Contingent Search vs. Retained Search – A Quick Tutorial

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Contingent Search vs. Retained Search A Quick
Tutorial
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Finding the right talent isnt easy. When the
demand exceeds the internal capabilities of a
company, the talent acquisition manager often
solicits outside assistance from a search firm.
There are generally two types of search firms,
contingent and retained. We are sometimes asked
which is better. The short answer is it depends.
If youre looking for a lower-level position in
an area where higher turnover can be tolerated,
contingent search may be the way to go.
Contingent search is a model where the search
firm is not paid until the candidate is placed.
Thus, there is no upfront cost to the hiring
company. It is essentially an all or nothing
approach that puts all risk on the search firm.
Retained search on the other hand is more of a
consultancy model where an upfront fee is
charged by the search firm. Furthermore, this
initial fee is usually not returned to the
company regardless of the outcome of the search.
The company thus shares the risk with the search
firm. However, retained firms generally continue
to search for the right employee as long as it
takes to satisfy the hiring manager. Contingency
search firms operate on volume and speed.
Companies often engage multiple firms so the
first firm to present a candidate who is
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ultimately hired gets the fee. In the pursuit of
speed, contingent firms will normally do minimal
vetting of the candidate if they are vetted at
all, beyond having the basic paper requirements
specified by the client company. The working
theory is thus to submit a high volume of
candidates as quickly as possible in the hopes
that one of the firms candidates will get
hired. If the responsibilities of the role are
general enough that no specific industry
experience is required by the recruiter,
contingent search could be attractive. The
contingent business model one-size-fits-all
approach can work well if the role is a
lower-level administrative role or a functional
role at a level like a marketing manager.
Positions like these and others where the supply
exceeds the demand will often elicit a strong
response when advertised online. Conversely
however, if the search specifications are more
demanding and harder to fill, retained search
may be the way to go. These demanding search
specifications are often in play as roles are
more senior. Niche roles that mandate unique
skill sets usually require very specific
background experiences. Contingent firms will
generally not approach passive (not overtly
looking for a job) candidates because it takes
much more time and recruiter expertise to get
these candidates to respond. Unfortunately, these
passive candidates are exactly the candidates
that companies usually want to consider for more
critical roles, be it a CFO or CCO or other
senior leadership position. Perhaps the most
important difference is that retained firms will
take more time to vet each candidate to ensure
the cultural, behavioural, and motivational fit
is consistent with what the company is looking
for. This is critical to ensure that the new
hire has the best chance to be a successful
long-term employee, and one that will embrace the
culture when he/she hires other employees for
their teams. The retained search firm will
generally take a more proactive approach than
the contingent search firm. The retained firm
will be in contact with the company and
candidates throughout the search and provide
regular updates. Sometimes the firm will even
provide onboarding assistance. Contingent
Search vs. Retained Search - A Quick Tutorial -
Ruef Associates, LLC (ruef-associates.com)
https//ruef-associates.com.
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