Why do Executive Recruitment Companies Fail to Survive?

Coming up with a company which works as an HR consultancy or recruitment-based organization isn’t easy. 200 companies come up every month. But what happens to them? How many thrive and how many go on to become the best or top in their field. The answer is a few. What are the reasons such agencies fail in their business?

The top reasons many executive recruitment companies are failing at their business are:

More Than The Required Number Of Recruitments

It sounds absurd to think executive search firms aren’t supposed to recruit at an exorbitant rate. But when recruitment firms hire recklessly across different sectors, it bogs them down. The important point to consider is these companies must select a niche area to operate and then stick to it and mustn’t diverse from what they are doing. While you are searching for candidates in data science industry, you mustn’t start placing candidate in any other sector even if you find an excellent individual. It’s very alluring to hire for another sector too but it stops from developing a specialty in a particular niche.

No Clear Vision

To have a vision seems like a rhetoric thing to say. But vision is more than mere rhetoric. It’s the passion and the motivation which keeps you as well as the candidates you search keep working hard. It keeps the people in pushing their extreme limits to outdo their previous performances and of their competitors in a healthy and positive way.

Uncomfortable Culture

If a culture is not good, nobody is going to stay with you. Even if you are a search firm and technically hiring for other businesses, you ought to have a great culture offering a positive environment for people to work in. A toxic and negative culture drives people away. The best of executive recruitment companies try to offer their search and executives recruitment managers an engaging environment and challenging workspace and people. Yes, positive people are also very important. Negative people breed negativity.

Technologically Backward

Customer relationship management systems and applicant tracking systems are necessary steps for executive search firms to recruit new candidates. Not knowing how to handle software, the steps, and the processes can leave executive search firms far behind. It’s important to be aware of all the technological advancements in your industry, market, and competition. Moreover, it helps with your business optimization and expansion.

Lacking Process-Orientation

Not just the multi-national companies and international organizations, even the small agencies and hiring companies are supposed to work according to some predetermined paradigm of processes. Not sticking to any process, will leave you in the lurch. If you are hiring, you need planning. When are you hiring? For which company are you hiring? Which all candidates are you calling for interviews? What’s the ratio of candidates per position, are you considering, interviewing?

Only 20% companies get to succeed. Every business struggles but not let shortcomings on your part be the reason for your company shutting down.


Niti Sharma is a professional writer, blogger who writes for a variety of online publications. She is also an acclaimed blogger outreach expert and content marketer. She loves writing blogs and promoting websites related to education, fashion, travel, health and technology sectors.

Never miss a story..!!

Grab the Latest Human Resource jobs, News, Tips, Updates & Trends..!!

See Our Blogcenter

Recruitment Blog