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SOP-003: The Candidate Sourcing & Vetting Workflow

1,851 words · ~9 min read

Purpose

Detailed operating procedure for multi-channel candidate sourcing, initial assessment, documentation, and pipeline management using LinkedIn Recruiter, SourceWhale, and ATS integration.

This Standard Operating Procedure ensures consistent execution, protects the firm from legal and financial risk, maximizes revenue per engagement, and creates a replicable system that scales beyond the founder's personal involvement.

Scope

This SOP applies to all partners, senior recruiters, and account executives engaged in client-facing search operations, fee negotiations, candidate management, and placement closure activities. All personnel must certify completion of this SOP before conducting independent client work.

Definitions

Retained Search: An exclusive engagement with upfront fee payment (typically 1/3 retainer, 1/3 shortlist, 1/3 completion) at 25-33% of first-year salary.
Contingency Search: A non-exclusive engagement paid only upon successful placement at 20-25% of first-year salary.
RPO (Recruitment Process Outsourcing): A long-term embedded or outsourced recruiting function replacing internal HR/recruiting teams.
Exclusivity Period: A contractual period (typically 90-180 days) during which the client agrees not to engage other search firms or direct sourcing for the specified role.
Guarantee Period: A contractual replacement commitment (typically 30-90 days) should the placed candidate depart voluntarily or be terminated for cause.
Cost of Vacancy (COV): The quantified financial impact of an unfilled role, calculated as lost revenue, stalled projects, team overtime, and delayed strategic initiatives.

Roles & Responsibilities

Role	Responsibility
Managing Partner	Final approval on fee structure, exclusivity terms, and guarantee exceptions
Senior Recruiter	Execution of sourcing, assessment, and presentation protocols
Account Executive	Client relationship management, proposal delivery, and billing coordination
Researcher	Market mapping, talent pool identification, and initial outreach
Operations Manager	ATS/CRM maintenance, contract filing, and compliance monitoring

Procedure: Phase-by-Phase Execution

Phase 1: Pre-Engagement Qualification (Days -7 to 0)

Step 1.1: Client Vetting Checklist

Before any proposal is created, the Account Executive must complete the following qualification steps:

[ ] Verify client company registration and creditworthiness via D&B or equivalent
[ ] Confirm the role is approved with signed internal requisition and budget authority
[ ] Identify the ultimate decision-maker (not just the HR contact)
[ ] Determine if other search firms are already engaged on the role
[ ] Assess the client's prior search firm experience and satisfaction level
[ ] Calculate the estimated fee at 25%, 30%, and 33% of stated compensation band
[ ] Document the client's stated urgency and ideal start date

Step 1.2: Discovery Call Protocol

The discovery call follows the SPIN-SEARCH framework (Situation, Problem, Implication, Need-payoff, Search specifics):

Situation Questions (5 minutes): Understand current team structure, reporting lines, and strategic context.

Problem Questions (10 minutes): Identify what has failed in prior hiring attempts, internal promotions, or previous search engagements.

Implication Questions (10 minutes): Amplify the consequences of continued non-fill. "What projects are stalled?" "What revenue is uncaptured?"

Need-payoff Questions (5 minutes): Have the client articulate the value of solving the problem. "If this role is filled by Q3, what becomes possible?"

Search Specifics (10 minutes): Compensation, equity, relocation, reporting, interview process, decision timeline.

Step 1.3: Feasibility Assessment

Score the search on five dimensions (1-5 scale):

Fee potential (salary × percentage)
Urgency (board-level vs. manager-level pressure)
Exclusivity probability (contingency vs. retained likelihood)
Candidate pool depth (LinkedIn density, competitor density)
Client relationship quality (new vs. existing, referral source)

Searches scoring below 15 total require Managing Partner approval to proceed.

Phase 2: Engagement Structuring (Days 0 to 3)

Step 2.1: Fee Architecture Selection

Based on the Feasibility Assessment, select the engagement model:

Model	Fee Structure	Best For	Risk Level
Contingency	20-25% on hire	New relationships, lower salaries	High
Retained (Standard)	30%, 1/3-1/3-1/3	VP+, board-backed, urgent	Low
Retained (Premium)	33%, 50% upfront	C-suite, crisis, exclusive	Very Low
Embedded	$15K-25K/mo + 15-20%	High-volume, long-term	Low
RPO	Monthly + per-hire	Full-function replacement	Low

Step 2.2: Exclusivity Negotiation

Present exclusivity as a client benefit, not a recruiter benefit. The script:

"There are two ways we can structure this. In a competitive contingency model, I can commit limited hours and cannot guarantee timeline. In an exclusive retained model, I stop all other search activity, dedicate 20 hours weekly, and guarantee a shortlist in 14 days. Which level of commitment matches the board's urgency?"

Document all exclusivity terms in the engagement letter: duration, replacement guarantee, out-clause conditions, and fee percentage.

Step 2.3: Contract Execution

Generate engagement letter from template (see templates/retained-search-agreement-template.md)
Include fee schedule, guarantee terms, exclusivity period, and expense policy
Obtain countersignature within 48 hours of proposal delivery
File executed contract in CRM with automated renewal reminder at 60 days pre-expiry

Phase 3: Search Execution (Days 3 to 45)

Step 3.1: Kickoff Meeting Protocol

Attendees: Client hiring manager, HR lead, Managing Partner, Senior Recruiter.

Agenda (60 minutes):

Role deep-dive and success criteria (20 min)

Company culture and team dynamics (10 min)

Compensation and equity architecture (10 min)

Interview process and decision timeline (10 min)

Communication cadence and milestone dates (10 min)

Step 3.2: Sourcing Blitz (Days 3-10)

Execute across 12+ channels simultaneously:

LinkedIn Recruiter Boolean search (target: 100 profile views, 50 InMails)

SourceWhale automated sequencing (target: 200 personalized emails)

Internal database reactivation (target: 30 past candidates)

Referral network activation (target: 15 warm introductions)

Competitor mapping (target: 50 target company identifications)

Industry event attendee lists (target: 20 relevant contacts)

Alumni network mining (target: 15 university/professional connections)

GitHub/portfolio review (for technical roles)

Conference speaker rosters (target: 10 thought leaders)

Board member and advisor networks

Private Slack/Discord community mining

Published patent and publication author identification

Step 3.3: Assessment & Scorecard

Each candidate receives a 100-point scorecard:

Experience fit (25 points): Years, scope, company stage match
Technical/competency fit (25 points): Skills assessment, case study results
Cultural alignment (20 points): Values interview, team reference checks
Motivation & stability (15 points): Career trajectory, reason for departure risk
Compensation fit (15 points): Expectation vs. budget alignment

Candidates scoring 75+ proceed to shortlist. Candidates scoring 60-74 enter nurture pool. Candidates below 60 are declined with feedback.

Step 3.4: Shortlist Presentation

Present 3-4 candidates via live video call, never email-only. Structure:

Market context (5 min): "Here is what we learned about the talent landscape..."

Candidate narrative (10 min each): Story, not resume recitation

Risk/mitigation discussion (5 min each): Counteroffer risk, relocation concerns

Next steps and timeline (10 min): Interview scheduling, feedback loops, decision deadline

Phase 4: Offer & Close (Days 45 to 60)

Step 4.1: Offer Structuring

Collaborate with client to design an offer that maximizes acceptance probability:

Base salary at 65th percentile of range (anchors high without breaking budget)
Equity/signing bonus as flexible levers
Title and scope expansion as non-currency incentives
Start date aligned to candidate's psychological readiness

Step 4.2: Pre-Close Protocol

Before the formal offer, conduct a pre-close call:

"If the numbers come in at [X] base, [Y] equity, and [Z] title, with a start date of [DATE], are we moving forward? I want to make sure we're aligned before I have the client draft the formal package."

This call eliminates surprise objections and activates commitment consistency.

Step 4.3: Acceptance & Guarantee Activation

Upon verbal acceptance:

Send written offer summary within 2 hours

Schedule start date confirmation call within 24 hours

Initiate resignation coaching if candidate expresses anxiety

Schedule 30-, 60-, and 90-day check-ins

Activate guarantee monitoring protocol

Phase 5: Post-Placement & Revenue Expansion (Days 60+)

Step 5.1: Guarantee Period Management

Week 1: Candidate integration check (how is onboarding?)
Week 2: Manager satisfaction pulse (is the hire meeting expectations?)
Week 4: First milestone review (30-day check-in)
Week 8: Deep-dive retention assessment (60-day check-in)
Week 12: Guarantee expiration and referral request (90-day check-in)

Step 5.2: Referral System Activation

At 90-day check-in, deliver the referral request:

"The guarantee period is closing successfully. I'm now opening my Q3 search calendar. You know the caliber of work we deliver. Who else in your portfolio or network is facing a leadership gap that we should discuss before they go to contingency?"

Document all referrals in CRM with source attribution and follow-up triggers.

Quality Control Checkpoints

Checkpoint	Timing	Owner	Pass Criteria
Client vetting complete	Day -3	Account Executive	All 7 checklist items documented
Discovery call debrief	Day -2	Senior Recruiter	5 SPIN sections recorded in CRM
Proposal approval	Day 0	Managing Partner	Fee ≥ $50,000 or exception logged
Kickoff completed	Day 3	Senior Recruiter	Attendance confirmed, agenda filed
Shortlist quality gate	Day 17	Managing Partner	Average score ≥ 75, ≥ 3 candidates
Offer pre-close	Day 45	Account Executive	Verbal commitment recorded
Placement closed	Day 60	Operations Manager	Contract + invoice issued within 48h
90-day guarantee review	Day 90	Account Executive	Referral request delivered and logged

Common Errors & Corrections

Error: Skipping client credit check for "referred" clients.

Correction: All new clients complete credit verification regardless of referral source. A referral reduces marketing friction, not financial risk.

Error: Presenting 5+ candidates in shortlist.

Correction: The paradox of choice reduces selection confidence and extends decision timelines. Three candidates is optimal; four is the maximum. Quality, not quantity, signals expertise.

Error: Failing to document verbal agreements in writing within 24 hours.

Correction: Memory decays and biases toward self-interest. Written summaries sent within 24 hours create a "truth anchor" that both parties reference.

Error: Neglecting the placed candidate post-start.

Correction: 30% of fall-offs occur because the recruiter disappeared after the invoice. Continued engagement through the guarantee period increases retention and referral rates by 40%+.

Metrics & KPIs

Average days from intake to shortlist: Target ≤ 14 days for retained, ≤ 21 for contingency
Shortlist-to-interview rate: Target ≥ 80% (candidates accepted for interview by client)
Interview-to-offer rate: Target ≥ 50% (interviewed candidates receiving offers)
Offer-to-acceptance rate: Target ≥ 85%
Guarantee claim rate: Target ≤ 8%
Referral rate from placed clients: Target ≥ 60% within 12 months
Average fee per placement: Target ≥ $75,000
Retained engagement percentage: Target ≥ 60% of total searches

Revision History

Version	Date	Author	Changes
1.0	2026-05-07	Clozo Academy	Initial premium SOP release

Clozo Academy Premium Curriculum — Executive Search & Recruiting Firms Vertical

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