Executive Search

A growing company needs a chief financial officer with experience in its sector, and posting an advertisement may reach some people while others who fit are not actively looking. Executive search can identify and approach them discreetly.

Define the role before hiring a firm by clarifying strategic priorities, decision authority, location, compensation range and reporting line, because a vague brief produces an attractive but unsuitable shortlist. Choose whether the role needs a search at all, since senior leadership, board and specialist posts may justify deep market mapping while a common role with many applicants may not need the same cost or process.

AESC publishes guidance for choosing an executive search firm, including expectations about process and relationship, and also states candidate rights around treatment and confidentiality. Its association standards apply to members and should not be confused with a universal licensing regime, so clients should ask how a firm contacts people and handles their information rather than assuming all providers work the same way.

Discuss retained versus contingent fees: a retained firm is commonly paid for the assignment in stages, while a contingent recruiter may be paid only on a successful placement, so read the actual agreement. An illustrative search fee at a stated percentage is the agreed fee rate times the defined compensation base, so a contract charging 25% of a $400,000 base gives a fee of $100,000 before other terms, and contracts may use different bases, taxes and expenses.

Ask about expenses too, because travel, assessments, advertising and background checks may be extra and a headline fee is not necessarily the total. Set the search scope and timeline, since geography, industries, competitors, diversity goals and off-limits companies can shape the candidate pool and restrictions need to be explicit and lawful.

Market research, outreach, assessment and notice periods can take time, so a promised start date is not guaranteed simply because a firm begins work. Clarify exclusivity and conflicts as well, because some contracts prevent parallel searches or restrict direct hiring of introduced candidates for a period, and a firm that serves competitors may have off-limits obligations that narrow the available market.

Set assessment criteria and use structured interviews and references, since leadership roles need evidence of decisions, outcomes and fit with the actual mandate, and reputation or a famous employer alone is not proof. The search consultant can advise and organise, but the hiring organisation should assess candidates consistently and verify important claims through proper channels.

Treat candidate confidentiality carefully, because a person may not want their present employer to know of the conversation, and agree when and how references will be contacted. Decide what reports are useful, such as a weekly update showing sectors mapped, response rates and themes without exposing every approached person's private details, and review guarantees, since a replacement search clause may apply if a hire leaves within a stated period but does not insure all lost productivity.

Involve decision-makers early so a board and chief executive align criteria before interviewing, make compensation realistic, and plan onboarding with early priorities, support and measures of success. For owners, executive search is a specialised way to reach and assess a leadership market, and its value depends on a clear brief, a credible process, a wider network than a few familiar names, and a hiring decision the business can defend, judged by quality and fit as well as speed.