More executives get an outside "onboarding" coach when they join a new
employer these days.
This kind of coach helps a new hire become accustomed to a different
corporate culture -- and, it is hoped, improves retention rates. So-called
onboarding or assimilation coaching is gaining popularity partly because
executive-search firms want to move beyond their traditional areas of
expertise. Some critics doubt that search firms have the expertise to
diversify successfully, however.
In March, Heidrick & Struggles
International Inc. entered a revenue-sharing agreement with Lore
International Institute, an executive-development concern in Durango, Colo.
The big search firm is starting to roll out its coaching services, which
typically will cost an employer between $15,000 and $20,000 and last three
to six months.
Heidrick & Struggles officials hope that 30% to 40% of its executive
searches nationwide will include assimilation coaching by the end of next
year. "There is great receptivity to this," says Wes Richards, a senior
managing partner. Companies' expectations for new senior managers "are
very, very different in the economy we face today."
Similarly, rival Korn/Ferry
International plans to introduce its coaching program at most of
its major North and South American offices by April. The Los Angeles
concern has formed an alliance called KFYCoach with Canadian executive
coach Marti Smye. The group's team of 60 coaches typically will provide six
weeks of assimilation advice for about $10,000.
Coaches believe the honeymoon period is an ideal time to advise newly
recruited executives. "The opportunity to effect long-term sustained
behavior change is much greater" at that point, says Gordon Curtis, a
principal of Curtis Consulting, an executive coaching and search
consultancy in Marblehead, Mass.
One obstacle search firms face in promoting new services is clients'
perception of a potential conflict of interest. Companies usually prefer to
keep "an arm's-length relationship" with headhunters, fearing they could
poach other executives from a firm, says Mr. Curtis.
Ms. Smye also concedes the search industry must overcome the popular
view that newcomer coaching is an unnecessary frill. "In a client's mind,
they are hiring a very good person. They've used a professional" recruiter,
she says.
Dan Levy says that a coach from Taylor-Rodgers & Associates of
Stamford, Conn., helped him to understand and adapt to a very different
business role when he joined accounting firm PricewaterhouseCoopers in 1999
as a director in its business-process outsourcing practice. Previously, he
mainly had worked in corporate-finance positions for industrial companies.
"So the transition into public accounting was a bit of a culture shock to
me," the 54-year-old executive recollects.
By diversifying, search firms hope to find a much-needed new source of
business. The U.S. search industry's revenue probably will fall between 10%
and 20% this year from 2001 -- a year in which revenue sagged 30%, predicts
Scott Scanlon, president of search-firm industry consultants Hunt-Scanlon
Advisers in Stamford.
Yet Mr. Scanlon doubts that most recruiters can flourish by offering
different services such as coaching. "In the late 1980s, search firms were
trying to get into compensation-advisory services," he recalls. "It kind of
fell flat on its face. I really see this as going back to that trend."
Small search firms with coaching experience strongly disagree.
Taylor-Rodgers, with three recruiters, has seen its retention rates for
placed executives beat industry averages by a significant margin over the
past few years.
The firm has included coaching services since its founding five years
ago. More than 90% of executives wooed by Taylor-Rodgers now stay on the
job for longer than two years, according to President and Chief Executive
Richard W. Taylor.
In April, Mr. Levy became chief financial officer of Nash_Elmo
Industries, a maker of engineered vacuum systems in Trumbull, Conn. But no
one coached him after his latest move. "I was going back into a role that I
was more familiar with," he explains.