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by Scott Whipkey, CEO, CHESS 7/1/2020 

Confidential Searches have long been utilized by big companies seeking to fill executive and high-profile roles. Below we’ll explain ten reasons why some talent searches flat-out require secrecy. And it’s not just for executive roles anymore. We’re getting requests to conduct confidential searches for professional positions across the board. So here are:


Ten Reasons to Hire Confidentially

  1. Competitive Advantage: Confidential searches are often utilized when companies need specific skills to develop new products, services and technologies, expand into new areas, navigate mergers /acquisitions, or anything they don’t want their competitors to find out. And to maintain competitive advantage, the circle of those in-the-know must be kept small and leak-proof.

  2. Dirty Laundry: I had a client who asked me to conduct a confidential search for a new CFO, because he thought the current CFO might be going to jail (he did, for reasons that had nothing to do with the company). Filling vacancies that were created by in-house crises, family disputes, legal issues, financial troubles - requires discretion and delicacy. Often, companies use out-of-town search firms to spearhead these searches.  

  3. Succession/Retirement: A key player, perhaps an owner or founder, has decided to retire effective at a future date. A premature announcement might affect the company’s market position, or hurt employee morale. The individual may have even personally requested confidentially if they are leaving for reasons such as illness or family. 

  4. Termination: The GM plans to fire the Plant Manager, but needs a replacement ready to step in immediately. This particular role cannot go unfilled, so the company will conduct a confidential search, and once they’ve found a replacement, then they’ll drop the axe.

  5. Defection: Years ago I did a search for a technology firm whose owner found out that his ‘guru’ was leaving - for their biggest, most hated rival. The guru was just waiting for his bonus check to arrive before resigning. The owner was livid and insisted on finding someone better, and fast. I found them a ‘guru-Rockstar’, and her hiring was announced fifteen minutes after the alleged-traitor’s resignation was made public.

  6. Company Branding: Every company wants to be viewed as a great place to work, but have you ever seen a job posting and thought to yourself, “They’re looking for a Chief Information Security Officer, again? What the heck is going on over there?” Sometimes it’s better to keep things on the QT.  

  7. Right-Sizing: This is true for any company that has downsized, and even more applicable in the wake of the pandemic shutdown. The skills they're looking for now are different than what they were before. Tens of millions of employees have been downsized, and many will not be re-hired. They’ll be replaced with people with more upside and value (i.e. younger and cheaper). So to avoid the deluge of unwanted applicants, and the awkward pleas from ex-employees, companies will opt to keep some openings on the down-low (see my previous article: The Music Has Stopped.)

  8. HR Considerations: Several client executives have told me of push-back they get from HR for ‘using outside agencies.’ HR leaders may feel that “Recruiting is my job. Let me do what you hired me for.” Indeed, some of the best executive search professionals in world work ‘in-house’ - but others may not be experienced in confidential searches, where mistakes and leaks can be devastating. Confidential headhunting is a mysterious world of reconnaissance, investigations, ironclad NDA’s, subterfuge, cryptic cold-calling and vague voicemails, and clandestine hotel room meetings using aliases. I’m pretty sure that even Cornell’s Doctorate of Human Resources program doesn’t offer curricula on Stealthy Corporate Poaching.

  9. Plausible Deniability: Even if a company has the best talent acquisition team on the planet, do they really want their internal TA team to actively try to headhunt their competitor’s best people? Or might it be preferable to have a third-party handle the search? Plausible deniability is for when the CEO gets a call from their rival CEO asking if they really want to start a talent war.

  10. Skip the Red Tape: Job descriptions must be written and posted. Applicants must be entered into the ATS system. Internal processes and procedures must be followed. Approvals must be garnered. Salary guidelines must be followed. Federal and State compliance and regulations must be adhered to. Candidates must be responded to. Internal employees must be given consideration. Politics, posturing, infighting and rumors must be dealt with. So skip the red tape and get straight to the business of hiring the best. Your company's success may depend on it.

People aren’t your most important asset. The right people are."   

- Jim Collins, Good to Great

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