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By Christopher ED Graham FCIPD, ACTP
By Christopher ED Graham FCIPD, ACTP

There is a persistent idea in recruitment that the best candidates are not looking for a job.

Passive candidates are often portrayed as more desirable because they are already employed, more successful because another organisation values them, more loyal because they are not actively searching and somehow lower risk because they are already doing a similar job somewhere else.

Active candidates can find themselves viewed rather differently, particularly if they are currently unemployed. Questions quickly arise. Why are they available? Why haven't they found something already? Why do they want to leave? Is there something we don't know?

After more than 25 years working across recruitment, executive search, RPO and corporate Talent Acquisition, I have never found employment status to be a particularly useful indicator of candidate quality. There are excellent people actively looking for work and excellent people who have no intention of moving until the right opportunity appears. There are also poor candidates in both groups. Someone's willingness to look for a job tells me remarkably little about how good they are at doing one.

When did availability become a measure of quality?

People become available for millions of reasons. They may have been made redundant following a restructuring or acquisition, seen their division close, completed a transformation or reached the natural end of an assignment. They might have relocated with their family, taken time away from work, decided to change industry or simply concluded that their current career is no longer taking them where they want to go.

Equally, someone can be employed, successful on paper and thoroughly miserable. They may dislike their boss, feel underpaid, have been passed over for promotion, dislike where they live, feel their career has stalled or simply want a change. Employment tells us that somebody has a job. It doesn't automatically tell us why they are there, how well they are performing or whether they want to stay.

Years ago, while recruiting in Geneva, I interviewed someone who loved his job, liked his colleagues and was genuinely happy with his employer. On paper, perhaps he was the perfect passive candidate. His personal circumstances, however, had changed. He had recently had a child and his wife had told him that he needed to find a better-paid position if they were going to maintain the lifestyle she expected. He was clearly upset discussing it with me.

Trying to decide whether he was active or passive would have told me virtually nothing. His motivation was personal, complicated and entirely human, and understanding it required a conversation rather than a classification.

That is true of almost anybody considering a career move. At senior levels particularly, changing jobs can affect considerably more than someone's next title or salary. It can mean moving a family to another country, changing children's schools, leaving deferred compensation behind, taking a significant career risk, changing industry or disrupting a spouse's career. Others may simply be bored, frustrated, underpaid or fed up with their boss. There doesn't have to be a grand strategic reason behind every career decision.

The useful question for a recruiter isn't whether somebody is active or passive. It is why they would move, what they are trying to achieve and whether this particular opportunity makes sense for them professionally and personally.

Why should wanting the job make someone less desirable?

One of the stranger consequences of the passive-candidate narrative is the subtle stigma it can create around people who are actively looking. There is an implication in some recruitment commentary that passive candidates make carefully considered career decisions, whereas active candidates may be desperate to escape a bad situation or simply need a job.

I don't recognise such a neat distinction from the real world. An active candidate may have thought very seriously about what they want next. They may have researched the market, considered their career trajectory and made a deliberate decision that they are ready for something different. That person can be considerably more motivated to complete a recruitment process than someone who was perfectly comfortable until a recruiter contacted them.

The supposedly passive candidate may initially be intrigued by an approach, enjoy meeting the leadership team and progress through several interviews, only to receive an offer and conclude that the grass isn't greener after all. Their employer might make a counteroffer, their family may decide against relocating, or the perceived risks of leaving may eventually outweigh the attraction of the new opportunity.

Neither scenario makes one candidate inherently better than the other. It simply demonstrates why understanding individual motivation matters considerably more than attaching a label to somebody at the beginning of a recruitment process.

This is also why I am sceptical when I see statistics presented as evidence that passive candidates are automatically more loyal, more productive or better long-term hires. Recruitment, like HR more broadly, loves a statistic. Add a percentage to a statement and it immediately appears more authoritative, but I have seen enough corporate surveys and internal presentations over the years to know how differently the same dataset can be presented depending on the conclusion somebody wants an audience to reach.

That doesn't make statistics worthless. It means they need context. What was the sample? How was "passive" defined? What was being compared? Were seniority, compensation, referrals, industry, geography and economic conditions considered? Does the evidence demonstrate that being passive caused the outcome, or merely that two things happened to correlate? Statistics can support an argument, but they shouldn't replace one.

Searching isn't recruiting

I suspect part of the modern attraction of passive candidates is that technology makes finding them feel highly targeted and efficient. A recruiter can search by company, title, location, sector, experience and keywords and quickly produce a neat population of people who appear to match a requirement.

There is nothing wrong with that. Good sourcing is an important part of recruitment, particularly in executive search. But sourcing and recruiting are not the same thing.

Whether I start with 100 people who have applied for a role or 100 people identified through a search, I still have essentially the same job to do. I need to understand their backgrounds, determine who is worth speaking with, engage them and establish what they have actually accomplished rather than simply where they have worked. I need to understand their motivation and aspirations and ultimately exercise judgement about whether they can succeed in the role, with the leadership team and within the organisation.

The fact that one person clicked "Apply" while another received my phone call doesn't change that responsibility.

Earlier in my career at Michael Page in London, we looked at jobs we had failed to fill that were subsequently filled by competitors. In around 90% of those cases, the successful candidate was already sitting in our own database. We hadn't lost because a competitor had somehow uncovered a hidden population of extraordinary passive candidates inaccessible to us. We already had access to the person who ultimately got the job.

The problem was that we hadn't identified and engaged them. Sometimes their information wasn't current, sometimes they hadn't appeared in a particular search and sometimes, among hundreds of names, somebody had simply been missed. In those days, the immediate explanation wasn't that there was a talent shortage or that we needed access to more passive candidates. The recruiter was expected to search properly, maintain their market knowledge, keep the database current and speak to people.

That lesson remains relevant despite the enormous amount of technology now available to recruiters. If the right person is already among the 500 people available to you, adding another 5,000 names achieves very little if nobody recognises them. What appears to be a talent shortage can sometimes be an attention problem, a process problem or simply a recruitment problem.

Are we creating some of the scarcity ourselves?

This is where the passive-candidate debate starts to overlap with the constant discussion about skills shortages. There absolutely can be shortages of particular technical capabilities in particular markets at particular moments, and some executive search mandates genuinely involve a very small addressable population. What I question is the much broader assumption that organisations simply cannot find talent.

Sometimes what an organisation really means is that it cannot find somebody with precisely the experience it wants, from precisely the industry it wants, in precisely the location it wants, at the compensation it wants and available within the timeframe it wants. Define the specification narrowly enough and eventually you create your own scarcity.

The response is often to search harder for passive candidates, particularly people already performing essentially the same job for a competitor. Yet that can overlook people with strong transferable skills who possess perhaps 70 or 80% of the required experience and could learn the rest. Adaptability, intelligence, motivation and the ability to learn are regularly described as important organisational capabilities, but recruitment processes don't always reflect that.

Companies frequently talk about agility, curiosity, development and career progression while simultaneously constructing job specifications that effectively say, "We want somebody who has already done exactly this job somewhere else." If every organisation insists on hiring somebody who already possesses every skill required for the next job, it raises an obvious question: who is developing the people everyone wants to hire in the future?

It is particularly relevant when businesses are recruiting into new technologies, products or emerging markets. Sometimes the ideal candidate with ten years of directly relevant experience simply cannot exist because the technology or business model hasn't existed for ten years. The sensible response is not necessarily to search harder for an imaginary perfect candidate, but to identify which capabilities genuinely need to exist on day one and which can realistically be learned.

Someone possessing 70% of what you need, with strong transferable skills, evidence of adaptability and genuine motivation to grow into the role, may prove an outstanding hire. Equally, they may not, but neither is the candidate with 100% of the keywords guaranteed to succeed. That uncertainty is precisely why recruitment requires interviews, assessment and ultimately human judgement.

Perhaps the labels are the problem

The preference for passive candidates doesn't come from one place. Unconscious bias can play a part, as can preconceived ideas about unemployment, perceptions of risk, familiarity with particular companies or backgrounds, a lack of understanding of transferable skills and pressure to fill a role quickly. Hiring managers may understandably feel safer selecting somebody who appears to have done exactly the same job before, while recruiters managing significant workloads may find tightly defined searches quicker and easier to execute.

But efficiency in searching should not be confused with quality in recruitment. The fundamental purpose of executive search and recruitment is remarkably straightforward: find the best person for the job. That person may currently be working for your biggest competitor and have no intention of leaving until somebody approaches them with a compelling opportunity. They may have applied to your advertisement yesterday, been made redundant six months ago, be sitting unnoticed in your ATS or come from an adjacent industry with transferable skills and enormous potential. Their career may not resemble the template imagined when the job description was written at all.

What matters is whether they can do the job, why they are considering it, whether the timing is right, whether the opportunity makes sense for their career and family, and whether they genuinely want to be there. Answering those questions requires a recruiter to find people, engage with them, understand them and exercise judgement. That, ultimately, is the job.

The distinction between active and passive candidates may be convenient terminology, but I don't believe it tells us anything meaningful about the quality of the person sitting in front of us.

Availability is not ability, employment status is not quality, and finding a name is not the same as recruiting a person.

Perhaps we need a little less categorisation, fewer preconceived ideas and a little more common sense.

 

 
 
 
By Christopher ED Graham FCIPD, ACTP
By Christopher ED Graham FCIPD, ACTP

If Everyone Has LinkedIn, Why Do Companies Still Pay Search Fees?

LinkedIn has made executives easier to find, and AI is making them easier still. Almost anyone can now identify the CFO of a competitor, map the leadership team of a bank in Singapore, find technology executives in New York or build a list of potential CEOs in London. Information that once required considerable research is increasingly available to anyone with the right tools and enough time.

So why are companies still prepared to pay substantial fees to executive search firms?

The answer is that finding the name was never really what they were paying for.

Executive search, contingency recruitment, RPO and internal Talent Acquisition are often discussed as though they are different versions of essentially the same service. Having worked across all of these models during my career, I see them rather differently. They operate under different economics, incentives and capacity constraints, and those differences have a significant impact on how a search is conducted.

This isn't about one type of recruiter being inherently better than another. There are excellent and poor recruiters in every model. The more interesting question is what each operating model realistically allows a good recruiter to do.

The economics determine the behaviour

Consider giving the same senior vacancy to an internal recruiter, a contingency recruiter and a retained executive search consultant. All three may have access to LinkedIn and many of the same sourcing tools, and all three may be capable of identifying broadly the same population of potential candidates. What differs is the economic environment surrounding the assignment.

An internal recruiter may be responsible for 10, 20 or sometimes considerably more live requisitions. Alongside those roles are hiring managers expecting progress, internal processes to navigate and KPIs that may include time to fill, cost per hire, agency expenditure and overall hiring volumes. Spending several weeks exhaustively mapping one executive market might be excellent search methodology, but it becomes difficult to justify when numerous other vacancies are waiting.

A contingency recruiter faces a different commercial reality. They normally carry the financial risk of the assignment and may be competing against other agencies as well as the client's internal recruitment team. They could spend 100 hours conducting an exhaustive search and ultimately receive nothing if another recruiter makes the placement.

It therefore makes perfect commercial sense for a contingency business to consider the probability of a successful placement when deciding how much resource to invest. That isn't a criticism of contingency recruitment; it is rational behaviour created by the commercial model. Contingency can work extremely effectively for the types of hiring for which those economics make sense.

Retained search changes the calculation because both sides make a commitment. The client commits financially to the assignment and the search firm commits time and dedicated resources in return. That allows the consultant to carry fewer simultaneous searches and investigate a market in considerably greater depth.

The important distinction is therefore not simply that retained search costs more. It is what those economics make possible.

What the additional time actually buys

The additional capacity should first be visible in the depth of the search. Market mapping matters, particularly for niche or international appointments, but identification itself is becoming increasingly commoditised. The more valuable work begins once potential candidates have been identified.

At executive level, a proper assessment should go considerably beyond understanding someone's career history. The consultant needs to understand why the executive might move, what their ideal next role actually looks like, what motivates them, what environment allows them to perform at their best and what might cause the appointment to fail.

That requires detailed conversations about what they have actually delivered. It means understanding businesses they have built or reduced, transformations they have led, revenue they have generated, costs they have removed, teams they have restructured and difficult decisions they have made. The context matters as much as the achievement: the size of the business, P&L responsibility, budgets, geography, regulatory complexity, stakeholders and the conditions under which those results were produced.

Leadership style and organisational fit require the same depth. A highly successful executive in one environment isn't automatically successful in another. How do they lead? What kind of CEO do they work well with? How much autonomy do they expect? How do they operate through ambiguity or disagreement? What happened in the roles that didn't work as well as the ones that did?

There are also practical questions that can determine whether an apparently excellent appointment is achievable at all. Compensation needs to be understood properly, including bonus, equity, deferred awards and benefits rather than simply base salary. Notice periods, competing opportunities, counter-offer risk, relocation and longer-term career aspirations can all become decisive later.

A retained consultant carrying a small number of assignments can spend considerably more time developing this understanding, often through multiple conversations before a candidate ever meets the client. An equally capable internal or RPO recruiter carrying 20 vacancies simply doesn't have unlimited hours available to do the same thing with every candidate.

This is also why a proper executive candidate report should not simply be a rewritten CV. By the time somebody is presented, the consultant should be able to explain what that person has accomplished, why it is relevant, what motivates them, where the potential risks sit and why they believe the individual should be considered.

A CV tells you where someone has worked. Executive search should help tell you whether you should hire them.

Search should also provide advice

The economics of retained search should create another difference: the ability and obligation to advise the client.

I think of this as closer to the relationship a business expects when engaging a professional services firm. If a company brings in McKinsey, BCG or another adviser to examine a strategic problem, it doesn't expect them simply to confirm everything management already believes. Part of the value is an informed external perspective.

Executive search should operate on a similar principle.

A search may reveal that the compensation is below market, the reporting line is making the role unattractive, the specification combines capabilities that rarely exist in one person, or the strongest talent isn't located where the company assumed it would be. Candidates may repeatedly raise concerns about the organisation's reputation, strategy or leadership that the company itself hasn't recognised.

Equally, the search may demonstrate that the executives originally identified by the CEO aren't actually the strongest options available. In some cases, a thorough examination of the external market may even provide evidence that an internal candidate is the better choice.

A retained consultant should be willing to say these things. If the market is consistently contradicting the client's assumptions, the consultant's job isn't to suppress that information and continue searching indefinitely. Market intelligence is part of the assignment.

This is also why I don't think executive search can be reduced to sourcing. The search itself generates information about compensation, competitors, organisational structures, candidate perceptions and the availability of particular capabilities. That information should help the client make a better decision, even when it challenges the original brief.

Why organisations rarely replicate the model internally

It is sometimes argued that organisations should simply build this capability within Talent Acquisition. In theory, they can, and there are internal teams carrying titles such as Executive Recruitment or Executive Talent Acquisition. In practice, relatively few operate in exactly the same way as an external retained search business.

The problem is again economics rather than capability.

To replicate the external model properly, an organisation would need to accept very low requisition loads, dedicated research capability, extensive market mapping, detailed assessment, written candidate reports, long-term executive relationship management and significant amounts of activity that may not immediately produce a hire.

That creates expensive permanent capacity.

Eventually someone inside the organisation asks why an executive recruiter is carrying four searches when another recruiter is carrying twenty. Requisition loads increase, research resources become harder to justify, additional vacancies are absorbed and productivity measures begin to influence the function. Over time, what was designed as an internal search capability can become senior-level internal recruitment.

This is closely related to the economics of talent pipelining. Businesses often like the idea of maintaining recruitment capability that isn't continuously producing hires, but the business case becomes harder when that capability has to be funded year after year.

An external search firm spreads its infrastructure, research capability and consultants across multiple clients. An individual organisation only purchases that capacity when it has an assignment important enough to justify it.

For that reason, comparing a search fee with the salary of an internal recruiter isn't particularly meaningful. The more relevant comparison is the cost of the external search against the cost of maintaining an equivalent capability internally, including the periods when demand for executive hiring is low.

The other side of the search

There is another aspect of executive search that receives far less attention in the predictable lists of reasons companies should use retained search: the candidate is assessing the consultant as well.

Senior executives often have considerably more at risk than simply whether they like the job description. Before engaging seriously, they need to decide whether the person approaching them is credible. Does the consultant understand their industry and career? Do they genuinely know the client? Can they explain why the opportunity exists? Do they understand the market? Can they be trusted with confidential information? And, if the process progresses, is this somebody the executive would trust to represent them accurately and navigate a difficult compensation negotiation?

Put more simply, the candidate wants to know whether the consultant is introducing them to a genuinely worthwhile opportunity or simply trying to fill a difficult role for an unappealing company.

This becomes particularly important when the candidate isn't actively looking, and even more so when the appointment involves a major career or geographical change. Senior executives don't engage with every recruiter in the same way, and expectations can differ significantly across sectors, geographies and cultures. The credibility of the individual making the approach can therefore have a material impact on whether the conversation happens at all.

Once it does, trust becomes increasingly important because the decision may extend far beyond the role itself.

An executive may be considering leaving a company where they have spent 10 or 15 years, sacrificing deferred compensation or equity, entering a new industry or relocating internationally. A partner may need to leave their own career, children may change schools and the family's financial circumstances and lifestyle may change significantly.

At that point the consultant isn't simply asking someone to accept a job. The candidate may be trusting that consultant with a decision affecting their career, reputation, finances and family life.

When they eventually ask, "What do you really think?", the answer matters.

Sometimes the responsible answer is that the opportunity isn't right for them.

The consultant sits between two sets of risk

The client is taking an equally consequential decision from the other direction. It needs to know whether the consultant genuinely believes the executive can perform the role, fit the organisation and work effectively with the existing leadership team.

That creates an unusual two-sided relationship.

The client pays the search firm, but the client isn't the search firm's only relationship. At the beginning of the process, the consultant is effectively an extension of the business. Before the candidate has met anyone from the organisation, the consultant is representing it in the market. The quality of the approach, understanding of the company and ability to answer difficult questions all contribute to the candidate's first impression.

As the process develops, the consultant also becomes an extension of the candidate in the other direction. The candidate hasn't paid the search firm, but they are trusting the consultant to represent their experience, motivation, concerns and value accurately to the client.

This becomes particularly important during the conversations that neither party necessarily wants to have directly.

A candidate may like the company but have concerns about the CEO's leadership style. A client may think someone is exceptional but worry about how they will work with two existing members of the leadership team. A candidate may be prepared to compromise on one part of the compensation package but not another. The company may have flexibility that hasn't yet been communicated. One side may need more time while the other is simultaneously involved in another process.

The consultant's role isn't to repeat every conversation verbatim. It is to understand what needs to be communicated, what should remain confidential, how concerns should be contextualised and what needs to happen next to establish whether the appointment genuinely makes sense.

This is the bridge between the two parties, and trust is what allows it to function.

It also explains why candidate relationships matter economically even though candidates don't pay search fees. Executive markets are remarkably circular. Today's candidate may be tomorrow's CEO, board member or hiring manager. They may already be a client elsewhere. Someone who doesn't get the job may ultimately become a more valuable long-term relationship than the person who does.

A consultant who pushes an executive into the wrong role may complete today's search while damaging a relationship that could have lasted decades. Equally, overselling an unsuitable candidate may secure one fee and destroy the client's confidence in the consultant.

Long-term reputation therefore creates its own economic incentive to tell either side when the answer should be no.

A retainer does not guarantee executive search

None of this means retained search is automatically superior, and the search industry should be honest about that.

Paying a retainer doesn't transform a mediocre recruiter into an excellent search consultant. A retained firm can still conduct weak research, carry out superficial interviews, fail to challenge the client and produce impressive-looking candidate reports containing very little meaningful assessment.

If a firm takes a substantial retainer, searches LinkedIn, sends InMails, conducts a cursory interview and forwards CVs, the client is entitled to ask what exactly the retainer is paying for.

The commercial model doesn't guarantee quality. What it does is create the economic conditions in which proper executive search can take place. Whether the consultant actually uses that time and capacity to provide research, assessment, judgment, market intelligence and advice is what determines the value.

This distinction is becoming more important because technology is progressively commoditising the parts of search that were once difficult.

LinkedIn transformed identification. AI will accelerate that process dramatically. Market mapping will become faster, research will become cheaper and information that once required days of work may increasingly be assembled in minutes.

Any executive search firm whose primary value proposition is "we know people you can't find" should therefore be concerned.

Clients increasingly can find them.

But identifying someone is not the same as understanding them, engaging them or hiring them.

Technology can identify a CFO. It doesn't automatically tell you whether that CFO actually created value or happened to be sitting in the organisation while value was created. It doesn't tell you whether their leadership style will work with your CEO, whether they genuinely want the role, whether moving country is sensible for their family or whether the company is capable of providing the opportunity they think they are accepting.

Those questions require context, judgment and, above all, trust.

That is where I believe the economics of executive search continue to make sense. The retainer shouldn't be paying for access to a database or a list of names. It should be buying the capacity to investigate an important leadership decision properly: to map the market, engage credible executives, understand and assess them in depth, challenge the client's assumptions, provide market intelligence, navigate the interests of both parties and advise when the right answer is no.

As technology makes finding people progressively easier, search firms will increasingly have to demonstrate that this is what their clients are actually paying for.

LinkedIn can tell you who someone is. Executive search should help you decide whether you should trust them with your business and help them decide whether they should trust you with their career.

 

 

 
 
 
By Christopher ED Graham FCIPD, ACTP
By Christopher ED Graham FCIPD, ACTP

When hiring goes wrong, Talent Acquisition is often where the problem becomes visible. That doesn't necessarily mean it is where the problem started.

I have spent nearly three decades working across recruitment and Talent Acquisition, including executive search, agency recruitment, RPO and senior internal TA leadership roles across different countries, industries and organisations. I have seen recruitment functions that were excellent, some that were poor, and plenty somewhere in between.

I have also seen recruitment blamed for an extraordinary number of problems it didn't create.

When a senior role has been open for six months, the natural conclusion is that there is a recruitment problem. If the preferred candidate declines, candidates repeatedly withdraw or the shortlist isn't producing the expected hire, attention inevitably turns towards Talent Acquisition.

Sometimes that is entirely justified. Recruiters should be accountable for understanding their markets, identifying relevant candidates, communicating properly, challenging unrealistic briefs and providing useful market intelligence. If a recruiter or search firm takes weeks to produce a credible shortlist without good reason, then recruitment performance should absolutely be questioned.

But after nearly three decades working around hiring, I think there is a more useful question to ask before reaching that conclusion:

Where did the problem actually start?

The problems we see in recruitment today certainly didn't begin with AI, Covid or even the latest generation of recruitment technology. Anyone who has worked in the industry for long enough will recognise many of them from decades ago. Slow decision-making, changing specifications, unrealistic salary expectations, managers sitting on CVs and candidates disappearing while businesses debate what they actually want are hardly new phenomena.

A useful pre-Covid example comes from Hong Kong. In 2018, research reported by the CIPD found that 72% of jobseekers surveyed had accepted an alternative job because their preferred employer took too long to make a decision. More than half had waited over a month after interviewing to receive an answer.

What makes that data interesting today isn't that it identified a new problem. It is that, eight years later, many of the complaints sound remarkably familiar.

Read almost any current discussion about recruitment and candidates still describe excessive interview stages, weeks without feedback and applications disappearing into systems. Recruiters still describe managers sitting on CVs, interview feedback taking days or weeks, offers becoming stuck in approval processes and roles changing after recruitment has already begun. At the same time, recruiters can now find themselves dealing with hundreds or even thousands of applications while managing numerous vacancies simultaneously.

During those eight years, organisations have invested heavily in Applicant Tracking Systems, automation, scheduling technology, recruitment analytics and now AI. Yet many of the underlying problems remain.

That should tell us something.

Technology has changed enormously. Recruitment processes have become more digitised. We have more data, more automation and more tools than we did twenty or thirty years ago. But technology cannot fix a hiring manager who won't make a decision, an unrealistic salary, a confused brief, internal politics, poor workforce planning or a business that simply doesn't know what it wants.

Perhaps some of the biggest problems we continue to describe as recruitment problems were never really recruitment problems in the first place.

Faster does not necessarily mean better

There is an understandable obsession with speed in recruitment. Time-to-fill and time-to-hire remain common measures of TA performance, and nobody benefits from a process that takes longer than necessary. But speed by itself tells us surprisingly little about whether a recruitment process is actually good.

An organisation can reject an excellent candidate within 24 hours. It can rush a Director through two superficial interviews and make the wrong appointment within ten days. Equally, if you are appointing a Regional CFO, CTO, Managing Director or Partner, I would be considerably more interested in whether the organisation has properly understood and assessed the individual than whether it managed to complete the process within an arbitrary number of days.

An executive search taking several months isn't necessarily inefficient if the market has been mapped properly, credible candidates have been identified and assessed thoroughly, and the organisation ultimately appoints someone capable of solving the problem for which they were hired.

The useful question is therefore not simply how quickly the organisation recruits. It is where the bottlenecks occur, why they exist and whether the time being spent actually improves the hiring decision.

Every organisation will be different. If a recruiter takes three weeks to produce a shortlist for a relatively straightforward position, investigate recruitment. If the shortlist was delivered within a week but then sat with the hiring manager for another ten days, the diagnosis is different. If candidates subsequently wait for feedback, another executive cannot make themselves available for a fortnight and compensation then requires another round of approvals, attributing the entire elapsed time to Talent Acquisition tells us very little about TA performance.

The same principle applies to a senior search. A Regional CFO appointment might take three months, but how much of that time was actually spent identifying and assessing candidates? How much was spent coordinating the Group CFO, CEO, HR leadership and regional stakeholders, waiting for feedback or deciding whether yet another stakeholder needed to meet the preferred candidate?

Instead of simply asking why recruitment took 50 days or why an executive search took four months the better question is where was the time actually spent, and did it add anything to the quality of the decision?

Technology can help identify those bottlenecks. It cannot necessarily solve them.

Recruitment is still about people

This is also where I think some of the current discussion around AI and recruitment is heading in the wrong direction.

Recruitment fundamentally involves people recruiting other people. Someone has to talk to a candidate and understand what they have actually done, what they personally delivered rather than simply participated in, why they made particular career decisions, what motivates them, where their strengths and weaknesses lie, what kind of environment suits them and whether the opportunity being discussed genuinely makes sense.

A CV cannot tell you all of that. Neither can a LinkedIn profile.

At senior level, that distinction becomes even more important. A CV can tell me that someone has been a CFO. It can tell me they have worked internationally, led a finance function or completed a transformation programme. AI can summarise that information extremely efficiently.

What it cannot establish from those words alone is what the individual actually did.

Did the Regional CFO inherit a well-performing finance organisation or rebuild a dysfunctional one? What was the scale and complexity? How much of the transformation did they personally lead? How did they operate with the CEO and board? How did they handle disagreement? What went wrong? What did they learn from it? Would the people who worked for them want to work for them again?

The same applies to a CTO, Partner or regional functional leader. That requires conversation, context, questioning and judgement.

One of the skills experienced recruiters develop is the ability to join the dots. Someone may never have held the exact title being searched for but may already have been doing essentially the same work. A Partner from an adjacent consulting practice may have exactly the client relationships and commercial experience required. A CFO from another industry may have led precisely the kind of transformation the organisation needs. A technology leader may have built something highly relevant without using the fashionable terminology that happens to appear in the job description.

AI should not be given responsibility for candidate screening or selection decisions. Those decisions require human judgement and human accountability.

There is nothing wrong with using technology to support search. Recruiters have used keywords, Boolean searches, database filters, locations and job titles for decades. If 1,000 people apply for a position, using sensible criteria to make that population manageable is inevitable. AI can also help recruiters search information, organise it and surface potentially relevant profiles.

But searching is not selecting.

There is a fundamental difference between technology saying, “Here are people you may want to look at,” and technology deciding, “These people should not be considered.”

The latter risks recreating one of the oldest problems associated with Applicant Tracking Systems using considerably more sophisticated technology: potentially good people being overlooked because their experience wasn't expressed using the words the system expected to find.

The current job market makes that distinction increasingly important. AI has made it easier for candidates to tailor CVs and applications and apply for substantially more positions. At the same time, a difficult employment market means there are many genuinely capable people looking for work. Employers can therefore receive enormous numbers of increasingly polished applications, and high application volume does not automatically mean hundreds of unsuitable people and five good ones.

Some organisations are trying to deal with that volume using TA teams that have themselves been substantially reduced.

That creates an obvious temptation: use more AI to compensate for having fewer recruiters.

But if AI helps candidates create applications, another AI system screens those applications, algorithms rank the candidates and automation moves them through the workflow, the process may become extremely efficient while becoming progressively less human.

At some point it is worth asking who is actually recruiting.

Automate the administration, not the recruitment

I am certainly not arguing against recruitment technology. Quite the opposite. There is a substantial amount of work surrounding recruitment that should be automated.

Interview scheduling, reminders, routine candidate communications, reporting, data entry and repetitive workflow are administrative activities. There is little value in paying experienced recruiters to spend hours moving information between systems or coordinating calendars if technology can do it reliably.

The purpose of removing that work should be to give recruiters more time to recruit.

If AI and automation save ten hours of administration each week, those hours can be spent speaking to candidates, understanding markets, assessing experience, advising hiring managers and building relationships. That is a genuine productivity improvement.

The problem comes when the productivity gain is immediately converted into lower TA headcount. The remaining recruiters manage more requisitions and more applications, eventually lack the capacity to assess them properly, and the organisation then introduces still more automation to compensate.

We repeatedly hear that AI should remove repetitive work so employees can concentrate on higher-value human activity. Recruitment provides a very simple opportunity to demonstrate that principle in practice.

Automate the administration and let recruiters recruit.

An Applicant Tracking System also shouldn't be confused with a CRM. An ATS is principally designed to manage requisitions, applications, workflow and compliance. A CRM is designed to maintain relationships with people who may not be applicants today but could become relevant months or years later.

If an organisation says it wants recruiters to develop genuine talent networks while equipping them primarily with technology designed to process current applications, there is an obvious mismatch between the stated objective and the operating model.

The objective should be less administration and more recruitment, not less recruitment.

Know what you want before asking someone to find it

Even an excellent recruiter with appropriate technology and sufficient capacity cannot compensate indefinitely for a business that doesn't know what it wants.

This becomes particularly expensive at senior level.

Consider a search for a Regional CFO. The business agrees the brief, compensation and experience required, and the search begins. The market is mapped, credible candidates are approached and several are interviewed. Three weeks into the process, another senior stakeholder becomes involved and decides the successful candidate must also have led a major ERP transformation. Someone else decides significant M&A experience is essential. Another questions whether the person really needs to come from the same industry.

Suddenly, candidates who met the original specification no longer meet a specification that didn't exist when the search started.

The recruiter can go back to the market and start again, but that isn't evidence that recruitment failed. The business has changed the problem it is asking recruitment to solve.

Sometimes that is justified. Good recruitment is partly a process of learning from the market. A recruiter or search consultant may discover that the capability the business expected to find is exceptionally scarce, that compensation assumptions are wrong or that the original combination of requirements simply does not exist in sufficient numbers. That intelligence should be fed back and the strategy adjusted.

But changing a plan because new evidence challenges an assumption is very different from constantly moving the goalposts because the stakeholders were never aligned in the first place.

This is why the work before the search begins matters. What problem is the new CFO, CTO, Partner or regional leader actually being hired to solve? What experience is genuinely essential and what is merely desirable? What does success look like after twelve or twenty-four months? What is the organisation realistically prepared to pay, and who actually needs to assess the person before a decision can be made?

The job description should reflect that reality rather than becoming an accumulation of every characteristic every stakeholder would ideally like to have. Compensation should be benchmarked against the external market and, wherever practical, salary and benefits should be transparent enough that everyone understands the parameters before significant time is invested.

The assessment process should also be agreed before the search begins. At Director, Partner and C-suite level, several stakeholders may legitimately need to meet the candidate. There is nothing inherently wrong with that. The issue is whether those conversations have a clear purpose and whether everyone involved understands what they are assessing.

Five purposeful executive conversations conducted efficiently may produce an excellent candidate experience.

Five interviews followed by an unexpected sixth because nobody can agree what they want is something else entirely.

The external market gets a vote

Compensation provides a simple illustration of why recruitment cannot be viewed in isolation.

An organisation can determine what it would like to pay a Regional CFO, CTO or Partner. It cannot determine what credible candidates in the external market will accept.

If people with the scale, experience and track record required are earning materially more than the approved package, the recruiter can explain the market and discuss alternatives. The business can reconsider the specification, level, compensation or geography, look more seriously at internal succession, or accept that the search will be extremely difficult.

What the recruiter cannot do is make the external market agree with an internally approved salary simply because that is what the budget says.

Employer reputation works in much the same way.

In one global organisation where I led regional Talent Acquisition, senior leadership had ambitions to reposition what had historically been perceived as a telecommunications company as a leading technology employer. Internally, the aspiration was to compete for talent with some of the world's most recognised technology companies.

I understood the strategic ambition. The difficulty was the external reality.

You don't become a competitor to Google or Microsoft for talent simply because leadership decides that they are now your competitive set.

The organisation had its own view of its technology, future direction and employer proposition. Candidates looking at the company from outside had their own view, and the two were not necessarily the same. Nor could the organisation automatically compete with leading technology businesses on compensation, employer brand, perceived innovation and career opportunity while simultaneously expecting to attract the same calibre of talent quickly.

This is something leaders who have spent much of their careers inside one organisation can occasionally underestimate. They understandably know the business from the inside. They see its technology, strategy, investment and ambitions. The external candidate sees the brand through an entirely different lens.

Candidates have a vote too.

This is where experienced TA professionals earn their place in the strategic conversation. They should understand how the external talent market perceives the organisation, what competitors are paying, where particular capabilities sit and whether the hiring expectations are realistic.

That expertise is not interchangeable either. Different markets have their own organisations, terminology, compensation structures, networks and candidate behaviours. Someone who understands investment banking is not automatically the right recruiter for a highly technical engineering population, just as someone whose experience is primarily graduate recruitment is not automatically equipped to conduct a CFO or Partner search.

At senior level, market knowledge means considerably more than knowing where people work. It includes understanding organisational structures, reporting lines, career paths, compensation, competitors and often the history behind why particular people have moved—or haven't moved.

Good recruiters accumulate that knowledge and judgement over years. Technology can make them considerably more effective, but it cannot instantly manufacture that experience.

Horses for courses.

Diagnose the problem properly

Recruitment sits surprisingly far downstream from many of the decisions that ultimately determine whether a hire succeeds. Workforce planning, budgets, organisational design, succession, compensation, employer reputation, management behaviour, timing, internal politics and business strategy can all eventually arrive at the recruiter's desk in the form of an urgent Director, Partner or C-suite vacancy.

If the retirement or departure of a senior executive was entirely predictable but there is no credible internal successor, for example, the problem may have started years before anybody opened a requisition. If there is no approved budget, the search shouldn't have started. If the compensation is materially below market, the recruiter cannot manufacture candidates at the required price. If the stakeholders repeatedly change the specification, going back to the market for a third time isn't evidence of poor sourcing.

Equally, if the recruiter doesn't understand the market, cannot identify credible candidates, communicates badly or fails to challenge obviously unrealistic assumptions, then improve the recruitment function.

That is the point.

Diagnose the problem before deciding who owns it.

TA becomes highly visible because it manages the hiring process, but visibility is not the same as causation. The purpose isn't to protect recruitment from scrutiny. Recruitment should be scrutinised. The purpose is to understand the entire system well enough to know what is actually failing.

Know what problem you are trying to solve and what kind of person you realistically need to solve it. Understand the market before setting expectations. Pay appropriately. Put recruiters with relevant experience on the work and give them sufficient capacity to do it properly. Agree a sensible assessment process before starting, make sure the stakeholders understand their roles and don't move the goalposts every other week.

Use technology aggressively to remove administration and intelligently to support research, but keep screening, assessment and selection where the accountability belongs, with people.

Then listen when the recruiter tells you something about the market that you weren't expecting to hear.

If all of that is in place and recruitment still isn't delivering, then you may genuinely have a recruitment problem.

Until then, it is worth looking a little further upstream.

Because whether you are hiring an analyst or a Global CFO, recruitment is ultimately a people business. The systems, data and technology should make it easier for recruiters to do the one thing at the centre of the profession that cannot simply be reduced to workflow:

Talk to people, understand people and recruit people.

 

 

 
 
 
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