Today, most small businesses do not have the capital to collaborate with traditional executive recruiters and are coming up short when hiring top senior talent. However, there are several executive placement services available to small businesses, offering boutique style recruitment options, niche market searches and consultant staffing solutions at a minimum cost.

Small business owners, who are on a restrictive recruitment budget, seek out executive search firms along with top-notch executive recruiters who have the ability to coordinate a cost effective recruitment solution without sacrificing quality. Therefore, small businesses are able to make the most of their recruitment search by utilizing executive recruiting firms for their upper-level management search. Utilizing affordable executive search services provide the small business owner the ability to:

1. Save time and money on executive recruitment services so that you can concentrate on growing your business

2. Appoint executive recruiters as the key point of contact for all hiring/recruitment needs

3. Develop a partnership with the executive recruitment firm for future searches

Action Steps
The best contacts and resources to help you get it done

Choose an executive recruitment firm that is specific to your company's needs

Small business owner's recruitment needs are not consistent with larger companies because some small businesses may have limited staffing needs compared to the constant flow of human capital that larger companies demand. Therefore, small businesses should choose an executive recruitment firm specific to their company's hiring practices.

I recommend: Intelligent Solutions International is a quality executive recruitment firm that offers exclusive recruiting and consultation solutions for small businesses. Affinity Executive Search offers a variety of retained, contingency, special project and contract staffing recruiting services.

Ask for the break down of fees and outline of costs for each recruiting service

The executive search firm should be able to provide a breakdown of costs and executive recruiting services. A boutique style executive recruitment search firm offers a variety of niche services, such as contingency, retaining searches, name generation and hourly staffing options.

I recommend: Small Business Recruiting Solutions specializes in affordable contingency and consultant recruiting options. Moss and Company Executive Search features hourly executive recruitment fees in order to accommodate the small business owner.

Ask the executive placement service for a detailed recruitment plan

Asking for a detailed recruitment plan (the who, how and when of candidate sourcing) from the executive recruitment firm will help determine if the executive recruiter's approach to your small business senior level search is in agreement with company requirements and hiring guidelines.

I recommend: RSI Executive Search and Recruitment utilizes a comprehensive search process in order to ensure top notch executive candidates. Executive Recruiting Team uses a consultative and objective approach to recruiting services.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Making the most of Executive Recruiters is not being afraid to ask for references and documentation of past performance metrics to ensure that you are partnering with the right executive search firm.
• •  Be sure to question the executive recruitment service about the candidate policy and terms. Most Executive Placement firms offer a 60-90 day guarantee after you hire the candidate, which includes free candidate replacement or refund during this employment period. This is a very important clause in the contract because if the original candidate did not work out, no business owner wants to start the recruitment process again or absorb the cost of finding another candidate.

The race for management brainpower has taken on a new urgency. As a generation of European and American executives prepare to retire, the math suggests that the baby-bust generation simply isn't ready to fill their shoes. As the same time, companies are rushing to go global. New markets will mean new challenges, but not much new talent.

Bottom line: Lots of slots at the top of the org chart competing for a limited number of experienced senior hands. Your company might be used to relying on school contacts or raiding smaller competitors for key positions. Eventually, though, you will need to call in a pro: an executive recruiter.

Covered in this guide:

1. How to hire an executive recruiting service
2. Reviewing compensation before hiring an executive recruiter
3. How to use a contingent management recruiter
4. Specialized executive recruiters by industry

Action Steps
The best contacts and resources to help you get it done

Executive recruiters are people, not Web sites

If you need a steady flow of bodies to fill up a sales or production floor, gigantic job Web sites can be a help. But finding a top executive takes time, patience and, above all, a highly connected executive recruiter.

I recommend: Like with any professional service, you get what you pay for with an executive recruiter. If you need high-end, high-touch attention, consider one of the top executive recruiting and management search firms, such as Russell Reynolds, Heidrick & Struggles, Boyden, Edward W. Kelly & Partners, Korn/Ferry International, and Egon Zehnder International.

Effective executive recruiting requires effective companies

One of the big problems for management executive recruiters companies is the revolving door syndrome. Huge efforts to bring in talent yield results, but then executives walk within a year. Assuming a non-toxic corporate culture, the problem might be money, organization or both.

I recommend: If talent seems to be slipping out as fast as it comes in, time to bring in a human resources consultant to check your pay scale, benefits, and perks. To augment your executive recruiting effort, some well-known HR experts include Watson Wyatt Worldwide, Mercer Human Resource Consulting, Towers Perrin and Hewitt Associates.

Finding a specialized, local or industry specific executive search firm

Small business owners are more likely to rely on personal contacts than an expensive search firm. However, there are dozens of boutique executive search firms that can accommodate lower budgets.

I recommend: Try SearchAlert, a service of the Assocation of Executive Search Consultants. The National Association of Executive Recruiters has a database of its members sortable by industry and geography. You'll find more links and great detail in Susan Heathfield's About.com guide site on Human Resources.

Hiring an executive recruiter on a budget

Although key positions can be sensitive, finding loads of mid-level people can be equally challenging and too pricey for a high-end search firm. Instead, consider a cheaper contingency recruiter.

I recommend: Contingency, as opposed to retained, executive recruiting firms charge only if you decide to hire their candidate. Some contingency firms include Lucas Group, People Connect Staffing, and AccountPros.

Management executive recruiters come in all flavors

Much like job boards on the Web, executive recruiter boutique firms often focus on specific industries. The big-name firms, too, often have 'practices' in banking, healthcare, technology and other specific industries.

I recommend: See the listings of specialized executive search firms at the Business.com directory on executive recruiting firms, executive search firms and employment agencies.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Have a very clear idea of who you want before you hire an executive recruiter. Beyond a job description, you'll need a three-dimensional profile of your ideal hire, or the management recruiter will send you mismatches.
• •  Before you knock on a top search firm's door, be aware that the biggest management recruiters only deal with large companies conducting national or global searches. If the job isn't well over six figures, don't bother.
• •  Remember, a big executive recruiting firm is what is known as 'retained' (rather than contingent). You'll pay the executive recruiter if you hire the candidate they bring you or not.

Executive recruiters specialize in locating senior level positions for both large and small organizations. Executive placement services have become the primary source of selected markets for high-level retained and contingency executive searches. While your successful executive recruiters have the ability to earn a lucrative compensation package, work a flexible schedule depending on client needs and become a staffing leader in their respected niche industry with the right training, they can also save businesses a great deal of money by finding them the best and most reliable executives.

There are presently no formal training programs available for an executive recruiter. However, there are many organizations, executive recruitment firms and online courses available to assist in executive recruiting services. Getting the right executive recruitment training can provide executive recruiters the ability to:

1. Establish top sales ability and communication skills to identify upper-level management candidates.

2. Develop a specialized industry market.

3. Enjoy extensive on-the-job executive recruiting knowledge and skills.

Action Steps
The best contacts and resources to help you get it done

Learn about educational opportunities for executive recruiters

Executive employment recruiters need a quality education in order to succeed in their environment. There are a number of beneficial programs that can help create a confident, analytical and organized executive recruiting professional.

I recommend: PayScale offers some advice for starting a career in executive recruiting services. So You Want to Become An Executive Recruiter? offers information as to how an individual can become an executive recruiter and what type of education he or she may benefit from earning.

Invest in training courses and seminars for executive recruiters

Individuals interested in executive recruiting positions would benefit from training courses, materials and seminars. If considering work at an executive placement service, it is important to get training for executive recruiters to maximize what you have to offer as an executive recruiting specialist.

I recommend: BillRadin.com offers a number of executive recruiter training materials. Next Level Recruiting Training offers online training, DVD training and more.

Find specialty training and certification opportunities for employees of executive search firms

Once a ground education has been established, getting specialized training and certification in their field of interest can help individuals who are ambitious to advance in the world of executive recruiting.

I recommend: Training-Classes.com offers training certification specifically for executive search firms and individuals. AllBusiness.com discusses Boyden's Executive Recruiter in-house certification program, highlighting the importance and benefits of such a program. The Association of Executive Search Consultants hosts online and conference-call executive recruiting service training.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Remember that even the most decorated of executive recruiters can enjoy and benefit from training seminars, discussions, software and other information dealing with recruitment practices. When employees feel like they are taking steps to advance their career and their overall net worth to a company, they are more likely to be happy and content at their jobs and within the positions.

Executive recruiters work specifically with firms that are looking to outsource their higher-level recruiting needs, generally c-level (CEO, COO, CFO, CIO), president, vice-president, project management and more. These recruiters specialize in consulting with businesses to hire the right person for the position or project. Executive recruiters can staff these high-level professionals through several contract options including retained, contingency and contract staffing. Before you decide to use an executive search firm for staffing your next executive, consider some of the more common key terms used by executive recruiters.

Action Steps
The best contacts and resources to help you get it done

Retainer, retained services

By definition, a retainer is a partial fee paid to a firm for professional services the firm will render. An executive search firm that works on a retained basis will charge their client a set flat fee, plus advertising up-front for use of the firm, whether an individual is hired or not. Some retained firms will collect a partial payment up-front and the remainder once they fill the position. Executive search recruiters who are retained for their services are often called consultants, since they have the expertise to help you build your business with the right candidate. Retained firms are more pricey, but provide a level of service that other types of executive firms may not.

I recommend: For an in-depth description of how a retained firm works, review Kulper & Company's website. WorkBloom.com also details out how a retained firm works for both job candidates and the client they're hiring for.

Contingency, contingent services

A contingency, or contingency contract as it's sometimes called, is where a business works with an executive recruiter on a conditional basis. In other words, they pay based on what the recruiter actually does for them; payment is generally rendered after the services are completed.

I recommend: Review a definition from the book, Proactive Sales Management, offered through Google's book search tool, on contingent search firms.

Project or contract staffing

Project staffing, also known as contract or special projects staffing, is more of a short-term executive recruiting strategy. Generally, when a company needs a project manager or high-level professional for a short-term project or position, they can turn to an executive recruiter to meet this need.

I recommend: Review a definition of contract staffing at Affinity Executive Search.

Industry-specialized executive recruiters

A specialized executive recruiter or search firm focuses on specific industries, only staffing within those industries. A specialized recruiter will know the industry inside and out, whether it be staffing for the accounting, construction, finance, healthcare or IT fields.

I recommend: Reaction Search International provides more information on how a industry-specialized recruiter and search firm works.

Recruitment plan

A recruitment plan is a set of strategies developed to place a successful candidate. A recruiting plan can start with a vision of the organization's future direction as well as the steps it needs to take to get there, including the recruitment of the right talent at the right time and in the right job. Depending on what talent you need to fill a certain position, plans will vary, but it's important to seek out firms that have an established plan in place.

I recommend: Executive Recruiting Team (ERT) gives insight into their search process by detailing out their recruitment plan for clients.

Association of Executive Search Consultants (AESC)

The Association of Executive Search Consultants (AESC) is an organization that helps support those working the field of recruiting consulting services and executive recruiting. When deciding to outsource your staffing needs to a retained firm, see if their organization is a member of AESC or if they are AESC certified.

I recommend: Review AESC's Industry Introduction for more information on what this association can provide for executive recruiters.