Glossary of

Executive Search:

Terms & Concepts

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Active Candidates:
People seeking immediate employment. Active Candidates are usually unemployed or facing unemployment in the near future. They may be young people looking for their first full-time job, people whose positions were terminated or people who are very unhappy with their current employer.

Allowances:
Payments made to employees to cover expenses and usually treated as part of pay and taxed accordingly. In Asia, most executives are provided with a greater number of such allowances than in other regions. Examples include: automobile allowance (often including fuel and driver), housing allowance and executive healthcare coverage for family. Expatriates posted to Asia are often provided with some or all of the following as part of their expatriate package: private school fees for children, air-flights tickets to home country for family and relocation expenses.

Applicants:
People who proactively apply for job openings in organizations. Applicants are considered highly motivated job-seekers and active candidates. They may be recent graduates or immigrants looking for their first job, unemployed professionals, people dissatisfied with their current employer or people who change jobs regularly.

Behavioural Interviewing:
Interview format that seeks to understand and assess the career history and performance of candidates under the premise that the past is the best predictor of the future. Questions in behavioural interviews try to probe candidates' conduct in different situations, for example: "how did you achieve these results"� and "what did you do to overcome this unexpected problem."� Behavioural interviewing is considered the highly useful by most hiring managers and recruiters especially for management candidates who have strong career histories.

Blacklisted Candidates:
People who are prevented from being considered for open positions because of a breach of confidence. Examples include: substance abuse, failed previous assessment, overstated qualifications, didn't show up for previous interviews, etc.

Blended Search Agreement:
Combines both retained and contingency elements in an executive search engagement. There is usually an initial retainer (non-refundable) with further payments due once defined deliverables are accomplished or a balloon payment at the end once the position is filled.

Blocked Candidates:
Search firms avoid targeting employees of client organizations for new search engagements because of guarantee commitments. Employees of organizations that are current or recent clients are blocked from being considered candidates. In addition, candidates who are actively under consideration by one client should be blocked from being considered by another client simultaneously. (Related concepts are Off-Limits and Parallel Processing.)

Body-Snatcher:
A slang phrase for recruiter.

Boutique:
Executive search firm that is operated in a hands-on manner by a small number of experienced partners. The migration of senior consultants from large search firms to set up their own boutique firms is one of the main reasons behind the steady decline in market share of the large firms. In emerging countries of Asia, boutique search firms dominate country markets while large international firms are almost non-existent.

Bundling:
A current management trend of combining responsibilities for 2 or even 3 executive positions with one super-manager. In many companies, finance and HR or finance and IT are being combined under one manager -- and sometimes all 3 functions. Many companies in Southeast Asia are giving country management responsibilities for 2 or 3 countries to a single person -- combining multiple senior positions into one.

Candidate:
A person who is being considered for an open position at an organization.

Candidate Intelligence:
In executive search, candidate intelligence relates to the investigative process of sourcing the names individuals who may become qualified candidates of open positions. Such research is an on-going and time consuming focus of most executive recruiters.

Candidate Reports:
Almost all executive search firms create comprehensive documents about the candidates they recommend for client positions. Called Candidate Reports, they are produced after interviews with candidates, research into past employers and informal background checks to give as complete a picture as possible to the client. Objective evaluations of suitability, strengths and weaknesses are provided as well as judgements about candidates' personal goals, career motivations, salary expectations and so on.

Candidate Universe:
For every open position, there are a number of people who might meet basic qualifications and can be considered worthy of further investigation. This group is called the Candidate Universe and creating this long list of potential candidates is the first step of every search. It will vary tremendously in size depending on many factors: job type, industry, geography, organization and hiring manager requirements.

Career Counsellor:
Firms offering job search services directly to individuals. The concept is similar to outplacement except that individuals pay for the service themselves, rather than an employer. As in all professional services, fees and quality levels can vary tremendously. (Also called Job Counsellors)

Character Reference;
A person who can attest to a candidate's personal qualities and abilities.

Chemistry:
The term used to describe the quality of the interaction between 2 people. In recruiting, the chemistry between a prospective executives and hiring managers is an important determinant of success and is a factor in the final hiring decision. Skills and experience are, of course, critical but nothing will work if people cannot work together.

Client:
An organization that has engaged an executive search firm to assist in hiring employees for open positions.

Client Anonymity:
Clients of executive search usually expect their identity to be confidential in the early stages of the search. They generally do not want the status of their senior positions known for fear of raising concerns among customers, employees and suppliers. As well, many search engagements are to replace executives currently working and confidentiality in these cases is an even greater concern.

Chronological Resume:
A resume format that lists career experience by date usually with the most recent position first. Most hiring managers and recruiters prefer chronological resumes since it is easier to understand candidates' career progress, positions held and dates.

Compensation:
Executive earnings can include a great assortment of cash and non-cash, guaranteed and variable components. Base salary may comprise only 50-60% of total compensation. Other payments may include the following: annual bonus, long-term incentive plan, profit sharing, restricted share plan (or stock options or phantom share), signing bonus, executive health insurance, pension plan, life and disability insurance. In Asia, senior executives and especially expatriates can also be provided with an automobile (plus fuel and driver), private school fees for children, air-flight tickets to home country for entire family, club memberships, housing allowance, housing loans and hard-ship bonus. (Same as Total Compensation)

Completion Rate:
A term that measures the percentage of executive search engagements that bring about a successful new employment relationship.

Confidentiality:
A large percentage of executive search clients require that their name be concealed in the early stages of projects. They usually do not want the status of their senior positions known for fear of raising concerns among customers, employees and suppliers. Nor do they wish to notify competitors of weaknesses or strategic changes. As well, many search engagements are to replace executives currently working and need to be handled very carefully.

Contingency Recruiting:
A recruiting relationship where fees are paid only when a candidate is hired through the recruiter. Providers of contingency recruiting are usually called by such names as: employment agencies, personnel recruiters, staffing providers and similar. In emerging countries of Asia, most contingency recruiters call themselves "executive search"� without understanding the difference.

Contractor:
A temporary worker being compensated on an hourly or daily rate who is not a regular employee of the company. Interim Executives are employed as contractors for specified periods.

Counter Offer:
A counter offer can mean 1 of 2 things. After receiving a job offer from an employer, a candidate may respond by asking for improvements and this is called a counter offer. In high growth Asia, it more commonly means an offer given by a current employer to keep an employee who has received a job offer by another employer.

Corporate Culture:
Every organization has a specific set of values and manner of doing business. Companies might be entrepreneurial or well structured, adversarial or collaborative, for instance. Candidates who do very well in one corporate culture may fail in another. It is important for hiring managers and recruiters to source people with the personalities and experience that are a fit for the organization.

CV:
A Curriculum Vitae (Latin for "path of life"�) is an official document prepared by job-seekers to describe their career history, education and specific qualifications. It carries legal standing and consequences for dishonest representation can be severe for executive managers. CV's are often referred to as resumes but CV's are usually longer, giving detailed history of experience, presentations, publications, awards, affiliations, etc. In Europe, Asia and the Middle-East, CV's tend to be 4 or more pages in length. Resumes of 2 to 4 pages are more common in Anglo Saxon countries and particularly the United States. Academic and other public sector employees tend to write CV's that are lengthy because of their nature of their work.

Direct Sourcing:
Phrase describing a time-consuming method of acquiring candidates through proactive contact after research of target companies' organizational structure. It is understood that highly desirable management candidates rarely submit their confidential resumes to job postings, advertisements, job fairs and resume databases of general employment agencies. The only way to reach such people is for knowledgeable search consultants to contact them directly in a confidential manner.

Discrimination:
In most so-called advanced countries, there are stringent laws that support principles of tolerance and equal employment opportunities. Anyone involved in recruiting needs understand these laws and how to avoid discrimination based on characteristics such as race, religion, gender, age, ethnicity, marital status, sexual orientation, among others. This is true also in emerging countries where senior people are increasingly expected to conduct themselves to international standards.

Diversity:
Diversity in organizations refers to inclusion of people from different cultures, ethnic backgrounds and gender in key positions.

Employee Engagement:
A measured indication of the emotional connection employees feel for their employer.

Employee Referral Plan:
A program where employees of an organization are compensated for providing names of suitable candidates for open positions.

Employer Brand:
A widely used concept referring to an employer's reputation as a "great place to work." Marketing concepts used in products and services are applied to promoting employee value proposition to attract, engage and retain high quality candidates and employees.

Employer of Record:
The entity that accepts all legal and regulatory employment responsibilities of a person.

Employment Agency:
Phrase used for contingency recruiting companies that focus on volume hiring projects of mainly junior staff and intermediate level staff. Other names denoting the same are: personnel agency, staffing provider and recruiting firm. In emerging countries of Asia, most general employment agencies confusing call themselves "executive search" without understanding the concept.

Employment Agreement:
A document prepared by employers often in the form of a job offer or along with a job offer to be presented to prospective employees. The employment agreement defines such issues as compensation, job responsibilities and start date. Once final agreement has been made, it is signed by both the hiring manager and the new employee.

Employment Gaps and Breaks:
Periods in people's career when they were unemployed. In so-called advanced countries, there is some stigma associated with employment gaps when considering the careers of senior managers. In emerging countries where economies and family situations are more disruptive, career breaks are less of a concern.

Executive Coach:
A person who is hired to facilitate professional and personal development of management talent. Successful executive coaches tend to be mature managers with many years of career experience.

Executive Search:
Executive search is the consultative process of recruiting individuals to fill senior management positions in organizations. It involves the engagement of an executive search firm to research and assess the suitability of available candidates to fill open position. Executive search consultants are generally paid by retainer as are other highly skilled professionals like engineers, auditors, lawyers and the like.

Exit Interview:
A meeting with a departing employee shortly before his or her last working day to ask about the person's overall experience with the employer, reasons for leaving and other information that can be used to improve employee engagement in the future.

Expat Package:
Phrase used to describe the extra allowances and benefits provided to executives who are posted abroad for a defined period of time. The expat package can add a lot to people's overall compensation since many personal expenses can be covered. Some of these include: housing, automobile (with fuel and driver), private school fees, relocation, healthcare coverage, airfare to home country for family, hardship bonus, among others.

Expatriate:
A person who lives and works in a country outside his or her citizenship. Executive employees are commonly posted by multinational organizations to overseas locations to manage business units.

Expenses:
Executive search firms often incur out-of-pocket expenses when sourcing, interviewing and attracting senior level candidates on behalf of clients. This is because senior executives are usually difficult to reach, travel regularly and are very concerned about confidentiality. Therefore, costs for communications, private meeting rooms, travel and so on are billed to clients. Search firms in some countries charge a flat fee of 10-20% for expenses. Same as Reimbursable Expenses.

External Candidate:
A person from outside the organization being considered for an open position.

Falloff:
Term used by recruiters and hiring managers to describe the situation when a recently hired manager begins work only to resign a short time later. The potential of falloff risk must be assessed early by recruiters and replacement candidates prepared ahead of time.

Fees:
Executive search fees vary widely across regions and providers. In Europe, North America and Japan, recruiters quote standard fees between 30-33% of first year's guaranteed compensation although these are widely known to be negotiable. In other words, the search fee for a $100k per year position would be $30k (plus expenses) whether or not a candidate was placed. In emerging countries, search fees are lower (typically between 20% and 25%) with more requirements for achieving deliverables.

Front-End Retainer:
Fee invoiced at the beginning of executive search engagements.

Functional Resume:
A resume format listing skills and functions in a non-chronological manner. It downplays or even omits dates, employer names and job titles except at the bottom of the document in brief format. The functional resume has gotten a bad reputation among hiring managers and recruiters since it is difficult to understand people's career progression and used most often by candidates when trying to hide employment gaps and other career blemishes.

Garden Leave:
The situation of an employee who is leaving a job for whatever reason is required to not work during a specified period of time. Garden Leave is a common term in the UK and some other Anglo Saxon countries. The purpose is to prevent (or at least delay) former employees from working for a competitor and exploiting sensitive information that naturally becomes less exploitable over time.

Generalist Recruiters:
Search consultants that provide their services across a range of industries and functions. Most search consultants throughout the world, and especially in emerging countries, are generalists -- although most have areas of focus. The big exception is in most large cities of so-called developed countries where search consultants specialize in narrow skill sets and industries. The trend of the global industry is for specialization in markets that are large enough to support it.

Glass Ceiling:
A barrier in a workplace that prevents employees of certain types to advance to more senior positions in their careers.

Guarantee:
Executive search firms provide various contractual assurances to clients. Some of the most common are: promise to replace placed candidates who leave their position for any reason within a certain period, promise not to target client employees for other executive search clients, promise not to recruit employees from companies specified by the client that they may have special relationships with.

Hardship Bonus:
Some companies pay expatriate executives extra income to compensate for living and working in difficult or dangerous conditions.

Headhunter:
A slang term for executive recruiter.

Hidden Job Market:
It is well known that the majority of job openings are filled through personal contacts and referrals from employees, friends and industry contacts.

Hiring Bonus:
Payments given to newly hired executive managers to ensure they join the employer. Hiring bonuses are most commonly used to compensate executives for earnings they would lose by leaving their current employer. A typical example is an annual bonus that may not be paid for months in the future. Managers may hesitate to leave employers because they will lose rightfully earned compensation. In order to secure the hire, the new employer commits to pay the amount as a signing bonus on starting work or after an agreed period. Sometimes signing bonuses are used to lure high value candidates and are encumbered with retention requirements. (Same as Signing Bonus)

Industry Map:
Recruiters specializing in certain industries or functions often build an organizational chart for each company in their target industries and, through on-going research, collect detailed information about each person in senior management positions.

Informal Reference Check:
Process of confirming candidates' background through sources other than those provided by candidates. Such sources can include regulatory filings, online information and, most importantly, speaking with former colleagues, supervisors, clients and competitors. The process needs to be conducted in a delicate and confidential manner that will not jeopardize candidates' career or standing in the business community.

Insourcing:
A term for filling a position with a person who is already employed with the company. Internal candidates should always be a first consideration for open positions.

Interim Executive:
A senior manager with proven specific skills put in place for a short-term assignment to oversee a transformation, resolve a crisis or watch over an organization until a permanent person can be found.

Internal Candidate:
A person currently working within an organization who is being considered for a position within the same organization. It is not uncommon for employers to consider internal and external candidates simultaneously. Hiring managers typically inform search consultants of the existence of internal candidates and to include them in their short-list of candidates.

Interview:
Meeting between a hiring manager and a candidate being considered for a position in which the candidate is introduced to the employer and assessed for an open position.

Job Board:
A website connecting employers and applicants. Most allow employers to advertise open positions and have a process for individuals to apply. Job boards can be specific to an industry, job type or geographic location while others try to be open to all.

Job Counsellors:
Firms offering job search services directly to individuals. The concept is similar to outplacement except that individuals pay for the service themselves. As in all professional services, fees and quality levels can vary tremendously. Also called Career Counsellors.

Job Description:
An official document describing the skills and experience required for an open position.

Job Hopper:
A slang phrase for a person who changes employers regularly. For management candidates, remaining less than 2-3 years with a number of previous employers, is considered a cause for concern.

Job Order:
Clients provide information about a position opening specifying the description of the job to be done, title, reporting relationships, skills required, experience and so forth. (same as Requirement)

Lateral Move:
A job transfer that involves in similar responsibilities and compensation.

LinkedIn:
Considered the most popular social networking tool for professional candidates. It is being steadily used more and more for job seekers to find employers.

Lobbing:
Search firms passed over for assignments sometimes send unsolicited resumes to clients to entice them to change their minds.

Local Expat:
People working in a foreign country for an extended period of time who have chosen to remain permanently and work on local terms. Local expats can be valuable for many companies since they have proven success in the local country and understand the requirements of international organizations. They are typically less expensive than full expatriates since they do not require an expatriate package. (see Expat Package above).

Long-List:
Recruiting term for the large inventory of candidates created in the early stages of a search engagement. The number of potentially qualified candidates on a long-list can be less than 10 or more than 50 depending on the specialized needs of the client and type of position.

Non-Compete Clause:
Legal commitment by an employee not to work in the same industry as the employer after departing. The non-compete clause is meant to protect the employer from losses due to improper use of confidential information such as trade secrets, client lists and new product ideas. In some countries, non-complete clause are mainly unenforceable except in severe instances. In countries like the United Kingdom, employees must remain on the payroll during the period of the non-complete clause. (See also Garden Leave)

Non-Solicitation Clause:
Usually part of management employment agreements, preventing a departed employee from contacting the employer's customers or employees about any matter that may impact the employer's business in a harmful manner for a period of time.

Off-Limits:
Refers to the agreement by recruiters not to target executives in client organizations for open positions at other companies. Mainly an issue with large search firms since they can be dealing with many companies in an industry and, therefore, can be severely constrained for candidates to pursue. Off-limits is a big reason boutique search firms dominate the smaller economies of most emerging countries.

Onboarding:
The process of assimilating new managers into organizations. Senior managers must quickly decipher the corporate culture and actual reporting structure of their new employer, and then develop relationships with key people who will help their situation. While doing this, their every move is being scrutinized warily by those with vested interests. Organizations should have formal onboarding processes in place to help during this initial hazardous period.

Outplacement:
A service to help terminated employees find new employment. When companies downsize, people who see their careers vanish are often put into emotionally difficult and financially inconvenient circumstances. Outplacement helps former employees and maintains morale with current staff since the employer is seen to be acting in a caring manner.

Panel Job Interview:
A personal interview where the candidate is assessed by a group of interviewers simultaneously.

Passive Candidates:
People who are happily and successfully employed and not seeking new employment. Passive candidates are typically mature people in the middle or late parts of their careers. Virtually all successful senior managers are Passive Candidates. Their loyalty to employers and success on the job makes them the most valuable as targets of executive search.

Per Diem:
A daily allowance paid to contract employees for various expenses such as meals, accommodation and transportation. Per diems can be paid to contractors or regular employees while working at a client site or out of town.

Permanent Employment:
A term used for regular employment where the company becomes the employer-of-record and accepts full legal liability under labour law. Permanent employment is a term used less and less as employers and employees become more temporary in outlook.

Phantom Stock:
Long-term incentive plan where an employer pays cash at defined dates in the future equal to the market value of a number of its shares but without shares actually being given.

Pirate:
A slang term for executive search consultant.

Placement:
The successful hiring of a suitable candidate for an open position.

Poaching:
A slang term for the process of recruiting high value employees from another company, often competitors.

Pool of Candidates:
For every open position, there are a number of people who might meet basic qualifications and can be considered worthy of further investigation. This collection of candidates could be large for junior and entry level positions or very small for senior positions.

Professional Employer Organization (PEO):
Companies that accept legal employer status of employees who work for client organizations. The PEO provides payroll and benefits administration and handles regulatory requirements for their employees.

Progress Payments:
Many executive search firms bill for their services on a periodic basis (either monthly or based on deliverables).

Proposal:
Formal contract created by the search firm usually in the form of a letter agreement. The proposal, once signed, is the basis of the search contract and specifies key issues such as guarantees, timing, fees, exclusivity, confidentiality and so on.

Psychological Testing:
Many types of standardized methods of evaluating candidates are available. Psychological testing became popular during the 1960's and 1970's by claiming to be able to assess cognitive and emotional functioning of people using scores on standardized tests. Today, psychological testing is used infrequently by large companies (especially in Asia) and almost never by small and mid-sized companies.

Rainmaker:
A person who is highly successful at closing new business for professional services firms. Rainmakers are not usually just good sales people but key people in firms (senior executives, partners or owners). They often allocate client engagements to others in their firms who will deliver results while going on to develop other new business. Sometimes clients mistakenly believe rainmakers will play an active role in the engagements they sell but this will usually not be the case in most mid-sized and especially large search firms.

Ratcheting:
Unethical behaviour by some recruiters to present candidates earning above market compensation to ensure an above market placement fee -- since fees are calculated as a percentage of compensation.

Recommendation Letter:
A document written by a previous employer describing a person's past work experience and endorsing him or her for a position. Recommendation letters have come into bad repute since they are often given to terminated employees so they will go quietly.

Recruiting Firm:
Recruiting firms source, assess and refer qualified candidates to be hired as employees by client organizations. Staffing firms, on the other hand, focus on providing temporary help or contract workers to clients for fixed periods.

Recruitment Advertising:
Giving public notice of open positions and inviting applications. Recruitment advertising is popular for junior and entry level level positions but a disappearing practice for senior management recruiting in most countries since it yields mainly Active Candidates (see definition). Some regulated organizations have legal requirements to advertise all open positions.

References:
People who will verify a candidate's career and personal background, skills, character and other factors. Executive recruiters typically need to confirm specific information about candidates with direct references. References provided by candidates are important but generally yield information that is flattering to candidates. Search consultants should pursue informal references from other sources as well.

Reference Checks:
References provided by candidates are important but generally yield information that is flattering to candidates. It is necessary to speak with informal references not provided by candidates.

Referred Candidates:
It is common for clients to recommend candidates to search consultants for on-going search engagements. Some referred candidates may be senior managers working at competitors or internal candidates who already work for the client company. These people become part of the search consultants' pool of candidates and are considered along with others.

Reimbursable Expenses:
Executive search firms often incur a lot of out-of-pocket expenses when sourcing, interviewing and attracting senior level candidates on behalf of clients. Executive candidates can be difficult to communicate with, are concerned about confidentiality and may be located away from clients. Therefore, such costs as communications expenses, private meeting rooms, travel and so on are billed to clients. Firms in some countries charge a flat fee of 10-20% for expenses. Same as Expenses.

Relocation Package:
Employees who are transferred to another country for a multi-year posting, are provided with moving expenses. Expatriate managers relocated to Asia for multinational companies are generally provided with relocation expenses for themselves and families.

Replacement Guarantee:
Executive search firms should agree to replace hired candidates who leave their positions within a certain period. The usual guarantee period is between 6 and 12 months. Some reasonable conditions may apply.

Research:
In executive search, research relates to the investigative process of sourcing the names individuals who may become qualified candidates of open positions. Research is an on-going and time consuming focus of most executive recruiters.

Recruiter:
Professionals who specialize in sourcing and assessing candidates for open positions and guiding the hiring process. They act as intermediaries between applicants/candidates and hiring managers.

Recruitment Process Outsourcing (RPO):
A category of business process outsourcing (BPO) where employers subcontract a large portion of its talent acquisition function to an outside service provider.

Regularization:
The process of converting a staff member to full employee status and the employer accepts legal liability of the person as employer-of-record.
 

Rule of Three:
A general rule for successful outcomes in executive search projects is that 3 credible candidates need to be interviewed 3 times by 3 different senior managers at 3 different locations.

 
Requirement:
Clients provide information about a position opening specifying the description of the job to be done, title, reporting relationships, skills required, experience and so forth. (same as Job Order)

Restricted Shares:
Long-term incentive plans for senior managers now include grants of company shares over periods of times called vesting. Restricted share plans have become more popular than stock option plans since there is a down-side risk for managers and this is supposed to dampen excessive risk taking behaviour. (Also see vesting)

Resume:
An official document prepared by job-seekers to describe their career history, education and specific qualifications. A resume carries legal standing and consequences for dishonest representation can be severe for executive managers. Resumes are usually 2 to 4 pages in length and can be thought of as sales brochures for people creating them. Resumes are often referred to as CV's (or Curriculum Vitae, Latin for "path of life"�) but CV's are usually longer giving detailed history of experience, presentations, publications, awards, affiliations, etc. Resumes of 2 to 4 pages are most common in Anglo Saxon countries and especially the United States. In Europe, Asia and Middle-East, resumes tend to include much more information and should properly be called CV's. Academic and other public sector candidates tend to write CV's that are lengthy because of their nature of their work.

Resume Floating:
The practice of sending raw resumes to organizations that might have job openings and hoping for a quick placement. The technique is mainly used by inexperienced search consultants trying to break into a new client.

Retained Search:
The typical method of engaging experienced recruiting professionals to source and assess executives for senior management positions. The retained model is similar to those of highly skilled professionals such as architects, accountants, lawyers and so on. Services are billed monthly (retainers) for the term of the contract -- usually 3 or 4 payments in executive search.

Retainer:
Executive search fees are usually paid in monthly instalments over an agreed upon period -- usually 3 or 4 payments.

Returnee:
People who lived and worked outside their country of origin for a number of years and returned. Returnees may have been posted abroad for an extended period or emigrated and later decided to return to their country or origin. In emerging countries, returnee managers are considered highly valuable because they bring international experience to the home country as well as strong local cultural understanding.

Ruse:
The practice of using deceptive tactics to acquire intelligence about an organization's employees. Common tactics include pretending to be conducting a study project or writing an article and asking questions about employees' names, titles and responsibilities. Rusing is usually used by inexperienced recruiters and researchers, and is highly unethical.

Screening Interview:
An initial job interview that is meant to quickly substantiate basic qualifications about a potential candidate. Screening interviews are often conducted over the telephone as a prelude to a more lengthy personal interview.

Search Process:
The procedure of sourcing and screening qualified candidates for open positions. Recruiters typically start with a so-called "long-list"� of potential candidates that are systematically winnowed down to a short-list of perhaps 4 to 6 who meet specific requirements of hiring managers. Candidate assessment is time consuming and involves telephone and resume screening, recruiter interviews, informal background checks, client interviews and reference checking.

Semi-Active Candidates:
Semi-active candidates are usually employed but not satisfied with their employers. Some are unstable job-hoppers who change employers frequently while others are concerned about the stability of their positions due to company reasons. Semi-Active candidates are often in the early part of their careers -- young people are naturally more transient as they build their skills and experience.

Severance Pay:
Payments given to employees whose employment has been terminated without cause. The amount varies by country but a rule of thumb in many countries seems to be one month severance pay for each year of service.

Sexual Harassment:
A legally-defined situation involving sexual advances or sexually charged remarks or conduct in a workplace toward females (typically). Sexual harassment can severely impact work performance because of the hostile, intimidating environment it creates. In so-called developed countries, strict laws prohibit the behaviour. In emerging countries, the concept of sexual harassment and laws to prevent it are not as well defined.

Shadowing:
A process of working closely with a more experienced person to learn the skills required for a position before taking on the role at a later time. Often used in emerging countries when expatriate managers are hired to transfer skills to local managers.

Shootout:
Process of choosing a search firm where sales representatives from each short-listed firm are asked to make presentations to a group of decision makers and a final selection is made. Shootouts are used in a few very fast paced, highly competitive environments in the world -- almost all in so-called Anglo Saxon countries. In the rest of the world (and especially Asia), long-term professional relationships are key to acquiring business to doing business together and the shootout model is rarely used.

Shortlist:
During the search process, a candidate long-list is gradually reduced to a much smaller number of candidates in a time-consuming procedure. The short-list is the group of candidates who survive extensive screening, interviewing and background confirmation, and are to be presented to the client.

Signing Bonus:
Payments given to newly hired executive managers to ensure they join the new employer. Signing bonuses are most commonly used to compensate executives for earnings they would lose by leaving their current employer. A typical example is an annual bonus that may not be paid for months in the future. Managers may hesitate to leave employers because they will lose rightfully earned compensation. In order to secure the hire, the new employer commits to pay the amount owed as a signing bonus on starting work or after an agreed period. Sometimes signing bonuses are used to lure high value candidates and are encumbered with retention requirements. (Same as Hiring Bonus)

Situational Interviewing:
Interviewers place candidates in hypothetical circumstances and assessed by how they would solve problems and exploit opportunities. Questions such as: "How would you deal with an employee caught stealing?,"� and "What would you do to increase sales of our products?," are situational interview questions. Considered very useful by most hiring managers for management candidates since they can ask often gain insight about their own company problems and opportunities.

Social Recruiting:
Social media tools such as Facebook, LinkedIn, Twitter and others are being used more and more to recruit candidates directly and through the company's employee referral program.

Source:
A credible and knowledgeable person who may recommend candidates for specific job openings.

Specialist Recruiters:
In large cities of most so-called developed countries, search consultants specialize their practice in certain industries or functions (for example: banking, manufacturing, consumer goods, accounting, HR, IT). Most large search firms employ numbers of recruiters and specialization is necessary. Small boutique firms in large markets also typically specialize in narrow services. Outside of the world's major commercial centres, generalist search consultants are most common. The simple reason behind this is that over-specialization in smaller search markets can lead to impoverishment of search consultants. In the emerging countries of Asia, most search consultants are generalists although they will commonly declare themselves to have certain "areas of focus."�

Staff Augmentation:
Term for using temporary workers to increase the number of people working on a specific project for a defined period of time.

Staffing Firm:
Staffing firms focus on providing temporary help or contract workers to clients for fixed periods. Recruiting firms, on the other hand, source, assess and refer qualified candidates to be hired as employees by client organizations.

Statement of Work (SOW):
The formal contract between a staffing firm and the client specifying the chosen contractor's identification information, hourly rate, working hours, deliverables and so on.

Stick Rate:
Measures the percentage of placed candidates who remain in their positions after the trial period.

Stock Options:
A type of financial incentive given to key employees to reward them for the performance of their company's share price. Stock options give employees the opportunity to acquire company shares at a fixed price. If share price increases above that price, employees can make a profit when stock options are exercised. For example, if employees are given stock options for 100 shares at $10 exercisable in 1 year and the price goes to $15 at the end of the year, the employee can earn a profit of $500 ($15 - $10 times 100 shares). Stock options have gotten a bad reputation as a cause of risky management behaviour and are giving way to restricted shares as a long-term incentive.

Stress Interviewing:
Interviewers deliberately place candidates in situations of stress to see how they react. They may keep candidates waiting in the interview room, ask argumentative questions and behave in an aggressive manner. Stress interview tactics are used in industries and locations that are highly competitive and confrontational in their culture. In Asia where relationship building skills are highly valued, stress interviewing is infrequently used.

Suspect:
A person identified in a preliminary manner as a possible candidate to fill a search assignment but who may or may not be determined as qualified or interested until more information is found.

 

Industry Map:
Recruiters specializing in certain industries or functions often build an organizational chart for each company in their target industries and, through on-going research, collect detailed information about each person in senior management positions.
 
Temp-to-Hire Staffing:
The process of hiring a temporary staff member and transferring them to regular employee status. The company becomes the employer-of-record and access legal employment responsibility of the person. The process is most used for lower level staff but is sometimes used for when interim executives are highly effective and wish to remain with an employer.

Temporary Staffing:
Contractors providing services to a client organization although legally employed by a staffing agency.

Termination:
Dismissal of an employee can take different forms and employment laws in most countries dictate its manner. Termination with cause is usually the result of a significant violation such as dishonest conduct, deliberate disobedience, serious neglect of duties, etc.). In such cases, the terminated employee is not entitled to separation pay or notice. Termination without just cause means the employee is being terminated for reasons not having to do with misconduct and severance pay is usually defined by law.

Test Candidates:
When position requirements might be unclear, executive recruiters will sometimes present a range of candidates to hiring managers to get their reaction to the work being done and guidance on where to target.

Timing:
The length of the search engagement is sometimes specified in advance by the search firm. Typical executive searches require 2 to 4 months with roughly 1-2 months for candidate sourcing and appraisal by the search firm and 1-2 months of interviews and assessment by client decision-makers. Notice periods are usually longer for senior executives -- 30 days is often the minimum in Asia.

Total Compensation:
Executive compensation can include an assortment of cash and non-cash, guaranteed and variable components. Base salary may comprise only 50-60% of total income. Other compensation may include the following: annual bonus, long-term incentive plan, profit sharing, restricted share plan (or stock options or phantom shares), signing bonus, executive health insurance, pension plan, life and disability insurance. In Asia, senior executives and especially expatriates can also be provided with an automobile (plus fuel and driver), private school fees for children, air-flight to home country for entire family, club memberships, housing allowance, housing loans and hard-ship bonus.

Unbundling:
Some service providers offer components of full recruiting services individually. Examples are firms that provide name sourcing (often called research) and assessment services.

Unethical Research:
Practices that involve deceptive techniques such as misrepresenting the caller or the purpose of the call are unethical and unprofessional, and not acceptable by most experienced professional recruiters. (Similar to Rusing)

Vesting:
Most long-term incentive plans involving shares (stock options, restricted share, etc) are given in specified dates to encourage retention of key employees. Vesting schedules typically specify that employees can exercise a portion of their share plans each year over a 3 to 5 year period. 

  

  

  

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Hiring Leaders

 

 Download this e-book to learn all you need to know to

get the best people on your bus and drive it to greatness.

A global manager's failsafe guide to dominating any industry

by employing its dominant people. 

 

DOWNLOAD Hiring Leaders now!

 

New sections are being added so check back regularly.

Send your comments and suggestions to

hiringleaders@chalre.com

 

  

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Executive Search & Management Consulting:

Chalre Associates provides its Executive Search and Recruiting services throughout the emerging countries of the Asia Pacific region with specific focus on Philippines, Singapore, Malaysia, Indonesia, Vietnam, Cambodia, Laos.  We are proactive and well known in our sectors of focus.  Regional Managers use us to help bridge the gap between local environments and the world-class requirements of multinational corporations.   

 

C o n t a c t   U s

 

  + 632 822 4129      leaders@chalre.com

 

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Asia CEO Forum

 

Asia CEO Forum presented by PLDT ALPHA Enterprise is the largest regular business event in Philippines and considered one of the most important in the Southeast Asia region. The forum serves as a hub for the spreading of ideas that help executive managers overseeing enterprises across the Asia Pacific region. 
  
Attendees are both expatriate and Asian management personnel overseeing multinational and regional organizations.  Held in Philippines, presenters are leaders in their industries and engaged in momentous pursuits of significance to the entire region.  

 

Asia CEO Forum is operated as a CSR (Corporate Social Responsibility) activity of Chalre Associates, one of Southeast Asia's most prominent senior management executive search firms, to promote Philippines as a premier business destination in the Asia region.  

 

Click Here to go to Asia CEO Forum now!

 

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Asia CEO Awards

 

Asia CEO Awards presented by Aseana City represents the grandest alliance of local and international business people ever created to promote Philippines on the world stage. As one of the largest events of its kind in the Asia Pacific region, it is considered a must-attend occasion for business leaders active in Southeast Asia. 

The star-studded Board of Judges of Asia CEO Awards give away 10 awards to many of the most accomplished leadership teams and individuals currently operating in Philippines and the region. The awards recognize extraordinary leaders who have demonstrated outstanding achievement for their organizations and contributions to others. 

As one of the fastest growing nations on the planet, the world's business leaders have their eyes on Philippines like never before. The annual gala was established as a natural outgrowth of Asia CEO Forum, the largest regular networking event for the business community in Philippines. 

 

Click Here to go to Asia CEO Awards now!

 

 

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SPECIAL DOWNLOADS:

 

Media organizations throughout the world call upon the Principals of Chalre Associates for thought leadership.  Below are some examples of published material written by our consultants or international journalists who refer to them.  For a complete list of published work, Click Here.  

 

 

Getting Ready For The Deluge: Outsourcing in Philippines

by Chalre Associates senior staff

 

Download [PDF file, 62KB]

 

The Economist Intelligence Unit of the Economist magazine asked Chalre Associates' Chairman, Richard Mills, to write a chapter about the Philippine outsourcing sector in its annual Business Guide Book.  The material provides a Executive Briefing on the progress and major issues facing this industry that is certainly one of most significant growth stories in the world.  more

 

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Asia Pacific Mining Conference 2007 - Report

by Chalre Associates senior staff

 

Download [PDF file, 28KB]

 

The 7th Asia Pacific Mining Conference put on by the Asean Federation of Mining Associations was perhaps the largest such event in the region.  Richard Mills, Chairman of Chalre Associates gave this report on what was said by the prominent mining people who presented. more

 

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The State of BPO in Philippines: Dan Reyes Speaks

by Chalre Associates senior staff

 

Download [PDF file, 31KB]
 

Richard Mills, Chairman of Chalre Associates, interviewed Dan Reyes of Sitel for ComputerWorld (US) recently to get his views on the state of the BPO industry in Philippines. Dan presented US readers with compelling information to support his view that Philippines is currently seen as the "Number 1" option by global companies sending BPO work to offshore destinations. 
 
Dan Reyes is easily one of most experienced Business Process Outsourcing (BPO) managers in the Asia Pacific region and the world. He is head of the extremely successful Philippine operations of Sitel, the world's largest call center organization. Among other things, he is a founder and former president of the Business Processing Association of the Philippines.    more