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Executive Search Insights

How to Choose an Executive Search Firm in Construction and Real Estate

The questions to ask, the numbers to request and the red flags to watch for before you hand a leadership search to an outside firm.

Shawn DesgrosellierOct 19, 20267-minute read
Key takeaways
  1. Judge a firm on verified sector track record, a documented process and the people who will do the work, not on pitch decks or database size.
  2. Ask for numbers. Retention of placed candidates at 12 and 24 months is the best single measure of how well a firm assesses.
  3. Read the terms and watch for red flags. A firm that only tells you what you want to hear in the sale will do the same in the search.

Choose an executive search firm the way you would choose a subcontractor for critical work: on verified track record in your specific sector, a documented process, and the people who will actually do the work.

Polished pitch decks and large databases matter far less than whether the firm has repeatedly placed leaders like the one you need, and whether those leaders stayed.

Illustrative
Figure 1. What gets pitched weighs less than what predicts results
WHAT GETS PITCHED Polished pitch deck Large candidate database Adjectives in the proposal WHAT PREDICTS RESULTS Verified sector track record Placements that stayed A documented process The people doing the work Choose it like a subcontractor for critical work. Weigh the evidence, not the presentation.
85%+of Vitality Group placements retained, the number we track most closely
500+construction and real estate professionals placed
8 stepsin a documented search methodology, shared with clients at kickoff

01 · Construction and real estate expertiseStart with Specialization

Construction and real estate have their own language, career paths and compensation structures. A recruiter who understands the difference between a self perform contractor and a pure construction manager, or between a merchant builder and a long term holder, will assess candidates far more accurately than a generalist.

Illustrative
Figure 2. Same word to a generalist. Different businesses to a specialist.
A generalist hearsContractor

Self perform contractor

  • RunsIts own crews and equipment
  • Leaders manageLabor, productivity, field risk

Pure construction manager

  • RunsTrade partners it buys out
  • Leaders manageSubcontractors, schedule, preconstruction
A generalist hearsDeveloper

Merchant builder

  • Builds toSell on completion
  • Leaders manageSpeed, exit timing, returns

Long term holder

  • Builds toOwn and operate
  • Leaders manageDurability, operating cost, tenants
A leader who thrives in one model can struggle in the other. A specialist knows which experience transfers.

Ask the firm:

  1. What share of your searches over the last three years were in construction and real estate?
  2. How many searches have you completed for roles at this level, in this sector and in this region?
  3. Which project types and delivery methods do you know best?
  4. Can you describe the current market for this role, including who is hiring and what candidates are earning?A specialized firm should answer this one in detail on the first call.
Hypothetical
Figure 3. What a credible answer to "this level, this sector, this region" looks like
Loading map…
Completed VP-level construction searchCompleted VP-level real estate search
Made-up numbers for a firm asked about VP of Operations searches in Texas and neighboring states over three years. A specialist can name the searches behind each dot. A generalist usually cannot draw this map at all.

02 · Search firm track recordAsk for Numbers, Not Adjectives

Every firm will describe itself as relationship driven, thorough and results oriented. Ask for data instead.

What to request
Why it matters
01Searches completed versus searches started
Shows how often the firm actually finishes
02Average time from kickoff to accepted offer
Sets realistic expectations
03Retention rate of placed candidates at 12 and 24 monthsFocus here
The best measure of assessment quality
04Number of comparable placements in the last three years
Confirms relevant experience
05Client references from similar searches
Lets you hear how the process really went

Retention is the number to focus on. Any firm can produce a hire. A firm whose placements stay and perform has a reliable assessment process.

Hypothetical
Figure 4. Two firms, the same number of hires, very different results
100%90%80%70%60%50% At hire12 months24 months PLACEMENTS STILL IN SEAT 78% 94% Firm B · 86% Firm A · 58% 28-point gap Same hire count. Different assessment.
Made-up firms for illustration. Ask every firm you are considering for this line, at 12 and 24 months.

At Vitality Group, we track this closely, and more than 85% of our placements have been retained.

03 · Executive search processUnderstand the Process

A credible firm should be able to walk you through its methodology step by step. If the process is vague, the results usually are too.

Framework
Figure 5. Six questions about the process, and what you should see at each step
12345 6 Positionprofile Targetidentification Candidateassessment Progressupdates Referencechecks Offer andcounteroffer YOU SHOULD SEE Signed off bynamed decisionmakers Target companylist and amarket map Writtenassessments vs.agreed criteria Written updateson a setschedule Conducted bythe search lead,beyond the list A counterofferplan before theresignation Ask: how is it done, by whom, and what do I receive?

In plain terms, ask how the position profile is built and who signs off on it; how target companies and candidates are identified; how candidates are assessed and against what criteria; how often you receive progress updates and in what form; how references are conducted and by whom; and how the firm handles offer negotiation and counteroffers.

Vitality Group follows a documented eight step search methodology, and we share it with clients at kickoff so everyone knows what happens and when.

04 · Who leads the searchKnow Who Will Do the Work

In some firms, a senior partner wins the engagement and a junior associate runs it. Ask directly who will lead the search, who will speak with candidates and who will present finalists. Then meet that person before you sign.

Illustrative
Figure 6. The person who sells the search is not always the person who runs it
PITCHMARKET MAPCANDIDATESFINALISTSOFFER & CLOSE COMMON MODEL Partner sells, associate runs Senior partner Junior associate you never met HANDOFF WHAT TO ASK FOR One lead you have met before signing Same search lead, start to finish Ask who leads the search, who speaks with candidates and who presents finalists.

05 · Executive search fees and guaranteesRead the Terms Carefully

The agreement tells you how the firm behaves when something goes wrong. Check four things before you sign.

Fee structure

Is it a percentage of base salary or of total first year cash compensation? When are payments due?

AskShow me the fee on our actual offer

Guarantee

What happens if the placed candidate leaves or is let go in the first year?

AskReplacement search, refund, or both?

Off limits policy

Will the firm agree not to recruit from your company after the placement, and for how long?

AskPut the period in writing

Exclusivity and term

What happens if you find a candidate internally during the search?

AskHow is an internal hire treated?
Quiet office meeting room where a search agreement is reviewed

06 · Warning signsRed Flags

Any one of these is a reason to slow down. Two or more is a reason to keep looking.

  • Resumes before questions

    Resumes arrive before the firm has asked detailed questions about the role.

  • No comparable searches

    The firm cannot name comparable searches it has completed.

  • No written assessments

    Candidates are presented without written assessments.

  • Updates only when you ask

    Updates are irregular or only happen when you ask.

  • Retained for everything

    The firm pushes for a retained engagement on a role that clearly does not need one.

The test

The right search firm functions as an advisor, not a vendor.

07 · ClosingWhat This Means for Your Firm

A good search firm should tell you when your compensation is off market, when your profile is unrealistic and when a role does not need outside help. If a firm only tells you what you want to hear during the sales process, expect the same during the search.

We welcome these questions at Vitality Group and are glad to answer every one of them before you make a decision.

About the author
Shawn Desgrosellier is Founder, President and CEO of Vitality Group, an executive search firm specializing in construction and real estate, and founder of Vitality Talent Acquisition, which helps employers improve talent acquisition performance.

FAQCommon Questions

How do I choose an executive search firm for construction or real estate?

Choose it the way you would choose a subcontractor for critical work: on verified track record in your specific sector, a documented process and the people who will actually do the work. Pitch decks and database size matter far less.

What is the most important number to ask a search firm for?

The retention rate of placed candidates at 12 and 24 months. Any firm can produce a hire. A firm whose placements stay and perform has a reliable assessment process.

What terms should I check in an executive search agreement?

Whether the fee is based on base salary or total first year cash compensation and when payments are due, the guarantee if the placed candidate leaves in the first year, the off limits policy, and what happens to exclusivity if you find a candidate internally.

What are the red flags when hiring a search firm?

Resumes before detailed questions about the role, no comparable completed searches, candidates presented without written assessments, irregular updates, and pushing a retained engagement on a role that does not need one.

Choosing a search partner?

Ask us every question in this article before you decide.

We will show you our numbers, walk you through our process and introduce you to the person who will lead your search.

Talk to Vitality Group