Executive search is a term that comes up often – but is rarely explained properly. What distinguishes it from regular recruitment? When does it make sense? And is it only for the largest organisations?
In this article we walk through what executive search actually is, who uses it, and when it is the right solution for your next hire.
Executive search, headhunting and recruitment – what is what?
The three terms are often used interchangeably, which creates confusion. Here is the short version: executive search and headhunting describe the same approach – a proactive search for candidates who are not actively looking for a new position. Recruitment is the broader term that covers both active and passive candidate searches, often with a job posting as the starting point. Executive search is typically used for senior leadership roles, while headhunting can refer to any level.
What is executive search?
Executive search is a method for recruiting leaders and specialists who are typically not actively seeking a new position. Instead of posting a job and waiting for applications, an executive search firm systematically maps the market and approaches the strongest candidates directly.
It differs fundamentally from traditional recruitment in two ways:
The candidate pool is different. A job posting reaches those who are actively looking. Executive search reaches those who are not – but who would take the right call. This is typically a much stronger group of candidates, because the best leaders are rarely on the job market.
The process is different. Executive search is not a passive process of waiting and screening. It is an active, structured search that typically includes market mapping, direct outreach, competency assessment and often personality profiling – all tailored to the specific role and organisation.
Who uses executive search?
The short answer: all types of organisations that need to recruit at leadership level.
There is a common misconception that executive search is only for large international corporations. That is not the case. We work with everything from listed companies to mid-sized family businesses and public sector organisations – and the need is the same: to find the best possible leader for a critical role, whether or not they are actively looking.
The organisations that most often choose executive search are those that:
– Need to fill a critical C-suite position (CEO, CFO, COO, CMO, CTO or VP)
– Require a discreet search without publicly advertising the vacancy
– Are looking for candidates with a very specific combination of industry experience and personal profile
– Operate in a market with few relevant candidates who are actively looking
– Have had a poor experience with advertising and not found the right profiles
When should you choose executive search over advertising?
It depends on the role, the industry and the candidate market. As a rule of thumb, executive search makes most sense when:
The role is critical. The more a wrong hire costs – in time, money and organisational momentum – the more it makes sense to invest in a thorough search.
The candidate is unlikely to be actively looking. At C-suite level, most strong candidates are already in a job they are happy in. They are not on job boards. A job posting will not reach them.
Discretion makes a public posting inappropriate. If it should not be publicly known that a position is vacant – for example because the current leader has not yet resigned, or because it could affect the market – executive search is the only realistic option.
The market is narrow. In some industries and functions there are simply not many relevant candidates. Finding them requires active outreach.
Unsure what fits your situation? Read our guide to when you should choose headhunting over advertising →
What does executive search cost?
Most agencies do not answer that question directly. We do. The fee is typically calculated as a percentage of the candidate’s annual salary – usually between 20 and 33% – and split into three instalments: at kickoff, at candidate presentation, and upon offer acceptance.
Compared to what a failed hire at leadership level costs – up to 30% of annual salary in direct costs alone, plus lost momentum and organisational impact – an agency fee is a relatively modest investment.
What happens in an executive search process?
A typical executive search process at Compass looks like this:
1. Requirements profile and briefing. We start by deeply understanding the organisation, the culture, the strategy and the specific role. A strong requirements profile is the foundation for everything that follows.
2. Market mapping. We systematically identify all relevant candidates in the market – across competitors, suppliers, customers and networks.
3. Direct outreach. We approach candidates discreetly and professionally. Many say no. Those who say yes, we screen thoroughly.
4. Candidate presentation. We present a handpicked selection of the strongest candidates with in-depth profiles, competency assessments and our recommendation.
5. Interviews and decision. We facilitate the interview process and advise throughout – including during negotiation and offer.
A typical process takes 8–12 weeks from kickoff to acceptance. Read more about how we work with executive search →
Need help with an executive search?
We have recruited 300+ leaders across Denmark and the Nordics in the last five years – across six industries and from specialist to C-suite level. Want to hear more about what we can do for you? Contact us for a no-obligation conversation →
