Ask the Expert
When making the important decision about a new hire, especially a senior-level employee, making the wrong choice can be a very expensive mistake. Turning to a trusted search professional is usually the best way to narrow the candidate pool, and in today’s tight job market, find the best candidate for the job.
It may be confusing to judge the differences, benefits, or disadvantages of retained versus contingent search options.
Derek Hugdahl, Managing Director of Groundswell Search, breaks down the differences between a contingent search and a retained search so you can choose the option to best suit your company’s hiring needs.
Contingent Search
A contingent search means that payment to the recruiter is contingent on that recruiter finding and presenting candidates for the position, with the recruiter only being paid if their candidate lands the job.
Some advantages:
· The company could use multiple resources (web boards, agencies, advertising, etc.) to look for their new employee.
· No upfront investment by the company.
· The company can get a basic job description out to multiple search resources in hopes that someone has the right candidate.
· The company is able to benchmark any candidate they have already identified through their own process against the active candidate market at no cost.
Contingent search disadvantages:
· Often mass recruiters do not spend as much time screening and vetting of candidates, as there is a rush to present candidates who are actively job seeking.
· Candidates presented by a recruiter are not exclusive to the company and may be presented to other clients and roles.
· Time and resources committed by recruiting firm can be limited, as they are also working on multiple other roles.
· Not as much influence and credibility when contacting potential candidates due to the scope of the search, and non-exclusive nature.
· Shorter guarantees on any replacement of a candidate.
· Company may be investing time in interviewing many candidates not thoroughly vetted before presentation.
Retained Search
A retained search usually requires an initial payment from the company to retain the search team, granting the team exclusivity on the role. The retained recruiter(s) will work to find the very best possible candidate in their network for the company’s role. Payment terms can be negotiated to meet the needs of the company and in a way the company and recruiter find mutually beneficial.
Advantages:
· Instant credibility with potential candidates. Retained status effectively messages the role as an important and critical hire. The company is willing to invest in finding the best possible candidate versus best available, and a true partnership exists between recruiter and company.
· Significant time invested on front end and throughout process by search firm; identifying candidates, screening, and vetting candidates.
· Recruiting firm is solely representing the client throughout the process
· Recruiter is invested in targeting both active and passive candidates to find the best possible candidate versus the best available candidate.
· Longer guarantees on a candidate.
· The company interviews a short list of top candidates, as the recruiting firm is doing the initial screening.
· Candidates are exclusive to the company and not being presented to any other clients.
· The company receives full and in-depth write-ups on candidates.
Disadvantages of retained search:
· Somewhat locked into a one potential resource.
· Slower potential hiring process due to the in-depth vetting process of the recruiting firm and the time needed to scour all resources for the best possible candidate.
· Initial monetary upfront investment by the company.
As always, having an ongoing relationship with a reputable search professional ensures they understand your company culture and can quickly help you navigate your company’s hiring needs.
Email Derek at derek@groundswellpartners to talk about search possibilities for yourself or your company. Connect with Derek on LinkedIn.