According to the Market Statsville Group (MSG), the global executive search market size is expected to grow from USD 18,436.14 million in 2022 to USD 40,847.28 million by 2033, growing at a CAGR of 7.5% from 2023 to 2033. The Executive Search (Headhunting) business has a long history of expansion, with more industries evolving and becoming more organized. Geographically, the headhunting business has increased as corporations expanded their influence beyond the developed economies of North America and Europe to the emerging economies of Asia Pacific, the Middle East, and Latin America. The end-use industry's increasing desire for efficient recruiting with shorter timeframes is a prominent driver predicted to fuel market expansion during the projected period. However, one of the primary problems impeding the growth of the executive search industry is a lack of adequate talents and skill shortages within the targeted profiles.

Executive search helps to speed up recruiting processes in a variety of ways. Administrative duties such as keeping track of applicant papers and scheduling interviews can be automated by businesses. Improved candidate analysis and access to a large number of candidates are two more aspects driving digitalization. The aforementioned considerations are encouraging firms throughout the world to digitalize their recruiting processes, ultimately supporting the expansion of the executive search industry.

Definition of the Global Executive Search Market

Executive search (headhunting) is a specialist form of recruitment that involves attracting highly qualified senior management personnel to a company. It mostly entails hiring for CEO, CFO, HRD, CIO, and COO jobs. Executive search, often known as recruitment recruiters, work in a certain industry and specialize in locating market-leading or difficult-to-find talent for specific needs. The proactive method is another name for it. It does not rely on traditional techniques of talent sourcing, particularly for younger applicants. Organizations approach the firm with senior or highly skilled personnel requirements, and the professional is assigned solely to the placement. The recruiter looks for possible candidates based on the client's criteria for expertise and character.

COVID-19 Impact on the Global Executive Search Market

COVID-19 wreaked havoc on organizations in previously unimaginable ways, the most pressing of which was figuring out how to keep people safe. Second, they converted as many functions, procedures, transactions, and forms of communication to digital as they could. In the end, they had to manage interrupted supply chains as well as fluctuating legal and policy reactions to the pandemic, and many had to adapt their business models to a new reality. It isn't finished yet and being relevant and in business during this period of extraordinary change necessitates executive talent with the necessary abilities to drive change and lead their firms to adapt. Organizations around the world rely on various executive search organizations such as AESC member executive search firms to help them adapt and develop.

Executive search firms have adapted and will continue to adapt in order to serve their clients. COVID-19 drove quick, unanticipated change and put the executive search profession to the test, from performing a virtual end-to-end search process to the most in-demand leadership profiles. Firms and consultants adapted to a volatile market, remote work, travel constraints, changing leadership criteria, new service needs, and shifting client and candidate expectations. The demand for executive service firms have increased exponentially due to the growing need for new and skilled executive personnel, who can tackle and assist the organizations business during COVID-19.

Global Executive Search Market Dynamics

Drivers: Increasing demand for efficient recruitment with shorter timelines

An executive search is an important process for any organization. With the increasing competition in the market across every vertical, need for a strong and ambitioned executive is must. For proper working and management in any firm, there should be an experienced and visionary leader guiding the way to success and profits for the company. If the recruitment of executive is not performed within specific timelines, the process will neither be successful nor worth investing the time. If it takes too much time to recruit, the company may suffer in terms of management and growth, resulting in low revenue generated and decline in market position. And if the recruitment is done in a hurry, it will not be successful and there is a chance of overlooking strong candidates. To overcome these challenges and carry out effective recruitment, executive search service is taken by many organizations.

The demand for these firms is increasing as the industries are growing rapidly. The growth of the industry largely depends on the executive team. Hence demand for executive search is increasing owing to all these factors driving the growth of the market.

Restraints: The lack of appropriate skills among the targeted profiles

Reportedly the recruiters and HR departments are facing problems in locating job applicants possessing needed skills, experience, and educational qualifications. Since a high-quality workforce especially the executive is the determinant of the business success of an organization, these challenges have direct influence on the competitiveness of the organization in present and in future. Although HR professionals are aware of the importance of the executive recruitment process, developing a strong talent pipeline is not an easy task. It involves factors such as economic and social conditions as well as government policy. These all need to be taken in account while recruiting.

According to a survey conducted by SHRM (Society for Human Resource Management), 68% of the professionals experienced difficulty recruiting candidates for full-time positions in their organizations. These findings reveal that professionals are experiencing a more challenging recruiting environment than previous years. The top basic skills lacked by the candidates include critical thinking/problem solving, professionalism/work ethics, leadership, and teamwork/collaboration. There are other challenges such as competition from other employers, lack of technical skills among applicants, and local market not producing enough qualified candidates.

Opportunities: The enhancement in technological advancements

With the growing technological innovation globally, there has been witnessing a change in the business conducted by executive search firms. More firms are increasing their development and technology teams to drive more technologically driven projects, investments, and innovations. Companies used to meet this demand by expanding in-house teams or working with external executive search firms to find ideal personnel. To improve and accelerate the employment and recruitment process, more firms are turning to digital solutions or developing their own applications.

Furthermore, blockchain technology is transforming how hiring managers and businesses perceive and evaluate potential applicants. The degree of security provided by blockchain to its users may be depended on to safeguard the integrity of data, such as job history or academic qualifications. This implies that employment agencies and companies can depend on the information given, and job hopefuls may share it without risk of it being tampered with once validated. With blockchain providing safe access to verified records for both the candidate and the employer or recruiter, applications may now be viewed in real time with access based on the candidate's consent. Thus, growing adoption of advanced tools and technologies will create a lucrative growth opportunity for the market.

Scope of the Global Executive Search Market

The study categorizes the executive search market based on type, and application area at the regional and global levels.

By Type Outlook (Sales, USD Million, 2019-2033)

• Retainer Firms
• Contingency Firms
• Others

By Application Outlook (Sales, USD Million, 2019-2033)

• Healthcare
• Industrial
• Food & Beverages
• Automotive
• Retailing
• IT-enabled Services
• Others

By Region Outlook (Sales, USD Million, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Retainer Firms segment accounts for the largest market share by type

Based on the type, the market is divided into retainer firms, contingency firms and others. The retainer firms’ segment is expected to dominate the market share in 2022 in the global executive search market. The retainer firms segment currently dominates in 2022, gaining a revenue share of around 51.4%. It is expected to grow at a CAGR of 6.9% throughout the forecast period in the executive search market. A retained executive search company is involved in all aspects of the search process, from developing an initial tailored search strategy to candidate onboarding. Because their success is reliant on the effect and long-term commitment of the executive hired, retained executive search companies frequently maintain consulting and follow-up months after the appointment. While retained search looks to be more expensive at first glance, it gives a significantly greater ROI in the long term. A retained placement, on average, is a better match for their position and remains in the role longer than any other sort of recruitment situation. Companies would often request a retained search when they are trying to fill an executive-level post or have exhausted all other less expensive and inefficient candidate search methods.

North America is expected to witness the largest market share by Region

Based on the regions, the global executive search market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. North America is projected to account for the highest market share of 38.9% in 2022. With a greater emphasis on digitization across several industries and faster progress in green energy generation and infrastructure development.

United States has played a huge role in the development of a significant amount of the technology that the whole world use in the daily lives. The US economy is heavily reliant on technology. As a response, several states have launched significant measures to spark innovation and encourage entrepreneurs. Artificial intelligence (AI), the Internet of Things (IoT), Big Data analytics, Mobility, Digital Media, Biotechnology, Telemedicine, and Cloud Computing are the most commonly referenced technologies. Due to these reasons many companies are appointing employee to their company and this has boosted the market in this segment over the forecasting period.

Competitive Landscape: Global Executive Search Market

The executive search market is a significant competitor, and extremely cutthroat in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.

Major key players in the global executive search market are:

• Heidrick& Struggles
• Korn Ferry
• Egon Zehnder
• N2Growth
• AIMS International
• Boyden
• KPMG
• Randstad N.V.
• Alumni
• Amrop Partnership SC
• Morgan Philips UK Limited
• Hays plc
• ManpowerGroup
• Russell Reynolds Associates
• Spencer Stuart
• CMRG

Recent Development

• In December 2021, Korn Ferry Launched AI-Powered Intelligence Cloud. It is expanding its digital footprint with the launch of Korn Ferry Intelligence Cloud, a new AI-enabled talent analytics platform. This HR technology combines data-driven insights with Korn ferry’s world-class consulting expertise and IP. The intelligence cloud helps solve the challenges of acquiring, managing, and mobilizing the right talent and skills—now and in the future.
• In January 2020, Spencer Stuart acquires Cambria Consulting. Cambria Consulting specializes in individual and team development. This acquisition complemented Spencer Stuart’s growing set of leadership advisory services, which include executive assessment and development, coaching, CEO succession, team effectiveness, culture shaping, and board effectiveness.
• In January 2020, Manpower Group introduced New Brand Talent Solutions, which combine RPO, TAPFIN MSP, and the right management services to provide greater value to customers and candidates. From talent recruitment and acquisition through upskilling, development, and retention, talent solutions enable seamless delivery, best-in-class technology, and broad workforce analytics across many nations at scale. This new service combination draws on deep industry experience as well as a good grasp of what talent wants to develop innovative solutions that suit organisations' complicated global workforce demands.

Key Issues Addressed

• What is the market size by various segmentation of the executive search by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the executive search market?
• What are the key opportunities and trends for manufacturers involved in the executive search supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of executive search in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.