Hiring a nightmare right now, especially with every startup calling for the same hotshot candidates. Founders are juggling too much, and that includes playing Head of Talent. Is an executive search firm worth the cost? As someone who’s been through this myself, here’s a breakdown to help you decide:
The Sticker Shock Reality
- Contingent Firms: 25% of the hire’s entire 1st-year salary. Ouch. Works better for mid-level hires, not a rockstar VP.
- Retained Firms: Essentially 1/3rd of salary upfront, even if they DON’T find anyone. $85k minimum is the norm.
This can be a hard pill to swallow when you’re bootstrapped. But let’s not panic…
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What Do You Get for the Price Tag?
A good firm takes over the grunt work. That means:
- Deep Company Study: They learn your culture, product, EVERYTHING so they can sell the dream as well as you do.
- Targeted Shortlist: Instead of sifting through junk resumes, you’re introduced to 10+ pre-vetted, interested candidates.
- Closing Hand-Holding: Offer stage nerves? They’re pros, they’ll walk you through it. Plus, they do back-channel reference checks so there are no surprises.
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But Can’t I DIY This Stuff?
Yes and no. It depends what talent you NEED versus what you already excel at hiring in-house:
- Tech-Forward Founder? Bet you have a good network of engineers. Focus your efforts there. Outsource the rest.
- Not getting traction on postings? Most hires DON’T start with applying. You need to find them and sell them – this takes dedicated time.
- Market Mapping: It’s boring, but crucial. Tools like OpenView and Lumascape lay out your competitor and talent pool.
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My 3 Essential DIY Hiring Hacks
- Targeted = Better Than Generic: 200 random applicants are noise. 20 hand-picked candidates are gold.
- Ego-Free Outreach: This isn’t about you, it’s about THEM. Spark curiosity before bombarding them with a job description.
- Sell The Dream: They have options. Why is YOUR company worth their time? This is your superpower, use it.
Bottom Line:
There’s no silver bullet in this talent war. BUT, getting strategic helps. Can you afford a firm? Will they find someone you couldn’t? Be honest with yourself about those answers.
Need Help Weighing the Options? Let’s chat. I’m happy to offer some personalized advice for your specific situation.
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