Understanding the nuances between retained search and contingency search is crucial, and I’m here to unravel these recruitment services while weighing their pros and cons.
In today’s rapidly shifting job market, it’s imperative to make prudent decisions if you’re embarking on a hiring journey. Selecting the right recruitment service can save you from prolonged talent searches. Among the potential solutions, partnering with a recruitment agency is a popular route, but navigating the specifics requires careful consideration.
When collaborating with a recruitment agency, you’ll typically encounter two to three distinct service options. Two prevalent approaches are retained search and contingency recruitment, each serving distinct purposes based on your needs.
In-Depth Examination: What is Retained Search?
The retained search involves forming a partnership with an executive search firm or a contingent recruitment agency on a retained basis, particularly for intricate or specialised mandates. This approach proves beneficial in scenarios such as:
- A startup securing funding and seeking a Head of Marketing for rapid expansion.
- Niche roles requiring elusive skill sets, often at a strategic level, such as product marketing or marketing operations.
Retained search necessitates an upfront fee, resulting in a comprehensive market mapping endeavour to identify the finest talent, rather than merely available candidates. This exclusive arrangement entails the presentation of candidates solely to your organisation, effectively extending your brand’s reach.
Understanding Contingency Recruitment
Contingent recruitment, in essence, employs a “pay on success” model. Payment to the recruitment partner is contingent upon the candidate successfully commencing their role within your organisation. Widely employed for junior, mid-level, and senior appointments, contingent recruitment is currently a prevalent approach, globally adopted by numerous recruitment agencies for both permanent and contract placements.
The Advantages of Retained Search
- Reliability: The structure of retained service ensures reliability, as reputable search firms only accept assignments they can fulfill. For instance, at Market Recruitment, our retained search service maintains a 96% job fill rate, illustrating the dependability of this model.
- High Success Rate: Working with retained search nearly guarantees a full placement due to meticulous market mapping and predefined briefs. Understanding a search firm’s success rate and examining similar past searches can aid in selecting the right fit.
- Comprehensive Go-To-Market Strategy: Retained search entails an elaborate go-to-market strategy, accurately representing your brand while presenting enticing opportunities. This proves particularly advantageous for startups or entities with limited market presence, allowing recruiters to optimally market your organisation.
- Methodological Depth: Retained assignments encompass thorough market analysis, structured candidate presentation, and sophisticated interview techniques, including psychometric evaluations. This ensures a holistic evaluation of candidates’ hard and soft skills.
The Drawbacks of Retained Search for some clients
- Upfront Payment: The primary drawback of retained search is the initial upfront payment, which may deter organisations. However, this investment typically yields higher returns and more efficient time utilisation.
- Extended Duration: Due to exhaustive research and market mapping, retained search processes are inherently lengthier than their contingent counterparts.
The Benefits of Contingency Recruitment
- Payment on Success: Contingency recruitment’s appeal lies in its pay-on-success approach, eliminating upfront commitments. Payment is triggered upon the candidate’s commencement.
- Access to High-Quality Candidates: Specialised recruiters can yield exceptional candidates within the contingency model, particularly for niche roles. Establishing partnerships with such recruiters enhances the likelihood of successful talent acquisition.
The Drawbacks of Contingency Recruitment
- No Assurance: Unlike retained search, contingency recruitment does not guarantee candidate placement. Recruiters often manage multiple roles simultaneously, prioritising clients who invest more.
- Lack of Exclusivity: Contingency arrangements lack exclusivity, enabling recruiters to present candidates to multiple clients, diluting your access to them.
- Limited Market Analysis: While involving research and headhunting, contingency recruitment does not delve as deeply as retained search, potentially insufficient for complex assignments.
- Challenges for Lesser-Known Entities: Startups or organisations lacking brand visibility might find it challenging to attract candidates through contingency recruitment, as recruiters might struggle to market lesser-known entities effectively.
In conclusion, understanding the intricate dynamics of retained search and contingency recruitment is vital for informed decision-making when navigating the realm of recruitment services. Each model possesses distinct advantages and drawbacks, making their selection contingent upon your specific needs and organisational goals.