Nonprofits Hiring an Executive Search Firm – 12 Critical Questions

Compiled by Laurie Minx and Bill Moran
The Moran Company “We Find Great Nonprofit Executives”

Selecting the right executive search firm to help you fill your nonprofit position is a decision that is just as important as selecting your final candidate because one leads to the other.

1.  What percentage of the company’s annual business is devoted to executive searches in the nonprofit sector?

There are a lot of search firms, but only a small portion of these are dedicated to recruiting nonprofit professionals. Make sure that you are selecting a company who understands the nuances of Board governance, organizational leadership, and fundraising. The right firm should also be aware of some of the internal and external factors that can affect a nonprofit, especially during a time of transition. Having executive search consultants who are also highly experienced in the nonprofit sector is extremely beneficial for your agency and its stakeholders as you prepare to make important hiring decisions that are key to your organization’s future.

2.  Who will be the search consultant(s) assigned to this search?

A firm might impress you during its sales pitch, but if you are assigned to work with an inexperienced consultant, then your results could be less than anticipated. Be sure to ask who will be conducting your search if you choose that company, and then find out as much about that person as possible. What is his or her nonprofit background? Has the assigned search consultant actually performed the position to be filled? It can be helpful if your assigned consultant has actually served in the capacity for which you are hiring so that he or she can relate to potential candidates as a peer instead of a “headhunter” and be able to see past any padded resumes in order to assess their skills and qualifications accurately.

3.  How many searches will that consultant(s) be handling concurrently with this one?

Even if you are assigned an experienced search recruiter, it is important to know how much attention will be devoted to your organization specifically. If that person is juggling five or six other searches at the same time, he or she will not be very effective. Look for a firm that limits the workload of its consultants to only two or three searches per person at any given time so that they can be thorough and have enough time to give each of their clients the attention they deserve.

4.  How can a search firm help you determine appropriate salary levels for this position?

The salary is a key factor in any search process because it might limit or enhance the quality of candidates who choose to apply or accept the position. A great search firm will be able to compare market data for similar positions in your area so that you can craft a competitive offer that is within your budget.

5.  What is the search firm’s process regarding orientation and recruitment?

This critical question has two components. First, you need to find out how their method allows them to fully understand all aspects of the position as well as the culture of your nonprofit. This is imperative if they are to serve as credible ambassadors for your organization. Secondly, you will want to understand how the true “search” part of the process is managed. For example, how will they identify and recruit the most qualified candidates? Will the firm rely heavily on a database or job boards, or will they proactively recruit passive as well as active talent for your specific needs? Look for those that are willing to look beyond the obvious job seekers and find the most talented individuals.

6.  What is the firm’s screening process for candidates before presenting them to you? How many rounds of interviews will there be overall and who will participate in them?

The screening interviews set the course for the quality of candidates you will receive. You don’t want to find yourself at the final interview stage with individuals who are not appropriate for your position, and at the same time, you don’t want to miss out on any qualified candidates. Some search firms hurry through the initial screening process by conducting interviews over the phone. Look instead for firms who are willing to take the extra step of engaging in face-to-face conversations, either in-person or via video chat, with those people who are interested and possess the credentials you seek. This method is much more personal and thorough when assessing applicants. In addition, it is a best practice for firms to summarize all of their screening interviews for you so that you have a synopsis of their work and what led them to their selections since the search consultant(s) typically handle this first step on their own. After narrowing the pool to 4-6 qualified candidates, the firm usually partners with the key decision makers for your nonprofit in order to conduct semi-final and/or final interviews. The number of interview rounds typically depends on the position for which you are hiring and how many people are involved in making the final decision for your organization.

7.  How will internal candidates be handled?

If you know that you could have at least one internal applicant, you will want to be aware of how a search firm will work with that person and any others. Usually he or she would be asked to apply along with all of the other candidates and go through the same or similar process. If an internal applicant is highly recommended, then he or she would typically advance to the final round of interviews.

8.  How long do the searches usually take?

Depending on how quickly you need your vacancy filled, you may want to consider how long a company thinks the search will take and how flexible they are to adapt to your timeline. Most searches take between 60-120 days. If you are on a tight deadline, be sure to ask firms in advance how they might expedite or abbreviate their efforts.

9.  What role do they envision for your nonprofit search committee, current executive director, senior staff, or others depending on your situation?

Some search firms like to have more control over their process while others expect you to complete a lot of legwork to assist them with their efforts. Look for a company who strikes a balance between these two ends of the spectrum. The best fit is usually a firm who can be a true partner with your search committee, guiding you through the process and communicating with you regularly. A firm should seek input from the executive director and senior staff as well. Depending on the position for which you are hiring (such as an executive director), these current employees (including the current executive director) may be asked to serve only in advisory roles to avoid any potential conflict of interest.

 10.  What are their fees and how are they paid?

A typical search firm for nonprofits usually charges between 25 -33% of the first year’s salary of the position for which you are hiring. Be sure you understand what services this includes and what other fees may exist. You will also want to be aware of the payment structure so that you feel comfortable with the amount paid compared to the work completed at any given time. Most reputable companies will accept several payments so that you can spread out the cost before, during, and after the search is completed.

11.  How are expenses handled? What is a range of expenses for a typical search?

Be prepared to assume some additional costs for expenses related to the search above and beyond the services provided. For example, certain advertisements and job boards have fees of several hundred dollars depending on which ones are selected as prime recruiting sources for your position. In addition, if your nonprofit prefers to have more rigorous background checks or additional psychological/behavioral testing completed prior to hiring one of the final candidates, then that might be an extra cost as well. Finally, there are typically travel expenses related to having consultant(s) visit your location once or twice depending on your needs. Ranges for these expenses overall can vary widely depending on which added options you choose, but typically they run between $2,000-$5,000.

12.  What is their guarantee if the placed person leaves?

A great search firm will stand behind their work and will go above and beyond to make sure their clients are satisfied. Look for one that guarantees your new hire will stay in place for at least a year. If that does not happen, then the firm should offer to complete a replacement search and bring several more qualified candidates to you.

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© 2014 The Moran Company, “We find great nonprofit executives.” We specialize in searches for nonprofit executive directors, directors of development/fundraising staff, and other top nonprofit leadership. www.morancompany.com