ASSOCIATION OF

EXECUTIVE SEARCH
CONSULTANTS
(AESC)
T A L E N T A C Q U I S I T I O N T E C H N O L O G Y
W H I T E P A P E R
1
Technology presents our industr y with a paradox: it holds both the
promise of enormous leverage and the threat of major disruption.
New developments in technology can streamline some of the traditional
challenges in the profession, allowing us to focus on areas where we
can provide maximum value. Conversely, there is the danger that
clients will overlook these value-adds and assume that the technology
is a complete, do-it-yourself solution. As a result, search professionals
need to be more aware than ever of what the latest developments in
HR technology are, understand how these developments will affect them,
be strategically ready to leverage developments to deliver maximum
value to clients, and be clear in communicating this value and the role
technology does and doesnt play.
With that in mind, AESC has created a Talent Acquisition Technology
Sub-Committee of the Global Board of AESC. The main objective
of the sub-committee is twofold. Firstly, it will monitor and analyze
key developments in talent acquisition and HR technology that could
potentially influence the executive recruitment industr y. Secondly,
it will disseminate this knowledge among AESC members so they can
use it in their strategy deliberations and provide additional insights to
their clients.
This inaugural whitepaper is the first in a planned series of whitepapers
and studies discussing various technologies and solutions that are potential
sources of oppor tunity and/or threat for executive search professionals.
We hope you find the information here useful to your business, and look
forward to your feedback.
Anton Derlyatka
Managing Par tner, Talent Equity Ventures (TEqV)
Senior Par tner, Ward Howell
Ethan Birchard
Managing Director, AESC
The Association of Executive
Search Consultants (AESC) is
the worldwide proffessional
association for the retained
executive search and
leadership consulting industr y.
Talent Equity Ventures (TEqV)
is a global venture capital fund
focused on HR and Education
technology star tups. TEqV is an
affiliate of Ward Howell, a
leading Human Capital and
Executive Search consulting
firm in Eurasia.
INTRODUCTION
T A L E N T A C Q U I S I T I O N T E C H N O L O G Y
( T A T ) S U B - C O M M I T T E E
2
QUICK FACTS
T A L E N T A C Q U I S I T I O N
T E C H N O L O G Y T R E N D S
M O B I L E : 7 out 10 candidates in the USA use their phone to search for a job (Source: SimplyHired sur vey)
C L O U D : Cloud adoption grows by 36% each year (Source: Forbes.com)
S O C I A L : 48% of executive candidates originally identified via LinkedIn
(Source: William Blair Report on LinkedIn Use)
P S Y C H O M E T R I C S : Use of Psychometric improves selection outcomes by 24% (Source: Onetest.com.au)
D A T A : 60% of companies are investing in Big Data (Source: Forbes.com)
3
INTRODUCTION
T A L E N T A C Q U I S I T I O N T E C H N O L O G Y
Human resources technology is evolving with unprecedented speed.
And no par t of HR has felt this influence more than recruitment.
Recruiters and hiring managers can now find candidates faster, and source
talent in the most remote locations. They are able to gauge skills and
personal qualities with more precision, and gain insights into a prospective
employees fit, and create a smoother, more candidate-friendly hiring
experience. The latest technology allows them to create a deeper
connection with jobseekers and build a stronger employment brand.
Executive search occupies a unique niche. At its core, executive search relies
on an ability to pick from a small pool of executives. This exper tise results
from personal relationships with senior managers and companies and an
understanding of market trends, industries and regions. It stems from an
ability to build connections with clients so that they consider the search
consultant more as a trusted advisor than a hired hand. And technology plays
a lesser, but still significant role in developing this combination of in-depth
knowledge and interpersonal skills.
Yet executive search has also felt the broader impact of technology and
is benefiting from the same efficiencies as other levels of recruiting. For
example, it is now possible to build a wider network of contacts via social
media, or more efficiently manage data with new software solutions.
4
At the same time, technology and
the ever-changing economy have
created new challenges for
consultants, and recent changes in
business and HR have made this
clearer than ever. Consider the
following trends:
Insourcing is increasing dramatically

Insourcing is a long-standing aftershock of the 2008 Recession that
sent thousands of firms into a more cost-conscious mode. That is
happening across the board, from the executive to the mass-recruitment
level, driven also by greater availability of technology-based solutions
(e.g. LinkedIn, an invaluable tool for any in-house recruiter these days).
While the slow but steady uptick in the global economy has loosened
purse strings, many organizations remain cautious about spending.
Theyve grown comfortable relying on internal resources.
Competition has grown more intense

At the same time the number and variety of companies providing
recruiting services continues to grow. Most of these firms have made
technology the cornerstone of their ability to find and place great talent.
They are active on professional networks and increasingly target their
efforts to mobile devices. Their use of the cloud has made collaboration
among colleagues in different offices and regions easier and they are
using analytics to develop deeper insights into candidates.
Candidate behavior has changed
markedly

Todays candidates are more likely to have information about
themselves in public, including social networks, as opposed to 5 years
ago. Also, they are more likely to field inquiries or show interest in
a job via mobile devices. A 2012 survey by the job board Simply Hired
found that 7 in 10 job seekers search for jobs using mobile phones.
At the same time, candidates will be more likely to discuss career issues
via social and professional media. In fact, social media has become
the most significant engine for recruitment and corporate branding,
offering unprecedented access to personal information, referrals, and
professional communities.
IMPACT OF
TECHNOLOGY
T A L E N T A C Q U I S I T I O N T E C H N O L O G Y
5 I M P A C T O F T E C H N O L O G Y
T A L E N T A C Q U I S I T I O N T E C H N O L O G Y
The importance of cross-border fluency
is skyrocketing

With the ongoing maturation of economies in Asia, Eastern Europe,
the Middle East, Brazil and Mexico, executive recruiters will find some
of their best candidates in areas far-removed from their home bases.
And technology has enabled them to execute most complex interna-
tional assignments with greater speed and efficiency.
Standing out is more difficult

The amount of information that people generate and receive is rising
exponentially. This is particularly true for executives and influencers
who may receive hundreds or even thousands of emails on a daily basis.
Executive recruiters who want to reach these busy individuals must
outsmart the competition for their attention. A solid use of technology
can help these recruiters stand out amidst the noise and spam.
6
A N A L Y S I S O F P O S I T I O N
A N D R E Q U I R E M E N T S
I D E N T I F I C A T I O N O F
C A N D I D A T E S
S C R E E N I N G A N D
S H O R T L I S T I N G
J U D G E M E N T A N D
S E L E C T I O N
O F F E R M A N A G E M E N T
R E F E R E N C E C H E C K I N G
I M P A C T O F T E C H N O L O G Y
T A L E N T A C Q U I S I T I O N T E C H N O L O G Y
I M P A C T O F T E C H N O L O G Y
M E D I U M
I M P A C T O F T E C H N O L O G Y
D I S R U P T I V E
I M P A C T O F T E C H N O L O G Y
D I S R U P T I V E
I M P A C T O F T E C H N O L O G Y
L O W
I M P A C T O F T E C H N O L O G Y
M E D I U M
I M P A C T O F T E C H N O L O G Y
L O W
7
To be sure, technology will have its most profound effect on searches
a level or two below the most senior level. The star recruiter of CEOs
for the worlds largest companies may have little need for sourcing and
screening software or psychometric tests. The pool of potential candidates
for these jobs is small and well-known, so small that some recruiters
may have a ready list of possibilities already in their head even as the ink
is dr ying on a search contract.
Executive recruiters are more likely to see technology as an enabler than
as an obstacle. Just take the inputting of information on candidates into a
database. Search consultants used to do this themselves, or had researchers
complete the task. Voice recognition tools allow them to parse data into
a database, which takes less time. Needless to say, the extra time can be
spent on activities more closely related to the selection of a candidate.
Middle tier search frms need
to embrace the new tech to
remain competitive
Technology helps to save costs,
improve effeciency and provide
better service
Push from recruitment to
senior executive market
The most talented search
consultants are using:
Mobile devices, professional
networks and social media
sites to track and engage
candidates and develop a
stronger understanding of
employers.
Cloud technology to access
data from anywhere in the
world.
Improved screening systems,
gaming, psychometric testing
and video conferencing
to increase the likelihood
of a good job fit.
E X E C U T I V E
S E A R C H
C O N T I N G E N C Y
M A S S
R E C R U I T M E N T
Low end searches have already
shown using technology to automate
processes to reduce costs and
increase market reach
The short term
battle ground
I M P A C T O F T E C H N O L O G Y
T A L E N T A C Q U I S I T I O N T E C H N O L O G Y
8
Todays talent is global, mobile, versatile, accessible via a myriad of
communications tools, and trained in competing education systems.
And technology helps to remove barriers to a global and efficient talent
marketplace. Remote labor and project management tools make restrictive
immigration laws less relevant, while new identification, selection, and
assessment tools help to remove the subjectivity of human filtering.
In this new era, when technology can help to identify and deploy talent
where it is most productive, recruiters face new challenges. The most
paramount include:
Finding talent OUTS I DE TRADI TI ONAL RECRUI TI NG sweet spots;
Connecting with this talent in a MEANI NGF UL way;
EVAL UATI NG TAL ENT F AS TER and more precisely than competitors;
Identifying the passive job seekers who would be the most willing to
CONS I DER A NEW OP P ORTUNI TY. Passive job seekers often
represent the richest source of candidates. Finding them can be the
real challenge.
Creating a more EF F I CI ENT HI RI NG EXP ERI ENCE that increases
the likelihood of finding clients the right match the clients. This reflects
particularly well on the employment brand that so often determines where
an executive will choose to work.
HR TECHNOLOGY
OVERVIEW
9
Technology has enabled recruiters
to execute these tasks faster and
more efficiently. This paper will
focus on five areas of technology
that have had the greatest impact
on search and other areas of HR:
mobile devices, social and
professional media, data analytics,
psychometrics and cloud/software
asaser vice (SaaS).
S OCI AL ME DI A MOBI L E
CL OUD
BI G DATA PS YCHOME TRI CS
H R T E C H N O L O G Y O V E R V I E W
1 0
P R O F E S S I O N A L A N D
S O C I A L N E T W O R K S
Professional and social networks are
rapidly becoming a recruiters
most impor tant tool.
They have not only opened doors
to new talent hotbeds in Asia
Pacific, Eastern Europe, the Middle
East and par ts of Latin America,
but have also allowed companies to
mine talent more efficiently in their
own backyards. No longer must
recruiters sift through emails to
find a contact. Social networks
allow recruiters to engage
candidates more effectively long-
term. New software designed with
the networks in mind then helps
determine when someone is the
right fit for a job.
These networks have given
recruiters unprecedented access
to personal and professional
information, referrals and
business communities. They have
also allowed recruiters to track
promising candidates, understand
their career preferences and build
strong relationships with them,
even across continents. Social
and professional networks have also
been instrumental in establishing
a positive employment brand.
None of the networks have been
more impor tant for recruiters
than LinkedIn. The network is fast
approaching 300 million users.
Thats a roughly sixfold increase
over the 50 million users the
company boasted six years ago.
More than half of LinkedIns
revenues come from recruiting
ser vices. The HR technology exper t
Bill Boorman calls LinkedIn an easy
hunting ground for recruiters.
A 2013 repor t by the investment
bank William Blair found that
more than three in four executive
recruiters said that their reliance
on LinkedIn was increasing.
The respondents said that they
had identified nearly half their
candidates via LinkedIn, double
the percentage of two years ago,
and that they had pinpointed more
than a third of their placements
via LinkedIn, almost double the
percentage of two years earlier.
But it was also clear that LinkedIn
was not a replacement for more
traditional resources. More than
three in four recruiters said that
LinkedIn was a good star ting point
but that internal databases and
technology were still critical to
how they managed their candidate
pool. The repor t called LinkedIn
an integral par t of the executive
search process but also said that
the information on the site was
only a fraction of what they need
to assess a candidate.
Yet LinkedIns strengths have also
created a challenge. Boorman writes
that many potential candidates have
removed key par ts of their career
backgrounds from their profiles
because they are not looking for
jobs.
HR TECHNOLOGY
1 1
That has sparked a raft of star tups
social media aggregators that can
parse information from different
networks. The end effect is a fuller
candidate profile and the ability
to predict with greater accuracy
whether a job oppor tunity will be
of interest to passive job seekers
who are not actively looking for a
new oppor tunity, but may be the
best fit for a job. Among the leading
aggregators are Entelo, TalentBin,
Gild, and Joberate.
Other HR Tech companies are
focusing on referrals, once an
informal process that now allows
individuals to provide more detailed
input about candidates. Their
technology allows employees to
tout the benefits of a company and
ser ve as brand ambassadors.
H R T E C H N O L O G Y O V E R V I E W
P R O F E S S I O N A L A N D S O C I A L N E T W O R K S
Average of 48% of candidates
are identified through LinkedIn
Around 35% of placements were
originally sourced through
LinkedIn
Oppor tunity; WilliamBlair
conducted a research on
LinkedIn Usage among
executive search consultants:
1 2
M O B I L E
HR TECHNOLOGY
The rise in mobile devices has created a more fluid environment for
recruiters. Candidates are now more likely than before to be online and
reachable via one of these devices.
An estimated 55% of the worlds cell phone users say that their main source
of internet access is their mobile device. A 2012 Forbes Insights paper found
that people rarely disconnect from work a byproduct of the mobile
revolution. Todays candidates are accessing career-related information,
communicating with potential employees and applying for positions through
their devices. Mobile devices have altered the types and quantity of messages
that recruiters send. The quick, incisive communication more appropriate for
small screens is quickly replacing longer forms. Recruiters must also look
more analytically at the times and places when candidates are receptive to
their messages.
According to the latest stats, 25% of all Google searches that contain
the word job are conducted on mobile devices. However less than
40% of For tune 500 companies have a mobile-enabled career web page
that candidates can access. This is changing now and recruiters are
star ting to focus on making the recruiting process mobile-friendly.
Going forward, expect wearable technologies and video to play even bigger
par ts in recruiting. The market for wearables, which are supposed to facilitate
the performance of such tasks as checking email and sending messages, is
doubling ever y month, says the Kleiner Perkins study. These devices, coupled
with computers in industrial and automotive equipment, will provide us with
a variety of new ways to communicate with and monitor our workforce, the
Deloitte consultant Josh Bersin writes in a repor t that looks at workforce-
related technology trends in 2014.
1 3
A N A L Y T I C S
Analytics: Large quantities of data so-called big data have significantly
improved marketing. A 2013 Forbes Insights paper, The Big Potential of Big
Data, found that companies that make use of big data exceed their goals
more than 50% of the time. The authors of the paper found that big data
gave companies better insights into consumer behavior and allowed them
to connect on a deeper level with existing and potential clients.
HR has been slower to adapt big data to its needs, although recently
theres been more improvement. Recruiters are now increasingly using
analytics to get a better understanding of candidates. In what environment
is a candidate most likely to succeed? How do their profiles match those
of executives who have already succeeded at an organization? What is
the wrong cultural fit?
The same types of systems are helping recruiters and companies look
inward. They can analyze the backgrounds, skills and career paths of
successful and unsuccessful managers. Does an MBA predict success?
How many years should someone hold a position before moving
up a level?
Analytics have become the basis of faster resume parsing, which allows
companies to screen out candidates. Among other firms, Google is using
algorithms to identify candidates who are well-suited for cer tain jobs.
Faster screening can create a more cost effective hiring pipeline, reduce
the amount of time positions remain unfilled and broaden the pool of
potential candidates.
HR TECHNOLOGY
1 4
P S Y C H O M E T R I C S
Psychometric testing has been around for a long time. But the quality and
penetration of the tests has increased significantly in recent years. While
these tests may consider job qualifications and experience, their greatest
value is in understanding soft skills. This is an area of increasing impor tance
for companies.
The rich troves of data generated by psychometric tests can help
eliminate personal biases that cloud hiring decisions. They may also enable
candidates to make more informed decisions about cer tain jobs. Leading
vendors include SHL and Talent Q, which uses an algorithm to predict how
well someone will work in a par ticular environment.
A number of companies are using gamification to determine job fit.
Gaming tests are interactive in nature. They engage candidates but also
glean valuable information from them based on how questions are
answered. Questions often focus on how someone might respond to a
situation in such a way as to receive point values (although it would be
incorrect to suggest that there are right and wrong answers). The results
tend to offer a more neutral assessment of skills and personality. The
answers may determine more precisely whether a candidates leadership
approach matches a companys philosophy.
HR TECHNOLOGY
1 5
S A A S A N D T H E C L O U D
SaaS and the Cloud have offered a
more cost-effective, flexible
alternative to earlier software
systems, ensuring speed and
efficiency in key business processes,
including finance, sales and
increasingly HR. Expense and
scalability have been par ticularly
impor tant issues for small- and
mid-sized businesses that have
limited IT budgets but may
experience periods of extreme
growth. In fact, SaaS will generate
$15 billion in revenue this year by
one count, while cloud adoption
will grow by nearly 40% annually,
according to a 2013 study by
InfoPro, a ser vice of the research
organization 451 Research.
HR has been among the areas most
likely to benefit from these new
technologies. Many companies are
betting that cloud technology will
enable them to implement
successful multi-point enterprise
systems (ERP) one-stop shops
that bring rigor to ever ything from
recruiting to payment and benefits.
They also see the cloud as a way
to create more effective candidate
management solutions whose
success stems to a great degree
from the ability to share
information.
SaaS and the cloud allow for a
more seamless integration of
HR and other processes, and
they increase companies ability
to standardize these processes.
Demand for these ser vices has
spawned more than 500
companies who are now
positioning themselves as cloud
talent management vendors.
Among others, PeopleFluent,
SuccessFactors, Halogen and
Taleo (a division of Oracle)
now provide HR-related cloud
technology.
The extensive use of
the cloud is leading
to an increasingly
virtualized job market.
HR TECHNOLOGY
1 6
The extensive use of the cloud is leading to an increasingly vir tualized job
market. In this new environment, employees are becoming more like free
agents who provide their highly mobile ser vices and skills on a per-project
basis. In the workforce, vir tualization skills are available via networks, and
companies use technologies to monitor, coach and suppor t employees. Work
hours and compensation may differ from traditional models. In some cases
high-speed internet, mobile devices and cloud computing have made
vir tualization a more efficient way to execute projects and conduct business.
Executive search firms can benefit from this trend as well, by developing
more scalable and efficient operational models.
H R T E C H N O L O G Y O V E R V I E W
S A A S A N D T H E C L O U D
1 7
N E W O P P O R T U N I T I E S
HR TECHNOLOGY
A few additional technologies stand out for their ability to address par ticular
business concerns.
Recruiters have been tr ying to find more efficient ways of screening resumes
since the dawn of the profession. The challenge has become especially acute
given how easy it is to access career information online. The latest automated
resume filtering allows companies to automate and streamline resume
screening. Systems built by companies such as Google use algorithms to
produce initial judgments about candidates. The algorithms are based on the
analysis of key words and traits found in CVs and resumes.
Predicting performance has been a major challenge. Now a slew of new
software providers are using performance prediction algorithms to create a
clearer picture of whether someone is likely to succeed in a job. A few of the
systems identify key qualities and skills and weigh them against job
specifications with unprecedented precision, but companies such as Good.co
and Fitzii focus on cultural fit.
Social media offers a wealth of career information about executives. But its
difficult to know if information is up-to-date, or at times to make sense of the
data. Companies such as Entelo, TalentBin and Dice mine social data and draw
conclusions from it. One Entelo algorithm has been able to predict with a
high degree of accuracy whether a professional will change jobs over the
next six months.
Finding, hiring or otherwise engaging talent globally can be a complex and
difficult process. Yet it has also become essential for companies who are
expanding in new markets. Who are the right leaders for these growing
oppor tunities? How can companies ensure that they have enough skilled
managers and other employees to tackle key projects? The latest software
providers allow companies to identify and manage talent quickly and
efficiently across all geographies.
1 8
OPPORTUNITY
OR THREAT?
Technology can be a double-edged sword for executive search, an industr y
that prides itself on personal interaction and a deep understanding of people
and organizations.
Many successful executive search consultants are on a first-name basis with
candidates and board directors. They dont need psychometric tests or
statistical-based assessments to know who among their ongoing contacts
might be right for the next big opening. So are these new developments
at odds with searchs traditional strengths?
The bevy of star t-ups and early stage software providers focused on the
recruiting space is testimony to a vibrant demand for products that can help
consultants navigate a faster-paced, more international business environment.
Recruiting firms should be paying close attention to and investing in the latest
technologies to help them make sense of dispersed pockets of talent and
companies spread throughout the world.
Used in the right combination with traditional approaches, technology
becomes more oppor tunity than threat. The trick is finding the right balance
between the numerical and the personal.
The trick is finding
the right balance
between the numerical
and the personal.
1 9
It is difficult to separate fully
oppor tunities and threats, since
the vast majority of new tools or
platforms potentially represent
both, says a recent Spencer Stuar t
memo to the AESC Tech Initiative.
When used smar tly by a search
firm, they offer the oppor tunity
to either deliver better solutions
or do so more productively. The
memo continues: For those search
firms that respond well to this
changing world, these challenges
have the potential to make them
stronger and more valuable
bringing renewed focus to their
value propositions and perhaps
improving their productivity
and efficiency.
In order to remain competitive
and stay ahead of the cur ve,
recruitment professionals should
consider the following
recommendations:
Embrace changes in HR technology

Fast-evolving software solutions can lead to greater efficiency in the
sourcing, recruiting and assessment of candidates. Short-term costs
will often be more than balanced out by the long-term strategic benefts
of investing in the right technologies.
Invest in analytics

Big data offers an unprecedented amount of information on candidates.
But if companies cant make sense of it, the volume of information
is meaningless.
Cultivate the use of social media

Professional networks in particular are an effective way to learn about
candidates and create a strong brand.
Target the mobile device

Candidates are more and more likely to learn about a company or
apply for a position via smart phone apps.
Use SaaS and cloud technology

These technologies can vastly improve the hiring process by allowing
companies to collect and share information about candidates more
easily around the world. They foster collaboration among employees, too,
which can make for a richer, more productive work environment. SaaS
and the cloud also have the advantage of scalability; that is, they can
keep pace with a companys increasing workforce needs.
O P P O R T U N I T Y O R T H R E A T
2 0
Technological innovation is transforming recruiting, along with other areas
of human resources. It has allowed companies to create a wider net for talent
and speed up the process of screening candidates and matching them to jobs.
The latest software has increased recruiting efficiency. In many cases, it has
led to an improved quality of hire. Recruiting technology will continue to
ser ve as a major force in HR. Recruiters will have to keep pace.
This applies to all levels of recruiting, including executive search. Some
consultants say that current innovation applies only marginally to their
industr y. They say technology will continue to have its greatest impact
on lower-level recruiting for skills-based positions that are needed in
quantity, such as engineers and software designers. The skeptics hold to
the belief that search is based largely on subjective judgment and that
technology will always play a minor par t.
The same thinking may also reflect a temporar y resistance to change
or failure to fully appreciate the winds of change. It wasnt long ago that
many consultants believed that LinkedIn would never have a significant
influence on their business. Now it is arguably the most powerful tool
for sourcing candidates.
CONCLUSION
2 1
But search will increasingly avail itself of the latest software. It is inevitable if
the industr y is to keep pace with the needs of its customers. These search
consumers are more dispersed, more likely to need executives quickly.
Consultants who make the best use of technology, including voice recognition
and resume parsing software, mobile databases and systems for enhancing
remote collaboration, will be able to address these demands. And firms who
invest in the latest technologies will outpace those who dont.
How soon each of these technologies will become more entrenched is
difficult to say. In general, we see technologys role deepening in the next
three to five years, as consultants realize that they can combine old and new
approaches seamlessly to provide better customer ser vice in a dynamic
global environment. What precise mix of technologies provides the most
competitive advantages to the profession will be determined by market
forces and search firms who dare to innovate.
It wasnt long ago
that many consultants
believed that LinkedIn
would never have a
significant influence
on their business.
Now it is arguably the
most powerful tool for
sourcing candidates.
C O N C L U S I O N
2 2
Sub-Committee Members of the Global Board of AESC:
Anton Derlyatka, Senior Par tner at Ward Howell
Luis Truchado, Par tner at EuroGalenus
Bennett Machtiger, Chief Marketing & Strategy Officer at Spencer Stuar t
Breck Armstrong, Chief Information Officer at Boyden
Peter Kerridge, Managing Par tner at Kerridge & Par tners
Contributors from AESC:
Ethan Birchard, Managing Director at AESC
Peter Felix, President at AESC
Glenda Brown, Managing Director at AESC
Authors and HR Technology Exper ts:
Taras Polischuk, Talent Equity Ventures
James P. Rubin, Independent Writer and Contributor
CONTRIBUTORS
T A L E N T A C Q U I S I T I O N T E C H N O L O G Y
W H I T E P A P E R