The Top Three Challenges Faced by Top Executive Search Firms
Change is a critical factor that gives birth to challenges in every industry. Well, not always. There are good changes as well, but in this article, the focus will be on the issues that search firms are facing as a result of recent upheavals in this field.
Recruiting is a daunting responsibility and every firm is not cut out for doing it on their own. So, what do they do in that case? They look for outside help and fortunately, there is a myriad of search firms that are ready fetch suitable people. I return for money, off course. However, there is a strong wave of change that is shaking this industry and transforming it. Here is a list of factors that are causing this disruption:
1. Reformed pricing models
In the current market, there is a challenge with the retainer model. The point is that clients these days wish to run a lesser risk. They want to take a contingent approach to this work. In short, they fail to consider the fact that the usual fill ration for retained jobs is around 60 to 80 percent while for contingent ones is only 20 percent.
So what I mean to say is that things have evolved and now, an executive search firm cannot ask its clients to keep transferring them money even if they have not been able to place any candidates. Clients have become wiser and cautious which is, in a way, right on their part.
Digitalization has impacted almost every industry and this one is no different. When LinkedIn was founded, rumors were that top exertive search firms might go out of business. But, the same kind of talks went around when monster.com was invented. It true that technology has made information conveniently and easily accessible to people, but how a person uses that gathered data is the question.
In reality, these professional network and job search websites use big data and artificial intelligence tools, nevertheless, they cannot offer the human touch and as long as hiring and other people processes are concerned, there will always be a deep requirement for other people to handle them.
3. The In-House Recruiters
It is believed that the internal recruiters are more aware of the organization’s culture and are a better judge of who would or would not fit in. So, hiring must stay in their hands. But, there is another viewpoint which advocates that executive search firms might bring in a new vision and act less biased in usual cases.
In point of fact, when the risks are high and companies are required to take an undercover approach, search firms play an essential role in recruiting. Believe it or not, if external and internal recruiters work in sync with one another, they shall be able to serve the purpose in a more effective fashion.