Challenges Facing Executive Search

I was recently invited to attend the World Executive Search Congress in London. It’s a two-day conference with a variety of speakers covering techniques, marketing, relationship building and perspectives on where the sector is and where it is going. It is sponsored by recruitment software firm Dillistone Systems, and was well organised and attended. Previous commitments meant that I could only attend the first day.

I’ve written and researched a lot recently about the challenges and opportunities for contingency recruiters so was keen to hear about the concerns from the retained market.

First impression was that there is little difference between the challenges facing the two. The triple business threats of better skilled in-house teams doing more senior hiring for themselves, client ambiguity and hesitancy on making an appointment, and how to build better working relationships with clients, are common to the staffing sector whether you are working on a retained basis or contingent. In times of perceived candidate shortages, it wasn’t a great surprise to see a number of breakout sessions around sourcing and researching. However, the focus on LinkedIn and how to get the best out of it, many approaches for searching through Google, and general tips for sourcing, produced very similar learnings to those that are usually delivered to in-house and agency recruiters.

With retained work there is a commitment to completing projects, yet keynote speaker Simon Mullins, from the US Executive Search Information Exchange, shared research indicating that up to 40% do fail. This high failure rate primarily happens because projects aren’t properly managed. Often it isn’t the fault of the search consultancy’s own process but in the way they partner with their client. The three key areas where a client shoulders the blame are a lack of clarity on the hiring need, little understanding of the realities of the market and poor timing of the search request. These seem to be common occurrences however the recruitment supply chain supports a hiring business.

Hiring executives and corporate leaders should be held accountable for the recruitment and on-boarding process, properly identifying competencies and key capabilities, and accept that the search process can be risky, particularly if incomplete information is passed on to the search partner and the candidates identified. The search firm similarly needs to be honest with clients. One problem flagged up during the day was around boutique and smaller search firms who might be telling clients what they want to hear, not fully clarifying the brief and not pushing back enough through fear of losing future business.

Many of the top priorities for search firms in 2016 concern better integration with broader talent management processes, particularly those around internal mobility and retention, talent pipelining and supporting clients with better information, and helping diversity. The latter is a key concern and several suggestions were aired, including helping with unconscious bias awareness, coaching hiring managers, understanding exactly what is being communicated about the role and, for gender diversity, interviewing only women in the first round.

Search firms do have a role to play in supporting their clients’ talent processes. Simon Mullins spoke of them as being ‘stewards of the next generation of leadership for our clients’. They have market intelligence and should be trusted advisors, supporting clients and offering the best approach. The way successful searches are measured also needs to be refined. As one speaker said “Quality of hire isn’t about length of time someone stays but what they produce and achieve whilst there. Measure what’s important”.

Measurement was mentioned a number of times and some firms are starting to use Net Promoter Score. In most cases though it is still client metrics that are collected and not those for candidates, with too many firms seeing client testimonials as the only meaningful way of measuring service excellence. However, there is some change in the air with panelists talking about the need for candidate advocacy – one said “don’t commoditise candidates, their experience is important”, whilst another concurred with “metrics on how you treat candidates as important as how you treat clients”.

The need to position as a partner and not a supplier was also a key message. Much like some of their contingency cousins, it seems search firms can too often sell rather than listen, quote fees instead of discussing budgets, offer discounts before justifying value, and focus on delivery rather than bringing fresh insights and perspectives to clients. Keynote speaker John Niland took delegates through the journey of doing higher value work, getting them to focus client conversations on the choice of approach rather than which supplier to use, shape the project requirements as opposed to meeting preset ones, and to create the approach and deliverables with their clients.

The challenges for recruiters of all backgrounds and disciplines are similar. Differentiation, positioning, the need to give value and fresh insights, and support corporate employee initiatives are common to all. Many of the topics discussed and points raised at this event were not that different to those at many other recruitment conferences, although it might be that for this audience some are not considered as often.

The challenge for the permanent recruitment supply chain is relevance. And, in a world of increasing transparency and information availability, to offer clients a service and outcome that they can’t find themselves. As John Niland illustrated, too often the focus is on which suppler to choose rather than finding the best approach to solve the client’s needs, and add value to their recruitment processes.

The New Talent Journey

 

The way that talent is attracted, hired, on-boarded, developed and retained is evolving. New technologies, changing attitudes to work and employment (from both employers and workers), heightened expectations and a growing transparency around how businesses operate have led to a re-imagining of the talent journey.

What was once a series of events is now an ongoing process, that begins before there is even an identified hiring need, and continues beyond the lifespan of an individual’s working involvement with an organisation.

First lets redefine what we mean by talent. This is probably one of the most overused, misused and misleading words in the modern labour market. Often used by HR and recruitment professionals to imply a high skilled, high potential candidate who is in some way special. This narrow definition leads to poor recruitment practice, with recruiters trying to chase the mythical candidate who ticks all their boxes and is ready made for their vacancy. These people rarely exist, and they are rarely needed.

We now have new jobs are being created, needing skills that haven’t been hired before. People grow in different ways, using initiative and developing their capabilities in line with what interests them and what they believe they would enjoy and be good at. If their jobs are under threat, they will often find new ways to use their talents. The most successful hires will be people who grow into a role, mould it around their capabilities. Growth mindsets and cultures of innovation require curiosity, courage and a restless spirit. These can be found in many people if they are afforded the right tools, a collaborative culture and time.

And of course there are many roles that might seem mundane and repetitive. Yet the people who do them are skilled. Talent is about the people who are right for the role, and right for the business, irrespective of background and trajectory. Talent is also about the hiring business itself, its vision, values, purpose and dynamics. Its offer to its employees, whether they are employed or provide their skills on a freelance or temporary basis.

And it is also about the way in which new people, and new capabilities, are bought into a business.

The new talent journey is an ongoing process incorporating many stages:

Attention – What is known about the business and the potential new hire. Information available. Reputation judged from online interactions and engagements. Before there is even a connection there is a perception over what a business is like, and how it treats its people and customers. And there is also an impression of the candidate.

Attraction – How you hire, what information you make available, how the role is marketed and what is offered. How you develop relationships and conversations with potential employees and collaborators.

Acquisition – Your recruitment process. Application, interviews, assessment, selection. How you communicate, the quality of feedback, when you offer, and the experience you give. This doesn’t sit in isolation but seamlessly evolves from attraction and forms the basis for…

On-boarding – Still waiting for a new hire’s first day before you give them the tools they need for the new role? Think again. The best companies are on-boarding people form the very start of the hiring process, giving them a seamless transition into the business. Paperwork? Already done online before they start. Induction? Its also happening online, probably through a portal, often from the time they accept the offer. First day experience? It’s a gift, a meeting, time with a senior leader. It’s not a few days’ wait for a new laptop and a login, sitting with a team who didn’t know you were starting.

Development – Lateral progression and opportunities for skill and capability enhancement, across teams, functions, divisions and borders. Performance evaluation is ongoing and coaching led. New hires don’t wait for a probation review after 3 months and an appraisal after a year, they want real time, constructive feedback on how they are performing and how they can improve.

Retention – Mutual attraction, the outcome of treating people well and giving them the tools and framework to succeed, develop and enjoy what they do. And if they want to move on – then retain their loyalty and advocacy, because they will be your best referrers of new people and customers, and they may well return in some capacity.

Attracting, acquiring, on-boarding, developing, engaging and retaining your people is an evolving, interlocking process that renews, reviews, reinvents and repurposes. It’s the way that the people you need connect and work with you, grow and develop, create and innovate, make their mark, laugh and collaborate, and its the solid bond you put in their hearts, keeping them very much part of your network of connectors, referrers and influencers.

Its the new talent journey.

(My book Exceptional Talent has recently been published by Kogan Page. In the book myself and co-author Matt Alder explore how changes in technology, communication, and employee preferences are impacting the talent journey. We offer practical advice on how to build •effective recruitment and talent management strategies to meet the needs of today, while also helping businesses plan and prepare for the challenges of the future.)