people today are focused on their most basic needs: safety, health, and freedom from worry.”
These factors are also true at the management and executive levels. For these senior positions, it is essential to hire and retain individuals who are committed to making a lasting impact on your organization. The key to succeeding in this area is ensuring that employees are happy and invested in the organization.
As Oxford University's Saïd Business School found in its research into happiness and productivity at British company BT, workers were 13% more productive when they felt happy. Studies have also found that happy employees have a positive impact on a company’s bottom line.
With so much at stake when making a senior-level hire, it is crucial to make the right choice in the hiring process. This is where executive search agencies can make a huge difference for organizations. These firms connect organizations with the most qualified talent and ensure that the best fit for a senior job vacancy is identified quickly.
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What is an executive search agency?
Before deciding if hiring an executive search firm is right for your organization at this stage, it is important to distinguish these firms from other types of recruitment agencies. The Association of Executive Search and Leadership Consultants (AESC) defines it best by saying that an executive search agency is, “a company that specializes in placing highly qualified candidates in executive-level positions across the public, private, and non-profit sectors.”
While recruitment agencies also place candidates in positions for a client, what sets executive search agencies apart is the focus on understanding the requirements of the role so that they can offer professionals with the best chances of being successful after they are hired. These firms get to know organizations fairly well and work with a company for a long period, placing multiple senior leaders. This enables these firms to also provide consulting services like organization mapping and culture assessments. Recruitment agencies, on the other hand, may only help to fill job vacancies for more junior positions that tend to be less strategic or instrumental for the organization.
Executive search firms are typically paid a retainer fee, which can add up to about a third of the candidate’s first-year salary. Other types of recruitment agencies may charge a fee contingent on their ability to secure a hire for a vacancy. Executive firms may specialize in filling roles in a particular industry sector or filling specific executive titles. This gives them a level of expertise that can be incredibly valuable to companies seeking to fill a role that isn’t often open. It is important to note, however, that for every upstanding organization, there will be fraudulent companies operating. As a rule of thumb, it is wise to be wary of any recruitment or executive search firms that ask job seekers to pay them for their services or have dubious email addresses.
At this stage, you might be wondering how an executive search firm can benefit an organization that may already have its own HR department. However, there are some important reasons why HR leaders can benefit from the expertise of an executive search agency.
How do executive search agencies benefit organizations?
Executive search agencies are devoted to building professional databases that yield them the best results in their senior-level searches since their reputation depends on having the best candidates to present to companies. Building this kind of database requires tireless courting of professionals and building relationships over the course of their careers. This might not be the time that HR teams or executive leaders have to devote to the job search in addition to their day-to-day responsibilities.
It is also worthwhile to have a third-party organization working on your organization’s behalf, as these firms tend to be discreet about their activities so that competitors or investors are not tipped off to your organization’s activities. Additionally, if you are attempting to hire an executive away from their current organization, it would not be wise to have that organization find out that one of their senior leaders is considering another opportunity.
Most agencies will also invest in a comprehensive applicant tracking system (ATS) to ensure that their candidate information is always up-to-date and that they can quickly present the most qualified applicants to their clients.
An ATS like Manatal will help an executive search agency manage your hiring process to ensure that candidate experiences are positive, that communications with candidates are consistent, and that collaboration with your team is seamless. Access levels can be set in the platform so that only relevant internal stakeholders receive updates about the hiring process. Organizations will typically want to move through the selection process quickly, so having an ATS that simplifies candidate management and collaboration is essential to executive search agency operations.
C-suite positions require an ever-evolving skillset. Today, organizations will not thrive with aloof and eccentric leaders who are rarely seen by employees. Among other essential skills, C-suite executives need to have a keen business instinct, deep emotional intelligence, adaptability, and the capacity to take suggestions from their teams in order to steer a successful, profitable enterprise. Executive search firms are plugged into what attributes will make for a successful leader in the current business environment.
They can also spend the time enticing passive candidates to consider a role with your organization when you are not able to. With passive candidates accounting for nearly two-thirds of the global workforce, focusing on shaking some of this talent loose is crucial. This additional focus on attracting candidates can also help reduce the chances of a bad hire, which can be incredibly costly for organizations.
While it is expensive and time-consuming to replace an employee at any level, the added blow to investor or shareholder confidence can also be significant. To reduce the chances of a bad hire, an executive search agency can help your team refine the job description, streamline the interview process, and improve how your internal stakeholders conduct interviews.
Executive search firms offer an objective third-party perspective that helps to eliminate bias from job searches - especially ones that include internal candidates. Since they are not invested in who gets hired, but rather that the best candidate that they put forth is hired, you can be sure that they will always have an eye on which candidate is the best overall fit.
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When to engage an executive search firm for your organization
To recap the information shared above, executive search agencies can provide a valuable service to organizations when engaging in a C-suite or board-level search. These firms have the expertise, relationships, and tools to ensure that when the role is filled, it is with the most qualified person and someone who fits in with the culture of your organization. It is always advisable to enlist the help of a top executive search agency - such as Robert Half, Korn Ferry, or Heidrick & Struggles - if:
- Your team is tasked with filling a C-suite or board position,
- Your organization has created a new executive-level position and needs assistance defining the role,
- You want to keep your executive search confidential,
- There is a time crunch that requires your team to find the right candidate quickly.
There are likely many more reasons, but these five are the most important as HR teams navigate a complex job market. As you evaluate executive search agencies, also make sure to ask about the ATS and other recruitment tools they are using. The added support from these agencies when making such an important and strategic hire can be beneficial in shaping the future success of your organization.
To ensure seamless collaboration between organizations and executive search firms, it is imperative to have a digital tool like ATS at your disposal. Not only does an efficient ATS like Manatal allows all stakeholders to stride through the hiring pipeline smoothly, but it also helps ensure the quality of hire with many innovative features.
Start your 14-day Free Trial with Manatal now to find out how the platform can help elevate your recruitment game within a few clicks.
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