2012 Retained Executive Search: The Associates
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1 2012 Retained Executive Search: The Associates Sponsored by the Executive Search Research Consulting Group Underwritten by Strategic Research Solutions January 2013
2 January 2013 The Executive Search Research Consulting Group (ESRCG) is the community of executive search professionals who source for talent and/or began their career this way. ESRCG is about facilitating real, inperson connections without the formalities of a traditional industry association. Members work in retained executive search, as freelancers and as internal talent acquisition and search teams. Strategic Research Solutions, founded in 2002, assists executive search and recruiting firms with name identification and candidate development services. It also provides strategic research supporting human resources, recruiting, sales and marketing. Thank you for participating in Executive Search Research Consulting Group s survey of associates within retained executive search firms. From time to time there have been surveys of the search industry, but those surveys have focused on the partners or billers, or on the firms themselves. There has not been an emphasis on the associates. For someone starting in their search career there have been few resources like this available. We hope that you find this information to be a useful starting point for evaluating your compensation, workload and career plans. Daniel Ebbert Founder and Moderator Executive Search Research Consulting Group
3 Participants 206 people completed the online survey in October and November Those who identified as freelance researchers, as internal search, in contingency search, or as a partner of a firm were excluded from this report % North America 18.5% Europe 5.5% Asia Pacific <1% Balance Canada <5 Mexico <5 Alabama <5 California <20 Colorado <5 Connecticut <5 Delaware <5 Florida <10 Georgia <5 Illinois <5 Kentucky <5 Massachusetts <5 Maryland <5 Michigan <5 Minnesota <5 Missouri <5 New York <20 New Jersey <4 North Carolina <5 Ohio <10 Pennsylvania <10 Rhode Island <5 Texas <15 Virginia <5 Washington State <5 Austria <5 Belgium <5 United Kingdom <10 Netherlands <5 Norway <5 Poland <5 Russia <5 Finland <5 Germany <5 Ireland <5 China <5 New Zealand <5 Hong Kong <5 India <5 Singapore <5 South and Central America <5 Contact Information Daniel Ebbert Strategic Research Solutions, LLC 1121 N. Bethlehem Pike, Suite Spring House, PA USA 1 (215) dan@strategicresearchsolutions.com This document, created by Strategic Research Solutions LLC. No part of this document, created by Strategic Research Solutions LLC, may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying or recording, or by an information storage or retrieval system, without the express written permission of Strategic Research Solutions LLC.
4 Table of Contents Which Type of Associate Are You? Where Associates Work The Candidate Developer The Name Identifier The Knowledge Manager Specialization and Compensation
5 Which Type of Associate Are You? We estimate that there are approximately 4,000-6,000 associate level employees of retained executive search firms around the world. Generally associates fall into a few types: Candidate Developers They approach, screen and entice candidates. Common titles are Associate, Senior Associate, Jr. Consultant. Name Identifiers They find and identify names for a candidate developer to call. Common titles are Research Associate, Associate, Research Analyst. Knowledge Managers They collect and organize company information and play a strategic role supporting business development. Common titles: Knowledge Manager, Director of Research, Knowledge Analyst. Many firms have only one role; the Associate. For many associates identifying someone to call is not a separate responsibility. It is simply part of the work. If assistance is needed identifying people a directory or membership may be acquired. Larger firms are the ones most likely to make the distinction between the three roles. In this survey an associate who does his/her own name identification is grouped with Candidate Developers.
6 Where Associates Work: Size of the Organization The vast majority of retained search firms are small. associates work in small to medium sized firms. The majority of Small Firms those with one office and possibly remote work from home situations Medium Firms those with 2-9 offices Large Firms those with 10 offices or more These small firms also have only a couple billers or partners. The average associate in a search firm therefore has a limited amount of direct peers.
7 Where Associates Work: Level and Fee Levels Search firms typically focus upon the relative level of the executives with whom they interact to explain their services. Most search firms work on open positions at the Director or Vice President level. To keep projects at an appropriate level and to fight pressure to take on lower level projects many firms have a minimum fee.
8 The Candidate Developer Common titles: Senior Associate, Executing Consultant, Junior Consultant, Associate Candidate Development is the primary goal of most associates in executive search. Larger search firms often divide associate responsibilities further giving one associate primary responsibility for identifying the potential candidates so a more senior associate can focus on approaching them. Industry intelligence and business development research support is sometimes further specialized into the role of a Knowledge Manager. In many firms the candidate developer has no additional support.
9 The Candidate Developer Most candidate developers would like to become a partner or principal of the firm in time. The most desired skill to learn among candidate developers is sales followed by a desire to effectively utilize social media tools.
10 The Candidate Developer Among the associate roles in a search firm the Associate or Senior Associate generally works the longest and most erratic hours. The average Associate starts at the office between 7:30 and 8:30 am and leaves between 5:30 and 6:30 pm. Over 45% report working on projects over the weekend. Since the candidate developer is the primary associate on a search assignment they tend to carry a high amount of open positions.
11 The Candidate Developer Base Salaries (Associates and Senior Associates) Less than $70,000 annual Greater than $70 and less than $90,000 Greater than $90 and less than $110,000 Greater than $110 and less than $130,000 Candidate Developer Salaries (Global) Generalist Specialist Highest Reported $ 125,000 $ 125,000 75% $ 90,000 $ 110,000 Mean Average $ 59,900 $ 74,105 25% $ 40,000 $ 70,000 Lowest Reported $ 30,000 $ 19,000
12 The Candidate Developer Bonus, or incentive pay is also a key component of compensation. Candidate Developers receive a higher percent of incentive compensation than their counterparts: Knowledge Managers and Name Identifiers.
13 The Candidate Developer Incentive compensation is generally paid annually or quarterly. For most candidate developers a bonus is under 30%.
14 The Name Identifier Common titles: Research Associate, Research Analyst, Associate, Research Assistant Essentially a name identifier finds and gathers contact details and background information on people likely to be qualified for a role so that another member of the team can determine if they should be called. Name identifiers often play a role in planning where to look for candidates and also in research supporting business development efforts.
15 The Name Identifier For most name identifiers leveraging social media, and searching the internet are the two most valued skills. In many organizations a Name Identifier role is an entry role within the firm. Most name identifiers report simply improving or advancing as their primary objective. Many name identifiers either do not aspire to a partner level role.
16 The Name Identifier Name identification work is traditionally handled during regular business hours. Internet research or social media research can be saved for off hours but there are limitations to what can be done in the evening. Name Identifiers report a slightly shorter work day with fewer hours than a candidate developer. The average name identifier begins the day between 8:00 and 9:00 am and ends it between 5:00 and 6:00 pm. Only 13% reported working at home after dinner but 47% reported working on projects over the weekend. Name identification work is also most often involved at the front end of an assignment and is handed off to a candidate developer. As a result the amount of report open projects is lower than for a candidate developer.
17 The Name Identifier Average Salary for a name identifier globally was $47,933 annually. Less than $50,000 Greater than $50 but less than $75,000 Greater than $75 but less than $100,000 Greater than $100,000
18 The Name Identifier For the most part an associate focused on name identification is paid on salary. If a bonus is available it is generally under 20%. The bonus often is highly discretionary and based both the subjective evaluation of a managing director, and the overall performance of the firm. Amazingly 30% of those surveyed were unclear about even being eligible to receive a bonus.
19 The Name Identifier Bonuses for name identifiers are essentially paid annually. Bonuses are rarely over 15%.
20 The Knowledge Manager Common Titles: Director of Research, Knowledge Manager Knowledge Managers tend to be found in the larger retained firms.
21 The Knowledge Manager Knowledge of industry, news, competitive information and target list development dominate the responsibilities of a Knowledge Manager. Generally they do not have aspirations for being a partner and are not expected to have them. Of the three types of associates knowledge managers have the longest tenure both in the role and in search. Desired skills are knowledge of industry followed by social media skills.
22 The Knowledge Manager Knowledge Managers surprised us in their reported hours. An average Knowledge Manager begins the day between 7:30 and 8:30 and it ends at about 5:30 pm to 6:00pm. 100% of participants reported working on projects after dinner and 60% reported working on projects over the weekend. Knowledge Managers play a more strategic role in assisting on searches typically at the start of the project. They usually remain available for consultation so they report a high amount of active projects.
23 The Knowledge Manager The average salary of knowledge managers surveyed was $70,833 globally. More than $75 but less than $100,000 More than $100,000
24 The Knowledge Manager Most receive a bonus, but it is most aligned with quality measures, managerial discretion and company performance.
25 The Knowledge Manager Typically a modest bonus under 15% is paid annually or quarterly.
26 Specialization and Compensation The level of position or size of search fees actually has little correlation to compensation of associates within retained search. It is industry specialization by an associate which has the clearest impact on compensation Average Candidate Developer Salaries Against Firm Minimum Fee (Global) Minimum Fee Base Salary $70,000 + $ 81, $ 84, $ 79, $ 83, $ 59,804 Candidate Developer Salaries (global) Generalist Specialist Highest Reported $ 125,000 $ 125,000 75% $ 90,000 $ 110,000 Mean Average $ 59,900 $ 74,105 25% $ 40,000 $ 70,000 Lowest Reported $ 30,000 $ 19,000
27 Stay tuned for as we study the other groups who make up our membership Freelance and Independent Researchers Survey starting February 2013 Talent Acquisition and Internal Executive Search surveys by industry sector begin March 2013
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