The war for talent is on again and companies are once again turning to executive search firms to help fill key leadership roles. Choosing the right executive search firm to conduct your search may be the most critical decision you make this year.

The future of most companies is in the hands of the executive team. Yet when it comes to finding leaders many companies succumb to the temptation of hiring a firm based on little more than a phone conversation or a handshake. This is a recipe for disaster and could result in the beginning of the end for your organization.

Here are some tips to help you choose wisely.

Take the time to educate yourself-in order to determine which firm best meets your needs it is important to have a solid understanding of how recruitment companies work.

Executive search firms are very different than contingency firms, which you may be accustomed to working with. Contingency firms act like clearinghouses. They work quickly to gather a large number of resumes and are paid only if they fill your position. This approach may be appropriate for entry-level or mid-level management positions where requirements are clearly defined.

Executive search firms are retained by companies and act like senior advisers. They are paid for their services, regardless of whether or not a hire is made. Most are highly skilled in handling higher-level searches with very discerning criteria. These types of firms are generally the choice of companies looking for senior and executive level management.

Relationships matter-As technology people, we tend to focus on automation. That may be fine when selecting a payroll vendor but executive search is all about relationships. Personal contacts matter more than the number of personal computers the firm has.

Pay attention to your initial reaction during your first point of contact. Was this person friendly? Did they engage you in conversation or did they immediately go into “sales mode?” Were they more concerned about their needs than yours?

The way this person interacts with you is a good indication of how they will interact with potential candidates. Ask yourself if this is the type of person you want representing your company. Make sure it feels right. You should be as comfortable with them as you are with your attorney or accountant.

Experience counts-Since this business is all about personal contacts you want to make sure the person leading the search has the right experience and connections. If you are looking for someone with industry experience ask about this person’s experience in your particular industry. If industry experience doesn’t matter then ask about their experience conducting searches for similar positions.

Ask about exclusivity-Reputable firms usually have a clause in their contract that prohibits them from soliciting employees from clients they have done business with for a specific period of time. Ask the firm for a list of companies that they will not be able to contact on your behalf so you can assess how limited your candidate pool might be.

If you do encounter a firm that does not a “hands off” policy, don’t celebrate just yet. This means that all of your employees, including the new hire you’re about to make, will be open game.

Don’t overlook the smaller firms-often times companies go with the larger name brand firms to avoid being accused of not picking a good search firm. Large firms usually mean larger costs, which are harder for smaller companies to absorb.

Consider using a boutique search firm or individuals who have a reputation for doing great work. These organizations or individuals often provide a higher level of service to compensate for the lack of name brand recognition.

Be aware of bait and switch-Large companies often work in teams. The person, who is handling the relationship with the client, may not be the person who is conducting the actual search. Make sure that your search will not be handed off to a junior level person who lacks experience. Don’t be afraid to ask for this in your contract.

Determine fees and expenses upfront-No one really likes talking about money but in order to assess value you need to know what the search will actually cost you. Fees vary and may be negotiable. The only way to find out is to inquire. Ask questions like, “How much can we expect to pay in the way of expenses? Will you agree to us pre-approving all travel expenses? Will you reduce the pricing if we give you more than one search to do?” Having answers to these types of questions up front will help avoid surprises later.

Check references-Ask the search firm for a list of references. Call to find out how satisfied they were with the process. Ask them what they might have done differently if they had to do this all over again.

Invest the time you need to ensure you are comfortable with the relationship you are about to enter. After all, this business is all about relationships.

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Roberta Chinsky Matuson is the President of Human Resource Solutions (http://www.yourhrexperts.com) and has been helping companies align their people assets with their business goals. She is considered an expert in generational workforce issues. Roberta publishes a monthly newsletter “HR Matters” http://www.yourhrexperts.com/hrjoin.cgi which is jammed with resources, articles and tips to help companies navigate through sticky and complicated HR workforce issues. She can be reached at 413-582-1840 or [email protected].

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