Finding quality employees, however, requires time and personnel investment that many companies can’t manage well internally. For maximum success, many organizations trust an executive search firm or specialized search recruiters with the technology, resources and knowledge to find candidates. What companies often don’t realize is that different recruiting methodologies will impact the types of candidates a recruiting firm will deliver.
We’ll expand on the two primary search models – retained search and contingency search – to help give you the necessary information to choose the most advantageous recruiting partnership for your hiring needs.
Retained Search: Benefits and Considerations
With retained search, clients partner with a recruiting firm to identify ideal candidates for open positions. The partnership is an exclusive arrangement whereby the recruiter works with you to source and screen qualified candidates based on credentials, skills, and cultural fit.
Benefits of Retained Search
Retained search focuses on aligning candidates with your organization’s long-term goals, emphasizing candidate quality and fit. The result is stronger employee engagement and higher retention rates. With retained search, you can expect benefits such as:
- Talent analytics
- In-depth industry knowledge
- Broader candidate networks (including passive candidates)
- Pre-qualified and exclusive candidate presentation
Things to Consider
With retained search, you pay a retainer to start the search, followed by a fee upon hire for the service. This differs from only paying upon hire. While this is sometimes seen as an extra expense with this service model, savvy companies recognize that it actually works in their favor by allowing the search firm to focus on quality rather than speed.
The retained search methodology is perhaps its strongest differentiator. In this model, the goal is to develop a deep understanding of your company and your industry, including your long-term business strategy, culture, and growth goals. Recruiters use this information to seek out candidates who best fit each specific role.
Contingency Search: Benefits and Considerations
Different from retained search, contingency search focuses on speed and volume. Search firms operate under a pay-per-hire model in which fees are not paid until a candidate has been hired.
Benefits of Contingency Search
With contingency search, the search firm will begin by presenting a large volume of candidates quickly. Since clients may work with several different agencies and may be sourcing and hiring candidates independently as well, contingency search firms leverage their candidate networks and may also invest heavily in advertising to attract the largest number of candidates who meet the client’s criteria.
Things to Consider
Because contingency search is based upon a pay-per-hire model, search firms tend to focus on roles for which they can find a lot of candidates quickly. Positions that are more difficult to fill may have fewer candidates supplied by a contingency search firm, as they are less incentivized to invest significant time and effort into the search process.
Which Model Is Right for You?
The model your organization chooses will depend upon your priorities, budget, and timeline. As a general rule of thumb, retained search will provide higher quality candidates at a better overall value for your investment. These recruiters are invested in your long-term success and dedicated to finding candidates who are the best fit for your company and culture, rather than simply filling positions quickly. Many also offer consultancy services to refine your company’s overall recruitment strategy.
For example, at Hire Velocity, we not only help you find the candidates you’re looking for, but we can also help you with initiatives like employer branding, market intelligence, assessments, technology evaluations, and exit interview outsourcing. All of these services are designed to create a sustainable talent acquisition strategy that will serve you well in the short term as well as for future growth initiatives.
