As Partners of The Chairman’s Network attending a recent networking event, we were privileged to have LinkedIn’s ex CEO of Europe Kevin Eyres speak to us about some of the key reasons why LinkedIn has grown so quickly and successfully and still has such huge potential. This made me think about the role of the recruiter and how that has changed over the last few years. Are external recruiters “dinosaurs” that will be totally obsolete by 2020?

Part of the LinkedIn story was their mission to displace traditional recruitment i.e. external recruitment consultants by providing an in-house recruitment solution that is both easy and highly cost effective. This is essentially a “game-changer” with the onset of large in-house recruitment teams now being the norm in bigger firms. This is also why so many recruitment consultants have opted to work in-house. In theory there is less pressure to deliver clients and targets, although in reality the pressures involved in working within a large firm as opposed to a niche boutique recruitment consultancy may even be greater!

Undoubtedly this is the way forward for junior to mid-level roles but is it really suitable for more complex senior roles such as the CEO and all the C-Level roles: VP’s, Sales and Marketing Directors etc?

The personal connections, experience, judgement and drive of the experienced headhunter have to be the differentiators when recruiting for highly specialised positions. Top performers that are fully employed and satisfied do not change companies based on an email or a social connection.

Hayward & Associates has often been brought into companies because in-house recruitment has either failed or been of insufficient quality and the internal hiring client is pushing HR for better candidates or shortlists. It can prove slow and laborious if there is no agreed timeframe and internal clients become frustrated.

Other reasons for opting for experienced search specialists  are sensitivity and politics. It’s not really appropriate for internal recruitment teams to pre-qualify candidates way above them in the career hierarchy and, in fact, could prove a disaster if handled badly.

A good headhunter knows his/her space extremely well and is highly connected whether in-house, via LinkedIn or in many other ways. They have the connections and credibility to make high-level calls that get answered and leverage their contacts in the most professional way to deliver the best talent for the shortlist.

We put our necks on the line every time with every assignment and every candidate.

Experience and sound judgement are therefore crucial. Obtaining these qualities in your in-house team may mean hiring significantly more senior and expensive people. Additionally, good headhunters by nature are fairly headstrong (they need to be to gain the respect from clients and to have the courage of their convictions to do the job well) and are therefore unlikely to seek employment in a company after several years of independence and a track record of success in exceeding clients’ expectations.

Far from being an outdated relic, the experience, professionalism and judgement of the headhunter who can persuade a top quality candidate to take the required leap of faith into a new role is very much here to stay.

Caroline Hayward – chayward@hayward-associates.com

I recruit extensively at the C-Level, but I rarely have any Non Executive board opportunities ….

It’s taken me a while to realise why I’m not getting the assignments. Rather than it being a case of other firms winning the NXD and Chairman searches over me, there appear to be very few that exist as a search at the SME level where I mainly operate. I am now coming to the conclusion that the majority of appointments are made through the often very small networks of those already on that particular board. Additionally, there is rarely a recruitment budget allocated for Non-Executive appointments and the VC’s, many of whom are cash strapped, have their own Black Books of contacts. This along with the financial challenges faced by all small businesses and a “conserve cash” approach means that there is pressure for Non-Executives and Chairmen to be appointed at minimal cost to the business.

To test my theory, I recently attended an FT networking evening where an experienced and amusing NXD offered us his views on how to get appointments and what to do when you’ve got one, or indeed when you want to leave one.

“What do you do first when one of your boards is looking for a new Non-Exec Chairman or NXD?” I asked at question time.

“Oh, we’ll we all sit down and make a list of our contacts in our network and take it from there!” He answered with slight embarrassment.

Innocently said and with no idea of course that his questioner was either a head hunter or a CEO of a leading business networking group, but I think this says it all.

The lack of board diversity at SME level is partly because so many appointments are still being made by the ‘old boys network’: Chairmen of repute are recycling their contacts and putting up seasoned NXD’s or Chairs who don’t necessarily have relevance to the business or its modus operandi. Their knowledge of finance, legals or remuneration is not in question, but they don’t necessarily understand the nature of the business that they are now Board Advisers to. This lack of understanding can potentially rub the CEO up the wrong way and can cause conflict when he has to explain the fundamentals of his or her business to a ‘green’ NXD who is telling him how to run his company!

I think this is an insidious problem. By not utilising the services of a headhunter or a recruiter, not advertising the opportunity; and only hiring people who are known and who are ‘safe’, the opportunities for diversity ( including the appointment of more women) are and always will be extremely compromised.

Headhunters have in the past been criticised for the lack of diversity on their shortlists but I think this is unfounded as, in most cases, a good headhunter is often more open-minded even than their client. Some clients think we are constrained by our database and by who we know, whereas in fact we use many diverse methods to bring new, talented individuals in front of out clients, most of whom we have never met before.

Back to the guest speaker and his attempt to rationalise his previous response: “but I would use a search firm if I was looking for a CEO, an executive role.”

Obviously that role is under close scrutiny by the board and investors and has to be seen to be fulfilled correctly and with the appropriate due diligince.

But why the CEO role and not the board?

The Chairman’s Network are interested to find out how you got your last Board appointment. If you are a Chairman, CEO, NXD or Director on an SME Board please complete our short 3 question survey. Results will be revealed on The Chairman’s Network website.

Each and every assignment is a challenge which, in some ways is what makes it such an exciting job. It’s particularly stimulating when you are representing a great company with a strong management team and a challenging, well paid opportunity.

How we work
With a new assignment signed off and the job description written, I tap on the shoulders of a wide sector of individuals who may be suitable or indeed, be connected to anybody suitable for the current search. This list comes from a broad variety of places including, but not limited to, data from our researchers, our in-house database of over 40,000 senior executives, LinkedIn, Plaxo etc and of course Word of mouth (WOM). At this stage it’s diligent focus and hard work along with knowledge of the space or sector that really differentiates one executive recruiter from another.

Initial calls are arranged with any candidates deemed suitable on paper and from this our interview long-list is scheduled. Then anywhere between 2 and 5 weeks of interviewing follows in order to acquire suitable candidates who can be based anywhere in Europe.
Weekly reports are fed back to the client keeping him/her fully up-to-date on the process along with any candidates that, by mutual agreement, have decided to consider the opportunity we have presented to them.

What differentiates us
As headhunters we are defined by who we turn away. Delivering a service, we are only as good as the last candidate on the latest shortlist. This can feel quite pressured at times as we need to have the courage of our convictions, presenting our shortlist having shown true balance and excellent judgement on why we have selected those specific individuals. This is what differentiates a good recruiter from the extensive pack, together with unsolicited, supportive references on the web and LinkedIn.

The brand of the search company may be powerful and far reaching but if the consultants are without substance or ability in their chosen sector then this becomes meaningless.

Headhunting is a bespoke service and there is a price to pay for this, but contingency recruiters ( ie paid on results and not retained) often charge the same fee with little or no knowledge of the role that they have just placed. This can result in placed candidates assuming certain aspects to the role that do not materialize and thus have not been brought into the company in quite the same way as an individual placed via a well conducted search.

I maintain that, because a well run Executive Search process significantly engages the client/hiring team (via the briefing and job description), the potential candidates (via a number of in-depth interviews) and the consultant ( via all of the above!) on a successful end result, this approach has more longevity than a candidate placed via an ad hoc CV.

Where we excel
Executive Search is therefore a service that is most suited to management roles or roles where a complex mix of skills, abilities, geographies, confidentiality and politics may make the opportunity a complex one to fill.

Remember that when a headhunter or recruiter reads a CV we speed-read it, looking for all the key words that are relevant to our current search, often only reviewing the first page before we make an initial decision. At this stage we are in information overload, often reading or reviewing hundreds of profiles on and offline to settle on three piles – ‘yes’, ‘no’ and ‘maybe’!

The ‘yes’ pile probably holds our shortlist and your CV needs to be in there!

So what should you focus on?
Every headhunter has their own personal preferences but I believe that you need to start with a strong positioning statement describing your potential role or roles with supporting information which is relevant to the role that you are applying for, to make us read further e.g:

‘A CEO who has founded, grown and exited a software business taking it from £0 to £60m turnover before the sale to…”

“An experienced VP Sales in the Enterprise software space having worked for…and managed teams of up to 40 sales professionals…”

Starting with your current company/position you can then chronologically list dates and details of employment, making careful notes to show consistency, following the format below:

Current Company – e.g. Dell
Role – e.g. Director of Software Engineering
Remit -To deliver x software project to time and to budget managing three teams of 20 software engineers
Achievements - Delivered x, y and Z…probably as succinct bullet points.

CV tips
There are various formats/templates available on the web but try to avoid over complicating it with tables and graphs.  A plain white background is best, with a maximum of 3 pages and don’t use more than 2 different font styles. A one page resume is useful to have but often will not contain enough information about achievements etc to open the required door to that next opportunity.A photo is often useful but make sure that it is clear, recent and professional! Personal information can be left to the end of the CV but don’t forget to put your name and phone number on each page in case the pages become disconnected after printing.

Remember that you may be approached by a headhunter when you least expect it and that you always need to have an up-to-date document ready to go. The danger with spending too long preparing/updating your CV is that you may miss the deadline for shortlisting and thus the opportunity.

For challenging, difficult to fill, politically sensitive or very senior roles, Executive Search is still the most widely used approach after networking and most senior executives move jobs in this way.

Caroline Hayward, CEO

As Founders and Directors we can think that nobody can step into our shoes but, with a few exceptions, this is not the case.  VC’s and investors generally (including on Dragon’s Den) don’t just look at the products and services before they make an investment- they focus on the team!

CEO
As CEO you may also be a Founder. You are going to make it happen and the investors are backing you to deliver. But maybe this isn’t your forte? Maybe you’re really a product person or a finance person and don’t want the constant sales pressure. It’s often about knowing your strengths and limitations and being prepared to accept that somebody else may do a better job of running your business for you. Often the VC or bank decide this and change the CEO to protect their investment.

When times are tough (private family/health issues or challenging business concerns) a strong Co-Director or Number Two can step in if adversity strikes, affecting either you or the business. Making decisions alone and when under stress can be counter productive.

Finance Director
Even with a financial or accountancy background, there is an argument that as CEO you should focus on making the money and delegate someone else to count it for you. Either hire a full time FD/Accountant or appoint an interim, giving you high level skills as and when needed (see FD Solutions). Alternatively, a good book keeper can do vat, payroll etc.

Marketing Director
This is fundamental – whether with a full-time Marketing Director or outsourced. Your website, social media, PR and branding/positioning are essential and resulting sales leads are the life blood of your business.

Sales Director
 CEOs often do their own selling and expect the rest of the top team to do it too. But often other priorities occur and suddenly anticipated revenues don’t happen. A Sales Director would own this and can’t really be outsourced as commissions need to be motivational. Help with the sales process ( see Incisive Edge) and telemarketing can however.

The Board
Smaller companies often wait before filling out the Board with a Chairman and one or two Non-Executives. If you get finance from an individual or VC they will probably want a Non-Executive role. Selecting a strong Chairman is a major asset to an SME. He/she will assist you, provide a sounding board as well as manage the Board Meetings, and can step in during challenging times.

When finding or choosing a Chairman or Non-Executive Director diversification is key, as well as ideally bringing in some useful additional skills and connections (hiring a Chairman that has sold a few businesses would be useful if you’re looking for an exit).  Advertise your opportunity to get a balance of useful expertise:  Chairman’s Network Appointments is a major resource with over 5000 registered Chairmen, Non-Executives and Directors looking for more appointments.  Membership of the network will enable you to make valuable new contacts and to post board opportunities.

A strong and effective management team is the backbone of any successful business and should be chosen carefully, particularly as investors and venture capitalists view the strength of the management team as the major determining factor in whether they are willing to make an investment in the company.  If you can allocate a recruitment fee then get the job done properly and hire a recruitment partner to work exclusively to find you a great shortlist and hire a brilliant person. That has to be money well spent !

Caroline Hayward, CEO

Headhunters are specialists in their sectors and niches, often with deep and wide personal networks and connections. They add value with their expertise in the space and their experience and intuition in the search and shortlisting process.

Headhunters will take the time to fully understand the remit, company background and culture.

Most senior candidates (mid to senior management/VP/Director and C-level) move roles in this way or through word-of-mouth and rarely apply to a job advert.

Key benefits:

• thorough research – an in-depth briefing document will be written by the consultants covering the company, the role, the person etc. The candidate contacted therefore knows he/she has been sought out for a serious assignment
• a structured process of bringing ideally qualified candidates (that are actively employed in most cases) into a shortlist
• all relevant candidates are interviewed personally to the specific brief and in depth by the consultant. Interview notes are created adding the consultant’s personal view on fit and suitability, in addition to an up-to-date CV.
• timeframe to shortlist (4-6 weeks) often shorter than contingent selection
• senior candidates respond to exclusive searches more readily and are unlikely to apply to an advert or be on a register
• the deep expertise and contacts of the consultant as well as his/her reputation which can open more doors
• a superior process, service and end result for much the same fees as contingency
• better quality of hire in most cases as client need not compromise on fit or suitability
• access to candidates who are not on the open market and thus not actively pursued by other companies and likely to accept an alternative offer
• the buy-in of the management team is more likely for a structured Executive Search process on a pre-agreed brief
• an experienced consultant can help define the job as well as navigate internal company politics
• client allegiance – a good headhunter will not act for competitors or employees within an agreed timeframe
• outsourced process – typically the client briefs the consultant and then has weekly updates as to status until an individual is appointed
• the Lead Consultant takes full responsibility for the calibre and relevance of his/her shortlist
• the right headhunter can considerably enhance the prospects of a high growth firm by having the expertise to source and attract the best possible talent

Disadvantages:

• exclusive commitment to one consultant – the client must trust his/her skill, track record and commitment to deliver
• exclusivity also means that timeframes can be slower (but not in all cases) given that candidates are not actively on the job market and are likely to be on longer notice periods
• fees can be (but not in all cases) higher overall and a retainer is always required
• a search may be commenced and then cancelled due to internal customer reasons but expense will have been incurred

Contingency recruitment or Executive Selection is an on-going process of database and advertising from which it is hoped that suitable candidates will emanate and with no specific timeframe. Consultants can be external or in-house. Fees are typically based on a percentage of actual salary or a set fee. This route is best used for non-management roles.

Consultants are often junior executives who are sales-oriented and focused on volume of candidates in order to get the next fee. They may not have as much experience of the sector or company, culture etc as a headhunter.

Key benefits:

• a fast route if the initial candidates are strong and not currently working (but can take as long or longer than Executive search if the best candidate accepts an alternative role)
• can be managed in-house to save costs although in-house recruiter salaries must be taken into account
• no commitment or exclusivity – you can use as many recruiters as you wish
• advertised contingency recruitment can be the right approach especially when the brand is strong or needs to raise its profile
• good for non-confidential, volume recruiting
• fees can be driven down by market forces, recessions, volumes of recruitment etc

Disadvantages:

• quality of candidates presented can be variable
• more work for the hiring manager to sift out the better candidates from a greater volume of CVs
• speed of turnaround can mean that candidates are not necessarily interviewed personally and in-depth before being presented
• with several recruiters working on the same assignment, candidates can be approached by more than one recruitment firm which may not give the best impression
• consultants have no allegiance to any one client
• in-house consultants may find it hard to approach direct competitors without an independent intermediary

For management roles or roles that are either challenging or difficult to place, sound knowledge of the space, the role and the culture together with a structured process and a proven track record of successful and on—time delivery are paramount.

As a headhunter, candidates that we approach should only move for what is clearly a better job than their current one, assuming that they are gainfully employed at present.

The company and opportunity we are representing should be adding value to your CV by taking you onto new and bigger challenges; more dynamic companies; better or more leading edge technology or maybe just to increase your remuneration.

If we can’t do that then we are not doing our job i.e. placing great people, with strong potential into better jobs and/or more dynamic companies!

Great employees will enhance businesses in many ways and can significantly raise shareholder value if harnessed correctly, so it’s very important for growing companies to get their hiring processes right in order to attract and keep the best possible team.

HR Directors and recruiters/headhunters can work together to give the best first impressions and manage the process effectively throughout, from initial contact to successful new hire.

After all, a great person can turbo-charge a good company into becoming a huge success and vice versa! Technology is great but it’s all about people at the end of the day.

Once you have a job offer should you take it ? and why?

Some tips to help you make your mind up:

1. Follow your intuition; if you have to agonise about it, it’s probably not right for you.
2. Does the new role add something to your CV? If it’s more of the same is it a bigger remit?
3. If relevant, can you commit to the increased management/travel aspects taking into account the age(s) of your children?
4. Does the new company have real growth potential? If it does, you will too.
5. Is the role sufficiently challenging  for you and, if not, why not?
6. Is the technology/sector leading edge and in a dynamic space that will grow? If dull, steer clear!
7. Look at the potential of the company as much as the role; Pre IPO is better than Post IPO as more £ can be made at exit and you can probably have a bigger impact on a smaller company too.
8. If you are looking at building towards a GM/CEO role (assuming you want to go there),  what haven’t you really covered? Marketing? Finance? Sales? Anything else? See if you can make a move that gets you closer to your goal.
9. Make sure your partner doesn’t mind you taking more on! It’s not worth stress at home unless they are behind you.
10. If with 3 years in the new role, someone asked you why you did it, would you have a clear answer? (Always a good one!)

We typically all work along similar lines , working exclusively on a retained project with a client who pays us in three phases: a retainer, upon acceptance of our shortlist and upon candidate acceptance of a job offer. Sometimes search firms bill monthly whatever the progress, but I imagine this is open to negotiation! We have a 6 week methodology but many search firms take a lot longer.

It’s exclusive because it’s a smaller market than you think and it will devalue the approach if more than one recruiter contacts the same person, especially if they are one of only a handful that could potentially do the job!

We source our candidates in a number of ways and it’s not always cold headhunting.

Research
LinkedIn, Plaxo, Xing etc are now also an essential part of the research and ID mix. We employ research firms that identify the key names in the target companies via the above, internet searches, online and offline research, listings at events, public speakers etc etc. They conform to the professional standards of the ERA – The Executive Research Association.

Databases
Yes, we do keep track of the high flyers in our industry although it’s often difficult to keep up with everybody’s career so keep your headhunters in the loop if you want to be approached for great opportunities! First contact is often to the people we already know who may be interested and fit the bill.

Networking/Word-of-mouth
Headhunters should be well connected. A lot of our great candidates are recommended to us based on a strong reputation in their field of expertise.

Web sites
If the role is not confidential then we’ll connect  to relevant groups on the web, post the roles on our websites or even use senior recruitment sites if we think that’s the best  way of getting to our target audience. It all depends on the role.

This activity, which can easily take 2 weeks or longer, creates a long list of names and companies that the consultant can use to identify the few selected players that he/she is interested to talk to.

Sometimes this can be challenging but we invariably find a way to make contact and ensure that we have spoken with all the potential players.

So take the call/respond to the email …..but it’s fine to say no if it’s not for you i.e. wrong timing, not enough money, not a big enough role etc.

But it’s good to know that the headhunter is aware of you for future roles so certainly a few minutes well-invested!

How do you find the best and most appropriate one?

The Executive Grapevine lists all the Executive Search firms and their areas of specialism so in theory you can start with a full list of players in your space which is particularly good if you are a senior candidate looking for a move.

If, however, you are a client looking to hire, you should look for recommendations of firms in your sector with longevity of service and strong reputations. They need to be highly-networked and have a team that is focused and responsive and that also has a sense of urgency and a commitment to deliver.

Ideally you need to be allocated a lead consultant who owns the responsibility to deliver that shortlist and on who’s decision it is based, using his/her judgement and experience and understanding of the company, culture and role.

Reputation is everything but references such as those on LinkedIn are very valid as you can get a full snapshot of that person’s credibility. If you claim you have a good reputation then you have to be able to back that up with evidence.

Many executive searches are complex and challenging with a number of issues coming into play such as – on the client side – personalities, politics, differences of opinion, power struggles about reporting structures and which headhunter in which region of the world should be retained etc etc.

On the candidate side you have to be open to a move, willing to accept the call and to invest the time in preparing CV’s, taking calls and attending meetings (even if not fruitful this time round). At least then you are then on the radar of the Executive Search firm and they have a good, strong view of you with regard to future assignments. If at some point in the future that search firm furthers your career, increases your salary, raises your profile in your industry or opens doors that would otherwise not be open to you then it is time well spent.

It is after all now a mainstream occurrence that mid-to-senior management move roles by being approached either personally or via a search firm and are unlikely to apply to companies direct or to adverts unless they are actively looking for a role as a result of being displaced or made redundant.

If you wish to hire employed, fast- track, dynamic, successful, focussed and hard-to-find candidates across many regions then Executive search is really the only way to get a complete shortlist of relevant candidates.

The refreshed design, refined navigation and updated content at www.hayward-associates.com gives clients and candidates easier access to information and an improved overall user experience.

Hayward & Associates has been providing executive search services to the TMT sector for over 20 years. The new website brings clients, candidates and prospects up-to-date with current expertise, industry focus areas and current opportunities.

Caroline Hayward, Founder and Managing Director, Hayward & Associates said: “The launch of our new website enables us to reinforce our position as a leading boutique executive search firm for the Technology, Media and Telecoms industry across Europe

We believe the refreshed look and feel and more accessible content will better reflect our forward-thinking, professional and substantiated approach. We hope this new website provides our clients and candidates a rich source of information about our methodology, values and commitment to deliver.”

About Hayward & Associates
Founded in 1988, Hayward & Associates is a leading retained executive search consultancy. With a 40,000-strong candidate and client network, Hayward & Associates offers clients first-rate, handpicked executive management teams to the European Technology, Media and Telecoms (TMT) industry.

Hayward & Associates focus on some of the most dynamic and emerging areas of the industry spanning technology, telecoms, digital media, mobile, infrastructure, software as a service (SaaS), cloud computing and enterprise software.

Contact:
Karen Galpin
Marketing & Business Development
Tel: +44 (0)1242 236277
kgalpin@hayward-associates.com