An overview of cost models for internal executive search and ROI

1. Cost Models & ROI of Executive
Search
Presented by Kevin Wheeler
ScoutRock- 2012

2. Why Internal Executive Search
Makes Sense
n Efficiency of external search remains low.
n Time to present qualified candidates remains at
120 days or more.
n External recruiters cannot know your firm’s
needs as deeply or as well as an internal search
person.
n Social media makes it easier.
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3. Cost Model Components
n Branding
n Search & Sourcing
n Assessment
n Candidate/manager coaching
n Selection
n Offer
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4. Reputation/Brand Management
Opinion, influence, anonymity,
persistent data, ad-based search
engines, and enemies interests
coexist and intersect.
"If you don’t show up in a Google search for your name or
product, you do not exist"
- William Arruda, Branding Expert

5. Search & Sourcing
n Talent Pipelining
n Social media
n Crowdsourcing
n Referrals
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6. Assessment
n Intenal Executive Search
n Can focus on real needs of manager/organization,
n Knows culture,
n Knows individual manager’s preferences,
n Can probe for “real” success factors.
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7. Source: http://www.allfacebook.com/facebook-recruiters-2011-09
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8. Source: http://www.allfacebook.com/facebook-recruiters-2011-09
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9. Candidate/Manager Coaching
n Cues on individual manager’s likes/dislikes
n Dress/interview style coaching
n Prep manager on candidate’s style/strengths
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10. Selection/Offer
n Focused, specific knowledge powerful
n Significant knowledge of leeway and
possibilities
n Ability to influence hiring managers
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11. Internal vs. External
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12. Three Basic Models
n Salary Only
n Commission Only
n Salary plus commission
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13. Common Models
Salary Only Commission S&C
• PROs • PROs • PROs
• Fixed costs • Can be lower in cost • Better cost control
• No time pressure • Can use referrals • Modest incentive to
• Can use referrals • Recruiter has build brand and
• Can focus on incentive to perform coach
branding/candidate • CONs • Can use referrals
& manager coaching • Talent pipelining
• Tendency to sell
• CONs adds long term
what you have.
value
• No incentive for • No incentive to
speed or quality. spend time on • CONs
branding/coaching. • Expensive
• Can result in time
delays
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14. Variations
n Outsource basic search
n Partner with external firm for lower commission
n Manage an outsourced partner
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15. Example: Corp “X” C-Level B2B
Sales Executives
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16. Thanks!
Kevin Wheeler
kwheeler@glresources.com
www.glresources.com
www.futureoftalent.org
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