Glossary of
Executive Search:
Terms & Concepts
Active Candidates:
People seeking immediate employment. Active Candidates
are usually unemployed or facing unemployment in the near
future. They may be young people looking for their first
full-time job, people whose positions were terminated or people
who are very unhappy with their current employer.
Allowances:
Payments made to employees to cover expenses and
usually treated as part of pay and taxed accordingly. In Asia,
most executives are provided with a greater number of such
allowances than in other regions. Examples include: automobile
allowance (often including fuel and driver), housing allowance
and executive healthcare coverage for family. Expatriates posted
to Asia are often provided with some or all of the following as
part of their expatriate package: private school fees for
children, air-flights tickets to home country for family and
relocation expenses.
Applicants:
People who proactively apply for job openings in
organizations. Applicants are considered highly motivated
job-seekers and active candidates. They may be recent graduates
or immigrants looking for their first job, unemployed
professionals, people dissatisfied with their current employer
or people who change jobs regularly.
Behavioural Interviewing:
Interview format that seeks to understand and assess
the career history and performance of candidates under the
premise that the past is the best predictor of the future.
Questions in behavioural interviews try to probe candidates'
conduct in different situations, for example: "how did you
achieve these results" and "what did you do to overcome this
unexpected problem." Behavioural interviewing is considered the
highly useful by most hiring managers and recruiters especially
for management candidates who have strong career histories.
Blacklisted Candidates:
People who are prevented from being considered for open
positions because of a breach of confidence. Examples include:
substance abuse, failed previous assessment, overstated
qualifications, didn't show up for previous interviews, etc.
Blended Search Agreement:
Combines both retained and contingency elements in an
executive search engagement. There is usually an initial
retainer (non-refundable) with further payments due once defined
deliverables are accomplished or a balloon payment at the end
once the position is filled.
Blocked Candidates:
Search firms avoid targeting employees of client
organizations for new search engagements because of guarantee
commitments. Employees of organizations that are current or
recent clients are blocked from being considered candidates. In
addition, candidates who are actively under consideration by one
client should be blocked from being considered by another client
simultaneously. (Related concepts are Off-Limits and Parallel
Processing.)
Body-Snatcher:
A slang phrase for recruiter.
Boutique:
Executive search firm that is operated in a hands-on
manner by a small number of experienced partners. The migration
of senior consultants from large search firms to set up their
own boutique firms is one of the main reasons behind the steady
decline in market share of the large firms. In emerging
countries of Asia, boutique search firms dominate country
markets while large international firms are almost non-existent.
Bundling:
A current management trend of combining
responsibilities for 2 or even 3 executive positions with one
super-manager. In many companies, finance and HR or finance and
IT are being combined under one manager -- and sometimes all 3
functions. Many companies in Southeast Asia are giving country
management responsibilities for 2 or 3 countries to a single
person -- combining multiple senior positions into one.
Candidate:
A person who is being considered for an open position
at an organization.
Candidate Intelligence:
In executive search, candidate intelligence relates to
the investigative process of sourcing the names individuals who
may become qualified candidates of open positions. Such research
is an on-going and time consuming focus of most executive
recruiters.
Candidate Reports:
Almost all executive search firms create comprehensive
documents about the candidates they recommend for client
positions. Called Candidate Reports, they are produced after
interviews with candidates, research into past employers and
informal background checks to give as complete a picture as
possible to the client. Objective evaluations of suitability,
strengths and weaknesses are provided as well as judgements
about candidates' personal goals, career motivations, salary
expectations and so on.
Candidate Universe:
For every open position, there are a number of people
who might meet basic qualifications and can be considered worthy
of further investigation. This group is called the Candidate
Universe and creating this long list of potential candidates is
the first step of every search. It will vary tremendously in
size depending on many factors: job type, industry, geography,
organization and hiring manager requirements.
Career Counsellor:
Firms offering job search services directly to
individuals. The concept is similar to outplacement except that
individuals pay for the service themselves, rather than an
employer. As in all professional services, fees and quality
levels can vary tremendously. (Also called Job Counsellors)
Character Reference;
A person who can attest to a candidate's personal
qualities and abilities.
Chemistry:
The term used to describe the quality of the
interaction between 2 people. In recruiting, the chemistry
between a prospective executives and hiring managers is an
important determinant of success and is a factor in the final
hiring decision. Skills and experience are, of course, critical
but nothing will work if people cannot work together.
Client:
An organization that has engaged an executive search
firm to assist in hiring employees for open positions.
Client Anonymity:
Clients of executive search usually expect their
identity to be confidential in the early stages of the search.
They generally do not want the status of their senior positions
known for fear of raising concerns among customers, employees
and suppliers. As well, many search engagements are to replace
executives currently working and confidentiality in these cases
is an even greater concern.
Chronological Resume:
A resume format that lists career experience by date
usually with the most recent position first. Most hiring
managers and recruiters prefer chronological resumes since it is
easier to understand candidates' career progress, positions held
and dates.
Compensation:
Executive earnings can include a great assortment of
cash and non-cash, guaranteed and variable components. Base
salary may comprise only 50-60% of total compensation. Other
payments may include the following: annual bonus, long-term
incentive plan, profit sharing, restricted share plan (or stock
options or phantom share), signing bonus, executive health
insurance, pension plan, life and disability insurance. In Asia,
senior executives and especially expatriates can also be
provided with an automobile (plus fuel and driver), private
school fees for children, air-flight tickets to home country for
entire family, club memberships, housing allowance, housing
loans and hard-ship bonus. (Same as Total Compensation)
Completion Rate:
A term that measures the percentage of executive search
engagements that bring about a successful new employment
relationship.
Confidentiality:
A large percentage of executive search clients require
that their name be concealed in the early stages of projects.
They usually do not want the status of their senior positions
known for fear of raising concerns among customers, employees
and suppliers. Nor do they wish to notify competitors of
weaknesses or strategic changes. As well, many search
engagements are to replace executives currently working and need
to be handled very carefully.
Contingency Recruiting:
A recruiting relationship where fees are paid only when
a candidate is hired through the recruiter. Providers of
contingency recruiting are usually called by such names as:
employment agencies, personnel recruiters, staffing providers
and similar. In emerging countries of Asia, most contingency
recruiters call themselves "executive search" without
understanding the difference.
Contractor:
A temporary worker being compensated on an hourly or
daily rate who is not a regular employee of the company. Interim
Executives are employed as contractors for specified periods.
Counter Offer:
A counter offer can mean 1 of 2 things. After receiving
a job offer from an employer, a candidate may respond by asking
for improvements and this is called a counter offer. In high
growth Asia, it more commonly means an offer given by a current
employer to keep an employee who has received a job offer by
another employer.
Corporate Culture:
Every organization has a specific set of values and
manner of doing business. Companies might be entrepreneurial or
well structured, adversarial or collaborative, for instance.
Candidates who do very well in one corporate culture may fail in
another. It is important for hiring managers and recruiters to
source people with the personalities and experience that are a
fit for the organization.
CV:
A Curriculum Vitae (Latin for "path of life") is an
official document prepared by job-seekers to describe their
career history, education and specific qualifications. It
carries legal standing and consequences for dishonest
representation can be severe for executive managers. CV's are
often referred to as resumes but CV's are usually longer, giving
detailed history of experience, presentations, publications,
awards, affiliations, etc. In Europe, Asia and the Middle-East, CV's tend to be 4 or more pages in length. Resumes of 2 to 4
pages are more common in Anglo Saxon countries and particularly
the United States. Academic and other public sector employees
tend to write CV's that are lengthy because of their nature of
their work.
Direct Sourcing:
Phrase describing a time-consuming method of acquiring
candidates through proactive contact after research of target
companies' organizational structure. It is understood that
highly desirable management candidates rarely submit their
confidential resumes to job postings, advertisements, job fairs
and resume databases of general employment agencies. The only
way to reach such people is for knowledgeable search consultants
to contact them directly in a confidential manner.
Discrimination:
In most so-called advanced countries, there are
stringent laws that support principles of tolerance and equal
employment opportunities. Anyone involved in recruiting needs
understand these laws and how to avoid discrimination based on
characteristics such as race, religion, gender, age, ethnicity,
marital status, sexual orientation, among others. This is true
also in emerging countries where senior people are increasingly
expected to conduct themselves to international standards.
Diversity:
Diversity in organizations refers to inclusion of
people from different cultures, ethnic backgrounds and gender in
key positions.
Employee Engagement:
A measured indication of the emotional connection
employees feel for their employer.
Employee Referral Plan:
A program where employees of an organization are
compensated for providing names of suitable candidates for open
positions.
Employer Brand:
A widely used concept referring to an employer's
reputation as a "great place to work." Marketing concepts used
in products and services are applied to promoting employee value
proposition to attract, engage and retain high quality
candidates and employees.
Employer of Record:
The entity that accepts all legal and regulatory
employment responsibilities of a person.
Employment Agency:
Phrase used for contingency recruiting companies that
focus on volume hiring projects of mainly junior staff and
intermediate level staff. Other names denoting the same are:
personnel agency, staffing provider and recruiting firm. In
emerging countries of Asia, most general employment agencies
confusing call themselves "executive search" without
understanding the concept.
Employment Agreement:
A document prepared by employers often in the form of a
job offer or along with a job offer to be presented to
prospective employees. The employment agreement defines such
issues as compensation, job responsibilities and start date.
Once final agreement has been made, it is signed by both the
hiring manager and the new employee.
Employment Gaps and Breaks:
Periods in people's career when they were unemployed.
In so-called advanced countries, there is some stigma associated
with employment gaps when considering the careers of senior
managers. In emerging countries where economies and family
situations are more disruptive, career breaks are less of a
concern.
Executive Coach:
A person who is hired to facilitate professional and
personal development of management talent. Successful executive
coaches tend to be mature managers with many years of career
experience.
Executive Search:
Executive search is the consultative process of
recruiting individuals to fill senior management positions in
organizations. It involves the engagement of an executive search
firm to research and assess the suitability of available
candidates to fill open position. Executive search consultants
are generally paid by retainer as are other highly skilled
professionals like engineers, auditors, lawyers and the like.
Exit Interview:
A meeting with a departing employee shortly before his
or her last working day to ask about the person's overall
experience with the employer, reasons for leaving and other
information that can be used to improve employee engagement in
the future.
Expat Package:
Phrase used to describe the extra allowances and
benefits provided to executives who are posted abroad for a
defined period of time. The expat package can add a lot to
people's overall compensation since many personal expenses can
be covered. Some of these include: housing, automobile (with
fuel and driver), private school fees, relocation, healthcare
coverage, airfare to home country for family, hardship bonus,
among others.
Expatriate:
A person who lives and works in a country outside his
or her citizenship. Executive employees are commonly posted by
multinational organizations to overseas locations to manage
business units.
Expenses:
Executive search firms often incur out-of-pocket
expenses when sourcing, interviewing and attracting senior level
candidates on behalf of clients. This is because senior
executives are usually difficult to reach, travel regularly and
are very concerned about confidentiality. Therefore, costs for
communications, private meeting rooms, travel and so on are
billed to clients. Search firms in some countries charge a flat
fee of 10-20% for expenses. Same as Reimbursable Expenses.
External Candidate:
A person from outside the organization being considered
for an open position.
Falloff:
Term used by recruiters and hiring managers to describe
the situation when a recently hired manager begins work only to
resign a short time later. The potential of falloff risk must be
assessed early by recruiters and replacement candidates prepared
ahead of time.
Fees:
Executive search fees vary widely across regions and
providers. In Europe, North America and Japan, recruiters quote
standard fees between 30-33% of first year's guaranteed
compensation although these are widely known to be negotiable.
In other words, the search fee for a $100k per year position
would be $30k (plus expenses) whether or not a candidate was
placed. In emerging countries, search fees are lower (typically
between 20% and 25%) with more requirements for achieving
deliverables.
Front-End Retainer:
Fee invoiced at the beginning of executive search
engagements.
Functional Resume:
A resume format listing skills and functions in a
non-chronological manner. It downplays or even omits dates,
employer names and job titles except at the bottom of the
document in brief format. The functional resume has gotten a bad
reputation among hiring managers and recruiters since it is
difficult to understand people's career progression and used
most often by candidates when trying to hide employment gaps and
other career blemishes.
Garden Leave:
The situation of an employee who is leaving a job for
whatever reason is required to not work during a specified
period of time. Garden Leave is a common term in the UK and some
other Anglo Saxon countries. The purpose is to prevent (or at
least delay) former employees from working for a competitor and
exploiting sensitive information that naturally becomes less
exploitable over time.
Generalist Recruiters:
Search consultants that provide their services across a
range of industries and functions. Most search consultants
throughout the world, and especially in emerging countries, are
generalists -- although most have areas of focus. The big
exception is in most large cities of so-called developed
countries where search consultants specialize in narrow skill
sets and industries. The trend of the global industry is for
specialization in markets that are large enough to support it.
Glass Ceiling:
A barrier in a workplace that prevents employees of
certain types to advance to more senior positions in their
careers.
Guarantee:
Executive search firms provide various contractual
assurances to clients. Some of the most common are: promise to
replace placed candidates who leave their position for any
reason within a certain period, promise not to target client
employees for other executive search clients, promise not to
recruit employees from companies specified by the client that
they may have special relationships with.
Hardship Bonus:
Some companies pay expatriate executives extra income
to compensate for living and working in difficult or dangerous
conditions.
Headhunter:
A slang term for executive recruiter.
Hidden Job Market:
It is well known that the majority of job openings are
filled through personal contacts and referrals from employees,
friends and industry contacts.
Hiring Bonus:
Payments given to newly hired executive managers to
ensure they join the employer. Hiring bonuses are most commonly
used to compensate executives for earnings they would lose by
leaving their current employer. A typical example is an annual
bonus that may not be paid for months in the future. Managers
may hesitate to leave employers because they will lose
rightfully earned compensation. In order to secure the hire, the
new employer commits to pay the amount as a signing bonus on
starting work or after an agreed period. Sometimes signing
bonuses are used to lure high value candidates and are
encumbered with retention requirements. (Same as Signing Bonus)
Industry Map:
Recruiters specializing in certain industries or
functions often build an organizational chart for each company
in their target industries and, through on-going research,
collect detailed information about each person in senior
management positions.
Informal Reference Check:
Process of confirming candidates' background through
sources other than those provided by candidates. Such sources
can include regulatory filings, online information and, most
importantly, speaking with former colleagues, supervisors,
clients and competitors. The process needs to be conducted in a
delicate and confidential manner that will not jeopardize candidates' career or standing in the business community.
Insourcing:
A term for filling a position with a person who is
already employed with the company. Internal candidates should
always be a first consideration for open positions.
Interim Executive:
A senior manager with proven specific skills put in
place for a short-term assignment to oversee a transformation,
resolve a crisis or watch over an organization until a permanent
person can be found.
Internal Candidate:
A person currently working within an organization who
is being considered for a position within the same organization.
It is not uncommon for employers to consider internal and
external candidates simultaneously. Hiring managers typically
inform search consultants of the existence of internal
candidates and to include them in their short-list of
candidates.
Interview:
Meeting between a hiring manager and a candidate being
considered for a position in which the candidate is introduced
to the employer and assessed for an open position.
Job Board:
A website connecting employers and applicants. Most
allow employers to advertise open positions and have a process
for individuals to apply. Job boards can be specific to an
industry, job type or geographic location while others try to be
open to all.
Job Counsellors:
Firms offering job search services directly to
individuals. The concept is similar to outplacement except that
individuals pay for the service themselves. As in all
professional services, fees and quality levels can vary
tremendously. Also called Career Counsellors.
Job Description:
An official document describing the skills and
experience required for an open position.
Job Hopper:
A slang phrase for a person who changes employers
regularly. For management candidates, remaining less than 2-3
years with a number of previous employers, is considered a cause
for concern.
Job Order:
Clients provide information about a position opening
specifying the description of the job to be done, title,
reporting relationships, skills required, experience and so
forth. (same as Requirement)
Lateral Move:
A job transfer that involves in similar
responsibilities and compensation.
LinkedIn:
Considered the most popular social networking tool for
professional candidates. It is being steadily used more and more
for job seekers to find employers.
Lobbing:
Search firms passed over for assignments sometimes send
unsolicited resumes to clients to entice them to change their
minds.
Local Expat:
People working in a foreign country for an extended
period of time who have chosen to remain permanently and work on
local terms. Local expats can be valuable for many companies
since they have proven success in the local country and
understand the requirements of international organizations. They
are typically less expensive than full expatriates since they do
not require an expatriate package. (see Expat Package above).
Long-List:
Recruiting term for the large inventory of candidates
created in the early stages of a search engagement. The number
of potentially qualified candidates on a long-list can be less
than 10 or more than 50 depending on the specialized needs of
the client and type of position.
Non-Compete Clause:
Legal commitment by an employee not to work in the same
industry as the employer after departing. The non-compete clause
is meant to protect the employer from losses due to improper use
of confidential information such as trade secrets, client lists
and new product ideas. In some countries, non-complete clause
are mainly unenforceable except in severe instances. In
countries like the United Kingdom, employees must remain on the
payroll during the period of the non-complete clause. (See also
Garden Leave)
Non-Solicitation Clause:
Usually part of management employment agreements,
preventing a departed employee from contacting the employer's
customers or employees about any matter that may impact the
employer's business in a harmful manner for a period of time.
Off-Limits:
Refers to the agreement by recruiters not to target
executives in client organizations for open positions at other
companies. Mainly an issue with large search firms since they
can be dealing with many companies in an industry and,
therefore, can be severely constrained for candidates to pursue.
Off-limits is a big reason boutique search firms dominate the
smaller economies of most emerging countries.
Onboarding:
The process of assimilating new managers into
organizations. Senior managers must quickly decipher the
corporate culture and actual reporting structure of their new
employer, and then develop relationships with key people who
will help their situation. While doing this, their every move is
being scrutinized warily by those with vested interests.
Organizations should have formal onboarding processes in place
to help during this initial hazardous period.
Outplacement:
A service to help terminated employees find new
employment. When companies downsize, people who see their
careers vanish are often put into emotionally difficult and
financially inconvenient circumstances. Outplacement helps
former employees and maintains morale with current staff since
the employer is seen to be acting in a caring manner.
Panel Job Interview:
A personal interview where the candidate is assessed by
a group of interviewers simultaneously.
Passive Candidates:
People who are happily and successfully employed and
not seeking new employment. Passive candidates are typically
mature people in the middle or late parts of their careers.
Virtually all successful senior managers are Passive Candidates.
Their loyalty to employers and success on the job makes them the
most valuable as targets of executive search.
Per Diem:
A daily allowance paid to contract employees for
various expenses such as meals, accommodation and
transportation. Per diems can be paid to contractors or regular
employees while working at a client site or out of town.
Permanent Employment:
A term used for regular employment where the company
becomes the employer-of-record and accepts full legal liability
under labour law. Permanent employment is a term used less and
less as employers and employees become more temporary in
outlook.
Phantom Stock:
Long-term incentive plan where an employer pays cash at
defined dates in the future equal to the market value of a
number of its shares but without shares actually being given.
Pirate:
A slang term for executive search consultant.
Placement:
The successful hiring of a suitable candidate for an
open position.
Poaching:
A slang term for the process of recruiting high value
employees from another company, often competitors.
Pool of Candidates:
For every open position, there are a number of people
who might meet basic qualifications and can be considered worthy
of further investigation. This collection of candidates could be
large for junior and entry level positions or very small for
senior positions.
Professional Employer Organization (PEO):
Companies that accept legal employer status of
employees who work for client organizations. The PEO provides
payroll and benefits administration and handles regulatory
requirements for their employees.
Progress Payments:
Many executive search firms bill for their services on
a periodic basis (either monthly or based on deliverables).
Proposal:
Formal contract created by the search firm usually in
the form of a letter agreement. The proposal, once signed, is
the basis of the search contract and specifies key issues such
as guarantees, timing, fees, exclusivity, confidentiality and so
on.
Psychological Testing:
Many types of standardized methods of evaluating
candidates are available. Psychological testing became popular
during the 1960's and 1970's by claiming to be able to assess
cognitive and emotional functioning of people using scores on
standardized tests. Today, psychological testing is used
infrequently by large companies (especially in Asia) and almost
never by small and mid-sized companies.
Rainmaker:
A person who is highly successful at closing new
business for professional services firms. Rainmakers are not
usually just good sales people but key people in firms (senior
executives, partners or owners). They often allocate client
engagements to others in their firms who will deliver results
while going on to develop other new business. Sometimes clients
mistakenly believe rainmakers will play an active role in the
engagements they sell but this will usually not be the
case in most mid-sized and especially large search firms.
Ratcheting:
Unethical behaviour by some recruiters to present
candidates earning above market compensation to ensure an above
market placement fee -- since fees are calculated as a percentage
of compensation.
Recommendation Letter:
A document written by a previous employer describing a
person's past work experience and endorsing him or her for a
position. Recommendation letters have come into bad repute since
they are often given to terminated employees so they will go
quietly.
Recruiting Firm:
Recruiting firms source, assess and refer qualified
candidates to be hired as employees by client organizations.
Staffing firms, on the other hand, focus on providing temporary
help or contract workers to clients for fixed periods.
Recruitment Advertising:
Giving public notice of open positions and inviting
applications. Recruitment advertising is popular for junior and
entry level level positions but a disappearing practice for
senior management recruiting in most countries since it yields
mainly Active Candidates (see definition). Some regulated
organizations have legal requirements to advertise all open
positions.
References:
People who will verify a candidate's career and
personal background, skills, character and other factors.
Executive recruiters typically need to confirm specific
information about candidates with direct references. References
provided by candidates are important but generally yield
information that is flattering to candidates. Search consultants
should pursue informal references from other sources as well.
Reference Checks:
References provided by candidates are important but
generally yield information that is flattering to candidates. It
is necessary to speak with informal references not provided by
candidates.
Referred Candidates:
It is common for clients to recommend candidates to
search consultants for on-going search engagements. Some
referred candidates may be senior managers working at
competitors or internal candidates who already work for the
client company. These people become part of the search
consultants' pool of candidates and are considered along with
others.
Reimbursable Expenses:
Executive search firms often incur a lot of
out-of-pocket expenses when sourcing, interviewing and
attracting senior level candidates on behalf of clients.
Executive candidates can be difficult to communicate with, are
concerned about confidentiality and may be located away from
clients. Therefore, such costs as communications expenses,
private meeting rooms, travel and so on are billed to clients.
Firms in some countries charge a flat fee of 10-20% for
expenses. Same as Expenses.
Relocation Package:
Employees who are transferred to another country for a
multi-year posting, are provided with moving expenses.
Expatriate managers relocated to Asia for multinational
companies are generally provided with relocation expenses for
themselves and families.
Replacement Guarantee:
Executive search firms should agree to replace hired
candidates who leave their positions within a certain period.
The usual guarantee period is between 6 and 12 months. Some
reasonable conditions may apply.
Research:
In executive search, research relates to the
investigative process of sourcing the names individuals who may
become qualified candidates of open positions. Research is an
on-going and time consuming focus of most executive recruiters.
Recruiter:
Professionals who specialize in sourcing and assessing
candidates for open positions and guiding the hiring process.
They act as intermediaries between applicants/candidates and
hiring managers.
Recruitment Process Outsourcing (RPO):
A category of business process outsourcing (BPO) where
employers subcontract a large portion of its talent acquisition
function to an outside service provider.
Regularization:
The process of converting a staff member to full
employee status and the employer accepts legal liability of the
person as employer-of-record.
Rule of Three:
A general rule for successful outcomes in executive
search projects is that 3 credible candidates need to be
interviewed 3 times by 3 different senior managers at 3
different locations.
Requirement:
Clients provide information about a position opening
specifying the description of the job to be done, title,
reporting relationships, skills required, experience and so
forth. (same as Job Order)
Restricted Shares:
Long-term incentive plans for senior managers now
include grants of company shares over periods of times called
vesting. Restricted share plans have become more popular than
stock option plans since there is a down-side risk for managers
and this is supposed to dampen excessive risk taking behaviour.
(Also see vesting)
Resume:
An official document prepared by job-seekers to
describe their career history, education and specific
qualifications. A resume carries legal standing and consequences
for dishonest representation can be severe for executive
managers. Resumes are usually 2 to 4 pages in length and can be
thought of as sales brochures for people creating them. Resumes
are often referred to as CV's (or Curriculum Vitae, Latin for
"path of life") but CV's are usually longer giving detailed
history of experience, presentations, publications, awards,
affiliations, etc. Resumes of 2 to 4 pages are most common in
Anglo Saxon countries and especially the United States. In
Europe, Asia and Middle-East, resumes tend to include much more
information and should properly be called CV's. Academic and
other public sector candidates tend to write CV's that are
lengthy because of their nature of their work.
Resume Floating:
The practice of sending raw resumes to organizations
that might have job openings and hoping for a quick placement.
The technique is mainly used by inexperienced search consultants
trying to break into a new client.
Retained Search:
The typical method of engaging experienced recruiting
professionals to source and assess executives for senior
management positions. The retained model is similar to those of
highly skilled professionals such as architects, accountants,
lawyers and so on. Services are billed monthly (retainers) for
the term of the contract -- usually 3 or 4 payments in executive
search.
Retainer:
Executive search fees are usually paid in monthly
instalments over an agreed upon period -- usually 3 or 4
payments.
Returnee:
People who lived and worked outside their country of
origin for a number of years and returned. Returnees may have
been posted abroad for an extended period or emigrated and later
decided to return to their country or origin. In emerging
countries, returnee managers are considered highly valuable
because they bring international experience to the home country
as well as strong local cultural understanding.
Ruse:
The practice of using deceptive tactics to acquire
intelligence about an organization's employees. Common tactics
include pretending to be conducting a study project or writing
an article and asking questions about employees' names, titles
and responsibilities. Rusing is usually used by inexperienced
recruiters and researchers, and is highly unethical.
Screening Interview:
An initial job interview that is meant to quickly
substantiate basic qualifications about a potential candidate.
Screening interviews are often conducted over the telephone as a
prelude to a more lengthy personal interview.
Search Process:
The procedure of sourcing and screening qualified
candidates for open positions. Recruiters typically start with a
so-called "long-list" of potential candidates that are
systematically winnowed down to a short-list of perhaps 4 to 6
who meet specific requirements of hiring managers. Candidate
assessment is time consuming and involves telephone and resume
screening, recruiter interviews, informal background checks,
client interviews and reference checking.
Semi-Active Candidates:
Semi-active candidates are usually employed but not
satisfied with their employers. Some are unstable job-hoppers
who change employers frequently while others are concerned about
the stability of their positions due to company reasons.
Semi-Active candidates are often in the early part of their
careers -- young people are naturally more transient as they
build their skills and experience.
Severance Pay:
Payments given to employees whose employment has been
terminated without cause. The amount varies by country but a
rule of thumb in many countries seems to be one month severance
pay for each year of service.
Sexual Harassment:
A legally-defined situation involving sexual advances
or sexually charged remarks or conduct in a workplace toward
females (typically). Sexual harassment can severely impact work
performance because of the hostile, intimidating environment it
creates. In so-called developed countries, strict laws prohibit
the behaviour. In emerging countries, the concept of sexual
harassment and laws to prevent it are not as well defined.
Shadowing:
A process of working closely with a more experienced
person to learn the skills required for a position before taking
on the role at a later time. Often used in emerging countries
when expatriate managers are hired to transfer skills to local
managers.
Shootout:
Process of choosing a search firm where sales
representatives from each short-listed firm are asked to make
presentations to a group of decision makers and a final
selection is made. Shootouts are used in a few very fast paced,
highly competitive environments in the world -- almost all in
so-called Anglo Saxon countries. In the rest of the world (and
especially Asia), long-term professional relationships are key
to acquiring business to doing business together and the
shootout model is rarely used.
Shortlist:
During the search process, a candidate long-list is
gradually reduced to a much smaller number of candidates in a
time-consuming procedure. The short-list is the group of
candidates who survive extensive screening, interviewing and
background confirmation, and are to be presented to the client.
Signing Bonus:
Payments given to newly hired executive managers to
ensure they join the new employer. Signing bonuses are most
commonly used to compensate executives for earnings they would
lose by leaving their current employer. A typical example is an
annual bonus that may not be paid for months in the future.
Managers may hesitate to leave employers because they will lose
rightfully earned compensation. In order to secure the hire, the
new employer commits to pay the amount owed as a signing bonus
on starting work or after an agreed period. Sometimes signing
bonuses are used to lure high value candidates and are
encumbered with retention requirements. (Same as Hiring Bonus)
Situational Interviewing:
Interviewers place candidates in hypothetical
circumstances and assessed by how they would solve problems and
exploit opportunities. Questions such as: "How would you deal
with an employee caught stealing?," and "What would you do to
increase sales of our products?," are situational interview
questions. Considered very useful by most hiring managers for
management candidates since they can ask often gain insight
about their own company problems and opportunities.
Social Recruiting:
Social media tools such as Facebook, LinkedIn, Twitter
and others are being used more and more to recruit candidates
directly and through the company's employee referral program.
Source:
A credible and knowledgeable person who may recommend
candidates for specific job openings.
Specialist Recruiters:
In large cities of most so-called developed countries,
search consultants specialize their practice in certain
industries or functions (for example: banking, manufacturing,
consumer goods, accounting, HR, IT). Most large search firms
employ numbers of recruiters and specialization is necessary.
Small boutique firms in large markets also typically specialize
in narrow services. Outside of the world's major commercial
centres, generalist search consultants are most common. The
simple reason behind this is that over-specialization in smaller
search markets can lead to impoverishment of search consultants.
In the emerging countries of Asia, most search consultants are
generalists although they will commonly declare themselves to
have certain "areas of focus."
Staff Augmentation:
Term for using temporary workers to increase the number
of people working on a specific project for a defined period of
time.
Staffing Firm:
Staffing firms focus on providing temporary help or
contract workers to clients for fixed periods. Recruiting firms,
on the other hand, source, assess and refer qualified candidates
to be hired as employees by client organizations.
Statement of Work (SOW):
The formal contract between a staffing firm and the
client specifying the chosen contractor's identification
information, hourly rate, working hours, deliverables and so on.
Stick Rate:
Measures the percentage of placed candidates who remain
in their positions after the trial period.
Stock Options:
A type of financial incentive given to key employees to
reward them for the performance of their company's share price.
Stock options give employees the opportunity to acquire company
shares at a fixed price. If share price increases above that
price, employees can make a profit when stock options are
exercised. For example, if employees are given stock options for
100 shares at $10 exercisable in 1 year and the price goes to
$15 at the end of the year, the employee can earn a profit of
$500 ($15 - $10 times 100 shares). Stock options have gotten a
bad reputation as a cause of risky management behaviour and are
giving way to restricted shares as a long-term incentive.
Stress Interviewing:
Interviewers deliberately place candidates in
situations of stress to see how they react. They may keep
candidates waiting in the interview room, ask argumentative
questions and behave in an aggressive manner. Stress interview
tactics are used in industries and locations that are highly
competitive and confrontational in their culture. In Asia where
relationship building skills are highly valued, stress
interviewing is infrequently used.
Suspect:
A person identified in a preliminary manner as a
possible candidate to fill a search assignment but who may or
may not be determined as qualified or interested until more
information is found.
Industry Map:
Recruiters specializing in certain industries or
functions often build an organizational chart for each company
in their target industries and, through on-going research,
collect detailed information about each person in senior
management positions.
Temp-to-Hire Staffing:
The process of hiring a temporary staff member and
transferring them to regular employee status. The company
becomes the employer-of-record and access legal employment
responsibility of the person. The process is most used for lower
level staff but is sometimes used for when interim executives
are highly effective and wish to remain with an employer.
Temporary Staffing:
Contractors providing services to a client organization
although legally employed by a staffing agency.
Termination:
Dismissal of an employee can take different forms and
employment laws in most countries dictate its manner.
Termination with cause is usually the result of a significant
violation such as dishonest conduct, deliberate disobedience,
serious neglect of duties, etc.). In such cases, the terminated
employee is not entitled to separation pay or notice.
Termination without just cause means the employee is being
terminated for reasons not having to do with misconduct and
severance pay is usually defined by law.
Test Candidates:
When position requirements might be unclear, executive
recruiters will sometimes present a range of candidates to
hiring managers to get their reaction to the work being done and
guidance on where to target.
Timing:
The length of the search engagement is sometimes
specified in advance by the search firm. Typical executive
searches require 2 to 4 months with roughly 1-2 months for
candidate sourcing and appraisal by the search firm and 1-2
months of interviews and assessment by client decision-makers.
Notice periods are usually longer for senior executives -- 30
days is often the minimum in Asia.
Total Compensation:
Executive compensation can include an assortment of
cash and non-cash, guaranteed and variable components. Base
salary may comprise only 50-60% of total income. Other
compensation may include the following: annual bonus, long-term
incentive plan, profit sharing, restricted share plan (or stock
options or phantom shares), signing bonus, executive health
insurance, pension plan, life and disability insurance. In Asia,
senior executives and especially expatriates can also be
provided with an automobile (plus fuel and driver), private
school fees for children, air-flight to home country for entire
family, club memberships, housing allowance, housing loans and
hard-ship bonus.
Unbundling:
Some service providers offer components of full
recruiting services individually. Examples are firms that
provide name sourcing (often called research) and assessment
services.
Unethical Research:
Practices that involve deceptive techniques such as
misrepresenting the caller or the purpose of the call are
unethical and unprofessional, and not acceptable by most
experienced professional recruiters. (Similar to Rusing)
Vesting:
Most long-term incentive plans involving shares (stock
options, restricted share, etc) are given in specified dates to
encourage retention of key employees. Vesting schedules
typically specify that employees can exercise a portion of their
share plans each year over a 3 to 5 year period.
Hiring
Leaders
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Executive Search
& Management Consulting:
Chalre
Associates provides its Executive Search and Recruiting services throughout the emerging countries of the Asia Pacific
region with specific focus on Philippines, Singapore, Malaysia, Indonesia, Vietnam, Cambodia, Laos. We are
proactive and well known in our sectors of focus. Regional
Managers use us to help bridge the gap between local environments and
the world-class requirements of multinational corporations.
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Asia
CEO Forum
Asia
CEO Forum presented by PLDT ALPHA Enterprise is the largest
regular business event in Philippines and considered one of the most
important in the Southeast Asia region. The forum serves as a hub
for the spreading of ideas that help executive managers overseeing
enterprises across the Asia Pacific region.
Attendees are both expatriate and Asian management personnel
overseeing multinational and regional organizations. Held in
Philippines, presenters are leaders in their industries and engaged
in momentous pursuits of significance to the entire region.
Asia
CEO Forum is operated as a CSR (Corporate Social Responsibility)
activity of Chalre Associates, one of Southeast Asia's most
prominent senior management executive search firms, to promote
Philippines as a premier business destination in the Asia region.
Click
Here to go to Asia
CEO Forum now!
Asia
CEO Awards
Asia
CEO Awards presented by Aseana City represents the grandest
alliance of local and international business people ever created to
promote Philippines on the world stage. As one of the largest events
of its kind in the Asia Pacific region, it is considered a
must-attend occasion for business leaders active in Southeast Asia.
The star-studded Board of Judges of Asia CEO Awards give away
10 awards to many of the most accomplished leadership teams and
individuals currently operating in Philippines and the region. The
awards recognize extraordinary leaders who have demonstrated
outstanding achievement for their organizations and contributions to
others.
As one of the fastest growing nations on the planet, the world's
business leaders have their eyes on Philippines like never before.
The annual gala was established as a natural outgrowth of Asia
CEO Forum, the largest regular networking event for the business
community in Philippines.
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SPECIAL DOWNLOADS:
Media organizations
throughout the world call upon the Principals of Chalre Associates for thought leadership.
Below are some examples of published material written by our
consultants or international journalists who refer to them. For a complete list of published work,
Click Here.
Getting Ready For The
Deluge: Outsourcing in Philippines
by
Chalre Associates senior staff
Download
[PDF
file, 62KB]
The
Economist Intelligence Unit of the Economist magazine
asked Chalre Associates' Chairman, Richard Mills,
to write a chapter about the Philippine outsourcing sector
in its annual Business Guide Book. The material
provides a Executive Briefing on the progress and major
issues facing this industry that is certainly one of most
significant growth stories in the world.
more
Asia Pacific Mining
Conference 2007 - Report
by
Chalre Associates senior staff
Download
[PDF
file, 28KB]
The 7th Asia Pacific Mining Conference put on by the Asean
Federation of Mining Associations was perhaps the largest
such event in the region. Richard Mills, Chairman of Chalre Associates
gave this report on what was said by the prominent mining
people who presented.
more
The
State of BPO in Philippines: Dan Reyes Speaks
by
Chalre Associates senior staff
Download
[PDF
file, 31KB]
Richard
Mills, Chairman of Chalre Associates,
interviewed Dan Reyes of Sitel for ComputerWorld (US) recently to get
his views on the state of the BPO industry in Philippines. Dan
presented US readers with compelling information to support his view
that Philippines is currently seen as the "Number 1" option by global
companies sending BPO work to offshore destinations.
Dan Reyes is easily one of most experienced Business Process
Outsourcing (BPO) managers in the Asia Pacific region and the world. He
is head of the extremely successful Philippine operations of Sitel, the
world's largest call center organization. Among other things, he is a
founder and former president of the Business Processing Association of
the Philippines. more