International executive search company vs. local – which to choose?

In the Baltic States, when choosing an executive search company, there is a choice between locally-owned and foreign-owned companies. Each employer can weigh up the pros and cons of going international versus going local or vice versa, but are there clearly defined differences?

First of all, what is an international executive search company?

There is a need to define the criterion by which an executive search and recruitment company can be considered international. Most of the executive search firms operating in the Baltic States are members of international executive search networks, but the firms themselves do not have branches in different countries. Such executive search firms may have some internationality in that they may be operating according to the standards of a multinational network, but true internationality can be identified when the recruitment company directly manages offices in different countries.

The number of such executive search firms in the Baltic States is less than 10%. This is because the local markets are relatively small and foreign HR investors do not see expansion opportunities there. At the same time, local executive search firms have a large market share and a high quality of service, which makes it difficult for competitors to enter the market regardless of the origin of their capital.

Is an international executive search firm different from a locally owned company?

1.Difference – international recruitment

An international executive search company can usually offer the same level of quality in the countries in which it has offices. If a business needs to recruit in different countries, this can be a significant advantage. Of course, in this case, the choice should not be made for a company that is part of an international executive search network, but for a truly international company that directly manages such a network.

2.The difference – local market knowledge

If an international executive search company operates to the same standards worldwide, this can be both a plus and a minus. Corporate management of large businesses is often characterised by slow decision-making and low flexibility. In this case, the duration of an executive search project can increase significantly and the management of the process itself may not be fully adapted to the local (e.g. Lithuanian) labour market.

3.Difference – branding

International executive search firms often invest in their brand awareness internationally, but are often less well known in local markets. It is therefore important to assess how the executive search firm’s brand is perceived in the labour market. Of course, the labour market in which the recruitment is planned needs to be assessed.

Are the differences significant?

No, the differences are not significant and the same pros and cons can be exchanged between multinational and domestic executive search firms. The golden rule when choosing who to entrust with an executive search is to choose the most suitable partner not on the basis of internationality, but on the basis of the location in which the search will be conducted. Thus, if the search is to be conducted in Lithuania, the most appropriate executive search company should be one that operates in Lithuania, regardless of the origin of its capital.