Why does Executive Search need an updated approach?

Where are we starting with this?

Executive search has long been seen as the sophisticated arm of recruitment, a trusted partner to C-suite executives and corporate boards. Yet, despite its prestige and true value-creation, the industry is beginning to align with clients' evolving expectations. Concerns around high fees, limited transparency, and inconsistent long-term results are becoming more prevalent – especially as the importance of technology, particularly the active use cases for AI tools, is only growing within the industry. A more modern, client-focused, technology-driven approach is essential to ensure continued relevance and deliver meaningful value.

Here’s why executive search needs an updated approach—and what that approach should look like.

Transparency: Dismantling the “Black Box”

Executive search firms often operate in ways that keep clients at arm’s length during the candidate identification and evaluation processes. This lack of visibility has frustrated companies that need top-tier talent but have little insight into the inner workings of the search firm. In today’s business landscape, clients demand more transparency, truly diverse candidate pools, and an exceptionally well-organized interview process—especially when they’re paying big retainers.

A modern approach to executive search should emphasize greater transparency. Clients increasingly expect clear insights into the process, with timely updates and visibility into key stages of the search. Leveraging technology can enhance this, providing platforms where progress is easily tracked, candidate pools are visible, and initial assessments are accessible. Transparency is becoming a fundamental expectation in today’s business environment. Search firms can build stronger trust, enhance accountability, and improve collaboration by offering more visibility into the process.

Flat Retainers: Fair and Predictable Costs

One of the most contentious aspects of executive search is its fee structure, typically based on a percentage of the successful hire’s first-year compensation. This tends to incentivize search firms to recommend candidates with the highest potential salary rather than those who are the best fit for the organization. It also results in unpredictable costs for the client and creates a sense of misalignment between the client’s needs and the search firm’s motives.

The future of executive search should embrace (more often than not) a flat-retainer model. This straightforward approach ensures that fees are clear from the start, without hidden agendas. By decoupling compensation from the candidate’s salary, search firms can focus on finding the right leader for the role—whether or not they come with a bigger overall compensation package. Predictable costs also allow companies to budget effectively and ensure they pay for a diligent process, not just a quick result.

Business Outcomes: Beyond Fancy Reports

Executive search has long been judged on its ability to deliver polished PDF reports—impressive-looking documents with executive summaries, market mapping, and detailed candidate profiles. However, these reports often fail to predict the actual success of the hires made. They mostly mean a lot of work for Executive Search firms and don’t present the value clients seek.

A new approach to executive search must shift focus from delivering beautiful reports to delivering business outcomes. It’s not enough to fill the seat—firms must ensure that the individual they place drives measurable success for the organization. To do this, search firms need to immerse themselves in the client’s business, understanding its strategic objectives, culture, and long-term vision. Placing an executive should ensure they’re positioned to achieve specific business goals—whether it’s accelerating growth, leading a digital transformation, or improving team cohesion.

True DE&I Commitments: Promoting Diverse Talent

Diversity, equity, and inclusion (DE&I) are no longer optional in today's corporate world. The demand for leadership teams that reflect the diversity of their customer base, workforce, and society has never been greater. However, despite promises from search firms to prioritize diverse candidates, the statistics on executive leadership diversity remain behind its expectations.

Many firms pay lip service to DE&I, but when the search begins, they revert to the same networks and candidate pools that have been historically homogeneous. A new approach to executive search must place DE&I at the forefront—not just as a checkbox but as a core business principle.

This requires expanding beyond the traditional executive networks and making a proactive effort to engage underrepresented groups. It also means working closely with clients to set diversity expectations from the start, measuring progress, and holding everyone accountable to those goals. These are tough conversations, especially at the beginning of a (business) relationship. Search firms must invest in building relationships with diverse talent pipelines and push back against biases that have long favoured candidates who fit a certain mould. Real DE&I commitments involve creating opportunities for candidates who may have been overlooked in the past but who have the potential to bring fresh perspectives, innovative ideas, and transformative leadership to the table. Executive Search firms need to work with industry-wide benchmarks for each role and each level.

The Future of Executive Search

Executive search is at a pivotal moment. The traditional model—often opaque, costly, and at times disconnected from tangible business outcomes—has begun to fall short in today’s dynamic market. It lacks the agility and technological integration necessary to meet the evolving needs of modern organizations. In its place, a new approach must emerge—one built on transparency, cost predictability, measurable results, and a genuine commitment to diversity.

Firms like Momentum Consulting are leading this transformation. We are shifting from being gatekeepers of hidden processes to true partners, collaborating with organizations to build leadership teams that drive success. Momentum Consulting is committed to executives who not only excel in their roles but also reflect the diversity and complexity of today’s world.

The future of executive search isn’t merely about filling vacancies—it’s about driving sustainable impact, one leader at a time, while harnessing the momentum that is propelling this industry forward.