Executive Recruitment in Indonesia: Why So Many Companies Fail

Indonesia Executive Recruitment: Why So Many Companies Fail

But first — for readers who’d like a clearer understanding of how executive recruitment works, I begin with: What Is Executive Recruitment? Feel free to skip ahead if you’re already familiar.

What this Article Covers:

What Is Executive Recruitment?

Executive recruitment is the process undertaken by a company to identify, engage, and hire a top-tier leadership professional for a senior job vacancy — typically at the C-level, Director, General Manager, or Senior Manager level.

Unlike mass hiring or junior-level recruitment, executive recruitment is a highly specialized process focused on mission-critical roles that shape a company’s strategic direction, financial performance, and long-term success.

When a company engages in executive recruitment, the goal is to hire the best professional possible.

Therefore, a well-executed executive recruitment process must take a proactive, discreet, and high-touch approach to access this top-tier passive talent pool — and secure the best leader possible for the role.

What Type of Company Specializes in Executive Recruitment?

Other common terms include executive recruitment firm or executive recruitment agency.

All refer to the same type of business: a specialist recruitment company that helps employers identify, approach, interview and secure top-tier senior talent for leadership-level roles.

Are Headhunters and Executive Search Firms the Same?

Are Headhunters and Executive Search Firms the Same?

The terms “headhunter” and “executive search firm” are used interchangeably — yes, they mean the same thing.

Both terms describe a specialized type of recruitment company that proactively searches for — and directly approaches — top-level talent for critical leadership roles. They may also be used for high-value mid-level positions.

The good news?

It’s easy to spot a recruitment agency incorrectly calling itself a headhunter or executive search firm:

Executive Search Firm vs Recruitment Agency — What’s the Difference?

Executive search firms work closely with hiring managers to shape the role and their headhunting approach.

A recruitment agency, on the other hand, works reactively — they post public online job ads, screen incoming CVs, and forward the best active job seeker candidates.

Recruitment agencies operate on volume — they fill multiple mid or junior level roles at once.

Recruitment agencies are designed and optimized for fast hiring at the mid and junior level. Where an “OK candidate now” is the top priority, not the “best person possible”.

Most recruitment agencies rely on junior recruitment consultants — often recent graduates — who lack the experience, network, and gravitas needed for senior level executive search.

How Does an Executive Search Firm Work?

An executive search firm starts with a detailed Day 1 Briefing to understand their clients leadership hiring needs, cultural context, and business goals.

From there, the search team maps out the talent pool, identifies and longlists all potential target candidates, and approaches each individual directly one by one — with discreet, confidential, personalized outreach.

They answer all candidate queries, assess their suitability for the role and motivate the best to submit their CV and interview with their client.

There are no online job adverts.

Candidates are rigorously screened, and only the most qualified are submitted.

The executive search firm also advises their client regarding compensation, financial negotiations, and overall strategy to help land the chosen candidate.

When You Should Use an Executive Search Firm or Headhunter in Indonesia

When You Should Use an Executive Search Firm

Also whenever you need confidentiality, such as replacing a current leader.

If a role is too important to get wrong, you should always use a high quality headhunter service.

How Does a Normal Recruitment Agency Work?

A recruitment agency advertises their clients job vacancy online and sifts through applications from active job seeker candidates.

They may also utilize their existing CV database.

They assess active job seekers and submit the best matches to their client.

Their process is optimized for speed and volume.

While lower-cost than a genuine executive search firm and well-suited for junior to mid-level hiring, recruitment agencies rarely provide in-depth market coverage.

Because they do not access passive talent.

The quality of candidates is usually limited to who’s currently available — not who’s actually best.

When You Should Use a Recruitment Agency in Indonesia

Recruitment agencies are ideal for mid-level or entry-level positions, especially when you need to fill multiple similar roles quickly.

They are effective when the talent pool is wide, and specific leadership traits or niche experience is not critical.

They’re also a good fit when budget is tight and the risk of a wrong hire is relatively low.

But for executive-level hiring — when game-changing talent is needed — relying on a general recruitment agency can become a costly mistake, both financially and in terms of missed opportunity.

Why Does Executive Recruitment Often Fail in Indonesia?

When a company fails to secure elite leadership talent — when it can’t catch a Lion 🦁 — 99% of the time responsibility sits with the hiring manager or the executive recruitment process itself🎯

You know exactly what a great executive recruitment process looks like — because you’ve experienced it from the candidate side.

You know what builds trust 🤝.

You know what creates momentum 🏃🏻‍♂️.

And you know what instantly turns people off 👎🏻.

🧠 Regularly ask yourself how would you feel, if you were the candidate?

This simple shift in mindset… will solve the majority of problems before they even begin🥇.

C Level Recruitment is All About Catching a Lion - To be Successful You Must Think Like A Lion
C-Level Recruitment in Indonesia is All About Catching a Lion – to be Successful You Must Think Like a Lion

Top 12 Executive Recruitment Mistakes Hiring Managers Make in Indonesia

1) Disengage from the Hiring Process

They retreat to their Ivory Tower 🏰…

They know the hire is critical — a potential game-changer for their business — but still get caught up in “day-to-day” operations instead of actively driving the executive recruitment process.

So what happens?

They disconnect 🚀 from the very process that’s supposed to deliver their next Quarterback 🏈.

Honestly, I’ve always found this a bit odd.

Ask yourself: What could possibly be more important than hiring a leader who will help shape your team’s future?

➡️ Solution: Stay visible, accessible, and regularly communicate with both HR and your executive search partner. Immerse them in your thinking 🧠 — because without that, they’re just guessing.

2) Fully Delegate to Inexperienced HR Professionals

One of the most common mistakes I see: C-Level leaders completely delegate their critical executive recruitment to young, inexperienced HR professionals 👧🏽👦🏽.

They give a few comments. They sign off on a job description in 5 minutes.

They assume, “If anything’s unclear, HR will ask me…”

But here’s what they overlook:

They won’t challenge you. They won’t push back.

And they certainly won’t deliver a reality check when your expectations are totally unrealistic 💡.

The result?

Misalignment, missed deadlines, wasted time, often a sub-par hire.

➡️ Solution: Directly lead the Day 1 briefing to your headhunter. Stay cc’d on key emails. Clarity from the top prevents misunderstanding, recruitment process inefficiency, and costly missteps.

3) Forget That HR Are Not a Member of Their Specialist Functional Team

HR are experts in Human Resources — they’re not part of your specialist functional team ⚡.

But many hiring managers forget this.

They assume HR fully understands their team’s exact scope of work… their challenges… their technical needs.

They assume, “Surely they know what I’m looking for…”

But they don’t. Because you haven’t told them — not in the detail that matters.

By staying vague, hiding behind an HR wall, or retreating to a comfortable Ivory Tower 🏰, hiring managers leave everyone guessing.

The result? Chaos. Misalignment.

Time is wasted chasing Deer 🦌 when a totally different animal is required, a Lion 🦁.

➡️ Solution: Don’t just send over a JD with some bullet points — give HR and your headhunter a real download. Share the full context. Spell out the nuances.

Precision upfront saves weeks of confusion later. Don’t expect non-specialists to automatically understand the critical details of your team.

4) Choose Short-Term Recruitment Process Cost Savings Over Long-Term Business Gain

Some hiring managers are too focused on cost-to-hire — not what’s really important — return on investment 💸.

They see the executive recruitment fee hitting their P&L and think:

So what do they do?

They appoint a low-cost recruitment agency.

They work with ill-equipped junior recruiters.

And they expect them to go out and hunt the King of the Jungle 🦁.

But here’s the problem:

They completely forget that a great hire delivers 10X the ROI (Return on Investment) of an average one 📈.

And that their real bonus — the big one — only comes after they get the hire right and see their teams performance and net profit shoot up.    

5) Use the Totally Wrong Type of “Recruiter” for Senior-Level Hiring

Recruitment Agency in Indonesia

Far too often, companies assign a critical leadership hire to the totally wrong type of recruitment firm ❌.

They utilize the services of a low-cost recruitment agency in Indonesia — falsely camouflaged under the name “headhunter” 🎃…

What they miss is this:

Recruitment agencies are designed for volume hiring at the junior and mid-level .

They rely on public job ads, LinkedIn posts, and active job seekers clicking “apply” 📢.

But elite senior leaders — the game-changers that you need to hire when handling critical executive recruitment — rarely “apply for jobs”.

They’re already working, performing, winning.

If even part of you suspects that the right candidate for your executive job vacancy is happily employed…

Then what you need isn’t a recruitment agency… You need the services of a genuine executive headhunter.

We go door to door 🚪. We operate quietly, 100% behind the scenes.

And we manage these top-tier professionals throughout the executive recruitment process — from first conversation to final close ✅.

➡️ Solution: For high-value senior roles, don’t use a low-cost volume focused recruitment agency. They are designed for hiring at the junior and mid-level.

You should partner with a true executive search firm that has deep industry networks and proven success at the leadership level.

6) Don’t Think Enough About Their Corporate Image

Hiring managers often forget that corporate image is Priority #1 💎.

It’s the foundation of your company brand — and in senior hiring, brand is everything.

If you’re using a low-cost recruitment agency 🍟 to publicly promote your high-value executive vacancy — online, via social media, or job board ads 📢…

Or worse — you’re engaging multiple junior “recruiters” at once, blasting the market with the same role…

And expecting them to identify, verbally pitch and secure elite senior candidates, a Lion 🦁?

That approach doesn’t present “exclusive opportunity”.

It screams “cheap as chips” 🍟.

Any serious executive will run a mile 🏃🏽‍♀️.

Why would a top leader want to associate with a company that tries to recruit its star talent, its quarterbacks 🏈 in such a tacky manner?

7) Provide a Poor Candidate Interview Experience

They Are “Too Busy” — Everything Else Takes Priority

Some hiring managers claim they want to hire the best — but can’t even prioritize the interview process.

They cancel meetings last-minute because of an “urgent item.”

They schedule coffee chats ☕ and show up an hour late.

They assume they’re in full control 💯… forgetting that at the senior level, an interview is between Lion 🦁 and Lion 🦁.

Sure, you’re the hiring manager. You’re the King of the Pride.

But you’re still dealing with another Lion — and Lions don’t tolerate disrespect. They’ll simply bound away 🏃🏻‍♂️. 

They Are “Too Slow” — Momentum Dies

Top CVs sit unread in their inbox for days or weeks.

Eventually, they reply… but by then, the fire’s gone 💦.

Senior candidates lose interest fast.

The moment they sense they’re not a priority, they vanish without a word.

👃🏽 Just one whiff of neglect — and your potential Lion is gone 🏃🏻‍♂️.

➡️ Solution: Treat every interview like a corporate branding moment. Plan it. Prioritize it. Show up prepared and on time — because elite candidates will judge you as much as you judge them.

8) Dream About Something They Simply Can’t Afford

So many hiring managers believe that if they search hard enough 🔎, eventually they’ll find a Ferrari — with a 50% discount 😂.

That somewhere out there is a multicolored Unicorn 🦄 who’s brilliant, experienced, and… surprisingly cheap.

They want exceptional talent — but on a budget that doesn’t match market reality.

Truth is:

🎯 Most professionals at the senior level are already being paid close to what they’re worth.

So this “magical thinking” just burns time and kills momentum.

Much smarter? Get a reality check early on. Recalibrate your expectations. Optimize your process for the best talent within your budget — not impossible bargains.

➡️ Solution: Set your max budget upfront. After the first interview, senior candidates are usually more than happy to share their current compensation — because they don’t want to waste time either.

Only progress candidates who fall within range.

9) Choose to “Play Low Ball” and “Go Tight” at Offer Stage

They’ve finally found the right person, their Lion 🦁. They know what the candidate earns.

And yet… the hiring manager goes in with an offer that’s equal to (or barely above) the candidate’s current compensation.

Worse? Often we see financial offers presented that are less than current compensation 💣.

Then the hiring manager proudly beams:

What they fail to recognize is this:

The candidate is comfortably employed, highly valued, and knows their worth 🪙.

To make a move, the candidate needs clear financial and career logic.

They need to feel that this is a step up, not a side shuffle… or worse, a downgrade.

They need to conclude: “this makes sense.” 🎯

➡️ Solution: Always lead with a strong, market-aligned initial offer that shows commitment. In Indonesia, expect to offer a 10–25% uplift on current compensation to successfully secure top leadership talent — especially when they weren’t actively looking.

10) If Based Overseas, Fail to Understand That Fixed Allowances = Part of Basic Salary in Indonesia

When based overseas, many hiring managers completely overlook a critical local truth:

👉 In Indonesia, compensation is often highly structured.

➡️ And that fixed monthly cash allowances = part of basic salary 💵.

Yet they focus their offer and financial uplift only on the persons current basic salary element — they totally ignore fixed cash allowances, housing stipends, money for transport, or the real-world value of company car programs 🚗.

The result?

They present offers that make zero sense to senior local candidates.

It’s not just disappointing — it’s downright insulting.

The local Lions 🦁 are left bemused, confused, and simply walk away — a total waste of time for all parties involved.

11) Take Far Too Long to Issue Offer Letter Paperwork

The hiring manager has found their Lion 🦁 — the perfect candidate is excited and ready to sign…

But then? Nothing.

Days turn into weeks with no contract, no formal offer letter presented.

Just vague promises and “internal process” excuses 🦘.

The Lion is left stranded. They can’t sign. They can’t resign. They start to wonder:

Momentum dies. Enthusiasm fades. Cold feet kick in 🥶.

And just like that… the top-tier hire collapses at the final stage.

➡️ Solution: Prepare paperwork in parallel with final interviews. Never let momentum stall, especially at the end of the process.

Issue paperwork within a maximum 1 week of final interview — or risk losing your Lion and starting from scratch.

12) Stop Communicating After Paperwork is Signed

At the senior level, most candidates have to serve a 3-month notice period.

That’s a long time — and a lot can go wrong.

If the final offer was “OK” but not exciting…

If the negotiation felt like a Christmas sale 🎄 — with the company pushing hard for the cheapest deal possible…

If the paperwork was messy, slow, and painful 🥱…

And now? The new boss has disappeared. No updates. No check-ins. No relationship management. ✈️

It doesn’t take a rocket scientist to see what happens next:

An “OK counter-offer” from the current employer is all it takes to push the candidate over the edge 🚀.

Suddenly, they pull-out, deciding to stay put — and you’re right back to Stage 1 🔁.

Summary Table: Why Executive Search Fails in Indonesia & Easy Solutions

Below is a quick reference table summarizing the 12 most common mistakes hiring managers make when performing executive recruitment in Indonesia — the things that stop them hiring top-tier senior talent…

And the simple solutions to prevent them:

Mistakewhy it failsSolution
1. Disengage from the hiring processHiring manager disappears from the process — at the beginning, mid-way or end — causing loss of direction, clarity and momentum.Stay visible, accessible, and actively involved from start to finish. Its your hire, your presence is critical.
2. Fully delegate to junior HRJunior HR professionals lack seniority to challenge or clarify unrealistic expectations with senior internal stakeholders.Personally lead briefings with your 3rd party headhunter, stay cc’d on all key communication.
3. Assume HR fully understands their specialist team and what it needsLeads to misunderstanding and confusion — HR are experts at HR, they lack deep knowledge about your specific function.Brief HR and the headhunter thoroughly, openly ask for any questions, explain team context, scope of role & all critical details.
4. Use the services of cheap recruiters — focus on short-term cost savings vs ROIChoosing the services of low-cost recruitment agencies — designed for junior and mid-level hiring — undermines your executive recruitment process quality and delivers sub-par active job seeker hires. You don’t see long-term ROI… You get what you pay for.Invest in high quality executive search services to access and secure the best passive senior talent… In turn achieve far greater long-term performance gain and real ROI.
5. Use the totally wrong type of recruitment business for senior-level hiringLow-cost volume recruitment agencies utilize junior recruiters and online channels to attract active job seeker candidates. They can’t access or manage senior passive talent.If you need to hire elite senior talent, use a specialist executive headhunter company, with highly experienced consultants. Their business model and methodologies are optimized for recruiting game-changing leadership talent.
6. Damage their employer brand by using online job adsPublic online job ads make your critical leadership vacancy look low-value & your business look cheap. They also suggest you are desperate. All things that “turn off” top talent fast.Use a genuine headhunter company to execute discreet, direct, targeted outreach to all top-tier passive candidates in the market.
7. Provide poor candidate interview experienceCancelling interviews last minute, arriving late, delaying CV or interview feedback… general unresponsiveness — all kill candidate motivation fast.Prioritize interviews and respect senior candidates’ time. Remember, senior candidates expect a VIP recruitment process, just like you would.
8. Want to hire candidates that are simply beyond budgetChasing unrealistic candidate profiles leads to a lot of wasted time and delayed hiring. Or worse, no hire. Critical vacancies stay vacant, company performance drops.Align expectations with market reality. If you can’t afford “perfect”, adjust profile requirements early on to ensure a streamlined & successful executive recruitment process. Hire the best person you can afford.
9. Go low at offer stage — insult the candidateLow-ball cheap offers are not strategically smart — they don’t always kick-off a “negotiation process”. Often senior candidates interpret a low offer as a sign of disrespect, that you lack seriousness… and they run away fast.For most industries in Indonesia the demand for top talent far exceeds supply. Expect to offer a 10–25% uplift on overall current compensation to secure any high caliber senior candidate.
10. Ignore fixed cash allowances when drafting offer packageMany overseas hiring managers ignore or misunderstand Indonesian compensation structures. This often leads to weak overall offers and quick rejection.Use a good headhunter, they will clearly explain the nuances of Indonesian pay packages. Invest time to understand the local pay structures and in turn provide logical offers that take account of all fixed pay, not just the basic salary element.
11. Delay paperwork after compensation terms are agreedSlow paperwork issuance at the end of a lengthy executive recruitment process erodes candidate confidence and quickly kills momentum.Prepare formal offer letters / employment contracts early and issue within a maximum 1 week of final interview.
12. Stop communicating after offer level has been signedHiring manager silence during the candidate resignation / notice period leaves the door wide open to counter-offers from the persons current employer.Once the offer letter is signed, maintain frequent contact with your new superstar hire until their employment start-date. This will help keep them laser focused and highly motivated.

The True Cost of a Poorly Handled Executive Recruitment Process

When executive recruitment goes wrong — or is handled half-heartedly — the cost isn’t just limited to a failed hire.

The damage often spreads much wider and deeper, lingers much longer.

Here’s what companies really lose when they mismanage the hiring of senior leadership talent in Indonesia:

1. Long-Term Vacancies Damage Corporate Brand in the Market

When a critical senior-level role stays open for months on end, people notice — both inside and outside the business.

Team members, customers, investors, suppliers, and even competitors begin to wonder:

This erodes confidence, creates a negative impression and signals internal dysfunction… or even worse, a toxic corporate culture.

2. Ineffective Team Performance Due to Missing Leadership

Without a capable leader in place, teams often drift.

Strategic priorities stall, cross-functional collaboration weakens, and top performers lose motivation or leave.

Critical decisions are delayed, and execution suffers — especially in fast-moving industries.

3. Falling Behind Competitors Who Move Faster & Better to Hire Top Talent

While your team debates internally or delays action, other companies move decisively and secure the top 5% of leadership talent.

Over time, the compounding effect of stronger leadership shows up clearly in market share, innovation, and revenue growth.

You quickly fall down the ranking table.

Customers shift to rival firms that quite simply… have better people leading the show.

4. Desperation Hires: Bringing in Sub-Par Leaders Just to Fill the Gap

When executive vacancies drag on, desperation creeps in.

Companies eventually lower their standards and hire someone who is “OK, good enough” — but not great.

This almost always leads to:

  • Lower team morale
  • Increased turnover beneath that sub-par leader
  • And the need to rehire again within 12–24 months.

It’s a “band-aid hire” — not true corporate progress.

The opportunity cost of not hiring a real game-changing leader is enormous.

5. Erosion of Long-Term Corporate Brand Equity

Poor senior-level recruitment processes — especially those that involve messy interviews, long delays, no feedback, or overly aggressive / insulting salary negotiations — quite simply damage your employer brand.

Senior passive candidates in Indonesia talk — for most industries… it’s a relatively small talent pool “at the top”.

Word spreads quickly within senior leadership circles.

Your company gains a reputation for being disorganized or stingy.

6. Devalued Brand from Using Cheap, Tacky, Online Hiring Tactics

Relying on low-cost online job advertising or mass-market recruitment agencies — designed for junior and mid-level hiring, and often staffed by fresh graduates — to source senior-level talent damages your brand.

True “Lion” candidates 🦁 — the high-impact professionals that you actually want to hire — are already employed, well looked after, successful.

Worse, it signals that your company may not know how to attract or value real leaders… In turn, they assume that you do not offer a compelling compensation package.

7. Loss of Trust From Internal Team Members

When executive hiring drags on for months on end — or worse, completely falls apart — internal team members start to lose trust.

… Not just in HR, but in senior leadership’s ability to make bold decisions or invest what’s needed to secure game-changing talent.

If leadership treats hiring as a cost to be minimized, instead of a growth-driving investment, it sends the wrong message.

Gossip starts. Motivation drops. And soon, your strong mid-level and junior-level talent quietly begin to leave — because they no longer believe in the company’s future.


Bottom Line: Good Executive Recruitment Requires Focus & Investment — It’s Critical🎯

The quality of your leadership team will make or break your company in the market.

➡️ That’s why executive recruitment should be every firm’s #1 strategic priority.

A poorly managed executive hiring process doesn’t just cost you one candidate — it can set your business back 6 to 18 months, or worse, permanently tarnish your brand.

Senior leaders are the key drivers of an organization.

Bringing in the wrong one — or failing to secure the right one — impacts everything:

Strategy, culture, team performance, investor confidence, and bottom-line profitability.

A Well Managed Executive Search Process Solves All Issues

How to Execute A Good Executive Recruitment Process in Indonesia

The good news? All mistakes outlined above — and the serious long-term costs that they can create — are entirely avoidable.

The solution lies in executing an executive search process that is structured, efficient, and professionally managed from the start.

Elite executive hiring is never about luck.

➡️ It’s about clarity, speed, communication, and respecting market reality.

When hiring managers treat executive recruitment as a top-level strategic priority and “invest” — rather than a delegated side task and choose “cheap” — everything changes.

A well-run executive hiring process:

✅ Aligns leadership, HR and the Headhunter from day one
✅ Maintains strong candidate engagement throughout
✅ Sends a clear message to the market that your company values excellence and is serious
✅ Wins over passive candidates who aren’t actively job hunting
✅ Speeds up decisions without sacrificing quality
✅ Ensures all communication and offer stage negotiations are sharp, timely, and credible
✅ Dramatically increases your chances of securing — and keeping — the right hire

In short: effective executive recruitment isn’t just about filling a vacancy. It’s about protecting your employer brand, supporting long-term growth, and staying ahead of competitors — by securing the right leader, the right way.

ProCapita — Indonesia’s Leading Executive Search Firm for Senior-Level Recruitment

ProCapita Headhunter Indonesia
ProCapita Headhunter Indonesia – Executive Recruitment Experts

If your company is looking to make a senior-level appointment in Indonesia, we encourage you to review the following resources:

That said, as detailed in this article, many elements of a senior recruitment process in Indonesia remain entirely outside our control.

So — if you’re hiring for a senior role of value 🥇, and:

  • Only the very best candidates will do
  • You want to engage all relevant passive professionals, individuals who are happily employed and not actively job seeking
  • You need total confidentiality and discreet market outreach
  • You prefer to work with highly experienced, specialist executive search professionals
James Umpleby, MD & Owner of ProCapita Headhunter Indonesia - C Level Executive Recruitment Experts
Written by James Umpleby, Managing Director & Owner of ProCapita Headhunter Indonesia. You can read more about James on LinkedIn.

ProCapita Headhunter Indonesia