Why Use a Search Firm?

The Decision
Many organizations are utilizing outside resources to attract top notch talent that they have been unable to land through Internet and Print advertising, career fairs, employee referrals, human resources, and internal recruiters. As a result, more and more companies are using search firms to attract high caliber candidates.

Have you ever hired someone and something did not check out?

• A reference on the application did not support the candidate’s experience or performance.
• The dates of employment on the application were not accurate.
• The degrees or licenses were not granted.
• The results of a background check turned up a bad credit history or criminal record.

During a search did all of your top candidates decline the offer?

• An offer was turned down because the salary was too low.
• The candidate was no longer interested in your position.
• Relocation became a problem.
• Another offer was accepted by the candidate.
• Candidate’s current company countered with more money or a promotion.

Were you unable to attract a top candidate and settled for an average candidate instead?

• Your salary was not competitive with other opportunities.
• Your benefits were not comparable to other employers.
• Candidate’s commute was too far.
• Your industry was not interesting.

When you hire the right search firm these situations are eliminated.

Why Pay for a Search?
The question every employer asks is why should I pay a fee for finding an employee? Believe it or not paying for a professional search is cost effective. Studies show that hiring the wrong people can be very expensive because employee turnover costs at least 150 percent of an employee’s annual salary, of which the search fee is only a small portion. Here is a list of some costs associated with a typical search.

• Placing an advertisement on your company’s website, an Internet job board such as “Monster.com” or print media such as the “Los Angeles Times” and getting unqualified resumes.
• Establishing an internal recruiting process which may include utilizing your company’s Human Resources staff or hiring internal recruiters.
• The process of sifting through hundreds of resumes and inquiries to pre-screen for qualified candidates.
• Scheduling candidate interviews.
• Company employee time spent interviewing numerous candidates.
• Coordinating air travel, ground transportation and lodging.
• Missed opportunities due to time spent away from job responsibilities.

The process takes valuable time away from your staff’s productivity. In many cases the results achieved are not worth the time and money spent. Remember most companies are not equipped to perform efficient searches and end up hiring the wrong candidate.

What Makes a Search Cost Effective?
The right search firms identify top talent that meets your needs quickly. Search firms should always perform the following for no charge to your company.

• References Checks for current and prior employers (supervisors, peers and staff).
• Degree and License verifications.
• Coordinate interviews and travel.
• Communicate a candidate’s compensation and benefits expectations.

• Background checks (credit, department of motor vehicles and criminal).
• Drug testing.

In addition, in situations where an employer wants to ensure long term compatibility we recommend hiring a business psychologist to perform a behavioral assessment. This should only be performed for final round candidates.

Thorough screening will ensure more acceptances from your top candidates and eliminate the need to rescind offers due to adverse background check findings.

What Should You Look for in a Search Firm?
Knowing who you want to hire and a clearly defined hiring process should be in place. A solid plan enables you to select the right search firm. Most search firms specialize in particular disciplines such as accounting, information technology, operations, marketing, sales, or engineering. Others in specific industries such as technology, healthcare, entertainment, manufacturing, or non-profits.

It is critical that you partner with a search firm that understands the requirements of your position and has first hand professional experience in the field. The firm should be able to evaluate the availability of talent, salary requirements, and most importantly who you need to hire. This may require re-working the job description, qualifications, salary expectations, and fit factors to ensure the candidate hired will be a long term success.

Presenting candidates is only one of the services the right search firm should perform for you. Here are some of the other things they should do.

• Call you on a weekly basis beginning with the first week of engagement and provide a status report.
• Call the placed candidate and his or her supervisor on a regular basis to ensure everything is going well. This will assist employers in identifying potential problems early for timely resolution and satisfaction.
• Provide a guarantee period long enough to ensure disappointing new hires are identified timely and replaced at no charge. Most firms provide guarantees ranging from thirty to ninety days; try to get a guarantee of six months or longer. This is important since in some cases an employee is asked to leave or leaves shortly after the guarantee period has lapsed.

Hiring is a complicated process that requires thoughtful planning, execution, and evaluation to land the right candidate who will be a long-term contributor to your organization. Three things you need to remember are:

• Be honest with your candidates
• Ask tough questions
• Know who you want to hire