July 23rd , 2025
In recent years, there has been a noticeable uptick in the number of banks and credit unions—particularly community and regional institutions—that are turning to professional recruiters for the first time. Traditionally, many of these banks relied on internal hiring processes or word-of-mouth referrals to fill key roles. However, with growing competition for specialized talent, evolving competitors, and an ever-shrinking talent pool due to banking industry consolidation, retirements and the abandonment of industry training programs, it’s more difficult than ever to source qualified candidates through conventional methods. As a result, institutions are increasingly partnering with recruitment firms to gain access to broader talent networks, reduce time-to-hire, and ensure they attract individuals with the precise skills needed to stay competitive in a rapidly changing financial landscape.
However, for executive hiring managers who have never had the opportunity to partner with a search firm, the idea can seem foreign. It can be confusing attempting to determine what the recruiting partner’s role will be, what information you need to provide for them, and what to expect from the relationship. If you are considering working with a search firm for the first time, here are a few foundational suggestions to ensure a meaningful partnership.
Be Forthcoming
An experienced recruiter will have already researched your institution before the first scheduled introductory call. This due diligence includes information found in the public domain, as well as back-channel vetting via their professional network regarding the bank or credit union, the hiring executive(s), the Board of Directors, and shareholders. Time is money, and wise recruiters invest in this research before the initial conversation. An experienced recruiter compares the details they have independently obtained with what the potential client shares to determine if they are in a position to assist the institution.
Do:
- Provide relevant background about your organization. Be frank about the institution’s strengths and weaknesses. This includes reputation and market perception (internal morale vs. external brand), market/client/prospect sentiment, etc.
- Provide details about the personalities of those with whom the recruiter will be working closely during the search. Be candid. We all have positive attributes as well as coaching opportunities. Encourage the recruitment partner to connect with these individuals one-on-one once the search commences.
- Rarely is professional oversharing a bad thing. Share anything and everything that comes to mind. Let the recruitment partner help determine what material is mission-critical versus information that is not as vital.
Don’t
- Don’t hold back. If you’re uncertain about whether or not information may be of value, asking your recruiter for advice can be a simple and effective way to gain perspective. This approach also provides another touchpoint to help determine if the partnership will be a mutual fit before executing a professional services agreement.
- Don’t under-communicate. Take ownership and responsibility by establishing clear parameters related to a calendar and a cadence of touchpoints. This will build trust and help prevent confusion.
- Don’t seek candidate perfection, as no financial institution is perfect. Prioritize critical skills and attributes rather than aiming for a candidate who ticks every box. Assess your expectations to ensure they are aligned with actual talent availability. This will provide access to top professionals who may not have done the exact job before but may demonstrate strong learning agility, problem-solving skills, and values alignment. With this type of recruit, hiring efforts don’t end on their first day. You must build onboarding and development plans that close skill gaps. It’s better to hire someone who’s 80% ready and highly coachable than to wait indefinitely for a 100% match. Especially in an industry making little investment in professional training and development compared to the past.
Establish Priorities
If you have spent a noticeable percentage of the introductory call sharing how difficult the search is, the unfruitful outcome of your self-directed search efforts, how unproductive your hires have been, or how challenging your board is, and then quickly transition into cost discussions and negotiating – it is very telling. Inevitably, it is a reliable indicator that significant challenges may exist elsewhere with your bank or credit union, and there is a high likelihood that the recruiting partner will be on their own to uncover the strengths and challenges of the opportunity you need assistance with.
While budgets are always a consideration, there are “make or break” priorities in terms of search success that should be addressed first.
Do:
- Research recruitment services to know the difference between the types of recruiters (Contingency, Contained [a hybrid recruitment model that combines elements of both retained and contingency search], and Retained) and also their costs.
- Banking is no longer an autocratic industry. The industry has not created a large number of new bankers in over two decades, and those few banks with training programs have sometimes produced graduates that often resemble the clones in the Michael Keaton movie, “Multiplicity.” (Each copy is slightly less effective and more distorted than the original.) A hiring executive’s awareness (or willingness to learn) of current industry events will reveal to the recruitment partner much of what they need to know about the institution’s culture. Be open to discussing current talent market conditions that will directly impact the success of your recruitment process and hire.
- Focus first equally on the opportunity and your corporate culture. This can include executive team composition and dynamics, known hurdles (e.g., regulatory, board, competitive, operational), and any potential cultural shifts or change management needs tied to the role. Expectations of the hire related to visibility, presence, and communication. If you don’t have all of this information in the beginning, it is understandable. The right recruitment partner can assist you in assembling these details.
Don’t:
- Don’t be confused that it’s still the year 2009. While your bank or credit union may truly be an outstanding place to work, it is not the only one, and the majority of desirable candidates have multiple options. This is reflective of the shrinking talent pool and the abundance of available opportunities despite a banking industry consolidation.
- Don’t ghost the recruiter. Especially when you specifically have sought out their assistance.
- Don’t believe that professional services and polygamy mix. Highly accomplished search firms will not work on open, non-exclusive searches. You will benefit from understanding how this request reflects on you and your bank or credit union. It is an immediate indicator of your organization’s philosophies and business style. This approach, aside from being antiquated and highly ineffective due to a mutual lack of commitment, leads to a dangerous lack of quality control as both sides strive to “win the foot race.”
Expectations
Setting mutual expectations early is critical to a reciprocally beneficial partnership and is essential if you aren’t accustomed to partnering with search firms. Quantify as many parameters as possible as early as possible, but plan to revisit them as you progress. The majority of searches evolve for diverse and legitimate reasons.
This initial investment of time will aid significantly in demystifying this new partnership and what to expect from each other.
Do:
- A recruitment partner should find you the best possible talent. However, if your organization is experiencing growing pains or has long-standing, systemic challenges, no new hire or recruiter can change this alone. That is unless you are explicitly seeking a leader to help change specific issues. Be very clear and equitable about what you expect the hire to accomplish within a particular timetable and with what resources.
- If a leader is being recruited to be an agent of transformation, the majority of those goals must be defined before the search commencement. At a minimum, it must be communicated that change is wanted and what some of the key initiatives are for the hire.
- When determining how the role aligns with the bank or credit union’s broader strategy, organizational goals, and team dynamics, plan to include as many key stakeholders as possible in interview discussions. Naturally, not all individuals involved in the screening process will carry equal weight in the decision-making process. However, including select team members during interviews can significantly improve collaboration post-onboarding should an employment offer be extended and accepted. Additionally, employees will appreciate being involved in this socialization phase.
Don’t:
- Don’t avoid identifying both internal search advocates as well as possible points of friction or distraction. These often exist in equal proportions in the majority of searches, especially those involving board members or large shareholders. It’s human nature for multi-generational bank owners or directors who are accountants, attorneys, real estate developers, etc., to feel their professional successes transfer more into banking than they do. Challenges often compound when a board is politically charged.
Identifying both supporters and possible critics will help manage everyone’s expectations more effectively.
- Don’t avoid revisiting expectations to determine if they are realistic. If expectations aren’t being met although search best practices are being followed, pause to re-assess “must haves” and “nice to haves”. Again, the vast majority of searches evolve, and this is to be expected.
- Don’t underestimate the impact of communication during the candidate’s journey. The recruitment partner must deliver a unified experience that promotes transparency and a positive impression for all candidates, not simply the hiring manager. The recruiter should actively support you in providing a compelling and consistent employer brand impression to all candidates.
Takeaways
Your recruitment partner should go to great lengths to understand the unique needs of the client institution. Recruitment requirements always extend far beyond the technical skills of the hire. Technical assessment, while crucial, is not the only mission-critical evaluation that needs to be considered. Candidate suitability regarding tone, pace, and temperament are non-optional. It is essential to assess a candidate’s capacity to execute at the appropriate organizational and cultural pace, not one driven by the executive’s ego-based motivations. Together, the client and the recruiter can determine whether the candidate understands and appreciates the client bank’s legacy achievements or if the recruit is more interested in their own professional legacy.
The importance of assessing a potential candidate’s leadership ability in supporting an institution’s overall ecosystem cannot be overstated.
When working with an external recruitment partner for the first time, a financial institution should approach the relationship as a strategic collaboration rather than a transactional engagement. Setting clear deliverables from the outset—through a well-scoped brief, defined timelines, and open lines of communication—will lay the foundation for a productive partnership. By offering transparency, timely feedback, and access to key stakeholders, the bank or credit union enables the recruiter to act as a valid extension of its brand in the market.
Ultimately, a successful first engagement can establish trust, deliver high-quality leadership talent, and create a repeatable model for future hiring needs.
Have questions? Want to learn more or discuss? Please contact us:
Phone: 828.333.6300
Rob.ohalloran@ yarmouthchoate.com or info@yarmouthchoate.com.
2221 Peachtree Road NE
Suite D #4521
Atlanta, GA 30309-1106