Not many people know what Retained Executive Search Firms are, but that’s exactly what we’re going to talk about in this article. According to many people, these search firms can sometimes be very expensive, and sometimes charge about thirty percent of your entire executive compensation. Well, if they’re charging so much, there must be a few better ways to hire, so why should I consider using a search firm? Well, hear us out.
In the business world, as strange it may sound, but cost isn’t everything. There are many experts that are working with business statistics and according to their researches, the “cost of a bad hire” is something can be almost 3 times the salary of the concerned individual. In short, if you hire a person that isn’t really competent to do the job that you need them to do, your business will lose a lot more money than it would if you were simply using a search firm and hire a person that’s absolutely phenomenal in that certain job position.
Executive hiring is pretty difficult, and an executive search can greatly improve your odds when it comes to making a successful hire. Sometimes businesses are in a position where they have a project that’s “make or break”, and in times like these, there is no room for mistakes. Paying a bit more in order to get a successful hire in return is always very worth it, especially if you are in such a tight situation.
According to GatedTalent.com, the cost of a bad hire is a lot more than just some money lost. Everything that a business needs in order to survive is also going to take some damage. Reputational damage, Strategic damage, Cultural damage etc. CEO’s and other senior executives are paid in order to make some of the most significant and important decisions in a company. Just a few months of bad decisions can turn a company from being successful in sinking into the ground really fast.
Retained executive search firms are dedicated to recruiting the best candidate for the specific job position that you are offering. They completely analyze, interview and do all sorts of checks on the candidates before making a decision. These firms help both large corporations and smaller start-up businesses, with the price varying depending on the size of the business. There are executive search firms that operate on a global level, and there are others that are working just locally. However, the ones operating at a global level are more common.
One of the main reasons to consider a retained executive search firm, or even better, trust them with their decision, is the fact that their decision doesn’t only impact your company, but theirs as well. The search firm is going to grow or fall depending on how good of a decision they made, so it’s in their use to pick the right candidate for your job. If a search firm is known for making bad decisions, it will quickly go out of business and never make a name out of it.