Cost Models for Executive Search

Cost Models & ROI of Executive Search Presented by Kevin Wheeler

ScoutRock- 2012

Why Internal Executive Search Makes Sense

n  Efficiency of external search remains low.

n  Time to present qualified candidates remains at 120 days or more.

n  External recruiters cannot know your firm’s needs as deeply or as well as an internal search person.

n  Social media makes it easier.

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Cost Model Components

n  Branding

n  Search & Sourcing

n  Assessment

n  Candidate/manager coaching

n  Selection

n  Offer

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Reputation/Brand Management

Opinion, influence, anonymity, persistent data, ad-based search engines, and enemies interests

coexist and intersect.

"If you don’t show up in a Google search for your name or product, you do not exist" - William Arruda, Branding Expert

Search & Sourcing

n  Talent Pipelining

n  Social media

n Crowdsourcing

n Referrals

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Assessment

n  Intenal Executive Search n  Can focus on real needs of manager/organization,

n  Knows culture,

n  Knows individual manager’s preferences,

n  Can probe for “real” success factors.

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Source: http://www.allfacebook.com/facebook-recruiters-2011-09

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Source: http://www.allfacebook.com/facebook-recruiters-2011-09

Candidate/Manager Coaching

n  Cues on individual manager’s likes/dislikes

n  Dress/interview style coaching

n  Prep manager on candidate’s style/strengths

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Selection/Offer

n  Focused, specific knowledge powerful

n  Significant knowledge of leeway and possibilities

n  Ability to influence hiring managers

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Internal vs. External

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Three Basic Models

n  Salary Only

n  Commission Only

n  Salary plus commission

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Common Models

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Salary Only

•  PROs •  Fixed costs

• No time pressure •  Can use referrals

•  Can focus on branding/candidate & manager coaching

•  CONs •  No incentive for

speed or quality.

Commission

•  PROs •  Can be lower in cost

•  Can use referrals • Recruiter has

incentive to perform

•  CONs •  Tendency to sell

what you have.

• No incentive to spend time on branding/coaching.

S & C

•  PROs • Better cost control

• Modest incentive to build brand and coach

•  Can use referrals •  Talent pipelining

adds long term value

•  CONs •  Expensive

•  Can result in time delays

Variations

n  Outsource basic search

n  Partner with external firm for lower commission

n  Manage an outsourced partner

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Example: Corp “X” C-Level B2B Sales Executives

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Thanks!

Kevin Wheeler

kwheeler@glresources.com

www.glresources.com

www.futureoftalent.org

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