In the increasingly competitive world of commercial real estate (CRE), attracting top executive talent is essential for sustained business growth. But as 2024 ushers in the demographic surge known as “Peak 65″—where a record-breaking 4.1 million Americans will turn 65 each year through 2027—finding and hiring the best talent as more seasoned workers retire has become more critical than ever.
While online platforms and HR departments play their part, executive recruiters offer distinct advantages that can significantly expand access to highly qualified candidates. Many bring decades of specialized CRE knowledge, a deep understanding of organizational culture, and access to an extensive network of elite professionals—many of whom are not visible through conventional internal HR recruitment channels which rely on a “post and pray” strategy.
Despite the critical nature of finding the right talent, some CRE firms continue to use traditional methods of hiring due to several common misconceptions about the role executive recruiters play, leading some CRE companies to miss out on the real advantages they offer. By debunking these myths, businesses can better appreciate how recruiters contribute to finding the leadership that drives success.
Here are three myths that need dispelling:
Myth #1: ‘Online platforms offer the same access to talent as executive recruiters.’
False.
Online job boards and social media channels are generally the domain of active job seekers including the unemployed (currently 4.2% nationally). In contrast, executive recruiters focus on passive candidates—experienced professionals who aren’t actively looking but may still be open to the right opportunity. A skilled recruiter screens these high-value individuals, bringing only the best to the table, and offering them career-defining roles they might not have considered otherwise. The right CRE executive search firm has 5, 10, 20+ year relationships with many candidates and knows the type of role that skilled candidate would desire in order to make a change.
The phrase “when opportunity knocks” takes on a new meaning with executive recruiters—creating moments where advancement becomes a tangible option for top talent.
Passive candidates, often embedded in their current roles, possess critical industry insight and experience. Even if they aren’t immediately ready to make a move, recruiters cultivate long-term relationships, staying connected until the timing aligns. This strategic approach expands a company’s access to talent that otherwise remains out of reach.
Myth #2: ‘Internal HR teams can match the expertise of executive recruiters.’
Incorrect.
While internal HR departments are essential, their focus is often broad, encompassing a range of company-wide needs. Many internal recruiters don’t have the ability to actively seek out the best talent as they are spread too thin. Other internal recruiters simply pass along hundreds of resumes to the hiring manager and force him/her to do the work that a skilled recruiter would handle. Executive recruiters, by contrast, specialize in leadership talent acquisition, leveraging deep CRE industry knowledge and relationships with top professionals that HR teams do not have access to.
Executive recruiters further understand the nuanced requirements of leadership roles, including intangible qualities like cultural fit and alignment with strategic goals, ensuring that the candidates they present are poised for success within the company.
Myth #3: ‘Executive search firms are too expensive.’
Wrong.
While partnering with a search firm does incur costs, the long-term value far outweighs the expense. Poor hiring decisions can be extremely costly (studies estimate this as quantified as 50%+ of overall annual compensation), impacting productivity, morale, and overall business performance. The cost of replacing a key hire, including the time and resources spent on remedying the situation, often exceeds the upfront investment in a recruiter.
Executive recruiters mitigate this risk by presenting only the most qualified candidates, increasing the likelihood of a successful placement. Many recruitment firms also offer placement guarantees, providing peace of mind that internal teams cannot match – this is often overlooked. Additionally, the retention rate of candidates who are successfully placed in their roles by RETS is 95%+ which far exceeds the rate of retention for more traditional hiring methods. Employees sourced through conventional, in-house HR typically see lower retention rates, with turnover in the first year being a common challenge. On average, about 30 percent of employees recruited internally will leave within the first six months, indicating a retention rate of around 70 percent,** according to industry data from 2023.
In conclusion, the role of executive recruiters in securing top-tier talent for CRE firms cannot be overstated. By tapping into a wider, often hidden pool of highly qualified candidates, recruiters provide companies with access to professionals who might not be actively seeking new roles but are open to the right opportunities. This strategic approach ensures better hires, improved retention, and a more substantial ROI compared to traditional hiring methods.
If you’re ready to elevate your talent acquisition process and secure the best fit for your CRE leadership roles, contact RETS Associates today to learn more about how we can help drive your company’s success.
