Download - Cost Models for Executive Search
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Cost Models & ROI of Executive Search Presented by Kevin Wheeler
ScoutRock- 2012
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Why Internal Executive Search Makes Sense
n 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.
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Cost Model Components
n Branding
n Search & Sourcing
n Assessment
n Candidate/manager coaching
n Selection
n Offer
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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 or product, you do not exist" - William Arruda, Branding Expert
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Search & Sourcing
n Talent Pipelining
n Social media
n Crowdsourcing
n Referrals
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Assessment
n 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.
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Source: http://www.allfacebook.com/facebook-recruiters-2011-09
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Source: http://www.allfacebook.com/facebook-recruiters-2011-09
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Candidate/Manager Coaching
n Cues on individual manager’s likes/dislikes
n Dress/interview style coaching
n Prep manager on candidate’s style/strengths
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Selection/Offer
n Focused, specific knowledge powerful
n Significant knowledge of leeway and possibilities
n Ability to influence hiring managers
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Internal vs. External
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Three Basic Models
n Salary Only
n Commission Only
n Salary plus commission
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Common Models
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Salary Only
• PROs • Fixed costs
• No time pressure • Can use referrals
• Can focus on branding/candidate & manager coaching
• CONs • No incentive for
speed or quality.
Commission
• PROs • Can be lower in cost
• Can use referrals • Recruiter has
incentive to perform
• CONs • Tendency to sell
what you have.
• No incentive to spend time on branding/coaching.
S & C
• PROs • Better cost control
• Modest incentive to build brand and coach
• Can use referrals • Talent pipelining
adds long term value
• CONs • Expensive
• Can result in time delays
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Variations
n Outsource basic search
n Partner with external firm for lower commission
n Manage an outsourced partner
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Example: Corp “X” C-Level B2B Sales Executives
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