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Jones-Parker/Starr
Strategic Consultants to Human Resources and Executive Search Consulting Firms
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Press ReleaseIs It Time to Move the Executive Search Process Inhouse?Jones-Parker/Starr Asks the Fortune 500s if this is a Viable Option
Chapel Hill, North Carolina - March 3, 2000 - The hiring frenzy in the new millennium is creating a talent drain and causing some of the Fortune 500s to think about the best ways to deal with the competition and demand for superior executives. Venture capital firms with portfolio companies and new start-ups with volume hiring needs must attract quality management. All are casting an eye at the feasibility of creating an inhouse function to take care of their staffing needs.
Over 158 Human Resource executives offered opinions on inhouse search capability in a recent survey conducted by Jones-Parker/Starr, search consultants serving the executive search profession. Slightly less than half (46%) of the firms surveyed indicate that they have already established a form of inhouse capability by hiring recruiters from recruiting firms. A small group (6%) is considering this option and almost one quarter (23%) feel that inhouse search capability makes no sense. Few (2%) say they have tried it, but it did not work. [See the "Concept Appeal of Inhouse Executive Search Firms" graph].
Janet Jones-Parker says, "In spite of the confusion about language and the definition of inhouse search capability, as evident in the number of respondents who said they are satisfied with their 'staffing departments,' it is clear that moving executive search inhouse is an option gaining consideration. We know that experienced search consultants are being recruited into corporations and venture capital firms."
As expected, cost is a significant reason to consider the inhouse option, with almost half (39%) pointing to dollars as a prime motivator. Faster hiring results (24%) and greater familiarity with the culture (24%) were sited as important reasons for bringing the search function inhouse. [See the "What Criteria Most Influences the Decision to Develop an Inhouse Search Firm?" graph].
As to whom the corporations would bring in to staff this position, a healthy majority (57%) identify experience in retained executive recruiting as the most desirable background followed by experience in contingency work (22%). [See the "What Background is Most Suitable for a Corporate Staffing Position?" graph].
Jones-Parker notes, "Retained search consulting experience is usually better preparation for these positions. Retained consultants are accustomed to working in highly sophisticated, complex situations with top management. They know how to determine the fit between experience and talent on the one hand, and culture and organizational need on the other. They bring superb listening skills and objective judgment to the task."
While acknowledging that the Internet will play an increasingly important role in the selection of employees (69%) below the $150K salaries, outside executive recruiting will continue to be an important factor in the talent wars ahead. Traditional search firms will be happy to learn that the vast majority of the respondents (93%) still feel that external consultants can attract better talent at the senior management levels. [See the "Strengths and Weaknesses of Executive Recruiters" graph].
Jones-Parker concluded, "Talent will rule. The recruitment process, both external and internal, will continue to need fine-tuning so that companies can attract the highest quality talent available. There is a possibility that talent agents will become gate keepers and managers similar to the sports agent."
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