Career Management and the Role of the Executive Search Firm; Developing relationships with several reputable firms is part of a long-term career strategy.
By David Martin

As a retained executive search firm, we frequently receive phone calls and e-mails from individuals who are either looking for a new job or are interested in making a career change. They may be currently employed and in "exploratory mode," or they are actively searching for a new job. But is contacting a retained search firm going to bring the results they seek?

It can be confusing and a little overwhelming to consider how one goes about conducting a job search. It is not unusual for us to hear someone say, "I'm going to hire a headhunter to help me find a new job." However, approaching a retained search firm with the expectation of immediate or even short-term results can be frustrating if the potential candidate doesn't understand the role of the retained firm.

There are many different types of services available in the career field, so for the purposes of this article we will refer to only two types: the retained executive search firm and the contingency search firm. Retained executive search firms provide a very specialized service to the organizations that hire them, and the organizations are their clients. Contingency firms earn a fee that is contingent upon successful placement of a candidate with an organization.

If retained executive search firms are working on behalf of organizations, is it worth developing relationships with executive recruiters at all? The short answer is "Yes." However, developing those relationships should be viewed only as a part of a long-term career management strategy that may unfold over months or years.

As the managing partner of a retained firm, and having worked on the inside of one of the largest global retained search firms for a number of years, I have found that job seekers frequently don't understand why recruiters don't want to meet them immediately for an interview and to review their resume.

One of the reasons why there is confusion about the role of the retained firm stems from the fact that a job-seeker's experience early in his career has more likely been with a contingency rather than a retained firm. So logically job-seekers think that all firms work the same way.

Defining the Differences

Generally, the retained search firm is "retained" by, or under contract to, the client organization on an exclusive basis to conduct a search to find qualified candidates for a specific position, usually at an executive level of the organization. For the purposes of this article, let's use the example of a search for the Vice President, Public Policy for a large trade association in Washington, D.C. Before the search begins, the client association may review multiple proposals and interview several firms before selecting one firm to conduct the search. Once selected, the client association pays a portion of the search fee up front (typically one-third of the total fee) as an initial retainer to get the search started.

This is important to understand because, by having paid a retainer, the client has made a substantial financial commitment to the search firm. Thus, the firm has a financial, and sometimes legal, obligation to utilize its best efforts and resources to find well-qualified candidates for the trade association client.

Therefore, if you as a potential candidate do not meet the requirements being sought by the search firm's association client (if, for example, you are a Chief Financial Officer), the firm will probably not be that interested in conducting a courtesy interview with you - or with any other potential candidate who is outside of the scope of the VP, Public Policy search.

Once engaged for a specific assignment, the search firm spends most of its time and resources interviewing potential candidates for this search. It is also likely that the firm is engaged for assignments with other clients. So it is not hard to see how the search consultant's time is consumed by finding and interviewing potential candidates for those clients, which leaves little time for "get to know you" meetings with job seekers not related to a specific assignment.

That said, as professional consultants in a retained firm, we are interested in developing relationships with qualified and accomplished candidates who, over the long term, we may contact about future opportunities. That may occur in two weeks, two months, two years, or possibly never. (It's a harsh world out there!) So the search consultant has to balance his or her commitment to finding qualified candidates for the association client with developing long-term relationships with potential candidates that the consultant might work with sometime in the future, but possibly not for years.

The contingency search firm is so named because the firm's fee is "contingent" upon placing a candidate - filling a specific job - with an organization. No financial commitment is made up front to the search firm by the client and the client may have several firms working on an assignment. Equally, there is no financial or legal commitment by the contingency search firm to provide qualified candidates to the client. If the firm finds the open position too difficult to fill, they can simply move on to another assignment where they have a higher probability of making a placement. And if the contingency firm finds someone who seems like a marketable candidate, they may start contacting different organizations to market that person's background on their behalf in an attempt to generate interest.

Contingency firms tend to work on more mid-level or even entry-level positions for an organization. Thus, for most potential professional candidates, the first exposure in their careers to how executive search firms operate may not occur until 15 or 20 years into their careers.

So, while it is not unusual that there is confusion between the operations and roles played by retained and contingency search firms, the distinction is important. For example, say that early in your career you were contacted, or made contact with, a contingency search firm. You may have found the firm or consultant quite responsive and interested in receiving your résumé. The reason is that contingency firms are likely to be interested in presenting your résumé to various employers with whom they have relationships to see if an employer either has an interest in you, or job openings for someone with your experience. If you are hired for one of those jobs, then the search firm earns a fee. Therefore, the contingency firm has an incentive to shop you around to various employers, generating more activity and apparent interest in you.

Conversely, retained search firms will never utilize this approach because they are most interested in filling the position for which they have been retained. If you receive a call from a search firm, ask if the firm is retained by the client or working on a contingency basis - and don't be surprised if the recruiter goes into a state of shock that you know the difference! It is important to know because the contingency firm could send your résumé to various organizations, without your knowledge, with the hope that they will find one that has an interest in your experience. If you are "registered" with more than one contingency firm, your résumé could be presented to the same client by different firms, adding to the confusion. And because most communications these days are by e-mail, you don't want your résumé to end up in the wrong inbox (for example, your boss'!).

When a retained firm contacts you about an opportunity, they generally will be presenting you only to that client, and with your permission. If you are dealing with a retained firm, they should have a well-developed position description for your review to determine if you are interested and qualified for their search.

This raises another consideration if you are working with a retained firm. The search firm has an exclusive relationship with the client organization, but will also only present your information for that specific assignment during the course of a search. For example, if you are active on Search A through a retained firm, you are considered "off limits" to other clients of the firm until such time that you are no longer active on Search A. If you want to be considered for Search B but are active on Search A, you generally have to withdraw from consideration on Search A in order to be considered for Search B. This can definitely be a tricky situation.

Understanding the differences between these two types of firms may help you understand why the retained firm does not seem to be as responsive to your immediate needs when you are a potential candidate considering a career change.

Now What?

As you advance in your career, the likelihood of being contacted by a retained firm increases. If retained firms contact you about a potential search, build good rapport with them by taking their calls. Recruiters won't be offended if you let them know it is not a good time to talk and that you would like to schedule a time for a follow-up call. If you are rude or completely ignore them, that pretty much guarantees you won't be contacted about future opportunities.

Other possible responses might be "Hold on for a minute while I shut my door" (we like to hear that response because the person might be about to nominate themselves for the job!) or "I'm not a fit for that job because" … fill in the blank. (Some common reasons are a reluctance to relocate, feeling that the job is not a good fit, or having just begun one's current job.) If you say you're not a fit, that's not a problem - just be honest when the recruiter calls. Remember, the retained firm is not trying to gather résumés so they can market your background to clients, so it's fine to say that you are not interested or not qualified. If you really want to endear yourself to the recruiter, suggest one or two people who are more qualified or might be interested that he could contact. You will then go into the "friend of the firm" section of the database!

If you are interested in the position for which you are contacted, ask for a position description; reputable firms should have a detailed description. Also, you should ask the recruiter for an assessment of how closely your background meets their client's requirements.

If you are considering making a change, you need to employ several job-hunting strategies. These include networking, researching and targeting specific organizations where you are interested in working, and contacting search firms to let them know you are thinking about making a move. But don't simply send your résumé to several firms and think you are going to be contacted immediately.

Over the long run, executive recruiters are on the lookout for top performers in their respective fields, so it is important to make yourself visible in other ways. For example, attend association networking events or accept opportunities to be a public speaker within your industry. In your current organization, take new assignments to broaden your experience and add to your résumé; doing so will help you become a more attractive and well-rounded candidate. By building a strong résumé and developing expertise in your field, executive recruiters will be searching to find you rather than you contacting them.

David Martin is Managing Partner of Sterling Martin Associates in the firm's Washington, DC office. During his almost 20-year career in executive search, Mr. Martin has held senior-level positions with global leaders such as Korn/Ferry International and Boyden International, as well as boutique search firms.

Developing an Exit Strategy; Closing the Door Gently
By Gail E. Aldrich

So you've found the perfect new job and now it's time to move on from your current organization. After fantasizing for weeks, months, maybe even years about how you are going to get out, it's time to think about the best way to leave. You may feel like sneaking out the back door or possibly slamming the door (especially in the face of the boss who never appreciated how talented you are), but the best exit strategy in most cases is to close the door gently.

There are several reasons for taking the kinder, gentler approach. First, it truly is a small world. It is almost a certainty that if you are moving to a new position in a related field or industry, you will eventually run into someone from your current employer. The person might be a customer that you are trying to land, or possibly a co-worker, or maybe even a boss at some future point. It is much better to have former colleagues remember you for your many wonderful contributions rather than recall that you left abruptly and they had to pick up the pieces.

Another reason for the softer approach is that it is very likely that you will need references from your current employer either now or at some point in the future. And again, it should be your goal to have them remember your work rather than your departure.

Finally, over the course of my career in human resources and business, I have observed an increase in the number of employees who return to former employers. Maybe the new job doesn't work out quite as well as you thought it would and you return to your former position; or maybe you gain some new skills or experience that qualify you for a higher-level position in the former organization and you are recruited back and promoted. Whatever the reason for the return, the option of it happening will be greatly influenced by the behaviors you exhibit and your communications during your separation process.

So, how do you handle this transition in the most effective way? I have observed three phases in the exit process:

• Announcing your departure
• Wrapping up your work
• Leaving

How you handle each of these phases is important. Let's explore some actions you might want to consider for each.

The Announcement

First of all, you need to get to your boss as quickly as possible. Hopefully, your decision is not a big surprise to her. You have expressed your concerns and maybe even shared that you are interviewing for other positions. Whatever the state of your relationship with your boss, your objective now is to show her respect and to explain your decision thoughtfully and carefully. Provide information on the why, what, where, and when; and then ask for her assistance in determining the how. If you have been a good employee, expect your boss to try to talk you out of leaving, or perhaps to try and make you feel guilty (how can you do this to me after all I have done for you?). Your boss could get angry, or have a number of other reactions. Be prepared to keep the conversation on track, and above all remain calm.

It would be a good idea to have a draft letter of resignation with you during this discussion. This document should include specific wording about why you are leaving, and it should be the wording that you would like used in all other announcements of your departure. As quickly as possible, try to move the discussion with your boss to how your resignation is going to be communicated to others. You will undoubtedly have some thoughts - for instance, you might want to tell your team and your assistant within 24 hours. Or your boss might want to tell her boss, colleagues, and the HR department as soon as you leave the office. Clarifying the message and defining the sequence of the announcements is a very important activity and one that is best done in partnership with your boss. Once all the announcements are made, it is time to turn to how to finish up or pass on your unfinished work.

Wrapping Up

Your goal should be to complete or transition all of your outstanding assignments. The first step, like with any project, is to develop a work plan. Share it with your boss and get her agreement that this is what needs to be done.

Getting this work done is going to be difficult. First of all, many of your colleagues are going to be stopping by to let you know how unhappy they are that you are leaving and that they are going to leave, too. Don't ask me why this happens, but it does, and in the vast majority of cases they stay right where they are. Keep on message about why you are leaving, wish them well, and get back to work.

Next, you are understandably more excited about your new job than the work that is in front of you. You are probably getting calls from the new boss and colleagues. Again, be positive, but finish the work you have committed to complete and limit the distractions from the new employer.

Some items to think about during the wrap-up phase include: providing performance updates for all those who work for you (verbally and/or in writing); cleaning out and organizing all files to be left behind; documenting the status of your plans and budgets; and creating a major milestone/schedule chart which might be used by your replacement. By the way, whether your replacement is named before you depart or many months after you leave, make it clear that you would be happy to help this person, and be as generous with your time as possible. You want this person to be successful. Remember, no matter how good you have been at your job and no matter how well you have documented all your decisions and activities, there will come a time after your departure when it will be very easy to blame you for something that goes wrong - it's just human nature. Since you will not be there to defend yourself, the best strategy for protecting your reputation may be maintaining a positive, helpful relationship with your replacement. She will be more inclined to set the record straight on your behalf if you have supported her in acclimating to the new role.

Also during this phase, spend time with the HR department. Most organizations have an exit process and you need to know what is expected of you and what you can expect of the organization. Make sure you understand all the benefits issues that need to be addressed. Ask to look at your personnel file; if possible, get your boss to write a letter of reference for you and make sure a copy is in the file. Understand the company procedures for doing reference checks, including what information will be released and under what circumstances. Many HR departments perform exit interviews on your last day of employment. If this is the case, ask if you can see the questions in advance. Keep your comments honest, constructive, and focused. This is not the time to bring up every grievance you ever had during your employment, but rather an opportunity to provide some ideas on what works and what could be improved within the organization.

Once you complete your work plan and have scoped out how to work with HR on your departure, the time is approaching to really leave.

Leaving

Make sure you save enough time as your final date draws near to meet with the people you have valued at the company. Schedule time and meet with those who have mentored you and those you have admired. Thank them, tell them how much you have enjoyed working with them, and give them your new contact information. Hopefully, these individuals will be a part of your professional network going forward, but it will be up to you to make it happen.

There may or may not be events to mark your departure. Some companies sponsor large department events; others encourage smaller events with the individual team; and still others discourage any kind of company event out of concern that it sends the wrong message (why are we celebrating the work of someone who is leaving?) But it is likely that you will have one or more formal or informal opportunities to be honored for your contributions and congratulated on your move. Beyond staying sober during these events, my next best advice is to be gracious. Avoid the temptation to take pot shots at the company or individuals who may have made your life miserable for the last several years. Be prepared with some remarks, use humor, and be sincere - this is not the time for sarcasm or bitterness.

As you get ready to finally leave the premises, do "a Mary Tyler Moore." For those of you too young to remember the show, I am referring to the sitcom's last episode. Mary is leaving the TV studio where she has been employed, which has been shut down. She picks up her few remaining personal items, walks to the door, turns and looks fondly around at the place she has spent so much of her career, shuts off the lights, and then very gently closes the door. It's a good, professional way to leave, and over the long term you will be very happy you made the effort to do it right.

Gail E. Aldrich, SPHR, is an executive coach and organizational consultant living in northern Nevada. She is the former Chief Membership Officer for SHRM and has over 30 years of experience in associations and large not-for-profit organizations. She has served as the top HR or membership executive for several firms. Gail may be reached via email.