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Software Forum, Vol. 14, No. 11, Headhunting 101 (below)

In-Flight Interview for American Airlines & Delta Airlines (read it)

HEADHUNTING 101

For those uninitiated, there are two types of executive search firms, contingency and retained, both of which respond to the needs, and have their fees paid by the hiring companies seeking qualified candidates. This differs markedly from agencies, hired by candidates, who only provide guidance on how candidates should market themselves to find a job.

Contingency vs. Retained Search
Contingency firms generally handle individual contributors to mid-level management positions. Their fees are paid only if their candidate is hired and, as such, they can only invest their time on the easier to fill positions, forwarding a number of resumes of candidates to a company, no matter where they appear within the target area. The bulk of these candidates may be unqualified for the specific position, thus putting a greater demand on the hiring manager's time and resources to filter through. Good people are well challenged and not looking for new positions. A hiring firm needs a recruiter to not just submit the easily identifiable candidates, but to seek out, contact, qualify, and attract the best candidates. In contingency recruiting, neither the hiring firm nor the search agency are making a commitment. And a hiring plan without a commitment is just a wish.

Retained search firms are used to fill special individual contributor and more senior level executive positions. These firms are hired to seek a specific profile for the company. The retained search firm is guaranteed a part of the placement fee at the initiation of a search. These firms perform a targeted and thorough search, first investing time in analyzing their client's needs, and then in parallel: researching companies where the talent they seek may reside, reviewing their database for candidates, and also contacting individuals to network with, to help identify additional candidates. Recruiters share their client company's opportunity with a likely candidate and discuss how it may fit and benefit their career. Potential candidates are interviewed and qualified as to the appropriateness of their skills and experience, their interest level, as well as chemistry match.

Retained search involves a greater understanding of client needs, culture, direction and opportunities, plus a much more in-depth search and background check to arrive at a short list of qualified candidates. To a business, this translates into a difference in depth of expertise, level of commitment, and type of service. To a candidate, it can mean the difference in level or quality of a position and the company's seriousness and financial commitment to find a candidate with the right fit. It's important that the proper time is allotted to define the search criteria and that it is well understood between the client and the search firm before initiating a search, since a search firm may speak with over a 100 executives before recommending just a few.

Where do you start?
It is advisable for emerging companies to first hire through their own network of contacts before seeking out the services and expense of a search firm. In selecting a search firm, there are a number of very good resources such as Kennedy's Directory of Executive Recruiters (www.kennedypub.com) or The Industry Standard (www.thestandard.com). Find a search firm that specializes in your industry. Search firms are either national chains (which are usually generalists), or smaller boutique firms that specialize in an industry. Advantages of a boutique search firm are: they don't have a long list of companies that are off-limits for their candidate search due to contractual obligations of another office in their chain; and they are generally more aggressive in the overall search process.

You're the Product
Your resume is a product description of you, your strengths, experience, and value you could be to a business. It should describe you in terms of your features, functions, and benefits to a company. Have a clear objective which defines appropriate positions that you are best suited for. If you are too vague, those reading your resume will have to make assumptions that may be right only 50% of the time. Include a professional summary that briefly conveys your years of experience, strengths, breadth and depth of experience, and successes. Follow with a detailed work history in reverse chronological order. Don't be too concerned about length. If the objective and summary is of interest, the rest will be read! For the recruiter, a brief cover letter outlining your goals and your current compensation range gives them a clearer snapshot of your situation. It's fine to distribute your resume to multiple search firms but keep track of where each firm is sending your information and make certain you indicate that your resume may only be submitted with your permission.

When to begin a relationship with a recruiter?
Establish contact with recruiters before you need one. Search firms seek candidates out when they have a given position to fill that might be appropriate for you. Your resume is added to the database, tracked, and you are called if there is a potential fit for their current search, or when they need your suggestion of others who may be a fit. Stay in the loop by networking.

Corporations benefit by establishing ongoing relationships with search firms who can not only find them top level talent as needed, but who can also act as an advisory partner providing business insights.

More executive failure is attributed to a poor fit than to a lack of competence. A strong and clearly developed company/recruiter liaison can do much to facilitate a company's growing pains.

Ira M. Marks is the Principal of Strategic Alternatives in Portola Valley, a high tech, boutique, retained search firm assisting in mid- to top-level management placement since 1986. He can be contacted at imarks@strategicalternatives.com.