Confidential Search: What are the Benefits and When is It Necessary?

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According to CNBC, 70% of jobs are never published publicly – and a large part of this number comes from jobs filled through a confidential search. When filling any position, there are many things for a hiring manager to consider. The first, and most important decision, should be whether the job needs to be posted publicly or kept confidential throughout the search process. When it comes to conducting a confidential search, there are many factors that make hiring more tedious. Because of this, most companies choose to outsource these roles to recruiting firms experienced in this type of search.

But what is a confidential search? When is it necessary? And why should you look to recruiting firms to conduct them? In this blog, we’re diving into all the instances when a confidential search is important and the benefits of partnering with a trusted recruiter for these types of roles.

What is a Confidential Search?

A confidential search is when a company is seeking to fill a position without advertising or alerting their employees, competitors, and/or clients that the job is open. When choosing between a traditional search and a confidential search, there are a few simple factors that determine which is needed. How you’ll advertise the role, how you’ll source candidates, the urgency of filling the position, and of course, the level of confidentiality desired, all should be considered.

Whether a position is vacant, newly created, or replacing a current employee – conducting a confidential search could be essential. When filling a confidential search, companies can’t carry out typical advertising and job postings online like they usually would. This results in much more time sourcing candidates in a more hands-on and direct way. Even without typical job postings live online, keeping an open position confidential can still be difficult to do for an internal talent acquisition team if not experienced.

Confidential Search Tips

When is a Confidential Search Necessary?

Replacing Executives or Management Positions – Avoiding Leadership Gaps

The most common reason companies choose to conduct a confidential search is when they’re replacing high-level positions in leadership. Based on a recent LinkedIn poll we did with our followers – 70% of hiring managers agreed that they conduct a confidential search when replacing an executive-level role. When planning to replace a current employee, especially one with a high level of responsibility, it’s better if they aren’t tipped off about the change before coverage has been arranged. Ideally, you’ll have a replacement lined up and ready to step in when the time comes, avoiding any gaps in leadership.

In general, the process of filling executive and senior management roles take longer than lower level roles. According to Monster, the average time it takes to fill an entry- to mid-level role is about eight weeks, while a high-level role can take anywhere from six months to a year. This makes it even more important to ensure the position isn’t left empty, when possible.

Exploring New Sectors/Products/Industries

Another common reason hiring managers choose a confidential search is when their company is rolling out a new product line, business model, secondary company, etc. In most cases, it’s important to keep industry competitors in the dark about upcoming expansion news until the public launch date. Posting detailed job openings that obviously allude to new product development, sector expansion, or a first-of-its-kind service, can lead to increased market competition. When looking to launch any type of industry disruption, being first to market is key when filling a need or service gap. No matter the industry, every company has competitors, and you never know who’s keeping a close eye on you as competition.

Experiencing Internal Changes or Reorganization

Companies going through drastic internal changes such as mergers, IPOs, or restructuring may want to keep certain open positions quiet. Often, these situations can be sensitive information when it comes to internal staff. If you have not made the big announcement yet, posting certain job titles may give it away. The last thing a company needs when going through an organizational change is panicked employees – which can often lead to early resignations. In these situations, a confidential search can also ensure you’re not deterring candidates from applying. Outsiders may see these changes as the company being unstable and would result in less of an applicant pool to choose from.

For the same reason, you also don’t want to put off your clients by the amount or type of jobs you have posted online. This can be especially true for executive level roles. Even if a current employee in leadership is retiring and aware of the hiring need, it still might be a good idea to fill their role confidentially to avoid clients questioning internal stability. Many companies also need to consider their competitors in this same situation. If competitors see a time of weakness for your business, they may begin to pose a bigger threat and possibly poach your customer base.

Reducing High Volumes of Unqualified Applicants

When it comes to a globally recognized brand name or commonly sought after company, it’s always better to hire confidentially. This helps avoid receiving an overwhelming number of unqualified applicants to sort through. If a role is going to be highly desired among a large group of candidates, (i.e., a sales executive at a Fortune 500 company) you can expect hundreds or even thousands of applicants. With such a large number of applicants, it’s likely only a small percentage will be fully qualified for the position.

Conducting a confidential search also helps to avoid candidates from adjusting and falsifying experiences and skillsets on their resume before they apply. Unfortunately, this can be a common occurrence and if you’re not familiar with the signs of a candidate exaggerating during interviews, it can lead to a bad hire – meaning the search process has to begin again. When a candidate connects with a recruiter, they are asked to present a resume before they are even sent the job description. This helps ensure you’re getting an accurate representation of the candidates’ authentic experiences.

Confidential Search Benefits

Benefits of Outsourcing a Confidential Search

Stress-Free Process

Overall, partnering with a recruiting firm ensures a stress-free environment for you and your staff. As mentioned, one small mistake can void confidentiality all together in a job search, causing a stressful hiring process for you and your internal hiring team. When using a recruiter who is experienced in confidential search, you can be confident that the position will be filled the right way.

Not to mention, an extra layer of confidentiality can be put into play when recruiters use NDAs in their search process. This is something Blue Signal does with 100% of our candidates. Having candidates sign NDAs before moving forward in the interview process and discussing company information is a great safety net to ensure confidentiality. Signed NDAs hold candidates accountable, so they don’t communicate any details related to the job opportunity with others. Recruiters also can guarantee an exclusive list of candidate outreach, so the info doesn’t get into the wrong hands. This is done by sourcing passive candidates rather than posting detailed job descriptions on online job boards.

Larger Candidate Pool

Because confidential searches are made primarily through passive candidates you can guarantee a much larger candidate pool, but without the added time screening unqualified candidates up front. Passive candidates are people who aren’t necessarily looking for a job change. They are thriving in their current role, which means regular job posts don’t typically reach these top performers. Recruiters can reach out to passive candidates directly and communicate the opportunity on a personal level. Through these one-on-one conversations, they’re able to relay certain aspects and details about the role that may pique their interest in making a move.

Save Time

Overall, facilitating a confidential search requires much more time to source and review talent. Studies have shown that 44% of candidates don’t receive feedback from a potential employer for weeks after applying. Not to mention, tests have found that the average hiring manager looks over a resume for only six to seven seconds. When working with a recruiting firm, especially on a confidential search, they are able to get back to candidates FAST and take the time to review each resume in full detail.

Recruiters also take on the added inconvenience of conducting initial candidate screenings and phone interviews. This allows them to fully vet candidates for your role before their resume even comes across your desk. Not to mention, the candidate will be fully briefed on the confidential aspects of the role and meet with you only after signing an NDA. This then allows you to interview candidates in detail without the stress of exposing sensitive company information.

Continued Recruiter Support

One of the most beneficial reasons to work with a recruiting firm during a confidential search is the overall partnership you receive along the way. Throughout the process, you’ll have the opportunity to gain expert-level advice, learn about best practices, and get questions answered by your recruiter. Once your recruiter identifies a great candidate, your partnership doesn’t end after the candidate’s first day. Recruiters are industry experts, and they are there to act as a partner for you and your company’s goals long-term. A great recruiter will offer support throughout new hire onboarding processes and candidate retention. Furthermore, once your recruiter understands your company’s goals, they can keep you in mind when another ideal candidate comes along in the future.

Conclusion

In the end, a confidential search done in partnership with a best-in-class recruiting firm will protect your team, brand, and drive authentic alignment with your hires. Blue Signal keeps 100% of our searches confidential, regardless of the type of search our clients choose. This helps us better protect the hiring manager’s time, gives us an exclusive candidate pool, and allows access to our own audience – which is wider than theirs on their own.

It’s important to remember, confidential searches can be much more difficult for non-experienced hiring managers. Don’t risk it – a minor slip up can cause a snowball effect and blow confidentiality fast. This is why we always recommend getting help from an experienced recruiting firm for all confidential searches. If you’re ready to partner with an expert or want to learn more about our search processes, reach out to us and we’ll connect you with a recruiter who is specialized in your industry.

Are Executive Recruiters Worth It?

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Addressing Common Misconceptions About the Value of Talent Acquisition in the Hiring Process

It’s Q1 and you’re working with a new hiring budget for the year. You have a lot of hires you need to make, and may be overwhelmed with the state of the market. Maybe you’ve considered engaging with a talent agency – but you’re uneasy. You’re asking yourself, are executive recruiters worth it? You want to protect your money, but also your time. You’re nervous about the transactional stereotypes surrounding bad recruiters, and are hesitant to take the leap.  

All of these common questions and concerns are totally reasonable. Being curious and calculated is just good business! Let Blue Signal set the record straight and help you determine if hiring a recruiter would make the most sense for your current search.  

 

Job Ads Are Free – Why Should I Pay a Recruiter to Find Applicants? 

Chances are you’ve posted your open role online somewhere. Your results are mixed – and you’re either getting flooded with ill-fitting candidates or have received next to no applicants. You wrote the job description to the best of your ability and are stuck. You’re left wondering how paying a recruiter to “do the same thing” will help.  

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This is one of the biggest misconceptions when it comes to recruiting. Executive recruiters are able to add value to a search even before sending you resumes. Successful professionals leverage relationships with recruiting firms to stay on top of their industry, and gain insight into the market before it changes. By employing a specialized recruiter in your industry niche, their social media following and network of professionals gets your open req in front of the right audience at the onset.  

Simply put, leveraging a recruiter when advertising a role ensures access to their fine-tuned network of professionals. Talent acquisition firms are built on applicant tracking systems (ATS), and take years to properly build out. With this log of qualified talent, working with a recruiter gives you access to both active talent – or applicants looking to make a move – as well as passive talent, i.e. people who aren’t necessarily looking for a job change.  

Passive talent is usually succeeding in their current role today, giving you access to top performers that you may have otherwise missed. Additionally, recruiters have the experience and insights needed to help separate the value from the fluff. For example, specialized IT recruiters know what certifications will help you in your modernization and business transformation journeys, and HR recruiters will know what certs are needed to keep those projects all on track. They’ll be able to judge resumes and CVs accordingly, and only send you the best of the best.  

Perhaps you know what you are looking for but are unable to advertise a role or target the candidates you truly want. By leveraging a recruiter, you are able to confidentially conduct searches and have a middleman representative between you and competitors in your space. This opens doors to more hiring possibilities! By allowing a recruiter to market your role, you’re keeping your reputation intact among your own customers and peers.  

In fact, marketing a role is half the battle. Executive recruiters are master marketers, and know how to best sell a candidate on an opportunity and employer. Because talent acquisition is a fine balance between B2B and B2C sales, recruiters know just how to address the wants and needs of their B2C clientele. The candidate experience is just as important to your own process when hiring in a candidate-driven market, and recruiters are trained to navigate it daily. They will deploy different strategies – attracting particular industries, professions, even generations – to get you the candidate you need.  

Moreover, the talent acquisition world is changing daily. Executive recruiters have access to and are constantly working to master new technology in this space, especially as it surrounds job ads and applicant tracking. Artificial intelligence (AI), machine learning (ML), and automation are making an impact within talent acquisition just like every other industry. As the digital landscape of recruiting continues to evolve, recruiters will play a key role in supporting their clients as they learn new technologies, counteroffer techniques, and recruiting strategies to keep them ahead in the 2020s.  

 

Okay, But I Can Screen Applicants – Why Should I Have a Recruiter Interview My Candidates?  

Interviewing applicants is much more involved than a 30-minute phone call. Recruiters can help you manage all the moving parts. They will screen CVs and conduct the initial candidate intake for you, ensuring that the candidates that make it onto your calendar are prequalified for the position. Then, they offer support through the entire process – including interview coordination, reference checks, candidate management, and salary negotiations. Executive recruiters act as project managers throughout the interview process, prioritizing success for all involved.

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With candidate retention guarantees, it doesn’t benefit a recruiter to make a match that won’t work and then in turn, have to start the process over. Recruiters are invested – and your success is their success! When leveraging a recruiting firm with placement guarantees, you protect your investment for the first 12 months of their employment. 

However, you’ll never make a hire from an executive recruiter without determining fit for yourself. A recruiter can help there, too! Executive recruiters know what questions to ask to uncover information, and can help coach you through the interview process. 

Understandably, candidates tend to open up to recruiters differently than they would to a potential employer. With information coming from a 3rd party, they may trust recruiters’ input more than information coming straight from an employer, too. Because executive recruiters also represent the candidates’ best interests in the hiring process, they are able to uncover the candidate’s true drivers, must-haves, and qualifications. Whether it’s supporting long-term career goals, aligning core values, or negotiating pay – a recruiter can properly suss out a candidate’s needs.  

Let’s use the compensation example. To be considered for the role, a candidate may feel like they have to give hiring managers an agreeable answer, rather than being forthcoming about their true financial needs. Alternately, they will tell recruiters their honest salary expectations and a recruiter can represent them accordingly. If they are out of your budget, they  can move on with no time wasted. If they are, both parties can move forward knowing that they are well matched while maintaining traditional interview etiquette. No more losing out on candidates at the final offer stage!  

 

That Does Sound Promising, But Why Do Executive Recruiters Cost So Much? 

It does seem counterintuitive to save money by spending it to bring another party into the hiring process – but the proof is in the results. So much so that most executive recruiters will actually work for free, and will only bill you once a placement has been made. Let’s break down that value-add.  

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The majority of hiring managers are not solely responsible for hiring. Because of their normal duties, how much time are they feasibly able to contribute to the hiring process? And how much does that hinder their official responsibilities? In 2020, upper management and C-suite positions took 20% of companies more than 3 months to hire. In one study, 67% of respondents said it takes between 30 minutes to 2 hours just to schedule one interview. To cover for an absence in the team, write and post a job description, review applicants, schedule interviews, conduct interviews, and to actually make a hire can take up approximately 100 hours of a hiring manager’s time per hire. Meanwhile, a recruiter’s entire 9-5 is devoted to a search. This can reduce your team’s time spent by about 70%.  

Additionally, hiring a recruiter can offer exponential cost savings. 76% of hiring managers admit to recruiting the wrong candidate for a role, essentially making at least one bad hire per year. According to the US Department of Labor, the average cost of a bad hire is up to 30% of the employee’s first year compensation. This can result in as much as $240K depending on the role and company. When you also consider a 12-month placement guarantee, a recruiter fee seems like a fair investment to ensure your new hire pans out. Employing a recruiter helps lessen your chance of a costly bad hire.  

Finally, a recruiter’s expertise offers immeasurable value in a search. As experts in your industry niche, they will be able to provide insights into the market and your competitors’ movements that you won’t find online. They can define typical salary ranges for roles spanning several industries, locations, job functions, and skill levels. As hiring professionals, they are constantly in the business of knowing what companies are hiring, what companies are losing talent, and why. Executive recruiters are able to represent candidates without you “poaching” from your network, allowing access to otherwise unobtainable talent. The list goes on and on.  

 

Ultimately, Why Should I Work with a Recruiter?  

As a 30-second elevator pitch, we could talk about how executive recruiters help you save time and money. However, the real value comes from what executive recruiters bring to overall business strategy. They can help inform you about your industry’s movements, what your competitors are doing when it comes to hiring, trends you should be aware of, and changes in the market you should prepare for. Successful recruiters provide companies with more than a warm body for an open job.  

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When considering whether or not to take a recruiter’s call, consider the value of a long-term partner. A good recruiter will help advise you no matter how long it’s been since a placement was made. Having access to these insights is just good business, even when you’re not actively hiring. Recruiters share their clients’ successes, and are passionate about making these matches. After all, recruiters change organizations – as well as people’s lives and careers! – for the better.  

When it comes to selecting a recruiter, make sure to engage with relationship-based recruiters that are invested in the future of your company. At Blue Signal, we’ve set out to disprove the bad industry reputation that has resulted from transactional recruiting methods. As your partner in the process, we hope to make a long-lasting connection that benefits your organization beyond filling a role.  

Top 5 Hiring Trends in 2022

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Looking back on 2021 hiring trends, the hiring industry has learned a lot about how to pivot and excel in an ever-changing job market. As we’ve already started to see the many differences we’ll navigate in 2022, some hiring trends will remain the same. The war for talent is still prevalent and the candidate-driven job market persists. Remote work is not going anywhere, but even so has seen subtle differences today compared to hiring trends a year ago – along with new sets of trends beginning to emerge. Beyond acknowledging these trends as they occur, it’s important for businesses large and small to innovate and properly prepare for success. Offering candidates benefits they care about, hybrid work, DEI initiatives, upskilling, and automating processes are all covered in this overview of 2022’s hiring trends.

2022 Hiring Trends

1. Candidates Want More Than a Paycheck

No different than 2021, candidates still have the power in the job market as we navigate through the war for talent. In 2022, experts don’t see this hiring trend shifting which means employers must remain flexible in their offerings and be open to what candidates are actually seeking. Simple benefits like sign-on bonuses just aren’t cutting it anymore. Companies need to get creative and adapt to their candidates’ desires in order to stay ahead of the evident competition. By breaking down non-negotiables such as the ability to work remotely, it tells candidates you are open to being flexible and ultimately want the best for them. Overall, candidates are looking to be treated as human beings – and not just a small cog in a big machine.

Another crucial way to grab the attention of candidates is to ensure there’s updated company branding available for them to learn more about you. Today’s generation of professionals are looking to be a part of a company long-term. To do so, employees need to feel valued, important, and cared for, both at work and in their personal lives. Of course, hiring managers are able to elaborate on values and what sets their company apart in the interview process; but first - they need candidates to apply. Job seekers are looking online for evidence about why a company has potential before they even start the application process. By making this informational hunt easier for them to navigate, you’ll be a step ahead of the competition. Studies have shown that 52% of candidates rely on the information from a company’s website and social media to learn about the employer. Don’t overlook what a critical investment employer branding can be.

2. Remote/Hybrid Work is Here to Stay

Brought on in 2020 by the global pandemic, we’ve seen a spike in remote work. Studies show that 62% of workers aged 22 to 65 claim to work remotely at least occasionally. 2022 hiring trends all point to a continued increase in this area, with a particular focus on the availability of more hybrid working opportunities. Hybrid working conditions are trending to be the top ask among job seekers in this market. Every employee’s situation is different and in today’s candidate-driven market, companies need to provide options for how they work. Be prepared for candidates to negotiate a flexible schedule such as remote, hybrid, or a split shift.

These offers don’t just benefit the employee side, but also benefit the overall well-being of the company. Studies found that remote workers are more productive than in-office staff. Not to mention, remote working opportunities mean that companies can hire from a more diverse pool of talent. Another key factor that plays into these benefits is employee retention. When good candidates are becoming far and few between these days, retention is everything. Harvard Business Review found that remote workers were more likely to stay working for a business longer than colleagues who worked in-office. Overall, it’s important to be flexible and open-minded to what potential employees are asking for. Some people will prefer the office, some people will want to work at home, and others will need a mix of both. The best companies will cater to this hiring trend.

Remote vs. Hybrid Workers

3. DEI Initiatives Now a Must-Have

As the candidate pool shifts to a younger and more socially aware workforce, they are emphasizing diversity, equity, and inclusion (DEI) initiatives when searching for jobs. As we’ve seen an increase in progressive movements towards diversity in the workplace in the past couple years, it’s now become a requirement rather than a nice-to-have. Hiring trends state that in the coming year, businesses need to deliver on these big promises. Candidates are looking at actions rather than words. In 2022, companies will continue to focus on these initiatives, and we’ll see an increase in leadership roles created around diversity and inclusion such as “Chief Diversity Officer” and “Head of DEI.”

Along with the obvious social responsibility that companies should be supporting, DEI plays a critical role in productivity and retention in the workplace. Studies have found that companies in the top quartile for racial and ethnic diversity are 35% more likely (and those in the top quartile for gender diversity are 15% more likely) to have higher financial returns. Hiring trends have also proven that 35% of an employee’s emotional investment in their work, and 20% of their desire to stay at their organization, is linked to feelings of inclusion. Overall, an equitable and inclusive workplace will attract and retain a happier and more diverse workforce, creating success in every aspect of the business.

Wondering where to start? When strategizing DEI initiatives you can implement, start by setting up a diverse hiring team. This helps companies expand their workforce with individuals that bring unique ideas and experiences to the table.

4. Close the Skill Gap; Invest in Existing Employees

Today’s hiring market can be misleading when viewed at the surface level. Hiring trends state that 87% of employers are struggling to fill positions as a result of the skills gap, despite a high degree of unemployment. For companies who are looking to grow and expand market share, this may seem like a dead end. The solution? Promote and invest in education internally. All hiring trends, both current and predicted, lead to an emphasis on candidate’s skillsets rather than years of experience. Top skills being sought out focus on digital talents. Software development, data analytics, digital marketing, cloud computing, problem-solving, and project and change management are among these targeted skills.

By turning the attention to existing employees who are on the cusp of qualifying for a more technically advanced or higher responsibility role, employers avoid the stress of hiring during today’s climate. To be a successful business, we know retention is key. Offering skill advancement opportunities such as trainings and education programs takes retention a step further by saving both time and money. Statistics show that it costs more and takes longer to recruit and train new employees than upskilling current ones. SHRM reports that the average cost per hire in the U.S. is around $4,000, and that it can take an average of about 42 days to fill a position.

It’s hiring trends like these that are encouraging companies to focus internally. Surveys found that 84% of companies are increasing investment in reskilling programs. Amazon for example, recently announced that they were going to upskill 100,000 people in the near future. Above retention advantages, these opportunities promote employee satisfaction, loyalty, and employer branding all at once.

5. Advanced Technology and Automated Practices

As the digital world continues to take over and become more applicable to businesses, automation and AI will continue to be the most utilized hiring trend in 2022. With the new, younger generation set to take over a majority of the workforce, digitally advanced technology becomes critical. For smaller companies in particular, this will be essential in breaking out to compete with bigger businesses who have already been implementing advanced processes.

As we saw remote and hybrid work flourish, companies have since turned to AI technology to build out more automated processes and ways to streamline and communicate. 2022 hiring trends say that automation will go beyond HR and see advancement in all aspects of a business. This will go hand-in-hand with machine learning technology, resulting in an increased need for candidates with this unique skillset.

Taking all these hiring trends into consideration alongside the rapidly evolving and advancing job market; more companies are turning to recruiters and search firms. Navigating a new hiring market can feel like a full-time job in itself. That’s why there’s specialized recruiters in every industry space. Recruiters can help your company learn new hiring skills for this evolving world of work, expanding beyond being a personable employer and a good company. At Blue Signal, all our recruiters specialize in developing personal branding, adapting to industry changes, and offering insights to business leaders in their niche. Gaining insight on how to effectively work, interview, hire, manage, and communicate remotely can help you be the best hiring manager possible throughout today’s hiring trends. No matter the challenge you face, Blue Signal can help.

12 Steps to your Perfect Hire – Why Work with Blue Signal

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The hiring process can be a long, tedious, and frustrating one. Hiring additional team support is rarely the only thing on a hiring manager’s plate - and truthfully, is probably not their strong suit. When looking to build your team, the last thing you want to be doing is spinning your wheels on half-baked leads that result in under-qualified candidates, all while handling your normal responsibilities. Working with a professional recruiting or hiring support service could not only save you the hassle - it can literally save you money. 

Fact: Companies on average are losing more than $18,000 per month while a position remains open. 

With Blue Signal’s recent achievement of over 800 completed search projects, the proof is in the process. At Blue Signal, we care about making a connection and maintaining our relationships with the best in the industry. Our success is our client’s and candidate’s success. As a partner in the process, we seek to make the best placement possible for all parties involved. To get to that perfect hire, we work with clients through our 12-step approach that ensures complete understanding of needs, goals, job requirements, company culture, and more! 

In exchange for your agreement and cooperation, we are guaranteed to deliver you the best market insights, interview support, and employee retention in the industry. Our tenured recruiting team has the connections, experience, and support needed to truly explore all the options on the market today.

Infographic - Blue Signal Search Process

If you think that you or your company could benefit from a consultation with our expert recruiters, give us a call! Our top of the line recruiting professionals look forward to hearing from you, and helping you find that perfect hire.