Finding the right executive for your credit union is one of your board’s most consequential decisions. Choosing the right executive search company to run that search is almost as important. The search partner shapes the candidate pool, structures the interview process, helps design competitive compensation, and supports onboarding all of which affect long-term success.

This guide explains practical, governance-friendly steps HR teams and boards should take when selecting an executive search firm. You’ll get concrete advice for writing an RFP, evaluating firms, and setting up oversight that keeps the process focused on fit, diversity, and strategy.

Why the search firm matters for credit unions

An effective search firm does more than fill a shortlist. For credit unions, the right partner:

• Knows cooperative governance and the regulatory environment.

• Sources candidates who fit member-centric culture as well as technical competency.

• Integrates compensation and retention thinking into the offer stage.

• Manages confidentiality, candidate care, and board timelines.

If you are considering a specialist, review a firm’s sector depth for credit unions and financial institutions; for example, a dedicated credit union consulting firm will be fluent with the nuances that matter.

Preparing your RFP: essentials to include

A strong request for proposal (RFP) focuses firms on outcomes and process rather than generic marketing. The RFP should be clear, concise, and structured to let you compare apples to apples.

RFP checklist (what to request)

• Organisational context: strategy, asset size, field of membership, key priorities.

• Success profile: three to five measurable outcomes and leadership behaviours expected.

• Scope of work: timeframes, stakeholder interviews, reporting cadence, and onboarding support.

• Diversity and inclusion expectation: target slate requirements and outreach approach.

• Assessment methods: role scenarios, behavioural interviewing, reference protocols.

• Fees and commercial terms: flat fee vs. contingent, payment milestones, expense policy.

• Conflict of interest declaration and confidentiality safeguards.

• References and case studies from credit union executive search engagements.

Include a deadline for written questions and a clear submission date. Offer to run a short Q&A session with shortlisted firms this clarifies expectations and shows you value transparent dialogue.

How to evaluate executive search firms: practical criteria

When proposals land, use an evaluation rubric to score firms objectively. Below is a simple framework you can adapt.

Key evaluation dimensions

1. Sector expertise (20%) - experience with credit union executive search, familiarity with regulatory issues and volunteer boards. See they're executive recruiting services for evidence of relevant work.

2. Search methodology (20%) - clarity of sourcing strategy, confidentiality safeguards, candidate assessment tools.

3. Candidates reach and diversity (15%) - demonstrated networks and active pipelines, proven inclusive sourcing.

4. Assessment and validation (15%) - use of case work, references, psychometric or scenario-based assessments.

5. Compensation and retention advice (10%) - integration with compensation consultancy or ability to coordinate with experts like compensation services.

6. Process transparency and governance (10%) - reporting cadence, stakeholder engagement, and responsiveness.

7. Cost and value (10%) - fee structure, payment terms, and clarity on expenses.

Create a scoring sheet and invite a small evaluation panel (HR lead, board chair, an independent director) to score each proposal independently before group discussion.

Interviewing shortlisted firms: sample questions

Face-to-face (or virtual) interviews reveal how a firm will partner with you. Ask:

• Describe three recent placements for credit unions of our size. What made them successful?

• How do you construct a diverse slate, and what outreach channels do you use?

• Walk us through a typical 12-week search from kick off to offer, including approvals.

• How do you handle confidential searches or internal candidates?

• What assessment work do you recommend evaluating culture fit and leadership potential?

• How do you engage the board during the process and report progress?

• Who will be on our team, and what are their roles and credentials?

• How do you work with compensation consultants or advise on retention (e.g., SERP design)?

Record answers and map them back to your evaluation rubric.

Table: Typical search timeline and firm responsibilities

Due diligence: what to verify before you sign

Before awarding the contract, verify:

• References - speak with at least two recent credit union clients about outcomes and process.

• Team CVs - confirm the lead consultant’s experience and time allocation.

• Conflict checks - ensure no current obligations or relationships compromise confidentiality.

• Insurance and compliance - ask for proof of professional indemnity and data protection policies.

• Data handling - how will candidate data be stored and transferred? Ensure GDPR/ local privacy compliance as applicable.

If your search will involve compensation strategy, arrange coordination with compensation advisors and consider linking to compensation services for benchmarking.

Red flags to watch for in proposals

• Generic proposals that lack sector examples.

• Vague timelines or open-ended fee structures.

• Limited evidence of diverse candidate pools or sourcing strategy.

• No clear owner for the search or heavy outsourcing of work.

• Avoidance of governance questions (how they report to the board) or unwillingness to sign confidentiality agreements.

Best practices for RFP governance and stakeholder involvement

Good governance keeps the search on schedule and reduces bias:

• Appoint a small search committee with clear terms of reference.

• Use an independent evaluation rubric and keep scoring records.

• Limit the number of internal interviewers to avoid committee overload.

• Require written feedback and a decision timeline to finalise the offer quickly.

• Document the rationale for the final choice and retention strategy for board minutes.

If your strategic objectives inform the search, ensure alignment by referencing strategic planning outputs; a firm with strategic advisory experience can help link the hire to long-term goals see strategic services guidance for context.

Integrating compensation and retention during the search

Compensation cannot be an afterthought. Early coordination ensures offers are competitive and compliant with policy:

• Use independent benchmarking data for your asset size and geography.

• Consider incentive structures linked to member outcomes and governance-approved KPIs.

• For senior hires, assess the need for supplemental executive retirement plans (SERP) as part of retention strategy; consult a compensation specialist where appropriate. A compensation services provider can support design and governance alignment.

Working with your chosen executive search company

Once you appoint a firm:

• Host a formal kick off and circulate the success profile.

• Schedule recurring progress reports (weekly or biweekly).

• Establish candidate confidentiality protocols and communications rules.

• Agree escalation paths for issues (candidate withdrawal, counteroffers).

• Plan onboarding support and a 90-day evaluation framework; an onboarding plan increases early retention.

If the role touches strategic change, consider pairing the search with facilitation from strategic planning consultants to smooth integration.

Measuring success: metrics the board should track

To judge a search’s effectiveness, measure:

• Time to hire vs. initial timeline.

• Acceptance rate of top choice.

• New-hire performance vs. 90-day and 12-month goals.

• Retention at 12 and 24 months.

• Stakeholder satisfaction with the process.

Tracking these metrics helps refine future RFPs and build institutional knowledge.

FAQs

1. What’s the difference between an executive search company and a general recruiter?

An executive search company specialises in senior roles, offers deeper market mapping for passive candidates, and typically provides assessment, offer negotiation, and onboarding support. For credit unions, a specialist will also understand governance and regulatory expectations.

2. How long does a typical credit union executive search take?

Standard searches run 10 to 12 weeks from kick off to offer. Timelines vary with role complexity, candidate availability, and board schedules.

3. Should we include compensation consultants in the RFP process?

Yes. Early coordination with compensation experts helps shape a realistic offer and avoids delays. Consider linking compensation strategy with longer-term retention planning.

4. How can we ensure a diverse slate of candidates?

Set clear expectations in the RFP, require diverse sourcing strategies, and ask firms for recent examples of successful diverse placements. Score firms on diversity outreach methods.

5. What fee models do firms use?

Common models include retained flat fees, staged payments, or contingent fees. Retained engagements are typical for senior roles and include a defined scope and milestones.

6. How do we protect confidentiality during the search?

Limit internal disclosure, use NDAs for external outreach, and require the firm to use discreet channels for passive candidate contact.

7. What should be included in an onboarding plan?

A 90-day plan with listening sessions, early wins, stakeholder introductions, and defined reporting back to the board reduces integration risk and clarifies expectations.

8. When should we start a search in relation to a planned leadership transition?

Begin planning 6–12 months before an expected departure to allow thorough market mapping, stakeholder alignment, and a smooth handover.

Final thoughts

Selecting an executive search company is a governance decision. By investing time in a focused RFP, using objective evaluation criteria, and integrating compensation and onboarding into the search process, HR teams and boards can improve the odds of a durable, strategy-aligned hire. Use specialist resources and align the process to your long-term goals to ensure the new executive is positioned to lead your credit union effectively.

For further information on sector-specific services, including executive recruiting and compensation consulting, you can review dedicated credit union resources and service descriptions available on the credit union consulting firm site and the executive recruiting service page.