Six Mistakes Organisations Make When Building an In-House Executive Search Function
With increasing pressure to reduce external recruitment costs and improve talent alignment with company culture, more organisations are choosing to build internal executive search functions. The logic is sound: internal teams understand the business, brand, and leadership DNA more deeply than any external agency. Over time, this can also be more cost-effective. But while the strategy makes sense in theory, many firms underestimate the complexity of building a high-performing in-house search function. Below are six common mistakes organisations make when trying to bring executive search capability inside their walls.
Adrianna Pisarek-Pokwicka
4/2/20252 min read
1. Underestimating the Demands of Executive Search
Some organisations assume that their existing resourcing or talent acquisition teams can take on executive-level hiring alongside their existing responsibilities. Often, these teams are already overstretched and focused on mid- to junior-level roles. Expecting them to replicate the depth and precision of external headhunters - while juggling high volumes - is unrealistic.
Executive search requires dedicated time, strategic thinking, and a methodical research-led approach. Without that, top candidates are missed, and key leadership roles go unfilled or misfilled.
2. Hiring the Wrong Profiles to Lead the Function
Cost-saving is a common driver behind the creation of in-house functions. But it can backfire when organisations bring in consultants who lack the experience, networks, and rigour required for C-level searches.
Executive search is a niche skill set. Success depends on deep market knowledge, direct sourcing techniques, and an established network of senior leaders. Hiring generalist recruiters or junior profiles to lead search mandates often results in disappointing outcomes and damaged credibility.
3. Misaligned Compensation Structures
External headhunters often come from high-performance environments where they are rewarded per successful assignment. In-house roles that shift to flat salaries - without any performance-based element - can feel demotivating or misaligned for those used to commercial search settings.
If you're recruiting high-performing executive search professionals into an internal team, it's worth considering performance-based compensation (e.g. per-deal bonuses) similar to sales roles. Otherwise, you risk losing the very drive that made them successful in the first place.
4. Lack of Senior-Level Sponsorship
Even the most capable in-house executive search team will struggle without board-level support. When hiring managers are free to bypass the internal function and go directly to external firms, the impact of the internal team is severely diluted.
To succeed, the function needs visible endorsement from senior leadership and clearly defined usage guidelines. Compliance should be tracked, and the value of the internal team regularly communicated.
5. Limited Access to the Business
One of the key advantages of internal search teams is their proximity to the business. They have the opportunity to deeply understand culture, team dynamics, long-term goals, and internal nuances that external partners rarely see.
But if in-house recruiters aren’t given access to operational leaders, strategic updates, or internal data, this advantage disappears. Organisations must ensure their internal team is embedded enough to act as credible ambassadors in the market.
6. Outdated Technology and Tools
Executive search is becoming increasingly sophisticated, with tools for talent intelligence, market mapping, candidate engagement, and benchmarking evolving rapidly. Expecting an internal team to deliver strategic searches using outdated applicant tracking systems or generic recruitment software is a serious handicap.
Investing in specialist tools - such as executive search CRMs or tailored research platforms - is no longer optional. The right technology drives quality, speed, and consistency across all searches.
Final Thoughts
Building an in-house executive search capability can absolutely deliver long-term strategic and financial value. But success requires investment - in people, systems, structure, and positioning.
If you're planning to bring executive search in-house, or you’ve already taken the first steps and want to optimise your results, consider an external advisor who understands both agency and internal models. Done right, your in-house function can become a powerful asset in hiring future leaders - on your terms.