Search Firms

The probability of attaining a new position via a search firm depends on several factors including the marketability of your skill set, the reputation of the search firm, and the state of the economy. In a “candidates’ market” or a booming economy, companies are competing to find candidates and will likely utilize multiple search firms. In a down economy, however, many corporations will bypass the use of search firms and solicit resumes or post positions on their own, in order to save money on search fees.

That being said, some companies will choose to use search firms, regardless of the economy. This could be due to limited resources to cull through resumes and coordinate interviews or presence in an industry that is less impacted by the state of the economy. For executive level positions or highly specialized fields, many corporations have no choice but to use a nationally recognized search firm in order to find top candidates and to be able to draw from a national pool of people. While search firms usually should not be relied upon to the exclusion of other methods, search firms can play an important part in a balanced search strategy.

While search firms usually should not be relied upon to the exclusion of other methods, they can play an important part in a balanced search strategy.

Search firms can also be a great source of information regarding how best to market yourself, appropriate salary ranges for your background and target companies, and feedback on your resume. Be aware that some search firms may not be as strong at providing career related advice, as they prefer you take one of their positions than see you go elsewhere. Remember that ultimately, the search firm is working for their client and not for you, the candidate. However, reputable firms will express and exhibit a true interest in the needs and desires of the candidate as well.

Types of Search Firms

• Contingency: These firms or agencies receive payment only when they deliver a candidate who is hired. Their objective is to identify as many candidates as possible with the hope that one gets the job. There may be several contingency firms working on the same search.
• Retained: These firms are retained by a company and receive payment regardless of the outcome - even if the client changes their mind and fills the job internally or decides not to fill the position. Retained firms typically work on higher-level positions with a minimum salary requirement (such as $150k+). Many times, retained firms specialize in a particular industry and are very selective about their candidates. In general, they prefer to find candidates on their own through research and networking, but will sometimes work with individuals who contact them as well. The goal of the retained firm is to find the best candidate in the most efficient manner.
• Contingency: These firms or agencies receive payment only when they deliver a candidate who is hired and who stays in that position for a predetermined amount of time (typically, 30 to 90 days). They typically work on positions with salaries less than $200K; however, they can handle higher level positions as well. Their objective is to identify as many candidates as possible with the hope that one gets the job.
• Retingency: This is a fairly new concept. The retingency engagement is similar in structure to a traditional contingency search; however, there is an initial retainer (typically no more than 25% of the total fee) that is intended to ensure that both sides have a commitment to the process. A retingency approach is designed to adopt the best aspects of the retained search without the large upfront cash investment.

Identifying a Search Firm

A helpful way to identify a search firm can be by referral – reach out to your personal and professional network to identitfy recommended recruiters. Because firm reputations and quality of service can vary greatly, having a recommendation can be extremely helpful.

If you are unable to identify a recruiter through a referral, consider searching for a suitable search firm online using an online directory such as i-recruit, findarecruiter and headhunter.com. Another option is the National Directory of Executive Recruiters by Kennedy Publications. This hard-copy book is a fairly comprehensive listing of all national firms and they can be sorted by industry, geography, name, etc. The book is printed and is available at most public libraries.

Interviewing Search Firms

Treat your initial meeting with a search firm like any other interview. In this meeting, their goal is to evaluate you on your appearance, interview skills, communication skills and other personal traits and characteristics important to their clients. The firm wants to determine if you will make a good impression on their client – their reputation is based on the quality of the candidates they present. It is very uncommon for a search firm to present you to a client prior to meeting you in person.

Questions to consider asking when you meet a search firm:

• Is this a retained or contingency or retingency search firm?
• What industry or career field do you specialize in? How many years of experience in that area?
• Would you mind sharing with me the names of the firms with whom you do the most business?
• How many open positions are you currently handling? How many is your firm (or a particular division of the firm) handling right now?
• What types of positions have you recently filled?
• How many candidates are you currently working with?
• What is your policy regarding contacting your candidates prior to submitting their resumes to potential employers? (You will want to ensure they will always contact you prior to sending your resume to anyone.)
• Will you contact my references at the front end of the process or regarding only the opportunities for which I might be a fit? Will you be asking them to provide you the names of other candidates as well?

Developing Relationships with Search Firms

In addition to writing an excellent resume and cover letter, you can focus on making personal contact with search firms. Even the few who diligently read the resumes and cover letters they receive will quickly lose you among the stack of papers on their desk or e-mails in their in-box. A good 15-minute conversation with a search firm can distinguish you from the pack and help you stand out. On-going communication is key to building a relationship with the recruiter and helping to ensure that you will come to mind when an appropriate position comes along.

30-second Elevator Pitch

When you get on the phone with a search firm, do not be offended if it turns out that they have not read the material you sent them. Try to be well prepared and practiced at verbally delivering a description of your background, interests and capabilities in five minutes or less. Do not forget that the impression you make on them helps them determine if they would be comfortable putting you in front of one of their clients — be professional and prepared for these discussions.

Return Calls From Search Firms

Consider returning calls from search firms even if you are not interested in the position. When looking for a new opportunity, it is important to explore all options. Take the time to hear about the opportunities they have and if they are not a fit now, there may be an applicable opportunity in the future. Search firms can also be a great source of general information, so this could be a way to get their ideas on appropriate compensation ranges for your level, etc.

Questions to Ask When a Search Firm First Presents an Opportunity to You

• Does the opportunity match the requirements outlined in your "Creating the Filter" exercises? Keep in mind that contingency search firms may sometimes try to persuade you into applying for positions that do not fit your criteria, e.g., you are no longer interested in Big 4 Audit, but they want you to interview for an audit position with PWC. They might be looking for an easy fit and may not always consider your needs ahead of their own.
• Am I already ‘in play’ with this organization? If you have already applied on your own, via another search firm, or through your own network, do not allow the search firm to present your resume. This would result in a redundancy and, in the case of presentation by two competing firms, knock you out of the running due to hiring company concerns on proper payment of fees.
• What is the target compensation for the position?
• In what timeframe is the employer looking to make a decision?
• How far along in the interviewing process are they? This can be important because there could be other candidates so far ahead of you in the process that you do not really have a fair chance to complete the process – many companies do not interview all the candidates and entering the process at the end of the process usually indicates a search firm’s long shot submissions.

Things to Consider

As with any business, you will find that there are reputable search firms and those that may not have your best interest in mind. Additionally, you want to make the best impression possible when speaking with a recruiter. When working with search firms, consider the following:

• It is important to partner with those recruiters that you feel are experienced in your field, understand your career objectives and will represent you professionally in the marketplace.
• Don’t feel like you need to maintain a relationship with every recruiter that contacts you – this can be a significant drain on your time. An effective job search strategy may incorporate the use of 2-3 highly effective recruiters that are ideally covering different aspects of your search. For example, you may have recruiters focusing on different locations or industries.
• The volume of resumes that search firms receive is huge — it is a good idea to follow up or lead with a personal phone call.
• Be honest with your recruiter. Make sure you are very clear in explaining the type of position you are looking for. This will help to prevent misunderstandings that could arise between you and the search professional as to the kinds of positions they present to you vs. the kinds of positions you are targeting.
• It is usually OK to be candid about your compensation requirements — the recruiter may want to help you get the highest salary possible because they are typically paid a commission based on your compensation. Ask them for feedback on a salary range that would be appropriate for your skill set and the kind of positions you are targeting.
• If you come across to the search firm as indecisive about the kinds of positions you are targeting, they may not be as comfortable presenting you to clients. Narrow your targeted positions and present them clearly and confidently.
• Remain professional throughout your dealings with your search professional. If you are frustrated with some of the clients they have presented you to or that you have interviewed with, be sure to temper your feedback — remember, they are evaluating your professionalism and determining if they are comfortable presenting you to clients.
• In order to stay informed and to remain in the mind of your search professional, establish a protocol for future contact.
• In registering with a search firm you may be asked to complete an application, so be prepared with your basic information, including companies worked for, titles, dates, supervisors, references and salary history.
• Your search professional may provide information about the company and sometimes even the hiring manager. He/she may be able to give you first-hand information about the corporate culture, the position, and the people that you may not be able to uncover on your own.
• After the interview, the recruiter will give you honest, straightforward feedback from their client. Take advantage of this opportunity to get some constructive feedback. What did you do well and what could you improve upon? Be sure to consider the feedback as you prepare for future interviews.
• Utilizing search firms is only one piece of your overall job search strategy — be sure to continue with a multifaceted approach to your search. Only dedicate the percentage of time to search firms that is proportional to the chance of success in using them (approximately 7-15% depending on the job market). Networking is still the number one way that individuals get a new position.

Potential Red Flags

• Search firm recruiters should not be submitting your resume to a hiring organization without notifying you,first.
• Some search firms may try to present you to a company that has not actually requested search services, hoping to entice the company and get new business this way. Many companies are not open to unsolicited resumes, may not be willing to pay search fees, and therefore search firms that shop your resume on an unsolicited basis may not be very useful to you and could actually harm your chances for consideration.
• Search firm recruiters that immediately ask you for the names of individual’s in your network are likely trying to "fish" for candidates – provide contact names with care.
• Be protective of your references and contacts.
• Candidates typically do not pay a search firm a fee for working with you. In most cases, the search firm's "client" is the employer who is hiring, and they are responsible for paying fees.
• If at any point during the process you feel uncomfortable, angry, disenchanted or just have a gut feeling that something is not right, you may wish to consider not working with that firm anymore.

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