What Should You Expect From Your Executive Search/Recruiting Firms? Written By: David Mansbach - HVS Executive Search
The best executive search firms assist client organizations in defining executive positions, identifying well-qualified and motivated candidates, and selecting those best suited through comprehensive, quality-assured search processes. Because utilizing an executive search firm requires a substantial investment of time and money, it is critical for restaurant executives to have a keen understanding of what to expect from the client-executive...
As an executive search professional, I can say that the most successful assignments point to restaurant companies that are "educated buyers." The organizations that "truly" understand how executive search firms should operate are the ones that consistently attract and retain high-performing executives. Listed below are key points to consider when engaging an executive search firm.
Not all search firms offer the same services, but they should all operate in line with the highest professional standards. In addition to the obvious differences in size and manpower, search firms also vary in their areas of expertise, their knowledge of and contacts within various industries, and the skills and experience levels of their search consultants.
Before agreeing to undertake any search, the executive search firm should:
- Disclose any and all information with regard to relationships or circumstances that might create actual or potential conflicts of interest. A key requirement is for the search firm to reveal to present and prospective clients the firm's roster of clients. This is extremely important because search professionals are prohibited from recruiting candidates working for clients. Therefore, if Applebee's, Darden, Brinker, and Carlson Restaurants were my clients, conducting a search for another Casual Dining concept/company will dramatically diminish the potential candidate pool.
- Define the scope and character of the services to be provided and the fees and expenses to be charged for the services rendered.
These steps require that you provide a full and accurate description of your organization, its business needs and culture, the position to be filled, and your criteria for the ideal candidate. If the search firm cannot handle your assignment, it should explain why and then refer you to another firm better equipped to meet your needs.
In addition to the consultant who generates the business relationship, there may be a team of professionals who will handle the search assignment.
It is certainly within your rights to ask for and to receive full and open disclosure regarding the consultants and their ability to successfully handle the assignment, as well as the resources the firm has available to support the consultant/team working on your project.
In addition to locating high-quality candidates, your search firm should also provide information and feedback that not only helps direct your search for executive talent, but that can also be used to run your business more effectively. This feedback includes:
Knowledge of the industry in which the search will be conducted, including availability of candidates, comparative assessments of those candidates, and remuneration levels.
General market research regarding how your organization is perceived in the market, what your competitors are doing, and what kind of recruiting strategies may or may not be working at any given point in time.
By its very nature, an executive search requires you to divulge highly sensitive information about your organization. Search consultants must treat any and all information you give them with the utmost confidentiality.
At the same time, the consultant cannot conduct an effective search without making some information available to potential candidates. To protect your interests, however, the search consultant should guarantee that he or she will:
- Use confidential client information only for the purposes of conducting the assignment.
- Disclose client information only to others within the search firm (who may be supporting the consultant on this assignment) or potential candidates who have a need to know the information.
In order to conduct a successful search, the consultant must have a crystal clear understanding of the position to be filled, the requirements of the job, and your company's culture. Accordingly, you should insist on receiving a report that details the consultant's understanding of:
- your desired level and type of experience;
- the background, education, and technical skills needed to successfully perform the position; and
- the responsibilities of the position and any interpersonal skills needed.
Good search firms will do more than just feed back the job description you present them. They will proactively help you develop, modify, and refine your own understanding of the position. To help with this critical step, give your search consultant access to all those who participate in the selection process and encourage them to provide full disclosure regarding the position to be filled.
Because the job description represents the bedrock of a successful search, you have a reciprocal obligation to notify the consultant if any time circumstances (either internal or external) require a change in the position or the type of person you're seeking. Be aware that a major change in search specifications may require a change in fees.
Depending on the position to be filled, the availability of talent, and a host of other factors, a successful search can take anywhere from a few weeks to several months. To keep you up-to-date, the search firm should provide ongoing progress reports that include:
- The companies at which the consultant has tried to target candidates;
- the market response to the search; and
- obstacles to identifying or attracting candidates and candidates currently being developed.
VII. The executive search firm shall present qualified candidates who fit the position and the culture of your organization.
The consultant should present you with a range of qualified potential candidates, whom he or she has thoroughly assessed and interviewed. The consultant should be able to discuss each candidate's:
- experience level and significant achievements relative to the position to be filled;
- education, interpersonal, and motivation competencies;
- personal strengths and weaknesses with respect to the position to be filled and perceived cultural fit and interest in the position; and
- remuneration and financial expectations.
In presenting candidates, either individually or in a "shortlist," you should expect the consultant to discuss the interviewing arrangements and other issues that can affect the critical interviewing process. Immediately after you have interviewed candidates, your search consultant should solicit your comments and feedback and help you conduct comparative candidate assessment and analysis.
If it becomes apparent that the search will take considerably longer than expected or that it may not yield an acceptable range of candidates, the consultant should inform you as soon as possible and discuss alternative courses of action.
Once you have selected a final candidate, the consultant's role changes from that of search agent to negotiator and communicator. At this point, the consultant's primary function is to help you bring the candidate on board in a manner that facilitates a long and successful stay with your organization. This includes:
- acting as an intermediary between you and the candidate regarding compensation, benefits, and other conditions of employment;
- communicating to you any reservations or concerns the candidate may have about accepting the position; and
- helping the candidate to assess the opportunity and working with both sides to create a "win" for everyone.
Although the consultant represents your interests first and foremost, he or she must also remain sensitive to the needs and concerns of the candidate. To do otherwise significantly reduces the chances of a successful hire. In addition, representing both parties with integrity and professionalism ensures two important outcomes:
- the candidate comes aboard feeling that he or she has been treated fairly; and
- the search enhances your company's reputation in the marketplace.
Remember that your candidates are also very busy professionals who have sacrificed valuable time to talk with you. Furthermore, they did not solicit this opportunity; it was presented to them.
The search firm cannot (and should not be expected to) guarantee to fill your position. The consultant also cannot guarantee that, once placed, a new hire will stay with your firm. With that in mind, the consultant should provide (in writing) an explanation of the firm's policy regarding possible outcomes. These include:
- the search firm's obligations and responsibilities to you should a newly recruited professional leave your company for any reason within an agreed period of time;
- your obligations to the search firm should you hire a candidate presented during the current engagement for a position other than the assigned vacancy; and
- the conditions under which the search firm can withdraw from your assignment or consider it sufficiently changed to start a new search.
Seemingly successful placements can sometimes fall apart during the transition period. As a result, the consultant's responsibility does not end when the candidate accepts the offer. Instead, the consultant should stay in contact with the new hire as long as necessary to ensure a smooth transition and help them settle into the new position. Above all, the consultant should make sure that you are fully satisfied before considering the search a success and concluding the assignment.
Now that you know your rights, it is up to you to hold your search firm to the high standard of service you expect!!
David Mansbach is Vice President of HVS Executive Search, a human resources consulting firm specializing in the hospitality industry. David is head of the firm's restaurant division. He may be reached via phone at (516) 248-8828, ext. 257.
HVS Executive Search provides human resource expertise to the restaurant, lodging, and gaming industries. Core competencies of the firm include executive search, compensation management, corporate governance counseling, employee assessments, and on-line recruiting. For more information go to
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