When your senior-level search has been open for weeks with no viable candidates, choosing the right executive search firm becomes critical. This guide helps Canadian companies understand what separates effective executive recruiters from those who will waste your time and leave your position unfilled.
Over 60% of executive searches in Canada take longer than 90 days to complete. Most fail not because qualified candidates don’t exist, but because companies choose recruiters who rely on outdated methods—posting jobs and hoping someone applies, sending mass LinkedIn messages, or searching databases filled with people already talking to five other firms.
This guide covers:
- When executive search makes sense versus internal recruiting
- Types of firms and their actual capabilities
- Red flags that predict failure
- Questions that reveal recruiter quality
- Fee structures and what you’re actually paying for
- Why phone-first methodology still outperforms automation
- The Canadian executive search landscape
Whether you’re hiring a CFO in Toronto, a plant manager in Windsor, or a compliance officer in Calgary, understanding these fundamentals will help you choose a partner who actually fills your role instead of just collecting your retainer.
When You Actually Need an Executive Search Firm
Not every open position requires executive search. Internal HR teams and job postings work well for certain roles. Executive search becomes valuable when:
The Role Requires Passive Candidate Recruitment
The best candidates for senior positions are typically employed and not actively job searching. They’re not updating LinkedIn profiles or browsing Indeed. Reaching them requires direct outreach—phone calls, referrals, and conversations that happen before they’ve decided to move. Internal HR teams rarely have the time or expertise for sustained passive candidate recruitment.
The Search Involves Specialized Certifications or Compliance Requirements
Financial services roles requiring CSC, CFA, or Series 7 certifications. Manufacturing positions needing Red Seal tickets or specific safety credentials. Regulated industries where one missing certification disqualifies an otherwise perfect candidate. Experienced recruiters know which certifications matter and how to verify them before wasting your time with unqualified candidates.
Your Search Has Already Stalled Past 30 Days
If your position has been open for a month or more with no progress, something is fundamentally wrong. The salary might be below market. The requirements might not exist in real candidates. The location or conditions might be limiting your pool. An honest executive recruiter will diagnose the actual problem—not string you along for another 60 days hoping something changes.
The Role Sits at VP-Level or Above
Senior executives evaluate opportunities differently than mid-level employees. They’re thinking about equity, board involvement, succession planning, and strategic direction. These conversations require recruiter credibility and industry knowledge that goes beyond resume matching.
You Need Someone Who Will Tell You the Truth
Many companies engage executive search firms expecting validation of their existing approach. They want a recruiter to find the VP of Finance who accepts $120K in a market paying $160K. They want the plant manager with 15 years of automotive experience who will relocate to a small town for less money than they make in Toronto.
The best executive recruiters tell you when your search parameters don’t match reality. They’ll recommend adjusting salary, removing unnecessary requirements, or rethinking location expectations. If your previous recruiters kept saying “we’re working on it” for weeks without honest feedback, you didn’t hire a search partner—you hired someone who took your money and hoped the problem would solve itself.
Types of Executive Search Firms: What You’re Actually Buying
Retained vs. Contingency: Understanding the Business Model
Retained search firms charge an upfront retainer (typically 30-33% of first-year compensation) regardless of whether they successfully place someone. You’re paying for dedicated focus, comprehensive market mapping, and a thorough process. Retained search makes sense for C-suite roles, confidential searches, or situations where you need a firm to work exclusively on your behalf.
The risk: If the firm doesn’t fill your role, you still paid the retainer. Some retained firms have strong reputations but rely on junior researchers doing most of the work while you pay partner-level fees.
Contingency search firms only get paid when they successfully place a candidate (typically 18-25% of first-year compensation). This aligns incentives—they’re motivated to fill your role quickly and with a candidate who actually starts. The risk: Contingency recruiters might prioritize easier searches or present candidates who aren’t perfect fits hoping something sticks.
Hybrid models use a smaller upfront retainer plus a success fee. This approach balances commitment with performance incentives.
Specialist vs. Generalist: Does Industry Knowledge Matter?
Industry specialists focus on specific sectors—financial services, manufacturing, healthcare. They understand the technical requirements, compensation norms, and candidate motivations specific to your industry. When hiring a Mutual Funds Representative requiring CSC certification, you want someone who knows what that certification actually means and where to find people who have it.
Generalist firms recruit across multiple industries, relying on transferable skills and general recruiting methodology. This works well for certain roles (HR Directors, Marketing VPs) where skills transfer more easily across sectors.
The difference becomes critical in technical or regulated roles. A generalist recruiter might present a “financial services professional” who lacks required compliance credentials. A specialist knows to screen for those qualifications before wasting your time.
National Firms vs. Boutique Agencies
Large national firms offer brand recognition, extensive databases, and resources for complex, multi-location searches. They’re often the safe choice for public companies or situations requiring multiple placements. The downside: You might be one of 40 active searches assigned to your recruiter. Responsiveness and personalized attention suffer.
Boutique agencies provide partner-level attention, flexibility on terms, and often deeper relationships in specific niches. A boutique recruiter handling 6-8 searches simultaneously can respond faster, provide more detailed candidate insights, and adapt their approach mid-search. The downside: Smaller networks and fewer resources for extremely broad searches.
For mid-senior level placements in Canada, boutique specialists often outperform large firms. The senior financial advisor search that’s been open 60 days doesn’t need a database of 10,000 candidates. It needs a recruiter who will pick up the phone and call 50 qualified people until they find one who’s interested.
Red Flags That Predict Executive Search Failure
They Accept Your Search Without Asking Hard Questions
Warning sign: The recruiter agrees to your requirements without challenging unrealistic expectations or asking detailed questions about why previous attempts failed.
Why it matters: Recruiters who say “yes” to everything are either desperate for business or planning to string you along until you adjust expectations yourself. A quality recruiter will ask:
- “Why is this position open?”
- “What have you tried so far and why didn’t it work?”
- “Is there flexibility on compensation if we find someone exceptional?”
- “Which of these requirements are truly non-negotiable?”
If they don’t push back on anything, they’re not planning to tell you hard truths later either.
They Rely Primarily on Database Searches and Job Postings
Warning sign: The recruiter’s process emphasizes searching their database, posting on job boards, or sending LinkedIn InMails en masse.
Why it matters: Passive candidates—the people you actually want for senior roles—aren’t in recruiter databases actively looking for jobs. They’re employed. They’re not checking InMail. The best candidates for your VP of Operations role need to be approached directly, usually by phone, usually multiple times before they’re willing to have a conversation.
Recruiters who rely on automation are fishing in the wrong pond. They’ll find active job seekers (people already talking to multiple firms) but miss the passive candidates who might be perfect for your role if someone bothered to call them.
They Won’t Provide References or Case Studies
Warning sign: When you ask for examples of similar placements or references from past clients, they deflect or provide only generic testimonials.
Why it matters: Experienced recruiters have specific success stories. “Last quarter I placed a plant manager for an automotive supplier in Cambridge—the role had been open 94 days when they contacted me, I filled it in 18 days.” That level of specificity indicates real experience. Vague statements like “we’ve successfully placed hundreds of executives” mean nothing.
Their Fee Structure Seems Too Low
Warning sign: They offer 10-12% contingency fees when market rate is 18-25%.
Why it matters: Executive search at those rates is unsustainable unless they’re running a volume business (submitting dozens of candidates hoping something sticks). Quality search requires time—research, phone calls, detailed screening. Firms charging below-market rates either cut corners or make it up in volume by working on 30+ searches simultaneously. Neither approach serves your needs.
They Use Templated Communications and Generic Outreach
Warning sign: Their candidate outreach messages use templates like “I came across your profile and think you’d be perfect for this opportunity.”
Why it matters: Senior executives receive these messages constantly. Response rates to generic InMail hover around 1-3%. Phone calls with personalized context (“I noticed you spent six years at RBC working in their compliance division, and I’m recruiting for a Director of Compliance role at a mid-sized wealth management firm”) generate 40-50% conversation rates.
Recruiters who rely on templates and automation might look busy, but they’re not reaching the candidates you need.
Critical Questions to Ask Before Engaging an Executive Search Firm
About Their Process
“Walk me through exactly how you’ll source candidates for this role.”
Listen for specifics. Do they mention calling competitors? Researching industry associations? Leveraging personal relationships? Or do they describe database searches and LinkedIn filters? The former indicates proactive recruiting. The latter indicates hoping the right candidate falls into their lap.
“How do you handle candidate screening beyond reviewing resumes?”
For technical or regulated roles, resume matching is insufficient. Do they conduct phone interviews? Verify certifications? Check references before presenting candidates? Or do they send resumes with brief summaries expecting you to do all the qualification work?
“What’s your typical time-to-fill for roles like this, and what factors influence that timeline?”
Experienced recruiters know that VP-level financial services roles take longer than plant manager positions. They understand that summer months slow down executive hiring. If they promise unrealistic timelines without acknowledging variables, they’re either inexperienced or setting false expectations.
About Their Expertise
“How many placements have you made in [your industry] in the past 12 months?”
This reveals whether they’re truly a specialist or a generalist claiming expertise in everything. Three placements demonstrates real activity. Zero placements means they’re learning on your dime.
“What certifications or qualifications are essential for this role that companies often overlook?”
For financial services, manufacturing, or regulated industries, this question separates genuine experts from generalists. A recruiter with real depth will immediately identify compliance requirements, technical certifications, or industry-specific credentials.
“What challenges do you anticipate with this specific search?”
Quality recruiters identify potential obstacles upfront. “Your salary is about 15% below market for this level of responsibility.” “The requirement for both French fluency and specific technical certifications significantly limits the candidate pool.” “Your location might be challenging—most candidates in this field are concentrated in Toronto and you’re in a smaller market.” These assessments help you make informed decisions, not discover problems 60 days into a failed search.
About Their Working Relationship Expectations
“How often will we communicate during the search, and what information will you need from me?”
Executive search requires collaboration. Recruiters need timely interview feedback, honest communication about concerns, and quick decision-making when they present strong candidates. If they don’t establish clear communication expectations, problems emerge later when they’re waiting three weeks for your feedback while their candidate accepts another offer.
“What happens if the placed candidate doesn’t work out?”
Most firms offer 60-90 day guarantees, meaning they’ll replace the candidate at no additional fee if the placement fails within that window. Understand the terms—what counts as a failed placement? How quickly will they start the replacement search? Are there any conditions or limitations?
“What do you need from me to make this search successful?”
This question reveals whether they view themselves as order-takers or true partners. Strong recruiters will tell you they need prompt interview feedback, honest communication about candidate concerns, and realistic expectations about timeline and candidate availability. They’ll also tell you if something about your search needs to change to be successful.
Understanding Executive Search Fee Structures in Canada
Standard Contingency Rates: 18-25%
Most Canadian executive search firms charge 18-25% of the placed candidate’s first-year total compensation (base salary plus guaranteed bonuses). For a $120,000 base salary plus $20,000 guaranteed bonus, the fee would be $25,200-35,000.
You only pay when they successfully place someone who starts the role. This aligns incentives—the recruiter is motivated to find candidates who will accept and remain in the position long enough for them to receive payment (usually after the candidate passes a probation period or guarantee window).
Factors that influence fee percentage:
- Search complexity and seniority level
- Exclusivity (exclusive searches command better pricing)
- Volume (multiple placements or ongoing partnership)
- Timeline urgency
- Geographic scope
Retained Search: 30-33% Plus Expenses
Retained search involves an upfront payment (typically one-third of the total fee) with the remainder paid in installments regardless of outcome. Total fees usually reach 30-33% of first-year compensation plus expenses (research costs, travel, assessments).
When retained search makes sense:
- C-suite or board-level positions
- Confidential searches (replacing an existing executive)
- Roles requiring extensive market mapping
- Searches where you need guaranteed exclusivity and focus
Hybrid Models: Reduced Retainer Plus Success Fee
Some firms offer reduced upfront retainers ($5,000-15,000) plus a success fee upon placement. This provides some commitment from both parties while maintaining performance incentives.
What You’re Actually Paying For
Research and market mapping: Identifying target companies, researching organizational structures, understanding compensation benchmarks.
Direct outreach: Phone calls, multiple follow-ups, relationship building with passive candidates who aren’t actively looking.
Screening and qualification: Detailed interviews, certification verification, reference checks, assessment of cultural fit.
Process management: Coordinating interviews, gathering feedback, addressing concerns, managing offer negotiations.
Guarantee period: Replacing the candidate if the placement fails within the guarantee window.
The fee isn’t for finding resumes—it’s for the persistence, expertise, and phone calls required to reach senior-level passive candidates and convince them to consider your opportunity.
Red Flags in Fee Discussions
“We’ll reduce our fee if you give us multiple searches.” Volume discounts are common, but firms that immediately slash pricing might not be investing sufficient time in each search.
“We charge 10% because we’re more efficient.” Below-market pricing usually means either cutting corners or compensating through volume (working on 40+ searches simultaneously).
“Our retained search guarantees results.” Retained search means you pay regardless of outcome. Don’t confuse upfront payment with guaranteed placement.
The Canadian Executive Search Landscape: What Makes It Different
Smaller Talent Pools Require Different Strategies
Canada’s population is roughly one-tenth of the United States, meaning talent pools—particularly for specialized senior roles—are significantly smaller. The candidate who exists in Toronto might not exist in Calgary. The VP of Finance with 15 years of mining industry experience, fluency in French, and specific regulatory credentials might represent a candidate pool of 20 people nationally.
Implication: Geographic flexibility becomes more important. Relocation packages matter more. Recruiters need to actually know the Canadian market, not just apply American search strategies.
Bilingual Requirements Add Complexity
Many roles—particularly in financial services, government, and federally regulated industries—require bilingual candidates (English and French). This qualification often reduces candidate pools by 60-70%.
Implication: Recruiters who don’t understand how to source bilingual candidates or verify true fluency (not just “studied French in university”) will waste your time with unqualified candidates.
Industry Concentration in Specific Regions
Financial services talent concentrates in Toronto and Montreal. Oil and gas expertise clusters in Calgary and Edmonton. Manufacturing and automotive professionals are primarily in Southern Ontario. Understanding these geographic realities affects sourcing strategy, salary expectations, and relocation requirements.
Implication: A recruiter claiming to easily fill your Edmonton-based financial services role needs to explain how they’ll overcome the reality that most qualified candidates are in Toronto and may not want to relocate.
Regulatory and Certification Differences
Canadian professional certifications (CSC, CFA, CPA, Red Seal trades) differ from American equivalents. Cross-border recruiting requires understanding credential equivalency and whether candidates need additional Canadian qualifications.
Implication: Recruiters working both Canadian and US markets need to understand these differences. Presenting an American CFO without explaining they’ll need to complete Canadian accounting designation requirements wastes everyone’s time.
Why Phone-First Methodology Still Outperforms Automation
The recruiting industry has fallen in love with automation over the past decade. LinkedIn InMail campaigns. Email sequences. AI-powered candidate matching. These tools have value, but they fail spectacularly at reaching the passive candidates you actually need for senior-level roles.
The Math on Response Rates
LinkedIn InMail response rate: 10-15% (and declining as candidates receive more generic messages)
Cold email response rate: 5-8%
Phone call conversion rate (when you reach the person): 40-50%
The difference: Email is easy to ignore. Phone calls require a response—even if that response is “I’m not interested.” But in that conversation, you learn:
- Whether they might be open to the right opportunity
- Who else they know who might be interested (referrals)
- What would actually motivate them to consider leaving their current role
- Whether they have the specific qualifications you need
Why Senior Executives Don’t Respond to InMail
VP-level and above professionals receive dozens of recruiter messages weekly. Most are generic, irrelevant, or from recruiters who clearly didn’t research their background. Opening InMail from an unknown recruiter takes effort with minimal payoff.
Phone calls bypass this problem entirely. When you call a CFO’s direct line at 8:15am (before their assistant arrives), reference their specific background, and explain why this particular opportunity might interest them, they take the call. You’re demonstrating effort and personalization that automated messages can’t replicate.
Referrals Only Happen in Conversations
The best candidates for senior roles often come from referrals—someone knows someone who might be perfect. Referrals almost exclusively happen in phone conversations, not email exchanges.
When you call a Director of Manufacturing who isn’t personally interested, that five-minute conversation often ends with “I’m not looking, but you should talk to my former colleague at [Company]. He mentioned last month he might be open to something.” You just accessed a candidate who isn’t on LinkedIn actively, wasn’t searching job boards, and wouldn’t have responded to any automated outreach.
Certification and Qualification Verification
For roles requiring specific certifications—CSC, Series 7, Red Seal tickets, CPA—you need to verify candidates actually have them and understand what they mean. A five-minute phone call quickly establishes whether someone truly has the required credentials or just listed them on their resume hoping you wouldn’t check.
Email exchanges drag this out over weeks. Phone calls handle it in minutes.
Why Most Recruiters Don’t Call Anymore
It’s hard. Making 50 calls daily requires persistence, thick skin, and comfort with rejection. Most recruiters would rather send 100 automated InMails and hope for 10 responses.
It doesn’t scale. Technology companies selling recruiting software profit from automation, not from convincing recruiters to pick up phones. The industry incentivizes the approach that’s easier to sell, not the one that actually works better.
This creates an opportunity. When most recruiters have stopped calling, the ones who still do it gain an enormous competitive advantage. They reach candidates others miss. They get referrals others don’t receive. They verify qualifications others assume.
Common Reasons Executive Searches Fail (And How to Avoid Them)
Unrealistic Compensation
The problem: You’re offering $95,000 for a VP of Finance role where market rate is $140,000. Or you want 15 years of experience but only pay mid-level salary.
Why it happens: Internal salary bands, budget constraints, or lack of current market knowledge.
How it kills searches: Qualified candidates immediately decline. Recruiters spend weeks trying to find someone desperate enough to accept below-market compensation. The search drags on for months before you either adjust the salary or give up.
What good recruiters do: They tell you this in the first conversation. “Your salary is 25% below market. You have three options: adjust compensation, reduce required experience level, or accept that this search will take 6+ months and might not succeed.”
Requirements That Don’t Exist in Real Candidates
The problem: You want a CFO with 20 years of public company experience, Big 4 accounting background, manufacturing industry expertise, bilingual in English and French, and willing to relocate to a mid-sized city for $120K.
Why it happens: Wish-list thinking. Combining requirements from multiple ideal candidates without considering whether anyone actually has all of them.
How it kills searches: You reject every candidate for missing one requirement. Three months later, the role is still empty.
What good recruiters do: They identify which requirements are truly non-negotiable versus nice-to-have. “You need someone with public company experience and manufacturing knowledge. The bilingual requirement reduces your candidate pool by 80%. Are you willing to remove that if we find someone perfect on everything else?”
Poor Candidate Experience During Interviews
The problem: You take three weeks to provide feedback after first interviews. You reschedule meetings multiple times. You ask candidates to complete extensive projects without compensation.
Why it happens: Internal priorities, multiple decision-makers, lack of hiring urgency (from your perspective).
How it kills searches: Good candidates—the employed, in-demand people you want—have options. When your process drags on, they accept offers elsewhere. You’re left with only candidates who have no other opportunities.
What good recruiters do: They set expectations upfront. “We need to move quickly. Can you commit to providing interview feedback within 48 hours? Can you keep scheduled interviews unless it’s an emergency?” They also tell you when your process is losing candidates. “Three strong candidates have dropped out citing your timeline. We need to accelerate or we’ll keep losing people.”
Lack of Clarity on Must-Have vs. Nice-to-Have Qualifications
The problem: Your job description lists 15 requirements. Candidates ask which are actually required. You don’t know or say “all of them.”
Why it happens: Multiple stakeholders added requirements without prioritization. Job descriptions copied from other companies or created by HR without input from the hiring manager.
How it kills searches: Recruiters present candidates who match 12 of 15 requirements. You reject them for missing any single item. The recruiter can’t determine which candidates are worth presenting. The search stalls.
What good recruiters do: They force prioritization. “Rank your requirements from 1-5. Which three are absolutely non-negotiable? Which ones would you compromise on for someone exceptional in other areas?” This clarity allows them to present candidates strategically rather than guessing what matters.
Making Your Decision: Checklist for Choosing an Executive Search Firm in Canada
Use this checklist when evaluating executive search firms:
Expertise and Track Record
- Have they made placements in your specific industry within the past 12 months?
- Can they provide detailed case studies of similar searches, including challenges and how they overcame them?
- Do they understand the technical requirements, certifications, or regulatory knowledge specific to your role?
- Can they explain the current market landscape for this type of hire (salary ranges, candidate availability, competitive factors)?
Methodology and Process
- Do they plan to reach passive candidates through direct phone outreach, not just database searches?
- Have they explained how they’ll verify certifications and qualifications before presenting candidates?
- Did they ask detailed questions about your requirements and challenge anything unrealistic?
- Can they articulate their screening process beyond resume review?
Communication and Partnership
- Have they established clear expectations for communication frequency and interview feedback timelines?
- Did they explain what they need from you to make the search successful?
- Are they willing to provide honest feedback about your salary, requirements, or process?
- Do they view themselves as a partner rather than an order-taker?
Terms and Structure
- Is the fee structure clear and market-appropriate (18-25% contingency or 30-33% retained)?
- Do you understand the guarantee terms and what happens if the placement fails?
- Are exclusivity expectations clearly defined?
- Have they explained their payment terms and when fees are earned?
References and Reputation
- Can they provide references from similar searches?
- Do their case studies include specific metrics (time-to-fill, number of candidates presented, success rate)?
- Are they transparent about their track record, including searches they couldn’t fill and why?
Conclusion: Choosing a Partner for Searches That Actually Get Filled
Executive search succeeds or fails based on methodology, not marketing. The firm with the best website or largest office might run on automated InMail campaigns that reach only active job seekers. The boutique recruiter working from a home office might pick up the phone 50 times daily and reach the passive candidates you actually need.
When your search has been open 30+ days with no progress, you need a recruiter who will:
- Tell you honestly if your requirements don’t match market reality
- Pick up the phone and have real conversations with passive candidates
- Screen for technical qualifications and certifications before wasting your time
- Provide timely communication and detailed candidate insights
- Keep searching when others would give up
The Canadian market for senior-level talent is smaller and more concentrated than many companies realize. Geographic flexibility matters. Bilingual requirements dramatically shrink candidate pools. Industry-specific certifications can’t be faked or learned quickly. Recruiters who don’t understand these realities will promise results they can’t deliver.
Ask hard questions. Demand specific case studies. Push back on generic promises. The recruiter who tells you uncomfortable truths in the first conversation is the one most likely to fill your role, not the one who says “yes” to everything and collects your money while the search drags on for months.
About Steven Cardwell Search and Placement
Steven Cardwell specializes in mid-senior level placements across financial services, manufacturing, automotive, and specialized industries when searches have stalled past 30 days. With over 20 years of executive search experience in Canada, Steven focuses on phone-first candidate outreach and honest assessment of search feasibility.
Based in Toronto and working nationally across Canada, Steven Cardwell Search and Placement serves companies that need direct answers about whether their search can succeed—and if so, what it will actually take to fill it.
Contact: For searches that have been open 30+ days where traditional approaches have failed, schedule a discovery call to discuss whether your requirements match current market realities and what adjustments might be necessary for success.
