Latest / Executive Careers with Fexingo: VP, C-Suite, and Senior Leadership Career Strategy / How Senior Leaders Navigate Executive Search Firm Relationships
Transcript
- Lucas: Luna, when was the last time you actually thought about the executive search firm you're working with? I don't mean the recruiter's name — I mean the firm's business model, their incentives, how they get paid. Luna: I'll admit, I usually just see them as the gatekeeper to the job. But you're saying there's more to it? Lucas: There's a lot more. Here's a number: a 2025 study from the Association of Executive Search and Leadership Consultants found that nearly 80 percent of C-suite placements come through search firms. But most executives don't know how to really leverage that relationship. Luna: And that's exactly the kind of insider knowledge we try to give you here — without any commercial interruption. If you find value in these conversations, consider supporting the show at buy me a coffee dot com slash fexingo. Lucas: It's what keeps us ad-free — we believe in delivering real insights without the noise. So, back to search firms. The first thing you need to understand is the difference between retained and contingent search. Lucas: In a retained search, the company pays the firm a fee upfront — typically one-third of the candidate's first-year compensation. The recruiter is exclusive, and they're expected to do a deep dive into the market. When a recruiter calls you for a retained search, you know it's serious. Luna: And contingent search — that's when the recruiter only gets paid if their candidate is hired, right? Lucas: Exactly. Contingent recruiters often work on multiple searches at once, and they may send your resume to dozens of companies without your specific permission. That can damage your reputation — your company might learn you're looking before you're ready. Luna: So how do you tell which kind of recruiter is reaching out to you? Most won't volunteer that information upfront. Lucas: You ask. Say, 'Is this a retained or contingent search?' A retained recruiter will tell you proudly. A contingent recruiter might hedge. Also, check their website. If they only do retained work, they'll say so. If they do both, assume it's contingent unless they clarify. Luna: And once you know, how do you actually build a relationship with a recruiter that pays off over time? Lucas: Think of it like a long-term investment. You want to be on their radar for the right roles, not just the ones that are open today. So when a retained recruiter reaches out, even if you're not interested, take the call. Share your career narrative, your criteria, and ask about the market. Lucas: One senior VP I know does this: she maintains a relationship with six key retained recruiters. She checks in with each one every quarter, gives them a heads-up if she's open to new opportunities, and asks if they see any patterns in the C-suite landscape. That way, when the right role appears, she's top of mind. Luna: Six recruiters — that's a lot. But I see the logic. Most executives only talk to one or two, and then they feel stuck if those don't pan out. Lucas: Exactly. Another risk is exclusivity. Some search firms will ask you to sign an exclusivity agreement before they present you to a client. That can be a trap. If you're exclusive with one firm, you lose the ability to be considered through other channels. Luna: So what do you do? Refuse to sign? Lucas: You can negotiate. Say, 'I'm happy to work with you as my lead representative for this particular search, but I want to keep the door open to other opportunities.' Most reputable firms will accept that. If they demand absolute exclusivity, that's a red flag. Luna: I've also heard that some executives use search firms to get board seats, not just executive roles. Is that a different dynamic? Lucas: Completely different. Board placements are almost always retained, and the recruiter is looking for a specific profile. If you want a board seat, you need to let recruiters know you're interested. But don't expect them to work for you — they work for the company. Lucas: One way to signal interest is to serve on a smaller board first, or join a non-profit board. That gives recruiters proof that you can operate at the governance level. I know a former CFO who got on a Fortune 500 board simply because he had built a relationship with a board recruiter over three years. Luna: And that brings up another point — how do you handle the initial conversation so you don't sound desperate or too eager? Lucas: You control the narrative. Instead of saying, 'I want to leave my job,' say, 'I'm exploring opportunities where I can apply my experience in growth-stage companies.' Set criteria for what you're looking for: culture, industry, size, stage. Recruiters respect clarity. Lucas: Also, never badmouth your current employer. That's an instant turnoff. Instead, frame your move as a pull toward something, not a push away from something. Luna: And what about follow-ups? How often should you check in without being annoying? Lucas: I'd say once per quarter for retained recruiters, maybe less for contingent. But the content of the check-in matters. Don't just say, 'Hey, any roles?' Share something of value — an article, a market observation, a new certification you've earned. That keeps you top of mind as a thought leader. Luna: So it's really about building a two-way relationship. The recruiter gets insight from you, and you get access to their network. Lucas: Exactly. And here's a final point: when a retained recruiter does present you to a client, the relationship can be very formal. You'll go through multiple rounds of interviews, often with psychometric testing. The recruiter will prep you, but you also need to do your own homework on the company. Lucas: One VP I know lost a shot at a COO role because he didn't research the board's priorities. The recruiter told him later that he seemed out of touch. So always ask the recruiter: 'What's the biggest challenge the CEO is facing right now?' If they don't know, that's a warning sign. Luna: That's a great question. So bottom line: treat search firms as strategic partners, not just transaction points. And be proactive about cultivating a network of them. Lucas: Right. The 80 percent statistic means you can't afford to ignore them. But you also can't afford to be passive. Own the relationship, and you'll own your career trajectory. Luna: Next time, let's talk about how to handle counteroffers — because that's another minefield. But for now, thanks for listening. Lucas: And remember, if this helped, consider supporting the show at buy me a coffee dot com slash fexingo. Keeps the insights coming ad-free.