Talent Circles

Tuesday, April 9, 2013

3 Reasons to Insource Your Executive Recruiting and Hiring Efforts

In a traditional corporate recruiting model, companies often leverage their recruiting teams to hire and recruit for entry level to mid level positions leaving specialty and executive positions to third party recruiters. A new study tells us that this once widely used practice is on the decline. HR and recruiting teams are moving to insource or in house instead of outsource their senior business recruiting efforts.

Brining Your Executive Recruiting In House Instead of Outsource

A now 25 percent of Fortune 500 companies are using in house executive recruiters to fill key positions within their organization which is up 15 percent from a decade ago according to the Association of Executive Search Consultants.  These internal executive recruiting teams seem to be flourishing as companies like Pepsi, Time Warner and Sears look for ways to cut costs while attracting the best talent for their organization and on their own terms.

As someone who has worked with a number of third party recruiters for executive and specialty positions, I can attest to the expense that they sometimes bring. For large organizations that work on a global scale, the cost can be staggering. It’s not uncommon for third party recruiters to expect 15-40 percent of a placement’s first year salary for their efforts. A number like that can really add up. 

  • ·      Executive Recruiting is Strategic. Internal recruiting teams are viewing their recruiting efforts as long term focusing on relationships with key players building a candidate pipeline for these executive positions before they become vacant.
  • ·      Executive Information is More Easily Available Online. With the growth of social networking sites and an increased focused of sourcing within large organizations, more and more senior business leaders can be found online. This practice will surely continue as business leaders focus more on building their personal brand and persona with the support of the Internet.
  • ·      Substantial Cost Savings. Recruiting and HR senior business leaders are focusing more on looking at bigger picture metrics and how human capital practices impact the entire organization versus just their department’s individual bottom line. These cost savings can be tied back not only to cost per hire but productivity of an entire team or division making a stronger business case for the practice of insourcing your executive hiring within HR.

Recruiting regardless of the position level within the organization takes strategy, skill and effort. Moving these senior level recruitment and hiring activities in house can be effective but only if a company creates a long term candidate engagement strategy and pipeline to facilitate these relationships focused on results. 

Jessica Miller-Merrell, SPHR is a workplace and technology strategist specializing in social media.  She’s an author who writes at Blogging4Jobs. You can follow her on Twitter @blogging4jobs


  1. I'm looking for a professional executive search firm for my company. And this post is very helpful to me to identify the reputable one.

    Neela Seenandan

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