Misperception 2: Search Firms Are Expensive and Charge a Percentage-of-Salary Fee
The Chronicle of Philanthropy article states that “…hiring by search firms can also be an expensive proposition. Such firms typically work for a percentage of the first year's salary of the executive they have been hired to place.” In reality, fees charged by search firms vary greatly based on several factors, such as the complexity of the search process, number of search consultants involved, and anticipated time it will take to complete the search. Firms that focus exclusively on the nonprofit arts and culture industry, for example, often take into account the size of the organization’s budget. With this in mind, quality should not be devalued by engaging an inexpensive firm that will not provide appropriate services in a timely manner.

While some search firms charge a percentage-of-salary fee, ethical firms typically work for a fixed fee plus direct expenses. There is a tremendous conflict of interest if a firm negotiates a higher salary for a candidate to increase its own fee. Good search consultants are involved in all phases of the process, particularly at the end when mediating the deal between the organization and the selected candidate. Seeking a positive result for both parties, a search firm objectively handles any compensation discussions, advises clients on industry benchmarks, provides supporting data that avoids legal issues around perceived excessive executive compensation, and preserves the earliest professional relationship between the candidate and their new employer.

Misperception 3: An Organization Can Easily Conduct the Search on Its Own
Can an organization conduct a search on its own when time and resources are stretched thin? During a leadership transition, the board’s role should be kept strategic, focusing on governance issues, community ambassadorship, fundraising, and policy setting. Organizations need to fully assess the time and financial impact of assigning internal leadership to this major task. Staff and board members must be effectively deployed in order to advance the organization. A rigorous, objective search process led by a professional search firm can take less than six months to place a highly qualified candidate, allowing the board and senior leadership to focus on strategic priorities.

Advertising an open position is only a minor part of the recruitment effort, as the best candidates are often not actively searching for jobs. Proactively cultivating candidates and carefully reading through application materials is extremely time-consuming. A search firm can vet candidates who meet all the identified criteria, which enables a search committee to be effective, stay engaged, and use their time wisely on a diverse group of candidates. An organization only has one chance to make a good first impression with prospective candidates and the professionalism of the process is all part of that effort. The engagement of a respected search team also adds credibility to the importance of the search and the organization’s investment in its future.

Misperception 4: The Interview and Selection Process Is Quick
A thorough search process includes multiple candidates, a series of interviews, and varying schedules. Organizations need to ask questions carefully and be aware of the legal implications. Employment law can be extremely difficult to navigate. While most search firms do not provide legal advice, they can ensure that all involved parties are aware of various interview techniques and advise on best practices throughout the interview process. This can become complicated if candidate names are disclosed publicly. It is the search firm’s responsibility to advise organizations on the importance of confidentiality so as not to jeopardize a candidate’s current employment.

Even in today’s competitive job market, good candidates have choices. Organizations must present a compelling picture throughout the search process. Candidates must be treated extremely well from their first inquiry, throughout the pre-screening process, in transparently receiving organizational information, and when visiting the community for a multiday interview process.

Generating interview questions, keeping people on schedule, and protecting the interests of all involved are only a few of the things a professional search firm can provide. Most importantly, search firms have resources for reference checking, criminal and legal background screening, and educational verification, among others. These are not tools generally held within small and midsized organizations but are critical to ensure due diligence in the process.

Misperception 5: The Search Is Over Once the Candidate Begins
Professional firms are invested in the success of the organization and the selected candidate. Many maintain ongoing contact and offer follow-up executive coaching, complimentary team building seminars, and advisory services to board and staff leaders. This ensures any transition issues are quickly addressed, which is particularly critical during the early stages of any new relationship. Most search firms also have a guarantee that if the selected individual does not remain in the position for a stated period of time, the search begins again for no additional fee.