A retained executive search firm will have multiple ways to prove their usefulness as they help place a candidate. For example, knowledgeable recruiters familiar with the task of placing different positions will have an informed perspective on CEO compensation. This understanding will be useful for executive hiring managers who need to find someone quickly who will accept a certain level of payment.
For every business, the amount that a CEO makes in salary will vary, and in some cases the incoming c-level hires may expect to have a different payment package than their predecessors. Finding the individual who will work with a company's compensation expectations is part of the benefits businesses get from using a tailored executive search experience with a recruiter fully dedicated to them. Many times however it is supply-and-demand driven: the more in-demand a specific candidate its, the more (higher) a pay-package usually is.
Making a sudden change in the rate of compensation is sometimes enough to drive more attention toward a company and its particular employee hierarchy. Dan Price, the CEO of Gravity Payments, recently gained press attention for announcing that he would take a massive pay cut in order to allow his employees to earn more. The Los Angeles Times reports that his pay will be $70,000 within two years: previously, it was closer to $1 million. This, however, is an exceptional situation.
However, it's possible that this sort of dramatic executive pay cut is not feasible for certain businesses or their c-level staff. The key is knowing the specific financial situation of a business and locating an executive candidate who is receptive to a proposed payment plan.
Whatever that plan is, locating someone who agrees with the salary is a sign that the company has found the right candidate. The in-depth service given by a retained executive recruitment firm will focus on traits that fit with employer expectations more than a contingency firm would.
The market feedback we give in the course of each search is also of great value in determining the proper pay rate. This is collected from potential candidates and fed back to the client-company. After 3-4 weeks the client (or board) will then have a pretty good idea what potential candidates do command in terms of pay.
Finding people is easy, but finding the RIGHT people is not. YES Partners helps companies FIND the right people – for all company functions, across many industries and globally.
