2012 Retained Executive Search: The...
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2012 Retained Executive Search: The Associates
Participant Edition
2012 Retained Executive Search: The Associates
Sponsored by the Executive Search Research Consulting Group
Underwritten by Strategic Research Solutions
January 2013
2012 Retained Executive Search: The Associates
Participant Edition
The Executive Search Research Consulting Group (ESRCG) is the
community of executive search professionals who source for talent
and/or began their career this way. ESRCG is about facilitating real, in-
person connections without the formalities of a traditional industry
association. Members work in retained executive search, as freelancers
and as “internal” talent acquisition and search teams.
http://esrcg.weebly.com/index.html
Strategic Research Solutions, founded in 2002, assists executive search and recruiting firms with name identification and candidate development services. It also provides strategic research supporting human resources, recruiting, sales and marketing.
http://www.strategicresearchsolutions.com
January 2013 Thank you for participating in Executive Search Research Consulting Group’s survey of associates within retained executive search firms. From time to time there have been surveys of the search industry, but those surveys have focused on the partners or billers, or on the firms themselves. There has not been an emphasis on the associates. For someone starting in their search career there have been few resources like this available. We hope that you find this information to be a useful starting point for evaluating your compensation, workload and career plans.
Daniel Ebbert Founder and Moderator Executive Search Research Consulting Group
2012 Retained Executive Search: The Associates
Participant Edition
Participants
206 people completed the online survey in October and November 2012. Those who identified as freelance researchers, as “internal” search, in contingency search, or as a partner of a firm were excluded from this report.
73.25% North America 18.5% Europe 5.5% Asia Pacific <1% Balance
Canada <5 Mexico <5
Alabama <5 California <20 Colorado <5 Connecticut <5 Delaware <5 Florida <10 Georgia <5 Illinois <5 Kentucky <5 Massachusetts <5 Maryland <5
Michigan <5 Minnesota <5 Missouri <5 New York <20 New Jersey <4 North Carolina <5 Ohio <10 Pennsylvania <10 Rhode Island <5 Texas <15 Virginia <5 Washington State <5
Austria <5 Belgium <5 United Kingdom <10 Netherlands <5 Norway <5 Poland <5 Russia <5 Finland <5 Germany <5 Ireland <5
China <5 New Zealand <5 Hong Kong <5 India <5 Singapore <5
South and Central America <5
Contact Information Daniel Ebbert Strategic Research Solutions, LLC 1121 N. Bethlehem Pike, Suite 60-205 Spring House, PA 19477 USA 1 (215) 393-5775 [email protected]
This document, created by Strategic Research Solutions LLC. No part of this document, created by Strategic Research Solutions LLC, may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying or recording, or by an information storage or retrieval system, without the express written permission of Strategic Research Solutions LLC.
2012 Retained Executive Search: The Associates
Participant Edition
Table of Contents
Which Type of Associate Are You? Where Associates Work The Candidate Developer The Name Identifier The Knowledge Manager Specialization and Compensation
2012 Retained Executive Search: The Associates
Participant Edition
Which Type of Associate Are You? We estimate that there are approximately 4,000 - 6,000 associate level employees of retained executive search firms around the world. Generally associates fall into a few types:
• Candidate Developers They approach, screen and entice candidates. Common titles are Associate, Senior Associate, Jr. Consultant. • Name Identifiers They find and identify names for a candidate developer to call. Common titles are Research Associate, Associate,
Research Analyst. • Knowledge Managers They collect and organize company information and play a strategic role supporting business development.
Common titles: Knowledge Manager, Director of Research, Knowledge Analyst.
Many firms have only one role; the Associate. For many associates identifying someone to call is not a separate responsibility. It is simply part of the work. If assistance is needed identifying people a directory or membership may be acquired. Larger firms are the ones most likely to make the distinction between the three roles. In this survey an associate who does his/her own name identification is grouped with Candidate Developers.
2012 Retained Executive Search: The Associates
Participant Edition
Where Associates Work: Size of the Organization The vast majority of retained search firms are small. The majority of associates work in small to medium sized firms.
Small Firms – those with one office and possibly remote “work from home” situations
Medium Firms – those with 2-9 offices
Large Firms – those with 10 offices or more
These small firms also have only a couple billers or partners. The average associate in a search firm therefore has a limited amount of direct peers.
2012 Retained Executive Search: The Associates
Participant Edition
Where Associates Work: Level and Fee Levels Search firms typically focus upon the relative level of the executives with whom they interact to explain their services. Most search firms work on open positions at the Director or Vice President level. To keep projects at an appropriate level and to fight pressure to take on lower level projects many firms have a minimum fee.
2012 Retained Executive Search: The Associates
Participant Edition
The Candidate Developer Common titles: Senior Associate, Executing Consultant, Junior Consultant, Associate
Candidate Development is the primary goal of most associates in executive search. Larger search firms often divide associate responsibilities further giving one associate primary responsibility for identifying the potential candidates so a more senior associate can focus on approaching them. Industry intelligence and business development research support is sometimes further specialized into the role of a Knowledge Manager. In many firms the candidate developer has no additional support.
2012 Retained Executive Search: The Associates
Participant Edition
The Candidate Developer
Most candidate developers would like to become a partner or principal of the firm in time. The most desired skill to learn among candidate
developers is sales followed by a desire to effectively utilize social media tools.
2012 Retained Executive Search: The Associates
Participant Edition
The Candidate Developer
Among the associate roles in a search firm the Associate or Senior Associate generally works the longest and most erratic hours. The average
Associate starts at the office between 7:30 and 8:30 am and leaves between 5:30 and 6:30 pm. Over 45% report working on projects over the
weekend.
Since the candidate developer is the primary associate on a search assignment they tend to carry a high amount of open positions.
2012 Retained Executive Search: The Associates
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The Candidate Developer
Base Salaries (Associates and Senior Associates)
Candidate Developer Salaries (Global)
Generalist Specialist
Highest Reported $ 125,000 $ 125,000
75% $ 90,000 $ 110,000
Mean Average $ 59,900 $ 74,105
25% $ 40,000 $ 70,000
Lowest Reported $ 30,000 $ 19,000
Less than $70,000annual
Greater than $70 andless than $90,000
Greater than $90 andless than $110,000
Greater than $110 andless than $130,000
2012 Retained Executive Search: The Associates
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The Candidate Developer Bonus, or incentive pay is also a key component of compensation. Candidate Developers receive a higher percent of incentive compensation than their counterparts: Knowledge Managers and Name Identifiers.
2012 Retained Executive Search: The Associates
Participant Edition
The Candidate Developer
Incentive compensation is generally paid annually or quarterly. For most candidate developers a bonus is under 30%.
2012 Retained Executive Search: The Associates
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The Name Identifier Common titles: Research Associate, Research Analyst, Associate, Research Assistant
Essentially a name identifier finds and gathers contact details and background information on people likely to be qualified for a role so that
another member of the team can determine if they should be called. Name identifiers often play a role in planning where to look for candidates
and also in research supporting business development efforts.
2012 Retained Executive Search: The Associates
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The Name Identifier
For most name identifiers leveraging social media, and searching the internet are the two most valued skills.
In many organizations a Name Identifier role is an entry role within the firm. Most name identifiers report simply improving or advancing as
their primary objective.
Many name identifiers either do not aspire to a partner level role.
2012 Retained Executive Search: The Associates
Participant Edition
The Name Identifier
Name identification work is traditionally handled during regular business hours. Internet research or social media research can be saved for off
hours but there are limitations to what can be done in the evening. Name Identifiers report a slightly shorter work day with fewer hours than a
candidate developer. The average name identifier begins the day between 8:00 and 9:00 am and ends it between 5:00 and 6:00 pm. Only 13%
reported working at home after dinner but 47% reported working on projects over the weekend.
Name identification work is also most often involved at the front end of an assignment and is handed off to a candidate developer. As a result
the amount of report open projects is lower than for a candidate developer.
2012 Retained Executive Search: The Associates
Participant Edition
The Name Identifier Average Salary for a name identifier globally was $47,933 annually.
Less than $50,000
Greater than $50 but lessthan $75,000
Greater than $75 but lessthan $100,000
Greater than $100,000
2012 Retained Executive Search: The Associates
Participant Edition
The Name Identifier
For the most part an associate focused on name identification is paid on salary. If a bonus is available it is generally under 20%. The bonus often
is highly discretionary and based both the subjective evaluation of a managing director, and the overall performance of the firm. Amazingly 30%
of those surveyed were unclear about even being eligible to receive a bonus.
2012 Retained Executive Search: The Associates
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The Name Identifier
Bonuses for name identifiers are essentially paid annually. Bonuses are rarely over 15%.
2012 Retained Executive Search: The Associates
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The Knowledge Manager
Common Titles: Director of Research, Knowledge Manager Knowledge Managers tend to be found in the larger retained firms.
2012 Retained Executive Search: The Associates
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The Knowledge Manager
Knowledge of industry, news, competitive information and target list development dominate the responsibilities of a Knowledge Manager.
Generally they do not have aspirations for being a partner and are not expected to have them. Of the three types of associates knowledge
managers have the longest tenure both in the role and in search.
Desired skills are knowledge of industry followed by social media skills.
2012 Retained Executive Search: The Associates
Participant Edition
The Knowledge Manager
Knowledge Managers surprised us in their reported hours. An average Knowledge Manager begins the day between 7:30 and 8:30 and it ends at
about 5:30 pm to 6:00pm. 100% of participants reported working on projects after dinner and 60% reported working on projects over the
weekend. Knowledge Managers play a more strategic role in assisting on searches typically at the start of the project. They usually remain
available for consultation so they report a high amount of active projects.
2012 Retained Executive Search: The Associates
Participant Edition
The Knowledge Manager The average salary of knowledge managers surveyed was $70,833 globally.
More than $75 but lessthan $100,000
More than $100,000
2012 Retained Executive Search: The Associates
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The Knowledge Manager Most receive a bonus, but it is most aligned with quality measures, managerial discretion and company performance.
2012 Retained Executive Search: The Associates
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The Knowledge Manager
Typically a modest bonus under 15% is paid annually or quarterly.
2012 Retained Executive Search: The Associates
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Specialization and Compensation
The level of position or size of search fees actually has little correlation to compensation of associates within retained search. It is industry specialization by an associate which has the clearest impact on compensation
Average Candidate Developer Salaries Against Firm Minimum Fee (Global)
Minimum Fee Base Salary
$70,000 + $ 81,509
60-70 $ 84,734
50-60 $ 79,447
40-50 $ 83,575
30-40 $ 59,804
Candidate Developer Salaries (global)
Generalist Specialist
Highest Reported $ 125,000 $ 125,000
75% $ 90,000 $ 110,000
Mean Average $ 59,900 $ 74,105
25% $ 40,000 $ 70,000
Lowest Reported $ 30,000 $ 19,000
2012 Retained Executive Search: The Associates
Participant Edition
Stay tuned for as we study the other groups who make up our membership
• Freelance and Independent Researchers Survey starting February 2013
• Talent Acquisition and Internal Executive Search surveys by industry sector begin March 2013