The Legal Sector has Big Law. Accountancy has the Big 4. Recruitment has the Big 5 – universally known as the SHREK executive search firms.
But who are these big executive search firms and how do they compare to the smaller boutique or niche executive search consultancies?
The SHREK executive search firms
Spencer Stuart, Heidrick & Struggles, Russell Reynolds, Egon Zehnder and Korn Ferry are the world’s largest executive search firms.
Each of these well-established executive search firms has a global presence with hundreds of team members and diversified service offering, covering areas such as leadership consulting, executive assessment, c-level succession planning and executive search.
Because of their size, the SHREK executive search firms tend to work for larger corporate rather than smaller businesses, due to the size of the fees they command. Smaller companies are also less likely to offer these global executive search firms repeat business.
SHREK firms operate across multiple sectors – with distinct practices covering areas including financial services, industrial, manufacturing, professional services, healthcare and technology.
With the SHREK 5 being the largest executive search firms in the world, they can be better equipped to deliver a global CEO executive search assignment, where a global reach is required.
Boutique, niche executive search firms
Sitting at the other end of the spectrum in the world of executive search firms, are the smaller boutique or niche players.
As the term suggests, they are much smaller than the global firms but offer a similar array of services, including executive search, leadership advisory, market intelligence and human capital consultancy.
Smaller executive search firms are usually owner managed with a much smaller team of executive search consultants, who lead and deliver each search assignment.
These executive search firms tend to be found in one or two locations and often specialize on a specific industry or geographic area.
Boutique executive search firms will operate on a lower volume of search assignments and have fewer clients than one of the global firms.
The advantages and disadvantages.
Deciding on whether the global SHREKs or smaller boutique executive search firms offer the best option, can be tricky. Both have their pros and cons.
SHREK executive search firms – the advantages
- global brand awareness, prestige and an established reputation
- provide a wide range of consultancy services and client solutions, over and above talent acquisition
- offer a significant database underpinned by an international network of offices, partners and supporting team
- attract high-level candidates, including experienced executives from global businesses
- work across multiple sectors and can therefore provide solutions for a broad spectrum of businesses.
SHREK executive search firms – the disadvantages
- partners can be overwhelmed with juggling multiple search assignments and work is always passed to more junior colleagues
- a generic executive search process is often applied across all industries and therefore can be less transparent
- servicing a higher volume of clients leads to inflexibility and a lack of efficiency, resulting in a lengthy and inefficient search process
- the higher number of clients results in a higher number of off-limit candidates, compromising integrity and leading to conflicts of interest – this affects quality of shortlist and can even result in the best person not being hired
- prestige usually equates to higher fees
- invoices are issued on time spent, rather than milestones achieved
- larger organizations, with big teams can be challenging for clients to navigate
Boutique executive search firms – the advantages
- a niche focus results in deeper industry experience
- a lower number of clients gives access to a broader range of candidates as fewer are off-limits
- owner managed businesses offer a higher level of communication, collaboration and client care
- the smaller team gives clients the benefit of a consultancy approach to search assignments – with search consultants taking a hands-on approach to delivery
- fewer search consultants allow for quicker decision-making and the flexibility to design a customized talent acquisition strategy
- clear and transparent search process, with invoices issued on milestones achieved, not solely on time
Boutique executive search firms – the disadvantages
- less brand awareness
- may have reduced capacity and ability to take on multiple executive search assignments at a given time, given the higher priority of being flexible and consultative in their approach
- a lack of global footprint may mean a smaller international network and reduced international knowledge
By weighing up and the pros and cons associated with the different types of executive search firms, clients can decide which approach will optimize their executive recruitment strategy and deliver the very best executive talent.
Read more about all the Elements of the Executive Search Process
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