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Hello!
We think you might have some questions as to how to find an
executive for your company. Perhaps you are not familiar with
Executive Search consultants, or with Korn/Ferry International
in particular.
We are here to introduce Korn/Ferry International to
you company or organization. We have prepared a list of FAQs
that you may wish to start with. If you don’t find the answer
to your question here, or if we may be of further assistance
in any way, please contact us and we will be glad to help.
Welcome to Korn/Ferry!
 Why
should I hire an Executive Search firm, why not do the work
myself?
I’m
not totally convinced. Wouldn’t it be cheaper and more efficient
to just place an ad?
Why
should I select Korn/Ferry over other Executive Search consulting
firms?
Can
I access Korn/Ferry clients to get some references?
How
can I be sure my search project will be handled well?
Does
Korn/Ferry have the technical knowledge of my business and
segments that is necessary to effectively evaluate candidates?
If
I retain Korn/Ferry, will it prospect my own executives to
serve other clients?
I
want to retain Korn/Ferry. How are you compensated?
I
am still not sure about Korn/Ferry compensation fees. Why
did Korn/Ferry decide to use a retained fee policy? Why 33
1/3% (thirty three and one third percent)?
What
if I hire Korn/Ferry and then cancel the search?
What
if I decide to hire more than one of the candidates presented
by Korn/Ferry during the search?
How
does Korn/Ferry work? Can we estimate how long a search will
take?
Is
it possible that Korn/Ferry not find the executive I am looking
for? Is there such a thing as “mission impossible”?
After
an executive is hired, what kind of guarantee does Korn/Ferry
offer?
Why should
I hire an Executive Search firm, why not do the work myself?
Answer: Actually,
Executive Search is not selection and recruiting. Executive
Search consultants do not only fill a position, they introduce
candidates that fit perfectly with the client company’s needs
and culture, offering a complete panorama of the executives
within a given sector or functional area, etc. We also give
our clients advice and recommendations concerning their human
resource policies related to the demand and hiring of executives.
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I’m not totally
convinced. Wouldn’t it be cheaper and more efficient to just
place an ad?
Answer: No,
when you place an employment ad in a newspaper or magazine you
will reach a limited set of professionals who will respond to
it. Executive Search consultants are proactive: we go to the
market and look for the best talent for our clients. We may
even present candidates who, in principle, are not looking for
a new position and would not have answered your ad.
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Why should I
select Korn/Ferry over other Executive Search consulting firms?
Answer: There are many
factors that distinguish Korn/Ferry from its competitors,
and make it the world’s leader in the search of leadership capital
solutions. If you want to know more, please read the material
indicated below.
Why
should one choose K/F?
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Can I access
Korn/Ferry clients to get some references?
Answer: Yes,
but Korn/Ferry will only reveal client information if
specifically authorized by the client to do so.
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How can I be
sure my search project will be handled well?
Answer: At Korn/Ferry
we use the relationship management system. Each client
has a vice-president or director who is fully familiar with
the company and is its contact, sourcing from within Korn/Ferry
the resources required for each project. This director acts
as a true “account manager” – not only guiding the client but
also setting a well defined and customized search plan for each
project.
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Does Korn/Ferry
have the technical knowledge of my business and segments that
is necessary to effectively evaluate candidates?
Answer: Yes,
for several years Korn/Ferry has been specializing, hiring
and training consultants to develop in-depth knowledge of different
economic segments. We have expertise in ten segments divided
into sectors. These are laid out in the “Specialty Practices”
section of this site’s home page.
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If I retain Korn/Ferry,
will it prospect my own executives to serve other clients?
Answer: No,
from the moment your company signs a contract for Executive
Search services, thus becoming a Korn/Ferry client, you
become off-limits. This guarantee of off limits extends for
the entire search period and for one year after closing the
position with the client company.
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I want to retain
Korn/Ferry. How are you compensated?
Answer: As we provide
a consulting service, Korn/Ferry uses a retained fee
system. This means our professional fee is paid for presenting
candidates to the company as well as for any other information
or recommendations that may add value. In other words, our fee
is independent of the result of the search and of whether or
not the position is actually filled.
Our fees correspond to 33 and 1/3% (thirty-three and one third
percent) of the first year compensation package offered to the
executive candidate and hired by the client. This includes the
annual salary and any other amounts agreed upon, such as bonuses.
We have a minimum fee equivalent to US$ 25,000.00 as we work
only with top level executives.
It is our policy to bill the amount due in three equal installments,
the first due at the start of the search and the remaining two
in subsequent months. In the event that a search ends before
this time the balance due is billed on the date the candidate
is accepted.
At the end of a search the actual salary package agreed upon
with the selected candidate is verified and, in the event that
it is greater than the amount used to calculate our fees, these
shall be re-calculated based on the new amount and an additional
bill issued for the difference.
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I am still not
sure about Korn/Ferry compensation fees. Why did Korn/Ferry
decide to use a retained fee policy? Why 33 1/3% (thirty three
and one third percent)?
Answer: Korn/Ferry
has used retainers since it was established 31 years ago. It
is an ethical option as it provides us with the exclusion and
impartiality required to find the best possible solution for
our clients. We try to set ourselves apart from those companies
that merely intermediate.
The 33 1/3% amount has an interesting explanation. If we look
at the US market, executives receive 12 (twelve) salary payments
per year. Therefore our clients are charged a fee equivalent
to 3.99 (33.33% x 12) salaries. Normally it takes us about three
months to find the ideal candidate. If the executive were already
occupying the position during this period, he/she would receive
3 (three) salaries, which when we add in labor costs of 30%
(US based, in Brazil this number is almost 80%), comes out to
3.9 salaries. The numbers are actually quite close.
In practice then, the client company is paying Korn/Ferry
the payroll amount it would be paying to the executive, had
he/she already been in position. Once a position is approved,
this amount is already budgeted and therefore should not be
considered an unforeseen expense.
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What if I hire
Korn/Ferry and then cancel the search?
Answer: That depends
on when you cancel. If the search is cancelled within 90 days
and there are any installments not yet due, these will be automatically
cancelled. After the first 90 days you may suspend the search
and re-open the project within a period of twelve months, at
no additional cost, so long as the search profile remains unchanged.
In the event that this is not feasible, Korn/Ferry, together
with the client, will establish an amount to credited against
future searches.
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What if I decide
to hire more than one of the candidates presented by Korn/Ferry
during the search?
Answer: If Korn/Ferry
plays an important role in presenting and negotiating with the
candidate, as well as verifying his/her references and credentials,
our search fee shall be due in full.
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How does Korn/Ferry
work? Can we estimate how long a search will take?
Answer: The Korn/Ferry
Executive Search process consists of 8 steps. Learn
more about these 8 steps.
It is hard to estimate how long a search will take. Statistics
indicate an average of 5 months, not counting any projects that
may have been suspended for a period of time.
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Is it possible
that Korn/Ferry not find the executive I am looking for? Is
there such a thing as “mission impossible”?
Answer: Yes,
that possibility exists, but Korn/Ferry has a strict
policy of not accepting projects without first studying search
feasibility, based on our professional experience, sources of
information and database.
In the event that this should happen, however, Korn/Ferry
will suspend the search only when authorized by the client.
We would like to point out that, in our experience, a “mission
impossible” can be overcome by reviewing and revising elements
of the executive profile or of the compensation package offered.
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After an executive
is hired, what kind of guarantee does Korn/Ferry offer?
Answer: Korn/Ferry
provides a one-year guarantee of the work it performed. This
means that, should a candidate hired by the client leave within
the first year, Korn/Ferry will repeat the search at
no extra cost to the client.
We hope you are satisfied with our work! We would be happy
to help you again whenever you desire.
We are proud that over 80% of the projects conducted by Korn/Ferry
in recent years have been repeat business for client companies,
demonstrating a high level of client satisfaction.
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