Interim Management & Co.: An overview of recruitment methods

In times of the global "war for talent", traditional recruiting has had its day. The former employer market has long since turned into an employee market. This poses challenges for many companies. If you want to attract qualified specialists and managers - whether on a permanent, temporary or project-based basis - faster than the competition, you don't need the biggest fruit basket, you need the right approach. But what recruitment methods are there? What are their specific advantages and disadvantages? And why might it make sense to bring a service provider on board? We'll tell you.

It's an open secret: recruitment is currently a - if not the - key issue within the German economy. This is illustrated by the Human Capital Trend Study by Deloitte, for which the consulting firm surveyed over 10,000 HR managers and managing directors from 140 countries. More than three quarters of German company representatives stated that talent acquisition is of high to very high importance to them. At the same time, the respondents are aware that they need to question and adapt their current recruitment strategies - and better today than tomorrow. Around half of the companies surveyed (45%) are therefore revising their recruitment approach. Because unlike traditional recruiting, it is no longer about publishing job advertisements and then waiting for applications ("post & pray"), but taking an active role. This means, for example in the context of social recruiting, searching for qualified candidates yourself and approaching them. In other words, in order to survive in the "war for talent", a company's own HR experts must become active in headhunting themselves. Or hire specialized service providers to provide effective recruitment support. Below, we present various recruitment methods and their advantages and disadvantages.

Active sourcing: proactive candidate search

A method that is becoming increasingly popular in recruitment is active sourcing. This involves companies identifying potential candidates on their own initiative, even before a position needs to be filled. HR specialists or recruiters, sometimes referred to as "active sourcers" or "active sourcing specialists", search for candidates via various channels, such as a company's own talent pool, via business networks or CV databases, and approach them individually. Making direct contact is both an opportunity and a challenge: as the specialists and managers found are most likely not actively looking for a job, the approach requires particular sensitivity. If the "active sourcers" choose the right words, the candidates feel courted, which has a positive effect on the candidate experience. In this way, active sourcing not only starts before traditional recruiting, companies and candidates also swap roles: The company applies as a potential employer - and has to show its best side accordingly.

Advantages and disadvantages of active sourcing

✅ Detection of (hidden) talent and early retention of high potentials
✅ Individual approach and opportunity, targeted search for specific skills
✅ Cost savings, as paid job advertisements can be omitted

❌ Particularly time-consuming at the beginning and associated with high personnel costs
❌ Passive candidate:passive candidates may not respond to direct contact
❌ Overly general cover letters come across as spam to candidates and therefore unprofessional

Active placement: proactive distribution of candidate profiles

Like active sourcing, active placement is a proactive recruitment method, but it takes a different approach. With active placement, recruiters usually approach companies and present suitable candidates for vacant positions based on profiles. Recruiters approach both existing clients, i.e. companies to which they have already successfully placed candidates, and new clients. Although active placement is becoming increasingly important according to the Barometer Recruitment 2023, companies are quite ambivalent about this recruitment method. The reasons for this are, for example, that they have already had bad experiences with active offers from recruitment agencies in the past or that they generally do not want to work with recruitment agencies. Most companies are only willing to look at candidate profiles if they match the positions currently advertised. For an optimal fit between company and candidate, it is therefore all the more essential that the recruitment agency carries out a thorough analysis of the requirements and culture of both sides.

Companies can also engage in active placement. However, the reason for doing so is usually not a happy one. This is because companies use active placement to support employees who are to be made redundant as part of a department closure, for example, in their search for new employment opportunities. The positive aspect despite a negative event: such a high level of commitment on the part of the company can increase the satisfaction of the remaining employees and facilitate an amicable separation.

Advantages and disadvantages of active placement

✅ Tailor-made candidate:innenplatzierung und maßgeschneiderte Lösungen für Unternehmen
✅ Improves the reputation of companies when laying off employees

❌ Thorough analysis of candidate:profiles and companies required for a perfect match
❌ Costs incurred by recruitment agencies can be high

Executive search: the particularly discreet personnel search

Executive search, also known as headhunting or direct search, refers to the specialized consulting, search and approach of candidates for senior management positions ("executives"). These include board members, managing directors and company successors - in other words, all positions that involve a high level of personnel responsibility and a high budget. This is why wrong appointments are very expensive. In most cases, employees cannot apply for such jobs in the traditional way. This is because companies usually commission professional recruitment consultancies to fill these top positions. They accompany their clients individually through all phases of the recruiting process and along the entire value chain: from needs analysis to the search, selection and approach of suitable candidates to the decision. Companies value executive search consultancies in several ways: They have access to an exclusive talent pool and are particularly discreet in their approach. However, such a service has its price. For a successful executive search, the consultancies charge 20 to 35 percent of the gross annual income of a placed candidate as a fee. For senior management positions, this can quickly amount to a large six-figure sum.

Advantages and disadvantages of executive search

✅ Access to highly qualified specialists and managers through exclusive talent pools
✅ Great discretion in the search for suitable candidates:innen
✅ Trusting relationship between recruitment consultancy and candidate:inside increases chances of successful placement

❌ Exclusive service associated with high costs
❌ Process can sometimes be lengthy due to the position to be filled
❌ Poaching of candidate:inside holds potential for conflict with their current employer

Interim management: the supreme discipline of recruitment

Interim management involves the short-term deployment of specialists and managers for a limited period of time. There are many different reasons for companies to bring highly experienced experts on board. Managing challenging transitional phases, taking on temporary management roles, implementing complex projects or bridging personnel bottlenecks are just some of the numerous deployment scenarios. The industries and functions in which and for which interim managers are in demand are just as wide-ranging: from Chief Operating Officers (COO) in the automotive sector to production and plant managers in mechanical and plant engineering to HR managers in international companies, everything is represented. As an extremely agile recruitment method, interim management enables flexible access to all these highly qualified specialists, managers and executives. With their specific technical expertise and operational implementation skills, they develop comprehensive solutions. What's more, their unbiased view opens up new perspectives. This enables companies to react quickly to changes and adapt to new challenges.

As with executive search, there are also professional providers in interim management who actively and, above all, quickly support companies in filling vacant positions. Such providers not only have extensive candidate pools, their experienced consultants also know exactly about the qualifications and availability of their accredited freelancers. In close coordination with their clients and their professional requirements, they select qualified candidates - often supported by intelligent matching tools. Following on from this, the consultants support the initial meeting between the company and the interim manager. If a mandate is awarded, the provider takes care of everything else, including drafting the contract. The costs for interim managers can vary depending on the experience and skills of the desired specialist or manager.

Advantages and disadvantages of interim management

✅ Immediate access to experienced specialists and managers with specific expertise
✅ High flexibility and cost certainty
✅ Quick response to changes and new challenges

❌ Focuses on quick problem solving and less on cultural fit
❌ Challenging with very short mandates (< four months), making a difference in the long term
❌ A welcoming culture in the company is not always a given for interim managers:inside not always a given

The specific needs and circumstances are crucial

Whether active sourcing, active placement, executive search or interim management: there is no one solution when it comes to recruitment. Just as every company is characterized by its unique requirements and challenges, each of the approaches presented has its pros and cons. For start-ups and small companies with limited resources and an acute need for specialists, active sourcing and active placement can be a suitable choice. Larger companies that need to fill management positions on a permanent basis may be best served by executive search. And for companies that need an immediate and highly flexible solution, interim management may be the best option. Ultimately, it is important to consider all options - with the exception of traditional recruitment - and, after carefully weighing up the various recruitment methods, choose the one that best suits your company's goals and culture.

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