When an employer has a need for senior or highly trained people, they will approach an executive search firm, generally offering the agency exclusive rights to work on the placement, typically on a retained basis.
Before discovering and communicating with possible candidates, the external agency will obtain a deep grasp of what the employer needs in terms of competence and character. These are most likely passive applicants who are already in a position.
Executive Search firms are, in contrast to contingency recruiting, paid an upfront fee before getting further compensation after the successful placement. Typically, the client is also charged a fee to reach and present a shortlist of suitable candidates, and ultimately, the placement of the right person either at the start of their subsequent employment, or after the probationary period.
While the costs may seem steep – even relative to contingent recruitment – the focus and additional expenses incurred; like international travel, advertising, and engaging external parties for psychometric assessments or the like, are all common parts of an executive search process.