Did you know that 40% of new executives fail within the first 18 months of a new role due to poor fit with company culture?
Executives play crucial roles in management and leadership in the finance industry.
At Stephenson Executive Search, we conduct a meticulous process to screen candidates based on leadership ability, cultural fit, and impact. But how do executive search firms shortlist executives? Find out in this article.
Understanding the Client’s Needs
Understanding a client’s needs is imperative. Without a strong understanding, a successful appointment cannot be made.
A detailed understanding is gained through in-depth discussions with clients. This way, an executive search firm is aware of the company culture and goals.
Discussions take place with board members, stakeholders, senior leadership, directors, and HR. These individuals have the strongest company culture knowledge.
Once we have a clear understanding, a written brief is agreed upon for the job specification.
This always goes beyond standard skills or experience–it’s about leadership style and industry nuances. From this, we can appoint a strong candidate for the executive role.
Now we know what the perfect candidate looks like to bring success to your company.
Market Mapping and Identifying Potential Candidates
Market mapping is the action of identifying top talent in the industry and discovering the perfect candidates for the executive role.
Executive recruiters then tap into their vast connections. For example, Stephenson Executive Search has an exclusive network of top-tier finance talent through years of networking.
Identifying the best candidates starts with passive candidates–those who aren’t actively job seeking–to discover the true talent. This process is also known as headhunting, as talented professionals are not always actively seeking.
Evaluating Experience and Leadership
Before submitting candidates to a short list, the critical screening process includes extensive interviews and tests. Essentially, it comes down to the evaluation of real-world, practical impact.
As we mentioned earlier, evaluation and assessment go beyond the traditional CV. Tracking leadership records, testing decision-making skills, and finally, strategic vision are all key to separating strong candidates from incorrect placements.
Behaviour traits for executives are essential because of the magnitude of their decision-making and leadership skills.
These behavioural traits include:
- Strategic thinking
- Adaptability
- Strong communication
- Emotional intelligence
- Ability to motivate
- Ability to lead teams
Psychometric assessments and executive profiling are, therefore, used to understand the individual’s behavioural traits and leadership capabilities.
Cultural Fit
Why is cultural fit a necessity? It’s as important as skills because an executive who aligns with the company culture is far more likely to succeed, making a positive impact after their appointment.
Assessing work styles or philosophies, values, work ethics, and adaptability is crucial. These characteristics mean the candidate will effortlessly fit into the company’s culture.
Additionally, a seamless cultural fit positively impacts the company’s long-term success. An executive is likely to grow within the company and inspire considerable change.
To ensure a culture fit, processes such as asking candidates to define company values during behavioural assessments are common.
Finally, thoroughly checking references will gain a strong understanding beyond the surface level.
Confidential Screening
Confidentiality is key in executive hiring, especially when interviewing passive candidates for their sake.
By approaching mainly passive candidates, only successful executives who are currently working are approached. Again, this requires a careful, discreet approach to avoid attention from their current employer.
Discretion is maintained throughout the assessment through confidential agreements, careful and discreet communication, and limiting the information shared within the client’s organisation.
Meticulous one-to-one interviews help executive search firms assess the level of alignment with company culture and leadership expertise.
Finally, a deep reference assessment is required. Executive search firms verify their findings through a candidate’s previous workplaces to evaluate potential appointments.
Presenting the Final Selection
After the screening process, the strongest final candidates are shortlisted and presented to the client.
Fewer candidates are better than many, as the meticulous screening process ensures only the top potential candidates filter through to the final stage.
Next, the final interviews take place. This collaborative process involves both the executive search firm and the client.
At this stage, the client makes the final decision based on the candidates presented in front of them. Each candidate at this stage is deemed a great fit for the long term success of the client.
Negotiations
Finally, after the successful professional is selected, the negotiations begin. It’s time to bridge the gap between the client and the candidate.
Salary, benefits, and contract agreements are negotiated at the final stage with the client, which leads to the appointment of a new executive.
A realistic yet compensating salary is agreed upon without overpaying the executive. Next, career progression and company vision are discussed.
An executive search firm ensures a smooth negotiation process by acting as neutrals while understanding the client’s and candidate’s needs.
Open communication is key for guiding both the individual and company towards the desired outcome.
Why Work with Stephenson Executive Search
So, executive search is a high-stake, complex process requiring expertise and exclusive network connections. The cost of making bad executive appointments for your business is considerable.
At Stephenson Executive Search, we have over 60 years of experience appointing successful executives and have completed over 500 assignments with a detailed approach.
Contact us today to find top-tier executive talent aligned with your company’s vision or call us at +44 (0) 7542 031 605.
How Do Executive Search Firms Shortlist Executives: FAQs
1. What if a shortlisted candidate declines the offer?
If a candidate declines the offer, Stephenson Executive Search will revisit the shortlist, reconnect with backup candidates and refine the search. However, we proactively manage negotiations to reduce the risk of declines at the final stage.
2. Why should companies use an executive search firm instead of hiring internally?
An executive search firm provides access to exclusive talent. Additionally, an executive search firm hires professionals to carry out a meticulous screening process. With expertise in the finance industry, these insights help companies secure true leaders without risk.
3. How long does the executive search process take?
While the timeline varies, it takes an average of 6 to 12 weeks to finalise the shortlist of the strongest candidates due to market research, approaching passive candidates, rigorous interviews and screening, and the final negotiation process.
