If you’ve decided to use a search firm to help you recruit top talent, then congrats – you’re one step closer to finding the perfect fit for your opening! However, you still have an important decision to make. Are you going to use a contingency search firm or partner with a retained recruiting firm?
On the surface, many people falsely believe the only difference between contingent and retained recruitment models is when the recruiter gets paid. Typically, contingency firms are paid only upon the placement of a candidate. On the other hand, a retained firm takes on more of a consultant role, charging a small upfront fee to conduct the search and receives the rest once the job is filled.
However, the difference between these two models extends way beyond just when the recruiting firm gets paid. Everything from the methodology to the process to the quality of candidates varies greatly between contingent and retained recruitment firms.
If you’re assessing all your options, here are the reasons that a retained recruitment firm is worth the upfront investment when it comes to finding the best candidates possible for your position.
WHY PARTNER WITH A RETAINED RECRUITING FIRM?
ACCOUNTABILITY
So many companies are unable to see past the upfront retainer that comes with hiring a retained recruiting firm. However, the retainer is less about the money and more about agreeing to a partnership.
When a company pays an upfront retainer, the recruiter can take their time to get things right using proven processes and agreed methodology, knowing they will eventually fill the position thanks to their exclusivity terms.
The contingency recruiter will try to deliver as many candidates as possible to increase the odds of making a placement. They have no obligation to your company or to finish the job if the search becomes too difficult.
LONG TERM HIRES
The success of a contingent firm is based on their ability to find you a qualified candidate as quickly as possible. It’s not based on their ability to prevent turnover at your company or find the exact culture fit.
Retained recruiters are well-practiced in understanding a candidate’s motivations and can determine whether or not they will have long-term success within a company. They want both the client and candidate to be happy and successful in their new role and won’t try to convince candidates into taking the position if it’s not something they really want.
DISCRETION
If you’re working with multiple contingent recruiting firms, it can be hard to control how many people know about the role and can be detrimental for the wrong person to find out, especially when it comes to replacing leadership or C-Suite roles. Also, you run the risk of the same candidate being contacted by multiple contingent firms about the same job. This can make the opportunity appear scammy or give the candidate the impression that they’re too junior for the role.
A retained firm, on the other hand, represents exclusivity and gives the candidate the impression that they’ve been hand-selected for this potential opportunity. Creating this type of professional appearance is critical for a positive candidate perception, even more so for leadership candidates.
DEEPER SEARCH PROCESS
DEEPER SEARCH PROCESSRetained recruiting firms have proven, in-depth processes used to recruit and evaluate potential candidates. Oftentimes, there will be a team of sourcers, recruiters, and account managers all qualifying candidates and working toward a single interview date. This method saves you both time and money, while also giving you the peace of mind knowing that you’re interviewing the best talent out there.
Many contingent firms will send over the first candidates they find, without taking the time to weed out the best candidates first. By the time you find a candidate you like, you may have reviewed countless resumes and wasted time interviewing B players.
YOU HAVE A HARD-TO-FILL ROLE
One situation where you should definitely consider partnering with a retained recruiting firm is when you have a unique or hard-to-fill role. These “purple squirrel” roles typically require much more skill, sustained effort, and time in order to get them filled compared to easier roles.
Retained recruiting firms will put the necessary resources and effort into filling the role and will work until they’ve found you the perfect fit. Since contingent firms are only paid when a position is filled, they’re less likely to set aside the time it takes to fill more difficult roles and will often try to fill easier roles first.
TRUE PARTNERSHIP
Many companies seek out recruiting firms because they know they’re not experts in recruiting and hiring. They may be experts in another industry, but they’re not going to know what an attractive compensation is in today’s market or where to find the most qualified candidates.
When you partner with a retained recruiting firm, they’re able to consult with you and share their knowledge about the current recruiting environment. They’re there to answer your questions, give you details on the market, and even give you feedback on what candidates are saying about your business and brand. In that sense, they’re a true partner – working together with you to help your company have the most success possible.
If you want to know more about the retained recruitment model or how we can help you find top talent, then contact one of our retained recruiters today.