Navigating the executive search industry often feels like a scene out of Jerry Maguire: “Help me, help you.” There’s a certain irony here that might stir up some debate—while senior leaders frequently seek out executive search agencies for their own career transitions, many hesitate to engage these same services for hiring within their own companies.
I fully appreciate addressing this may be a bit unconventional, but it's worth exploring the mutual benefit that a commitment to retained search could bring to both companies and the broader leadership ecosystem.
In the corporate landscape, an effective executive search agency plays an essential role in connecting senior leaders with impactful opportunities. Despite the clear value of these services, a notable pattern emerges: while senior executives rely on an executive search agency to help with their personal career searches, they are often reluctant to approve retained search services when hiring for their own companies.
As an executive search consultant with almost 15 years in the industry, I’d anecdotally report a 50:1 ratio between leaders seeking out executive search agency services for their own career transitions and those willing to invest in retained search for organisational hiring. This gap highlights a disconnect with long-term implications for leaders and companies alike.
The Expanding Market for Executive Search Agencies and the Need for Adaptation
The global executive search market has been expanding steadily over the past decade, driven by factors such as complex leadership demands, the high cost of turnover, and an emphasis on diversity. The industry was valued at roughly $18 billion in 2023, and it is expected to grow by 7-8% annually through 2030. This growth reflects the essential role that an executive search agency plays, especially in senior-level recruitment.
Organisations like the AESC (Association of Executive Search and Leadership Consultants) have reported that more than 60% of executive search firms are expanding services to include areas such as leadership assessment, succession planning, and executive coaching. This diversification responds to the increasing need for holistic talent solutions and helps an executive search agency deliver greater client value.
The Value of Retained Search Services in Executive Search
A retained executive search agency provides a highly focused, proactive approach to senior recruitment. Unlike contingency-based search, retained search services mean that the executive search agency is exclusively engaged by the client, allowing it to take a comprehensive approach to each placement. Retained search focuses on identifying candidates who align with the organisation’s culture, values, and long-term strategic goals. This model is particularly suited to leadership roles, where a thorough evaluation of both skills and cultural fit is crucial.
By forming a close partnership, a retained executive search agency helps companies make more precise, strategic hiring decisions that support long-term objectives. Companies that hesitate to engage retained services may miss out on this level of customisation, often leading to less optimal hires or higher turnover.
A One-Sided Relationship with Executive Search Agencies
An ongoing trend shows that senior leaders frequently turn to an executive search agency for career support when they seek new roles. They value the agency’s expertise in connecting them with positions that match their aspirations. However, when these same leaders need to hire for their own organisations, they often overlook the retained executive search model, typically citing budget constraints.
This creates a cycle that impacts the executive search agency industry, as it limits demand for retained services, shifting consultants' focus toward securing new search assignments rather than offering support to candidates. If this trend continues, senior leaders may find fewer experienced executive search agency consultants available when they need career guidance themselves.
Diversifying Services to Meet Changing Client Demands
To meet the shifting demands of clients, forward-thinking executive search agencies have been broadening their services. Hunt Scanlon reports that demand for leadership advisory services has grown by over 15% annually, with organisations seeking more comprehensive talent support from their executive search agency partners.
Executive search firms need to continually evolve and expand their service offerings to remain relevant and valuable. As technology rapidly reshapes recruitment, agencies must set themselves apart from purely tech-driven CV-matching platforms by providing a more holistic, advisory approach. This includes integrating services like leadership assessment, succession planning, and executive coaching to meet the complex, strategic needs of today’s businesses. By doing so, executive search firms can deliver a depth of insight and personalised support that goes beyond algorithms, adding true value to both clients and candidates.
By expanding their services, executive search agencies remain relevant and agile. Additional offerings such as leadership advisory and organisational development help agencies stay aligned with modern corporate priorities like digital transformation, diversity, and adaptability. An executive search agency with a full suite of talent solutions can support companies and leaders in a more comprehensive, long-term manner.
Breaking the Cycle: Why Companies Should Invest in Retained Executive Search
For executive search to fulfil its potential, organisations must recognise the value of retained services. By partnering with a retained executive search agency, companies benefit from a detailed and focused approach to finding senior talent. This approach goes beyond transactional recruitment, fostering long-term relationships that ensure hires align well with the company’s broader goals. Moreover, leaders supporting retained services also strengthen the talent ecosystem they may one day rely on.
When companies invest in retained executive search services, they allow agencies to dedicate more time to both client needs and candidate support, creating a balance that benefits the entire industry. Retained search allows executive search agencies to shift from transactional assignments to value-driven relationships with clients and candidates alike. This model ultimately enhances organisational outcomes and supports executives when they require career transition assistance in the future.
Rethinking the Role of an Executive Search Agency in Corporate Culture
The role of an executive search agency should extend beyond filling immediate vacancies. It should be part of an organisation’s broader talent strategy, partnering to ensure each hire supports the company’s goals and values. By collaborating with an executive search agency on a retained basis, organisations can expect stability and effectiveness in their leadership teams, as each placement is carefully tailored to meet the company's unique needs.
Senior leaders who advocate for the retained search model help build goodwill and reinforce the value of expertise within the executive search industry. This support allows executive search agencies to deliver high-impact services to both clients and candidates, ultimately strengthening the industry and ensuring it remains a resource for leaders in career transition.
Conclusion: A Sustainable Future for Executive Search Agencies
The executive search agency industry depends on the balance between retained services and clients’ willingness to invest in high-quality talent solutions. When companies embrace retained search, they support the continuity of a strong executive search ecosystem that not only provides high-quality placements but also fosters the support network leaders may one day need.
As the industry continues to grow, organisations partnering with an executive search agency that offers retained services will be better positioned to achieve strategic and sustainable leadership. Leaders who understand and advocate for retained search cultivate a robust executive search ecosystem that will be a resource for them in the future. By viewing executive search agencies as strategic partners, organisations create a pipeline of skilled leadership and a sustainable framework for the talent transitions they may one day face.
