| Research firms provide a strategic analysis of the | | | | research firm Hassall Gill, believes that when |
| marketplace, akin to corporate espionage but with | | | | considering the two, it is important to remember |
| the emphasis on human talent and their strategic | | | | the pros and cons of each "Whilst using a |
| roles. Oh and it's entirely legal - Put simply if you | | | | research company provides significant cost |
| were the VP of a private equity firm and you | | | | savings, this can be a false economy with the |
| wanted to know how a high ranking competitor | | | | client interviewing a much higher percentage of |
| had organised their team, who they had recruited, | | | | people who, whilst they look good on paper, do |
| in what roles, how they were performing then | | | | not have the soft skills necessary for the role or |
| you might speak to a research firm. Talent | | | | have the right fit culturally. Additionally, most |
| mapping at it's very best can allow an organisation | | | | researchers are not equipped to provide the high |
| to emulate a competitors success and avoid it's | | | | level strategic input of a search consultant." Hassall |
| costly pitfalls - invaluable information especially if | | | | goes on to explain that one of the most |
| it's a new venture or an unfamiliar marketplace | | | | significant advantages of using research over |
| for the client in question. | | | | search is cost, an all-important factor in recent |
| Research firms operate differently from an | | | | times: "The current economic downturn is going to |
| executive search consultant or a generalist | | | | have a significant impact on how search is |
| recruiter in that they don't manage the | | | | conducted with more and more corporate firms |
| recruitment process. There's a great deal of | | | | looking to drive down costs. Search firms will be |
| informal referencing and they might analytically | | | | chasing fewer assignments, fees will be cut and |
| take apart the top performers on the market, | | | | inevitably purse strings will tighten. I think the next |
| speak to the key players and identify who would | | | | few years will see more research firms change |
| be open to an approach but unlike Executive | | | | their business model and work more and more |
| search they won't hold your hand while you make | | | | with direct corporate clients or face going out of |
| that initial approach. Think of them as a | | | | business." It may seem like an attractive, |
| consultancy and you won't go far wrong. | | | | cost-effective option but can research firms really |
| They paint you a picture of the marketplace built | | | | compete with recruitment consultancies in working |
| up through painstaking research which takes place | | | | directly with a client? If time is of the essence |
| over a far longer time period, usually three | | | | and a candidate is needed quickly, a search firm |
| months minimum. Of course many executive | | | | will be able to draw on its established networks |
| search firms have their own in-house researchers. | | | | and resources to fulfil the requirement. |
| Essentially the business is won by the executive | | | | Tracey Alper, Director of Business Development |
| search consultant or firm who maintained the | | | | for executive recruitment firm WH Marks Sattin, |
| relationship - often juggling many similar | | | | states: "If a client's CFO is leaving and they need |
| relationships with clients on the same sector. The | | | | a replacement quickly, perhaps someone who can |
| search itself then farmed out to the resource | | | | start within three months or less, you haven't got |
| function. The research function would then carry | | | | time to start headhunting people from scratch. |
| out the actual search, taking the role to market | | | | You have to work to your client's time scale and |
| and identifying suitable candidates for the client. | | | | by the time you've found someone, approached |
| Some researchers may have the necessary skills | | | | and met them, then arranged meetings with the |
| to work directly with a corporate client, but can | | | | client, you're out of time. |
| they compete with the all-round service and | | | | But if you're dealing with somebody in the team |
| extensive networks that an established executive | | | | here, who has worked at the right level in the |
| recruitment firm offers? The research function | | | | sector for some time, they know exactly the |
| has long existed to support executive search | | | | right people to approach straight away." Another |
| firms with their workload. Traditionally, it was the | | | | problem that can arise when working directly with |
| job of the researcher to identify potential | | | | research firms is that the client is aware of what |
| candidates who are not only looking for a new | | | | a recruitment firm does, but may not be entirely |
| position, but also who match a client's profile. | | | | familiar with the research process. "This means |
| The research industry has grown steadily, and | | | | researchers are having to try and educate HR |
| firms that operate independently from | | | | and line management on the nuances of managing |
| recruitment consultancies have seen significant | | | | search candidates," says Hassall. "As a result, you |
| growth, especially during times of economic crisis. | | | | see a much higher number of candidates dropping |
| Natalie Jacobs, Commercial Director at research | | | | out or being 'bought back' by their current |
| firm Seren PSG explains: "Research thrives in a | | | | employers. How can you understand and influence |
| poor economic climate, as HR strive to get VFM | | | | a candidate if you have never even met them?" |
| while achieving operational targets. During the last | | | | Kirk explains: "The most important part of the |
| recession, research companies increased their | | | | process is understanding the client's real |
| market share. As businesses fight to survive, it's | | | | requirements, above and beyond the role |
| more important than ever to recruit and retain | | | | specification. You can only find the right candidates |
| more of the right talent, so the intelligence that | | | | if you are fully briefed about the skills, experience |
| research companies can gather is invaluable." | | | | and qualities that the employer is looking for." |
| According to Katherine Moody, MD of The | | | | Ross Crook, Head of Executive Resourcing, UK |
| Research Bank, the recession has led to a change | | | | Retail Bank, Barclays believes that research firms |
| in the way clients work: "In general, clients who | | | | can provide invaluable support to an in-house |
| have needed our help have asked us to work to | | | | team: "When considering working with a research |
| much tighter deadlines and have needed | | | | firm we wondered whether it would require more |
| information much faster than previously. In recent | | | | time and involvement from myself and my |
| weeks, because of our networks, a number of | | | | resourcing to team to develop and manage |
| clients have asked us to track down candidates | | | | candidates. In practice the level of service has felt |
| who have experienced, or are likely to | | | | no different. The main difference has been the |
| experience, redundancy. We certainly believe that | | | | flexible transparent approach, added value market |
| in these historic and tough economic times all | | | | intelligence, time to hire reduction and significantly |
| clients will look at cutting expenses and hence | | | | reduced cost." |
| demand a lot more from suppliers. Good research | | | | So should recruitment firms feel challenged by the |
| firms should therefore be able to capitalise on this | | | | rise of research firms working directly with |
| new environment." | | | | clients? It seems their reign may be threatened |
| The research function is essential to the | | | | by firms like Seren PSG, who demonstrate that |
| recruitment process, but does it prove more | | | | they are "equally good at executive search and |
| effective to work directly with a research firm | | | | strategic talent planning, which is exactly what |
| rather than a recruitment consultancy? | | | | companies need to do to ride the tide of |
| Jason Hassall, Managing Director of executive | | | | recession. |