12 reasons why companies retain executive search firms

Generally, employers use an executive search firm when an executive job opening is important enough and senior enough to warrant the investment.  We use the word “invest” for a reason.  A retained executive search will likely cost you a minimum of £10,000 and can cost £100,000 or more — typically one-third of a candidate’s first year total cash compensation.  If the cost of not filling the role with the right candidate is significantly higher than the cost of the search, then you may be ready to consider investing in the services of a retained executive search firm.

CNA International do not believe a retained search firm is right for every search every time. We often brainstorm with senior executives about ways they can build their teams without incurring the expense of an executive search firm. You can get a lot of lift with employee referrals, job postings, and LinkedIn, but last I checked, there is no service available where you can download a thoroughly vetted, interested and qualified A-player.  Recruiting top performing executives is labour-intensive, complex, and requires a rare set of skills and expertise. That is why retained search firms exist. In fact, they are in such demand currently that, despite the recent economic downturn, their average fee has increased.

Companies and hiring executives retain executive search firms for any one of the following reasons:

1. Good just is not good enough. You require a senior executive candidate who is truly great.
If hiring top performing talent available is important to your company, a search firm can help you do the rigorous work required for game changing hires.