David Versus Goliath:  The Case for Boutique Search Firms

The executive search industry can be divided into two camps.  On one extreme are a handful of mega-firms, some of them publicly-held, with well known brand names and revenues in excess of $500M per year.  On the other are a multitude of boutiques, most of which specialize in a specific industry or function. 

We believe strongly that most client companies get better results by partnering with the right boutique.  Here’s why:

• The Person You Hire Does the Work
  When you engage a boutique, you are dealing directly with the person who will work on your project.  In contrast, at big search firms, like other large consultancies, senior partners typically sell projects, and junior employees do most of the work.  Often your search is executed by people you have never met, and who have minimal knowledge of your company.
  
• Access to More Candidates
  Executive search firms have an ethical (and usually contractual) obligation not to recruit from clients.  Boutiques can access more candidates because they have fewer off-limits companies.  Big search firms have significant off-limits constraints, which limits the pool of candidates. 
  
• In-Depth Knowledge of Your Company
  Because boutiques have a business model that enables them to form a genuine partnership with you, they are usually better at selling your opportunity and assessing candidates. 
  
• Smaller Work Load
  Principals at big search firms carry heavy search loads that make it difficult to deliver results for clients.  In contrast, principals at boutiques typically work on fewer projects, devoting far more time and attention to each one.
  
• Higher Completion Rates
  Boutiques have higher completion rates than big firms.  Completion rates at big search firms are commonly acknowledged to be in the 60% to 65% range.
  
• Your Project Matters to a Boutique
  If your company plans to do more than ten searches a year, you may have enough leverage to get the attention you deserve from the big search firms.  But if your needs for search are more modest, you will get better service and a more focused effort from a boutique. 

In summary, bigger is not better in executive search.  In fact, big search firms face significant obstacles to client service.  Large scale makes it easier for search firms to build their brands, but does not provide value to clients.

The next time you need to use executive search, consider a boutique that specializes in your business.  When evaluating vendors, look past the gravitas of name brands and critically evaluate the quality of service you will receive.