The world of business is filled with acronyms and in-group phrases – and each sector has its own language. AltoPartners demystifies executive search “speak”…

At COB, a CEO, a CFO and a CHRO walk into a bar for an IRL meeting set up by their PAs to circle back on an MOU about a merger. Only it’s TGIF, so they abandon the C-Suite agenda and order G&Ts instead.

This take on the standard opening line for many jokes is not in fact a joke: it’s business jargon in the English-speaking world.

These acronyms and specialised corporate language can stand in the way of effective communication. But they are also useful shorthand for people who work in a particular industry. The executive search sector is no different. The people who work in AltoPartners’ 60 offices across 35 countries have a handy set of words and phrases that make their lives easier.

Here, we list some of those words and phrases to help clients and candidates. The list is organised by theme.

Types of candidates

In general, a candidate is someone who is being considered for a job position. But they are not all the same. Here’s the nuance:

Active candidate: An individual actively seeking new job opportunities, often by applying to positions and engaging with recruiters.

Semi-active or passive candidate: A professional who is not aggressively seeking a new job but is open to opportunities if approached.

Suspect candidate: A potential candidate who has not yet been fully vetted or qualified for a specific role.

Blacklisted candidate: An individual who is thought to be unsuitable for hiring, either by a company or by a recruiter, often due to past issues or poor performance.

Blocked candidate: A candidate who cannot be approached for a role due to existing agreements, such as a non-compete clause, or where there are conflicts of interest.

Referred candidate: A candidate who has been recommended or introduced by someone, often an employee or trusted contact.

The interview

Even at C-Suite level, the interview is an integral part of recruitment. Here is a look at different kinds of interview techniques, and some general terms around the interviewing process:

Screening interview: An initial interview to determine if a candidate meets the basic requirements for a position before proceeding to more in-depth interviews.

Behavioural interviewing: A technique where candidates are asked to provide examples of past behaviour to predict their future performance in similar situations.

Situational interviewing: An interview method that presents hypothetical scenarios to assess how a candidate would handle specific situations.

Stress interviewing: A technique where interviewers deliberately create a stressful environment to assess how candidates perform under pressure.

Benchmark interviewing: A standardised interview process used to compare candidates against a set of predefined criteria or benchmarks.

Search committee interview: An interview conducted by a group of stakeholders involved in the hiring process, typically for high-level positions. This is similar to a panel interview, where multiple interviewers question a candidate simultaneously, allowing for diverse perspectives on the candidate’s fit.

Exit interview: Conducted when an employee leaves a company to gather feedback on their experience and reasons for departure.

Types of executive search and recruitment

Not all search firms are the same. Here’s the lowdown on the various kinds of recruitment in the market.

Retained search: A recruiting arrangement where a search consultant is paid upfront and throughout the search process, usually for senior or specialised roles.

Contingency recruiting: Recruiters are paid only when a candidate they present is hired, typically used for non-executive positions.

Blended search agreement: A recruitment arrangement that combines elements of retained and contingency search.

Boutique: In the context of executive search, a boutique firm is a specialised agency that offers personalised services and focuses on specific industries or roles.

Generalist or specialist recruiters: Generalists work across various industries and job types, while specialists could focus on a specific industry, job function, or level of position, offering expertise in that area.

Interim executive search: A specialist search in a situation where a temporary executive is hired to fill a role during a transition period or until a permanent hire is made.

Recruitment Process Outsourcing (RPO): When a company outsources all or part of its recruitment process to an external provider.

Direct sourcing: The practice of a company finding candidates directly, without using external agencies.

Fees and contracts

A crucial part of any search process will be discussions about remuneration and contracts. These will all be part of the negotiations facilitated by an executive search consultant.

Front-end retainer or engagement fee: An upfront fee paid to a consultant to initiate a search, usually for high-level or specialised roles. Often part of a retained search agreement.

Non-compete clause: A contract provision that restricts an employee from working with competitors or starting a competing business for a certain period after leaving a company.

Non-solicitation clause: Prevents a departing employee from soliciting the company’s clients or employees for a specified time after leaving.

Off-limits / hands-off: A formal agreement between a search firm and a client specifying which companies or individuals are off-limits for recruitment. Also called a no-poach agreement, which can be explicit or implied.

Replacement guarantee: A guarantee from a consultant to find a replacement at no additional cost if the placed candidate leaves within a certain period.

Signing bonus: A financial incentive offered to a candidate to accept a job offer, typically paid upon joining the company.

Total compensation: The complete package of salary, bonuses, benefits, and other perks offered to an employee.

Vesting: The process by which an employee earns the right to keep benefits, such as stock options or retirement funds, after a certain period.

Hardship bonus: Extra compensation provided to employees for working under difficult conditions.

Phantom stock: A form of compensation that provides the benefits of stock ownership without actually giving stock, often used to incentivise executives.

The search process

The process of finding candidates can have many twists and turns. Here are some of the key terms:

Research: The process of gathering information on potential candidates, market conditions, and other factors relevant to the search

Candidate universe: The total pool of potential candidates available for a specific role or within a particular market.

Longlist: An initial list of candidates who meet the basic criteria for a position, from which a shortlist is created.

Shortlist: A refined list of candidates who are considered the strongest fits for a position and who are invited for further interviews.

Lobbing: Search firms passed over for assignments sometimes send unsolicited resumes to clients to entice them to change their minds.

Ratcheting: Incremental increases in a candidate’s compensation package during negotiations.

Falloff: When a placed candidate leaves the position shortly after starting, often triggering a replacement guarantee.

Shootout: A competitive interview process where the final candidates are presented to key stakeholders or clients.

Confidential Candidate Brief (CCB) or candidate dossier: A detailed profile of a candidate provided to the hiring company, often used in executive search. Sometimes, the candidate’s identity will be withheld.

Heat map or talent map: Visual representations of data where values are depicted by colour. In executive search, heat maps are often used to show the concentration of talent in different geographical areas or within specific industries.

Industry map: Recruiters specialising in certain industries or functions often build an organisational chart for each company in their target industries and, through on-going research, collect detailed information about each person in senior management positions.

Candidate road map: A detailed profile of the ideal candidate, including their skills, experience, and qualifications.

How to measure search

The industry has some specialised ways to measure effectiveness.

Completion rate: The percentage of recruitment assignments successfully completed by an executive search firm within a specified period, a measure of the firm’s effectiveness and efficiency in placing candidates.

Stick rate: The percentage of placed candidates who remain in their position for a specified period, indicating the quality and fit of the hire.

General

Body-snatcher / Head-hunter / Pirate: Slang terms, considered derogatory, for a recruiter or executive search professional who actively seeks out candidates for high-level positions. The terms can imply aggressive or unethical recruitment practices.

Chemistry: The chemistry or “fit” between a prospective executive and hiring managers is an important determinant of success and is a factor in the final hiring decision.

Rule of three: A general rule for successful outcomes in executive search projects is that three credible candidates need to be interviewed three times by three different senior managers at three different locations.

With grateful thanks to Kunal Ghosh, Director and Head of Engagement Accord India / AltoPartners India, and Leslie Newbold, Director Special Projects Diversified Search Group / AltoPartners USA, who shared their expertise for this article.