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November 2017

What's The Difference Between Employment Agencies And Executive Search Firms?

What's The Difference Between Employment Agencies And Executive Search Firms?

Hiring the right employees can make a massive difference in the performance of your business. According to research done by McKinsey, gender-diverse and ethnically-diverse companies perform 15% and 35% better than non-diverse companies, and that's just one way staffing choices can affect performance.

And when it comes to staffing decisions, few choices are more important than picking the men and women you want to place in leadership positions. Having the right executives and managers can boost the productivity and engagement of entire departments, and that is why many companies turn to executive search consultants to find the right management team for them.

However, if you've never worked with executive search firms before, then you may be confused about the differences between an executive search firm and a more traditional employment agency. So to help clarify the differences, here is a helpful guide:

Not An Employment Agency

An executive placement agency specializes in permanent, direct placements at the executive level of employment. They help fill upper management positions at companies and usually deal with six-figure salaries and above.

An employment agency, on the other hand, will work with temporary, entry-level, and middle-level employees. In some cases, they are placing people in temporary roles that have a chance of becoming permanent. In other cases, companies will outsource the staffing of permanent positions to an employment agency.

What Kind of Positions do Executive Search Consultants Focus On?

Executive search firms primarily search for candidates to fill high-level jobs such as Vice President, Art Director, Human Resources Executives, and various C-suite positions. Many of these positions include quarterly or annual bonuses in addition to lucrative salaries and relocation assistance.

Executive search consultants have a massive impact on the companies that they try to fill positions for, given the high-ranking status of many of their placements.

What Is The Search Process Like?

While employment agencies often receive resumes en masse, the executive recruiter will use their knowledge of the job market and the industry to find elite candidates. Once talented individuals have been found, they will be matched with companies seeking someone with their skill set. Of course, the candidate will still have to go through an extensive interview process. Only after the candidate is hired are the consultants paid a fee for their work.

The best executive staffing agencies will work to find executives that have the skills, knowledge, and personality that matches a company's specific needs. They are looking to fill a permanent position, not provide a temporary solution.