1. Lack of ideal fit internally - need to bring in outside talent & good fit with current team
2. Key hire with significant company impact - clear ROI with increased sales, efficiencies and/or investor confidence
3. Need to fill quickly - saving 2-6 mo. off traditional search timelines is critical
4. Lack of in-house bandwidth or recruiting expertise - minimize executive distraction while expanding pool of options

NOTE: The ideal time to be evaluating search firms is before you have a current need.  Then, when a planned (or unplanned) recruiting need arises, you are prepared to act decisively.

What criteria should I use to evaluate recruiting firms?

1. Quality of candidates - What is their candidate-to-interview ratio?  This is a good measure to see if they consistently deliver results that are on target and effectively using your time.
2. Speed of recruiting traction - What is our expectation for flow of qualified candidates?  What has been your time frame on recent searches from start to candidate acceptance?
3. Who actually does the recruiting? - Is this a salesperson or actually the recruiter who represents us on the search?  Would this individual represent you professionally and credibility as an extension of your company in the marketplace?  What is this person's individual (not company's) experience?  Will this person provide helpful feedback and insights where appropriate?
4. Bandwidth available - How many searches are you currently engaged on?  Ensure you are a priority with recruiting traction and communication.  2-3 active searches/recruiter is ideal capacity.
5. Sourcing strategy - Each search should be viewed as unique, not a database query.  You are paying for someone to proactively make hundreds of calls on your behalf to target candidates already employed.  The best people are typically not looking and do not have multiple offers.
6. Proven track record of success and happy references - Past performance and repeat customers are the best indicator of future performance.