August 1, 2024
The Confidential Search
I went to a very small college that had just over a thousand students. The size was an advantage when it came to academics, but it made for a claustrophobic social environment. After four years, I knew a lot more than I wanted to about many of my schoolmates, even those I had never met. I couldn't wait to get out of there.
There are a lot more people working in medical devices than there were at my college, but it’s still a very small world. News travels fast.
That's one reason I discourage my clients from conducting a so-called confidential search. Those are searches where the identity of the hiring company is kept secret. Usually there is an incumbent in the position, and his manager is afraid to fire him before a replacement is identified.
No search can be hermetically sealed. No matter how well the process is managed, if the search goes on long enough someone will figure out the identity of the company. When that happens, there's a significant risk word will get back to employees, and eventually to the person being replaced. That can create a messy situation. The incumbent will be upset, and the relationship will probably end with bitterness and burned bridges.
But there's another risk. If other employees perceive the incumbent wasn't treated well, they will lose trust in the company. They may say to themselves, "Bob got a raw deal. I guess I shouldn’t be surprised if someday I'm treated the same way."
What's the alternative? When possible, full disclosure is best. The incumbent won't like the message, but at least he will know he's been treated in an open and honest way. It also shows other employees that the company treats people fairly, even when things don't turn out well.
There's another advantage to disclosure. I know from experience that it’s more difficult to convince a busy executive to look at a job opportunity when the company cannot be identified. That can push down the candidate yield, which means fewer high quality candidates to consider. The more information you can provide to potential candidates, the better.
Of course, confidential searches can be done successfully. I’ve done many, but it requires disciplined management of the search process and a little bit of luck. I don't recommend taking that path unless it's absolutely necessary. So before you launch a confidential search, ask yourself if you really have to do it that way.
