How much does it cost to make a mistake in choosing an executive search agency?

Executive search is a critical project that can bring significant added value to a business, but can be extremely costly if not handled properly. Because of the high cost of risk, it is advisable to choose an executive search agency with great care and to have clear criteria for selecting an executive search company. The top 3 potential mistakes in executive search are:

1. Incorrect choice of executive search firm

The choice of an executive search company is crucial because it is the executive search professional who will represent the business to the right candidates in the executive search project. When choosing an executive search company, it is important to look not only at the overall experience in executive search, but also to find out whether the executive search agency has carried out executive search projects of the same level and in the same field in the last six months. If the search is for a Head of Procurement, for example, then it is worth looking at the experience of the executive search firm in top-level procurement searches in particular.

Another important parameter is the dedicated professional of the executive search firm. While the company itself may be suitable, a recently joined executive search specialist with little experience may not be suitable for the development of an important top-level executive search project. In addition to selecting the right executive search firm, it is recommended to make sure that the executive search is carried out by a trusted executive search specialist appointed by the partner.
The cost of mistakes made by the wrong executive search agency:

• Taking too long to conduct an executive search.
• Selection of unsuitable candidates.
• Too few candidates selected.
• Not attracting the best candidates in the market and having to choose from mediocre candidates.
• Low motivation of candidates in the executive search process.

2. Selection of the wrong manager

The wrong candidate being selected is quite rare in executive search. A properly selected executive search firm offers many safeguards for the employer to make the right decision on the most suitable executive. The most important safeguards are: an appropriate pattern of comparison between candidates, a thorough check of the references of the managers, testing of the candidates, assessment of the candidates’ competences by means of assignments, etc. The mistake of selecting the wrong candidate is the most costly mistake that can be made in an executive search project, so if the executive search is conducted by an experienced executive search firm, it can be expected that such a scenario has a very low probability of happening.

3.A poorly worded offer to a candidate in an executive search final

Simply selecting the right executive at the final point of the executive search process is unfortunately not enough. Negotiating with the selected executive and making a final offer is a process that can be extremely costly. The cost of a mistake is the rejection of the offer and the prolongation of the whole executive search process to find the next suitable executive. This costly mistake can be avoided by paying sufficient attention to the negotiation process with the selected managerial candidate. Such a candidate is a highly experienced negotiator, and it is also necessary for the employer to select an experienced negotiator who can properly represent the employer in the negotiation process and who can correctly assess the expectations of the management candidate.

Flexibility in making an offer to the selected manager is not necessarily a guarantee of success. Sometimes the problem may lie in the presentation of the proposal itself, i.e. how and in what way it is presented, as well as in the answers to the candidate’s questions about the proposal, i.e. the tone in which they are phrased and the speed with which they are answered.

The negotiation phase of an executive search becomes a test of credibility for both sides, and even small details can turn things around. When making an offer to a selected executive, it is recommended to consult an executive search agency that has been involved in many top-level negotiations and has seen many mistakes made by employers, while at the same time having experience with the best negotiation practices in the market.