A Look at Executive Search in 2025

December 2, 2024 – For decades, relationships were the cornerstone of executive search. “A strong network of C-suite executives and hiring managers could singlehandedly propel a consultant to success,” said James Abruzzo, managing partner of JGA Partners. “Deals were often secured through trust and familiarity, forged during coffee meetings, networking events, or rounds of golf. This approach was effective in a less crowded, less complex marketplace. But today, the industry looks very different. Several key factors have reshaped the landscape.”

This proliferation has had several effects, Mr. Abruzzo points to:

• Intense Competition: With so many firms vying for business, clients now have an abundance of choices. Firms that can’t articulate a unique value proposition risk being overlooked.

• Client Sophistication: “Clients, faced with a saturated market, have become more discerning,” Mr. Abruzzo said. “They now evaluate firms based on measurable results, niche expertise, and the quality of their process. Relationships alone are no longer enough to secure a mandate.”

• Niche Specialization: In response to the crowded field, many firms have pivoted toward niche markets, carving out specialties in areas like life sciences, tech, or ESG leadership, according to Mr. Abruzzo. This focus allows them to compete more effectively, but it also raises the stakes for demonstrating expertise.

“For search firms, this new reality requires a sharper focus on differentiation, operational efficiency, and delivering measurable value to clients,” Mr. Abruzzo says.

The Rise of Internal Talent Acquisition Teams

In the past, external search firms were the go-to solution for finding top-tier talent, Mr. Abruzzo explains. “But as corporate talent acquisition teams have grown in size and sophistication, this dynamic has shifted,” he said. “Many companies now rely on in-house recruiters to manage executive hiring, reducing their dependency on external partners.”

What’s driving this change? Mr. Abruzzo offers these three points:

• Cost Savings: Engaging an external search firm often comes with hefty fees, typically 20–30 percent of a candidate’s first-year salary. By building internal teams, companies can reduce these costs significantly.

• Access to Tools: Internal recruiters now have access to the same tools that once gave external firms their competitive edge, such as LinkedIn Recruiter, applicant tracking systems, and AI-driven sourcing platforms.

• Strategic Alignment: Internal teams have a deeper understanding of the company’s culture, values, and strategic priorities, which allows them to identify better-aligned candidates. 

“While internal teams excel in many areas, they often lack the bandwidth or specialized expertise to handle highly complex or confidential searches,” Mr. Abruzzo said. “This creates opportunities for external firms to step in, but only if they can offer something that internal teams can’t—whether that’s deep industry knowledge, access to passive candidates, or a more robust search process.”

The Democratization of Candidate Data

“The rise of platforms like LinkedIn and other subscription-based databases has transformed how talent is sourced,” Mr. Abruzzo notes. “Information that was once guarded and difficult to access is now readily available to anyone with an internet connection. For clients, this has leveled the playing field. They can now conduct their own preliminary searches, often identifying potential candidates without the help of a search firm.

JGA Partners provides search and services for the executive search industry and corporate talent acquisition function. The firm’s clients include the executive search firms, international executive recruitment membership federations and associations, and leadership advisory and management consulting firms.

James Abruzzo is a career international executive recruitment and talent acquisition professional with expertise across all aspects of the executive search industry and talent function. He has worked with executive search and recruitment professionals from each of the world’s top 10 executive search firms, regional recruitment professionals, independent entrepreneurs and franchise owners. 

For search firms, this trend presents both challenges and opportunities. Mr. Abruzzo provides examples of each:

• Challenges: The widespread availability of candidate data means firms can no longer rely on proprietary networks as their sole selling point. Clients expect more than a list of names—they want insights, analysis, and added value.

• Opportunities: By leveraging data analytics and advanced tools, search firms can offer deeper insights than clients can uncover on their own. This might include benchmarking candidate profiles, analyzing compensation trends, or identifying emerging talent pools. The firms that thrive in this environment will be those that use data not just as a tool for sourcing but as a strategic asset for advising clients.

Private Equity’s Influence

Private equity firms have emerged as major consumers of executive search services, bringing a new level of rigor and intensity to the process, according to Mr. Abruzzo. “Unlike traditional corporate clients, PE firms are highly transactional and laser-focused on results.” He offers several factors explain their growing influence:

• Frequent Leadership Changes: PE-backed companies often undergo significant transformations, including leadership changes, as part of their growth strategies.
• Demand for Speed: PE firms operate on tight timelines and expect search firms to deliver results quickly and efficiently.
• Focus on Metrics: These clients are data-driven and expect measurable ROI from every search.

“For search firms, serving PE clients requires a different approach,” Mr. Abruzzo said. “Speed, precision, and a deep understanding of the PE landscape are essential. Firms must also be prepared to navigate the complexities of working with multiple stakeholders, including portfolio company executives, PE partners, and board members.”

The Shift to Search as a First Career

Traditionally, executive search was a second career for professionals who had already achieved success in their industries. “These individuals brought a wealth of experience, deep networks, and credibility to their roles as search consultants,” Mr. Abruzzo says. Today, however, an increasing number of consultants are entering the field directly out of university or shortly thereafter. While this trend brings fresh energy and new perspectives to the industry, it also poses challenges such as lack of industry expertise. New consultants often lack the on-the-ground experience that seasoned professionals bring to the table. This can make it harder for them to build credibility with clients and candidates.”

Related: A Look at the Trends Impacting Executive Search Today

Mr. Abruzzo also point to the reliance on data. “To compensate for their lack of experience, many younger consultants lean heavily on data and technology,” he says. “While these tools are valuable, they can’t replace the nuanced judgment that comes from years of industry experience. To succeed in this environment, firms need to invest in training and mentorship programs that help new consultants build the skills and knowledge they need to thrive. Pairing them with seasoned mentors can also help bridge the gap between data-driven approaches and relationship-based expertise.”

The New Skillset for Executive Search Consultants

As the industry evolves, so too must the skillset of the consultants who drive it. Mr. Abruzzo notes that success today requires mastery in a few critical areas. The first is data proficiency. “Consultants must be comfortable using data to inform every stage of the search process,” he says. “This includes: Identifying talent trends and market insights; using analytics to benchmark candidate profiles against client needs, particularly around DEI and other diversity mandates; and leveraging technology to streamline candidate sourcing and evaluation.”

The next is niche expertise. “Generalists are increasingly at a disadvantage,” Mr. Abruzzo said. “Clients want to work with consultants who understand the unique challenges of their industry or function. This requires: Deep sector knowledge, including key players, trends, and regulatory considerations; and an ability to anticipate and address client-specific pain points.

Predicting Talent Acquisition Trends for 2025

As organizations navigate the post-AI boom and the shift to skills-based hiring, many are experiencing analysis paralysis, but now is the time to act with purpose. Korn Ferry recently surveyed over 400 talent acquisition professionals and consulted with more than 40 of its experts to uncover five key hiring trends shaping 2025, including the critical importance of skills and the evolution of employee value propositions.

The third is client-centric process management. “Modern clients demand transparency, efficiency, and accountability,” Mr. Abruzzo says. “Consultants must excel at: Managing timelines and expectations; providing regular updates and clear communication; and delivering a seamless experience from initial engagement to final placement.

How Search Firms Must Adapt

To thrive in this new era, Mr. Abruzzo explains that search firms must rethink three fundamental areas: people, process, and systems. “Historically, search firms have prioritized hiring consultants with proven billing histories,” he says. “While this approach made sense in a relationship-driven market, it’s less effective in today’s environment. Why? Because even a million-dollar biller may struggle to replicate their success in a new firm, especially in a transactional market where client loyalty is harder to secure. Instead, firms should focus on hiring for potential.”

“Further, executive search has become a team sport. Rarely does the executive search Partner attempt to win a c-suite search solo,” Mr. Abruzzo continued. “The SHREK firms are taught and even incentivized to include teammates and practice group leaders on their client pitch. Rightly so, as it’s often better for the client. That said, it then becomes challenging to decipher whether it was an individual consultant that was the reason for the win, or was it the current team and brand.”

Mr. Abruzzo says that this means executive search firms must:

• Investing in training and development programs to build critical skills in business development, marketing and sales skills.
• Prioritize adaptability and a willingness to learn over past performance and invest in building brand recognition.
• Building teams that bring a range of relationships and expertise.
• While hiring, prioritize less the average revenue billing and more on the quality of the consultants relationships (in other words, will their calls be returned?).

The search process must evolve to meet the demands of modern clients, according to Mr. Abruzzo. “This includes standardizing best practices with a consistent, repeatable process ensures quality and efficiency,” he says. “Emphasizing transparency is also important as clients appreciate clear timelines, regular updates, and candid feedback. In addition, leveraging technology. Tools like applicant tracking systems (ATS), AI-powered sourcing platforms, and video interview software can streamline the process and enhance the client experience. Lastly, data rules are important. Shift processes on data input and data output. Is the data going into your internal systems relevant to market intel that your client cares about.

“The executive search industry is at a crossroads,” Mr. Abruzzo concludes. “The old ways of doing business are no longer sufficient, but the new ways are still taking shape. This period of transformation is challenging, but it’s also exhilarating and will bring about a seismic shift to the business as a whole. Firms that embrace data, specialize in niche markets, and prioritize process efficiency will not only survive but thrive. They’ll win the trust of modern clients, secure more mandates, and build lasting relationships.”

Related: Top 5 Hiring Trends for 2025

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor  – Hunt Scanlon Media