Executive search firms can fill your roster fast.

Internet companies looking to hire a team on the quick must first face some good news and some bad news. The good news: Money is more available than it ever has been. The bad news: Talent is in short supply and getting shorter. After proof of concept, three factors drive a successful startup today: funding and cash management, flawless execution of the product or service launch, and human-capital management. And the first two completely depend on the third.

Many factors, however, are contributing to the shortage of talent in the global marketplace and especially at the top echelons. These include the demographic dwindling of managers in the 35- to 44-year-old age group, the impending retirement of the baby boom generation of leaders, the explosion of new technology-based businesses, and the aftereffects of the downsizings of the 1980s and ’90s.

Ironically, not many startups aggressively recruit from the start because it is not usually an area in which entrepreneurs are experts. An executive search firm can help you gauge future needs for senior management as well as present ones, and assist you in importing expertise in specific areas. If your hiring needs are extensive, a search firm can help you meet these goals in much less time than if you were to hunt for prospects yourself.

A successful startup should be thinking beyond the founding partner or partners from the get-go, and once the company starts to grow, it should be armed with the management talent needed to take it to the next level. If you’re going to bring in a marketing VP to manage a team of five people, be sure you hire someone capable of running a much larger shop of 50 to 100 people.

Executive search firms can also help with hiring because we keep our eyes on many different markets and industries. Many founders of ebusiness startups have deep expertise in say, the vagaries of online retailing, but lack brand-building knowledge. Since search firms cover so many industries, they can help an ebusiness find someone who might not have an ecommerce background, but who sports a flawless brand record.

Fees for an executive search at a top-drawer firm average one-third of the candidate’s anticipated first year’s compensation (cash and equity), negotiated on a case-by-case basis, which creates a continuing incentive for shared success.

Sorry, comments are closed.