“SHREK” firms

By Peter Franks
Editor at Better Headhunting
20+ years in executive search across software, games, and technology leadership

“SHREK firms” is a common industry shorthand for five of the world’s largest executive search firms: Spencer Stuart, Heidrick & Struggles, Russell Reynolds Associates, Egon Zehnder and Korn Ferry. In this guide, we look at what these firms have in common, when they are a good choice, and when a boutique search firm may be a better option.

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What are SHREK firms?

Some headhunting firms are described as SHREK firms – but this isn’t an insult. They aren’t lovable green creatures on a quest to save Princess Fiona. Rather, it is an acronym that describes five of the largest headhunting firms in the world, namely;

Founded in 1969 in New York, Russell Reynolds Associates – typically referred to as just Russell Reynolds – is a global firm with 46 offices in 26 countries. Heidrick and Struggles is older, founded in 1953, and has revenues of more than $700m. Egon Zehnder is headquartered in Zurich, Switzerland, and has 68 offices in 40 countries. Spencer Stuart was founded in 1956 and has revenues of over $450m. Korn Ferry is the largest headhunting firm in the world with over $1.9bn in revenues.

What do SHREK firms have in common?

These firms share some important characteristics – they are well-established, large and reputable firms with a global presence. Because of their size, the SHREK firms most typically work with large corporates as those clients can give them enough repeat business to pay for their high fixed costs. Working for smaller companies is less of a good fit for the SHREK firms as the fees are often lower and the chance of repeat business more slim.

The SHREK firms are also multi-sector, with practices across all key sectors, such as financial services, technology, public sector, manufacturing, FMCG and so forth. In a sense, they are a series of distinct practices within a larger corporate shell. One firm might have a great technology practice whilst another is stronger in financial services. A bit like a department store, SHREK firms sell a bit of everything but have their sector and function specific strengths and weaknesses.

When are SHREK firms a good choice?

Probably the biggest advantage of the SHREK firms is their brand value. These firms have spent decades building global reputations, and in some cases they invest heavily in marketing and visibility as well. Korn Ferry is a good example of the brand strength these firms can have. Its name is visible far beyond the executive search industry itself through the Korn Ferry Tour in professional golf, the PGA TOUR’s developmental tour, which it has sponsored since 2019. That kind of visibility reinforces brand recognition and makes the firm feel familiar, established and credible to boards and senior executives, especially in large corporate environments.

For a multi-billion-dollar company, appointing a major executive search firm can feel like the safer and more defensible choice. If a board is hiring for a CEO, CFO or other highly visible senior role, using a well-known global firm can provide reassurance internally. In those situations, the decision is not just about who can run the search, but also about which firm will be seen as credible by the board, investors and other senior stakeholders.

Another advantage is access. Large global search firms often have long-standing relationships with boards, executives and senior decision-makers at major multinational companies. At the very top end of the market, those relationships can be valuable. Senior candidates may also be more willing to engage when approached by a partner from a globally recognised firm, especially on high-profile assignments.

As the largest headhunting firms out there, they are often the best equipped for the most senior searches, like a big company CEO search. Some of the most senior headhunters in the world work for these firms. Assignments that require true global reach are also a good fit for the SHREK firms.

When might a SHREK firm not be the right choice?

One of the risks with larger firms is that the senior partner who wins the assignment is not always the person most involved in executing it. In some cases, the lead partner is highly sales-focused and spends much of their time originating client relationships, while a significant share of the actual delivery is pushed down to junior members of the team. That does not necessarily mean the work will be poor, but it can mean the client has less visibility over who is really conducting the research, approaching candidates and driving the search forward day to day.

Large firms often have well-developed analyst and associate programmes, with many junior consultants trained internally from graduate level upwards. That model can work perfectly well, but it also means that a meaningful part of your search may be carried out by relatively inexperienced people whom you have never met. The reality is that the quality of execution often depends less on the firm’s name and more on the specific partner and team behind the assignment.

By contrast, a strong boutique search firm will often give you much greater senior involvement throughout the entire process. In a smaller firm, the partner is more likely to remain hands-on from start to finish: shaping the brief, doing market mapping, approaching candidates, selling the opportunity, interviewing, managing expectations and helping to close the hire. For many clients, that can translate into a more personal service, better judgment and stronger execution at a fraction of the cost of a SHREK firm.

Of course, when you work with a large headhunting firm as a client, you will be getting a small slice of their resources, and a project team that is comparable in size to that which you’d find in a smaller firm. Be discerning and don’t just buy from a big search firm because it feels safe. Large search firms can be relatively more expensive, and can feel impersonal sometimes. Smaller boutique firms sometimes have more specialism and can be better value.

How should clients choose between SHREK firms and boutiques?

The right choice often depends on the nature of your organisation and what matters most in the search process.

For very large corporates, especially listed businesses or highly structured organisations, a SHREK firm may be the easier choice to justify internally. In those environments, brand, reputation and stakeholder reassurance can matter a great deal. A well-known global search firm may feel like the safer option when a board or senior leadership team wants a recognisable name behind an important hire, even if the quality of execution is not always better in practice.

By contrast, smaller companies, founder-led businesses and more budget-conscious clients may place greater value on visibility, substance and closer communication throughout the search itself. If you want to know exactly who is doing the work, have direct access to the people running the search, and work with a partner who is heavily involved from start to finish, a strong boutique firm may be the better option. Boutiques can also offer deeper specialism and a more hands-on service at a lower cost.

In the end, the choice is not simply between a big firm and a small one. It is between brand and reassurance on the one hand, and senior attention, specialism and day-to-day visibility on the other. The best choice depends on your company size, your budget and how much you value reputation, process transparency and hands-on execution.

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