Retained executive search and executive recruiting can feel unfamiliar if you have never worked with an executive search firm, or if you are deciding whether outside support is the right approach for an important leadership hire.
To help demystify the executive recruitment process, we asked Dan Heiman, owner of Cornerstone Executive Search and a retained executive search professional with more than 20 years of experience, to answer some of the questions business leaders ask most often before beginning an executive search.
1. What is retained executive search?
Retained executive search is a dedicated partnership focused on identifying and recruiting the best possible leader for a critical role, not simply finding someone who is available.
Think of it as building a custom home rather than buying one already on the market. We begin with the blueprint: the company’s strategy, culture, challenges and expectations. Then we go into the executive talent market to find and recruit the leader who fits that specific assignment.
Unlike traditional hiring methods that primarily attract active applicants, retained executive recruiting is designed to reach highly qualified leaders who may not be actively looking for a new position.
2. How is retained search different from contingency recruiting?
The biggest difference is commitment.
A contingency recruiter is typically paid only if one of their candidates is hired. That model can work well for certain positions, particularly when there is a larger pool of active candidates.
A retained executive search firm is engaged exclusively and paid to manage the entire search. We research the market, approach passive candidates, assess leadership capability, advise the client and stay involved through interviews, negotiations and onboarding.
Contingency recruiting often asks, “Who can we introduce?” Retained executive search asks, “Who is the best leader for this organization, and how do we recruit that person?”
3. When should a company use a retained executive search firm?
Retained executive search makes sense when the cost of getting the hire wrong is significantly greater than the cost of conducting the search correctly.
That is usually the case when:
- The role has a meaningful impact on strategy, culture or financial performance.
- The right candidates are unlikely to respond to a job posting.
- Confidentiality is important.
- The executive talent pool is highly specialized or geographically dispersed.
- The company needs objective market insight and an experienced executive recruiting advisor.
- The organization cannot afford to settle for the best applicant instead of pursuing the best candidate.
Retained search is most often used for senior leadership recruitment, including CEO, President, C-suite, vice president and other business-critical executive positions.
4. Why can’t a company simply post the position and manage the executive search internally?
Sometimes it can, and we are always honest about that.
But a job posting is a little like putting a “For Sale” sign in the yard. It reaches the people who happen to be driving by and are already interested. It does not reach the high-performing executive who is busy succeeding somewhere else and has no reason to browse job boards.
Internal talent acquisition teams can be excellent, but they are often managing many priorities at once. A retained executive search firm provides dedicated capacity, specialized research, external market access and the ability to approach senior leaders discreetly.
For critical leadership hiring, the question is not simply whether the company can generate applicants. It is whether it can identify, reach and recruit the strongest executives in the market.
5. How do executive recruiters find leaders who are not actively looking?
We do not “post and pray” and wait for candidates to find us. We map the market and go find them.
That involves identifying relevant companies, industries and adjacent sectors; researching leadership teams; drawing upon our relationships; and having direct, confidential conversations with executives who may not be considering a move.
These individuals are often called passive candidates, but that does not mean they are uninterested in the right opportunity. It simply means they are not actively applying for jobs.
Passive executive candidates rarely respond to a generic opportunity. They engage when someone connects the role to their experience, ambitions and personal motivations. Executive recruiting is not a transaction, it is a series of trust-building conversations.
6. What happens during the retained executive search process?
A strong executive search begins with listening.
We first work to understand the business, its culture, the leadership team, the strategic priorities and what success should look like in the role. We then build the position profile, research the executive talent market, identify and approach potential candidates, evaluate their fit and present a qualified slate for consideration.
From there, we help manage interviews, gather feedback, conduct references and leadership assessments as appropriate, support offer negotiations and stay connected during the executive transition.
The executive search process is a funnel. We may identify hundreds of potential prospects, speak with dozens and ultimately introduce only the handful we believe deserve the client’s time.
7. How long does an executive search typically take?
Most retained executive searches take approximately 60 to 90 days from kickoff to an accepted offer, although timing varies based on the complexity of the role, geography, candidate availability and the speed of the client’s decision-making process.
The calendar is often less important than the cadence. Executive searches lose momentum when feedback is slow, expectations keep changing or candidates go weeks without communication.
A good executive recruitment process should be thorough, but it should never feel like it is drifting.
8. How do executive search firms evaluate leadership ability, cultural alignment and long-term fit?
A résumé tells us where someone has been. It does not necessarily tell us how they lead, make decisions or respond when things get difficult.
We use structured interviews, career-pattern analysis, professional references and, when appropriate, leadership assessments. We look for specific evidence: What changed because this person was there? How did they build a team? How did they handle resistance? What did they learn from failure?
Cultural alignment does not mean hiring someone who looks and thinks exactly like everyone else. It means determining whether the candidate’s values and leadership approach will work in the organization, and whether that person can strengthen the culture rather than simply blend into it.
Successful executive hiring requires evaluating not only whether someone can perform the role, but whether they can lead effectively within the company’s specific culture, strategy and stage of growth.
9. How much does retained executive search cost, and what does the investment include?
Most retained executive search fees are based on a percentage of the position’s anticipated first-year compensation, often around one-third, although executive recruiting fee structures vary by firm and assignment.
That investment should include much more than candidate introductions. It covers market research, executive outreach, candidate assessment, project management, client advising, candidate management, referencing, offer support and (depending on the search firm) onboarding assistance and a placement guarantee.
The search fee is easy to measure. The cost of a poor executive hire is much harder to calculate: lost momentum, missed opportunities, team turnover, customer disruption and the need to begin the leadership search again.
The real value of retained executive search is reducing hiring risk while improving the quality of the leadership decision.
10. What should a company look for when selecting an executive search partner?
Industry experience matters, but curiosity, judgment and trust matter just as much.
Look for an executive search partner who asks thoughtful questions, understands your business, communicates candidly and is willing to challenge assumptions respectfully.
You should also understand:
- Who will actually conduct the executive search.
- How the firm researches and maps the talent market.
- How it identifies and approaches passive executive candidates.
- How often you will receive search updates.
- How candidates will be assessed.
- What the firm’s off-limits restrictions may be.
- What support is provided during offer negotiations and onboarding.
Most importantly, choose an executive recruiting partner you would want beside you when the search gets complicated, because almost every important leadership search has a few twists and turns.
11. What most often causes an executive search, or the resulting hire, to fail?
Failure usually begins with a lack of alignment.
If the board, CEO and hiring team have different definitions of the role, the executive search firm receives conflicting signals and candidates experience a moving target.
Other common executive hiring problems include an unrealistic compensation package, a slow interview process, inconsistent candidate communication and hiring primarily for experience while overlooking leadership style.
Sometimes companies create what executive recruiters call a “purple squirrel” profile, an unrealistic combination of every possible qualification in one imaginary candidate.
The better approach is to distinguish between what is truly essential, what can be learned and what would simply be nice to have.
12. What is the most important advice you would give a company preparing to make a critical leadership hire?
Get clear about the destination before choosing the driver.
Do not begin an executive search with a job description that has been sitting in a file for five years. Begin with the business:
Where are we going? What must change? What will this leader need to accomplish during the first 12 to 24 months? What kind of executive leadership will the organization need for its next chapter?
The best executive searches are not merely efforts to fill a leadership opening. They are opportunities to step back, think carefully about the future and recruit a leader capable of helping the organization get there.
At Cornerstone, we often say that we help great companies recruit great leaders. The word “great” matters on both sides, and so does the work required to bring them together.
Preparing for an Important Leadership Hire?
Preparing to make an important executive hire? Before beginning the search, take the time to clarify what the organization needs from its next leader. Not only today, but throughout its next stage of growth. A thoughtful executive search begins with the right questions.
If you are considering a critical leadership hire and would like to discuss whether retained executive search is the right approach, contact the Cornerstone Executive Search team. We would be glad to learn more about your organization, answer your questions and help you determine the best next step.
