Today’s sophisticated executive placement agency isn’t just about the nuts and bolts of finding people to match with job openings. It’s become far more proactive, working with company clients not just to place executive talent but to provide such ongoing services as executive coaching, talent retention, leadership development and succession planning.
Businesses from startups to corporations have found it advantageous to let an executive placement agency handle their talent acquisition and human resource staffing. These outside experts can also provide restructuring consulting guidance that average executive staffing agencies are unequipped to offer.
According to an estimate by the U.S. Department of Labor, a bad hiring decision can cost a business an average of 30% of the potential earnings for the first year. An executive placement agency with the ability not only to find the right person but to stay involved with ongoing services in support of that employee and the company can vastly improve the rate of retention, which 57% of organizations view as a problem. It’s been shown that if new hires participate in a structured on-boarding program, they are 58% more likely to be on the job three years later.
An effective executive placement agency has done its research and knows the evolving needs of today’s employees. 53% of Millenials express a desire to move into the top spot where they currently work, and 79% prefer working for a boss who’s more of a coach and mentor. The vast majority of them (88%) prefer a collaborative environment as opposed to a workplace culture of competition. The same percentage want and expect what might be called “work-life integration”, whereby there’s more a blend of both than a balance of the two.
With the cost of employee turnover ranging from 30 to 150% of an employee’s salary, it’s wise for any company to employ the services of executive search consultants rather than taking a chance on making an costly mistake.