In the recruitment world, most candidate searches conducted by agencies are categorized into two main fee options for the hiring company: a retained search or a contingent search. For those that may be unfamiliar with these terms, they can be defined as the following:
Contingent search: the fees associated with the candidate search are not paid to the agency unless and until the candidate presented to the hiring firm accepts a position with the company. These fees are usually based upon a percentage of the candidate’s first year salary. Agencies tend to be engaged for contingent searches by companies that are seeking non-executive level candidates for currently open jobs. They are usually competitive searches, with several firms working on sourcing candidates, including the hiring company’s HR department. A premium is placed by the hiring firm on speed and a volume representation of viable candidates.
Retained search: the fees associated with retained search are paid upfront to the agency and the agency is hired on an exclusive basis to create a short list of candidates to present to the client. Typically, the unique skillsets of these roles tend to be geared more toward executive or “C-Level” leadership and requires the agency and the client company to work very closely together during the process, with the agency essentially acting as an extension of the hiring company. Due to the importance and senior nature of the position, these searches can often take several months to complete. Candidates are often “passive job seekers,” requiring agencies to leverage all manner of search tools, networking and communication to find the right fit for the role.
Both retained and contingent search have their own unique benefits for clients, depending on their hiring needs and the level of role they are looking to fill. At Broadreach Staffing Solutions, we have the ability to work with our clients using either approach. If your firm is considering engaging in a retained search, here’s a list of benefits of the process for you to consider:
- Retained search involves a focused and sustained effort by a dedicated team of recruiters that’s necessary when seeking senior level, experienced candidates.
- Retained search enables the agency to work very closely with the client’s hiring team, particularly if it’s an exclusive. This gives the agency the ability to attract higher quality candidates and engage them in specific details about the role versus the vagueness that can be inherent to contingent.
- Retained search increases external branding and market-awareness of your company
- Retained search provides you with intelligence about your competitors and your position in the market place.
- Retained search yields a higher rate of return phone calls/texts/emails, as top talent knows the opportunity in more detail (not just a hunting expedition).
- Retained search attracts currently employed and highly successful candidates (passive candidates).
- In retained search, candidates are targeted for one specific opportunity. There’s no “shopping around” of resumes, which gives candidates a comfort level in sharing their resume. This also keeps highly desired candidates engaged in the client’s interviewing timeline until the candidate has completed the process with the client.
- Retained search makes it easier on the hiring manager; working with one recruiting firm is seamless and can save time and effort instead of juggling agencies and schedules.
- Retained agencies provide weekly status reports to keep employers/hiring managers informed on the progress of a search so there are no surprises in the process. Agencies are held accountable for their weekly performance.
Looking to fill a critical role in your organization? Broadreach Staffing Solutions stands ready to help. With our experience and outstanding track record in delivering for clients on retained searches, we’re confident we can find the game-changing candidates you need to lead your company to the next level of success. Contact us today to discuss your needs.