Having worked in the search business for over ten years, we have learned that there are some perceptions the business world has about the business. Here are a few we would like to discuss:

A large proprietary candidate database is vitally important
Even the largest of databases rarely yield a viable candidate for any number of reasons. These databases yield, at best, a two percent (2%) success rate on actual placed candidates. There is simply no substitute for experience in the industry and making an aggressive but professional, presentation to qualified candidates about the client company’s opportunity.

Many large search firms brag about their huge databases of prospective candidates. If most of their placements came from these databases, then why are their fees so high? The honest answer is that most of their placed candidates don’t come from these databases. Good marketing though.

Why do some searches drag on for 6 months to a year?
This answer is simple; the search consultant is not doing the necessary work to complete the search. Ten years ago it would take at most 50 to 75 calls/contacts to make a placement. In today’s job market to obtain three (3) quality candidates who are also motivated to change jobs it may take 400 to 600 to 800 calls/contacts.

A generalist recruiter or firm can do the same job as an industry specialist?
We think, not. A generalist firm after considerable research may know all the common places to look for people, but does not know where the “hidden” or “behind the scenes” candidates are located. Also it is difficult, if almost impossible for a generalist firm to evaluate a candidate’s qualifications if they are not familiar with the industry.

What is the success rate of full-retained search firms?
Industry publications put the success rate of searches at large full-retained search firms at anywhere between 65% to 70%. This means that only 65% to 70% of their searches end with a hired employee. 20-20 Foresight’s success rate has been 95%. Why, we do the work.

Searches at full-retained search firms take longer.
By the very nature of the contract this occurs. If you know you are getting paid a full fee whether you find a candidate or not, meanwhile just having received one-third of the fee up-front, what is their incentive to work quickly?
Answer: none.

Contingency search firms can do the work cheaper.
Most contingency firms aren’t specialists so you will waste time in explaining to them the position and your company culture. Contingency firms usually don’t do much in the way of preliminary screening nor do they have the knowledge to ask the right questions. You may also waste your time in evaluating and in some cases interviewing candidates that don’t fit or have not been properly screened by the search firm. How much is your time worth. Why work with a contingency firm that comes and goes. Also, let’s face it, if a search is difficult a contingency firm will just fade away and move on to another search that is easier. Why? They aren’t getting paid.

The Internet search sites will take over the search business.
What we are finding is that it will not in the near term (5 to 10 years) make a difference in the upper level or highly specialized employment search process. Make no mistake we use these search engines, but in the past two (2) years we have only filled one job, out of almost 200 placements, using the Internet. As a service to our clients our firm has major contracts with Monster and Career builder.