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Expectations
BY BEN BEAVER & PAT CAMPBELL
Managing Directors, The Onstott Group
A major issue in the execution of a retained search
assignments the issue of expectations. Here, we are referring to expectations
both on the part of the search consultant and the client. It is our
experience that if expectations on every front are not in reasonable
synch, the search will not follow a smooth course.
Expectations start with the initial meeting between the client
and the search firm. This is very often a competitive situation in
which the search firm has been invited to present its credentials
relative to a particular senior level search assignment. As the search
consultants asked to describe the approach to the assignment and as the
client asks questions, and as the client describes the need,
assumptions and misunderstandings can and often do develop which can
negatively impact the process.
It must be recognized that in a competitive presentation
situation created by the client, the search firm is in a selling mode.
In this situation, the search firm, if it truly professional, will be
honest, straightforward and forthcoming regarding its capabilities, its
related experience, and its approach to the assignment. Regrettably,
some firms will take clues from the potential client and will play back
what they think the client wants to hear. Conversely, the client may
give the search consultant the sense that the client is knowledgeable
of the retained search process when if fact that may not be the case.
Both these situations can, and often do, result in a lack of
understanding on either, or both sides, and the outcome is one of
expectations being created which will not be met.
A major responsibility of the search consultant is to
understand how the client views the process and to communicate what the
search firm will deliver. We have found that it is not unusual for an
unsophisticated client to believe that the search firm's singular role
is to simply identify possible candidates, largely to the exclusion of
everything else. This is understandable, since most hiring managers
have had their first experience with contingency based recruiting firms
early in their careers. Often they will expect to see "paper"
on prospective candidates and will assume that the search firm has a
ready file of resumes relevant to the need. In such a situation, the
client will focus questions on the consultant's knowledge of the specific
industry niche or function, the depth of the rolodex or database, and
who the consultant "knows" in the industry. While this may be
a useful line of questioning, a smooth talking, relatively
inexperienced recruiter, out to get the business with less concern
about results, can often talk a good enough game to win the assignment.
The challenge facing the search consultant is to ensure that
the potential client understands that there is much more to the search
process than simply identifying possible candidates. Focused,
customized research will guarantee that once the people the consultant
"knows" have been contacted with no results, there exists a
well thought out strategy and process which will result in a broad and
deep exploration and evaluation of a truly large and substantial
potential target candidate pool.
Clients should seek to understand the process, in detail, that
the firm will follow. Discussion should center on a number of factors
in the process, most of which are obvious to the experienced client and
consultant. But again, assuming everyone is on the same page can lead
to potential problems if they are not.
It is absolutely essential that the consultant understand the
experiential requirements for the position. While that seems patently
obvious, it is not unusual that the hiring manager really can not
clearly articulate the need or problem that must be solved. For that
reason, a detailed, in depth two-way discussion must be undertaken,
regarding the transferable skill sets and experiences required for the
candidate, as well as the intangibles regarding the cultural fit. It is
not sufficient for the client to revert to "I'll know it when I
see it", since quite obviously, the search consultant will not.
This discussion should ideally be held immediately after the search
engagement has been started, and it should culminate in the preparation
by the search firm of a detailed position description which is approved
by the client. Following this timing will contribute to the creation of
a partnering relationship between the client and the search consultant.
A primary and often heard complaint from clients is the search
"took too long". The real question is, however, too long
relative to whose expectations. Often, the client decides to undertake
a retained search after other approaches to finding the right person
have been exhausted. As a result, in the client's mind, the
"search" may have already been underway for a few months
before the search firm actually starts work. As discussed above, if the
client is not experienced, he or she may expect that the search firm
will simply reach into a file of resumes and find the perfect person.
The realities of the interview process and the availability of
individuals on the client's interview team need to be addressed. The
reality of "time to completion" is that the search firm
controls the first three to five weeks of the assignment. Thereafter,
control of time starts to swing to the client. Clearly, it is in all
parties interests that the search be completed quickly, although not to
the exclusion of thoroughness. If the client understands that search is
a process, and if an expected timeline is discussed, the issue of time
to completion can be addressed early on.
Clearly, if the client demands an unrealistic schedule, the
professional search firm should not accept the assignment. And if the
client chooses a firm which commits to an unrealistic schedule, the
client must recognize the risk. On the other hand, the search firm
should not accept an assignment if they do not have the capacity and
availability of time to give a full effort and to meet the time line.
Also, of course, if the firm starts to fall behind the time line,
communication with the client company explaining the issues should be
forthcoming quickly. Not so good news early on is always better that
the failure to deliver bad news until the search is out of control.
Compensation expectations are also an area of potential
problems. Too often, the client will expect a Cadillac, at Chevrolet
prices. This can be a function of an existing compensation structure
into which the new executive will be expected to fit. On the other
hand, it may reflect a lack of understanding of the realities of the
marketplace. Here again, the search professional should put on the
consultant's mantle, and provide realistic input to the compensation
range or the structure of the anticipated package. The risk here to the
consultant is that the client may have a suspicion that the search firm
is seeking to get a higher fee by targeting a higher compensation
level. The less than professional search consultant, of course, will
probably not challenge a below market expectation, wanting to get the
business. The risk to all concerned is the creation and acceptance of a
mis-match between experience and compensation . It is far better to
adjust expectations, and from the outset recognize that some
realignment in compensation or position requirements will be likely.
The expected cost of the search is an important issue to deal
with early in the process, and is usually straightforward. It is
generally recognized that most retained search firms charge a standard
one third of the first year's cash compensation, However, the use of
fixed fees or flat fees is becoming more widely used. It should be
recognized that the flat fee does not mean a less than the one third
fee, or a "deal". Retained search is a labor intensive
activity, and discounting may mean less than a full commitment, or the
utilization of less experienced staffers to do the key work. Clients
should also be sure they know what expenses they may expect to face in
addition to the fee. Some firms charge for direct out-of-pocket
expenses, while others load in operating expenses which normally are
part of their own overhead, thereby allowing a lower fee to be quoted.
Clients should know who is going to do the work. If the search
firm uses less experienced associates to support the consultant, the
extent of the Principal's involvement should be understood. Associates
can be a real advantage in a case team approach and can allow quicker
progress in getting the search rolling and in reaching a larger
universe of possible candidates quickly. On the other hand, if the
search consultant who sold the business is expected to play a major
role, he or she should have the time available to do so.
One issue that is often ignored is that of off-limits and
blockages. Clients should determine that the search firm will not
recruit directly from them, but also should understand whether that
applies only to the hiring entity, if it is a division of a larger
company, or to the corporation as a whole, and on a world-wide basis.
Blockages should also be explored and understood. The client who
believes there is comfort in selecting a firm which has extensive experience
in its industry should explore carefully to what extent that experience
means that a large number of logical target companies cannot be
approached, thereby severely limiting the universe from which the firm
can recruit.
The frequency of communication is another area for crossed or
unfulfilled expectations. Some experienced users of retained search
firms are not interested in regular updates unless there is something
of import to discuss. Others want weekly updates, which may make little
sense in the early stages of the search. It is important for the search
firm to know who the prime contact will be at the client company. If it
is the senior human resource executive, which is often logical, the
line manager must be available at appropriate times for direct
communication with the consultant.
The conducting of reference checks, and the degree of
involvement in negotiations regarding the offer to the finalist
candidate are also worthy of exploring. Clients need to understand that
referencing must be done carefully, and with sensitivity to the
confidentiality of the potential candidate. Off the record calls to
former co-workers have been known to expose a candidate prematurely and
impact on the person's current position causing serious embarrassment
at the very least.
Keeping these points in
mind and laying the groundwork and expectations at the outset of the
search process will inevitably smooth the way to an efficient and
effective successful completion. In doing so, the client and search
firm will develop a responsible partnership and mutual understanding of
the complexities of the process and will share in the satisfaction of
selecting an outstanding individual.
Reprinted
from "Executive Search
Review/Executive
Recruiters of North America"
Hunt-Scanlon
Publishing Company
Copyright
1997
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