It goes without saying...
Most employers understand that finding and attracting the best talent is critical to any organisation. However, not all jobs are equal, and some technical, specialist, and leadership roles can make a bigger impact on performance and outcomes than others.
So, what’s the right approach? The chosen method can make all the difference. Whether you’re looking to fill a specialist position or secure top-tier leadership talent, understanding the different strategies available will help you make the best decision for your company’s needs.
In this blog, I look at two key approaches to hiring—executive search and recruitment—and some of the different options that are emerging. Both approaches are valid and have their place, depending on a range of factors like the role, desired timeline, and budget. This should provide a clearer picture of which approach is best suited to specific situations and what will best help lift business performance.
The executive search and recruitment industries are different; they have their own operating models and industry associations respectively (AESC and RCSA). There are, however, some grey areas and crossovers—particularly when it comes to executive search and executive recruitment. So, what’s the difference?
What Is Executive Search?
Executive search is a specialist professional service that is research-intensive and focuses on proactive sourcing and headhunting, rather than relying on passive sourcing methods. Search is used to identify and attract C-suite, board, leadership, and senior management professionals for specific and critical leadership positions.
These roles often play a key role in the organisation’s success, which means there is usually a demand for high levels of subject matter expertise (either industry and discipline), and proven leadership capability. Executive search professionals often bring deep industry knowledge, strong professional networks, and the credibility to approach passive candidates who are not actively looking. This requires capability in research, assessment, storytelling, and relationship management—the ability to bring top talent to the table, and beyond.
Executive search providers typically:
Work on a retained basis with partial payment at different stages
Take a thorough brief and develop a tailored sourcing strategy (onshore/offshore)
Undertake extensive market research and mapping
Discreetly contact potential candidates identified through research and networks
Tell a compelling story about what makes the company, role, and opportunity attractive
Screen and assess candidates using behavioural and skills-based interviewing
Conduct or facilitate psychometric assessments
Manage referencing, probity, and background checks
Support onboarding and offer negotiations
With the right consultant and a tailored strategy, you should be able to find the right talent and have confidence that you have the best available people in the market to choose from.
There is a grey area in New Zealand. There aren’t many genuine global executive search companies left with a strong local presence, and many executive recruitment firms also operate in this space—particularly when recruiting for smaller organisations.
Executive search firms tend to be more expensive (in some cases double what you might pay compared to an executive recruiter). Timelines are often longer, and the approach can be quite cookie-cutter, with limited flexibility: “This is how we work; take it or leave it.”
An Important Feature of Executive Search: Risk & Confidentiality Management
One important distinction often overlooked is the level of confidentiality and risk management that executive search firms provide—particularly for sensitive leadership transitions.
Search firms are frequently engaged when:
The incumbent is still in the role
The organisation cannot publicly advertise
Competitor sensitivity is high
Market messaging needs to be carefully managed
The appointment may impact investors, partners, or strategic direction
Search firms manage these risks through discreet research, targeted outreach, controlled communication, and professionally managed processes designed to protect both the employer and the candidates involved. While not every SME requires this level of discretion for every leadership hire, it can be crucial in certain scenarios.
What Is Recruitment?
Recruitment is many things and is a key part of most organisations’ talent acquisition strategies. It is more flexible and covers a wide range of hiring scenarios, from entry-level through to senior leadership, and can be delivered in-house or outsourced.
External recruiters vary depending on the market and the types of roles they recruit. For example, IT recruiters tend to work on a contingent basis (fee for successful placement) and often work on multiple roles across several clients. This is very candidate-led, and recruiters may “reverse market” strong candidates into opportunities. No fee is payable without a successful placement but there’s less process and commitment from the recruiter.
Other recruiters in different markets work on a retained basis (like executive search), but there might not be a dedicated research function in these firms. It is less expensive, and timelines are shorter.
Recruitment processes may include similar steps to search, but often with:
A less thorough upfront briefing
Less structured in-depth research and market mapping
More passive or network-driven sourcing
Faster assessment processes
Reduced depth in screening
Incentives that favour speed over thoroughness
This can lead to more transactional behaviour, particularly in contingent recruitment firms where speed-to-present is prioritised to secure the fee.
Choosing Between Executive Search and Recruitment
The approach organisations choose will depend on factors such as:
Budget
Role criticality
Required depth of assessment
Timeline pressures
Stakeholder expectations
Risk level and confidentiality needs
Consultant relationships
Industry complexity
Talent scarcity
Perception also plays a role. For C-suite positions in large, listed organisations, risk, reach, and brand perception often influence the decision. I have seen organisations pay exorbitant fees to global search firms when a well-connected and capable local recruitment consultant could have delivered the same shortlist for a fraction of the cost. Why? Perceived risk reduction and brand comfort. In my opinion unless it is a genuine global search for a Chief Executive or specific C-suite capability where there is a very good chance the candidate is not residing in NZ; there would be no reason to engage one of these firms.
Where Takon Fits In
Takon has been built on a deep understanding of the differences—and the benefits—of both executive search and recruitment approaches. Our customer ethos puts the client first, and we often deliver bespoke hybrid solutions that combine the advantages of executive search with recruitment. Does it need to be one or the other?
Small to medium businesses often don't have the resources, time, or budget required to engage traditional executive search firms. That is where a more flexible, transparent, and modern model provides real value and results.
Both approaches have their benefits. The right choice depends on the specifics of each organisation, the assignment, and available resources.
Takon can tailor a solution or help you choose the right strategy. If you would like to discuss your next key hire or explore options, we would welcome the opportunity to connect.
