Cost Models for Executive Search
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Cost Models for Executive Search

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An overview of cost models for internal executive search and ROI

An overview of cost models for internal executive search and ROI

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  • 1. Cost Models & ROI of Executive Search Presented by Kevin Wheeler ScoutRock- 2012
  • 2. Why Internal Executive SearchMakes Sensen  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. 2
  • 3. Cost Model Componentsn  Brandingn  Search & Sourcingn  Assessmentn  Candidate/manager coachingn  Selectionn  Offer 3
  • 4. 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 orproduct, you do not exist" - William Arruda, Branding Expert
  • 5. Search & Sourcingn  Talent Pipeliningn  Social median  Crowdsourcing n  Referrals 5
  • 6. Assessmentn  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. 6
  • 7. Source: 7
  • 8. Source: 8
  • 9. Candidate/Manager Coachingn  Cues on individual manager’s likes/dislikesn  Dress/interview style coachingn  Prep manager on candidate’s style/strengths 9
  • 10. Selection/Offern  Focused, specific knowledge powerfuln  Significant knowledge of leeway and possibilitiesn  Ability to influence hiring managers 10
  • 11. Internal vs. External 11
  • 12. Three Basic Modelsn  Salary Onlyn  Commission Onlyn  Salary plus commission 12
  • 13. Common Models Salary Only Commission S&C •  PROs •  PROs •  PROs •  Fixed costs •  Can be lower in cost •  Better cost control •  No time pressure •  Can use referrals •  Modest incentive to •  Can use referrals •  Recruiter has build brand and •  Can focus on incentive to perform coach branding/candidate •  CONs •  Can use referrals & manager coaching •  Talent pipelining •  Tendency to sell •  CONs adds long term what you have. value •  No incentive for •  No incentive to speed or quality. spend time on •  CONs branding/coaching. •  Expensive •  Can result in time delays 13
  • 14. Variationsn  Outsource basic searchn  Partner with external firm for lower commissionn  Manage an outsourced partner 14
  • 15. Example: Corp “X” C-Level B2BSales Executives 15
  • 16. Thanks! Kevin Wheeler 16