My Journey Back to Retainer-Based Executive Search: A Tale of Saying "No"

Introduction

In an industry driven by quick wins and high-volume placements, my shift back to a retainer-based executive search model marks a significant change. This article explores why I chose to prioritize strategic partnerships over transactional relationships, the benefits of a retainer approach, and the practical insights I’ve gained along the way. Whether you’re a client or candidate, understanding these nuances can help you navigate the complexities of executive search more effectively.

The Shift from Transactional to Strategic Partnerships

After two decades of experience with both retainer and contingency-based executive search firms, I recently chose to transition back to a retainer-focused model. I knew it wouldn't be an easy path. The allure of the contingency approach, with its promise of quick fees and high-volume placements, had been strong throughout my career. But something had shifted within me – I found myself feeling somewhat unsatisfied with the more transactional nature of the contingency-based engagements. I was ready for a different approach – one that prioritized strategic partnership over transactional relationships.

The Temptation of Contingency Offers

It didn’t take long for my resolve to be tested. Barely a month into my new role, I was approached by several clients offering lucrative contingency-based engagements. The temptation was real, and I could almost hear the siren call of the potential fees. But this time, something felt different.

Reflecting on the Crossroads

As I considered the clients’ pitches, I couldn't help but reflect on the experiences that had brought me to this crossroads. I thought about the countless hours spent chasing quick wins, scrambling to fill roles without truly understanding the organization's needs or culture. I recalled the frustration of working in a purely transactional environment, where the focus was on volume over value.

Embracing the Power of "No"

Saying "no" has been a pivotal moment for me, and it’s become easier and more rewarding each time. It has allowed me to truly partner with my clients, addressing their challenges and creating impactful solutions. Even when I decline certain opportunities, I still offer valuable insights and recommendations. For roles that have been open for a while, I suggest alternative approaches or resources that might be more effective.

It's important to recognize potential pitfalls: prolonged open positions can damage a company’s reputation and deter top candidates. To avoid this, adopting a balanced approach that combines efficiency with quality is crucial. I’m pleased to see my input being appreciated and helping clients navigate these challenges.

For Clients: Retainer engagements signal a genuine investment without necessarily increasing costs. This upfront commitment allows us to act as business partners and brand ambassadors, representing clients with care and authenticity. Beyond merely filling roles, it’s about creating lasting value. This includes utilizing assessment tools, providing onboarding support, and becoming an extension of the client's team. In today’s dynamic environment, this approach is particularly valuable for aligning closely with organizational goals and adapting to evolving needs. I’m happy to share more about these benefits in the coming weeks.

For Candidates: An exclusive & retainer-based approach signals the client’s commitment to the search, which builds trust in the process. Candidates appreciate that the focus is on finding the right fit, both in skills and cultural alignment. This approach also allows for deeper assessments, ensuring the best match for long-term success.

When Contingency Search Makes Sense

While I’ve highlighted the strategic benefits of retainer search, contingency search also has its place - just as its name implies. This model is particularly useful for urgent or backup hiring needs, where immediate demand meets a broad pool of candidates.

Contingency search shines when speed and volume are essential. But this approach can backfire if not managed carefully. For instance, while it may seem beneficial to engage multiple contingency firms to expedite hiring, this strategy can lead to unhealthy competition among consultants. They may rush to fill positions, sacrificing thorough candidate assessments. In their bid to secure the ownership of candidates, firms might even resort to overselling the role to candidates, creating unrealistic expectations.

Moreover, if the search drags on or spreads too thinly, the overexposure of extended vacancies can harm a company’s reputation. People may begin to wonder why positions remain open, which can demotivate potential candidates and damage the client's employer brand.

To make the most of a contingency search, partner with a firm that balances speed with a commitment to quality. After all, in an ever-evolving business landscape, adaptability and deeper relationships may just be the keys to weathering any storm.

What’s Your Experience and Thoughts? Let’s Continue the Conversation

So, that’s my story. Now, I’d love to hear yours! What has your experience been with contingency or retainer-based approaches, whether you’re a client or candidate? I’m all ears - the good, the bad, and everything in between. Let’s start a conversation about how these models have shaped our industry and what we can learn from each other. Looking forward to connecting!