How Executive Search Firms Adapt

October 28, 2024 – In today’s dynamic hiring landscape, executive search firms like BrainWorks are adapting their strategies to focus on stable sectors such as technology, healthcare, and essential services during uncertain times. BrainWorks recently joined Hunt Scanlon Media to discuss how recruiting firms can meet evolving client needs by adjusting search strategies and leveraging advanced tools.
Key Insights from the report include how search firms focus on stable sectors like tech, healthcare, and essential services during times of uncertainty. BrainWorks says that firms build trust with clients by offering timely market insights for smarter hiring decisions. The firm also points out that social media helps reach passive candidates, who make up 70 percent of the global workforce. In addition, BrainWorks notes that temporary and contract hires surged by 28 percent during the pandemic, providing adaptability for companies. Lastly, the firm explains that AI and data analytics improve hiring efficiency by 30 percent, with more firms investing in advanced tools.
“Executive search firms must be agile and proactive to navigate the challenges posed by these external factors,” the BrainWorks report said. The firm offers a look at how these impacts specifically influence its operations and how they adapt.
Adjusting Search Strategies
During times of uncertainty, search firms may adjust their strategies to focus on industries and roles that are less affected by external factors. BrainWorks says that this might include sectors like healthcare, technology, and essential services, which often show resilience.
The tech industry has also demonstrated resilience, with the World Economic Forum reporting that the global technology sector grew by seven in 2023, and jobs related to cybersecurity, AI, and cloud computing are expected to increase by 12 percent annually through 2030. Essential services, such as logistics and food production, saw a 15 percent rise in hiring during the 2020 pandemic and continue to remain steady during periods of economic instability.
Building Stronger Client Relationships
“Executive search firms emphasize maintaining and strengthening relationships with their clients,” the BrainWorks report said. “By providing timely insights and advising on market conditions, they become trusted partners, helping clients make informed decisions about hiring and talent management.” See how BrainWorks did it for Wind Creek.
“To ensure they can meet client needs, search firms expand their candidate pools by tapping into a wider network of professionals,” the BrainWorks report said. “This includes leveraging technology and social media platforms to reach passive candidates who might be open to new opportunities in uncertain times.”
A LinkedIn Talent Solutions report from 2023 shows that 70 percent of the global workforce is made up of passive candidates, and 52 percent of recruiters are increasingly using social media and technology to connect with these individuals.
Enhancing Flexibility
“Flexibility in terms of contract and interim hires becomes crucial,” the BrainWorks report said. “Search firms may offer more flexible hiring solutions to clients who are hesitant to commit to permanent roles amid economic uncertainty.”
Related: The Critical Role of Executive Leadership in Navigating Change
During the COVID-19 pandemic, temporary staffing surged by 28 percent, a trend that is expected to persist as organizations seek flexibility in their workforce amid fluctuating market conditions.
Investing in Technology
BrainWorks also notes that by utilizing advanced technology and data analytics helps search firms predict hiring trends and understand market movements. The firm explains that this allows them to provide data-driven recommendations to clients and stay ahead of the curve.
Technologies like AI, machine learning, and data analytics have increased hiring efficiency by as much as 30 percent, reducing time-to-fill for critical roles. In 2022, 65 percent of recruiters reported using data analytics tools to improve their decision-making, with 72 percent planning to invest in more advanced tools within the next five years, according to a survey by Bullhorn.
Focusing on Communication
Clear and transparent communication with both clients and candidates about the current market conditions and expectations helps manage uncertainties effectively, according to the BrainWorks report. This builds trust and ensures alignment in the hiring process.
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“The landscape of executive search is continuously shaped by external factors,” BrainWorks said. “By understanding these influences and adopting adaptive strategies, search firms can navigate challenges and continue to deliver value to their clients. Staying agile, informed, and proactive will be key to thriving in a world where change is the only constant.”
“We’d like to extend a special thank you to LaborIQ and Mallory Vachon, chief economist for the data and their research for this blog,” BrainWorks said.
Since 1991, BrainWorks has provided executive recruiting services for growing organizations all over the world. The firm focuses on the recruiting needs of C-level and sub C-level management specifically within private equity and Fortune companies.
BrainWorks’ areas of focus include the following: Accounting & finance, accounting & finance – interim, analytics, data science & data governance, commodities technology & trading, consumer products, CRM & direct marketing, cybersecurity, data & data insights, ecommerce, digital media & entertainment, financial technology, go-to-market search – private equity/insurance and financial services, human resources, legal, market research & consumer insights, medical device, real estate, infrastructure and private investments, sales and marketing, supply chain & operations, and technology.
Related: Adapting to Today’s Evolving Search Market
Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media