Recruitment Service - Retained vs Contingent

Retained and contingent search are two different models of recruitment, each with its own set of advantages. When deciding between the two, understanding the benefits of retained search can help you determine whether it is the right approach for your hiring needs.

The definition of contingent means "subject to chance"

Here are the key benefits of using retained search over contingent recruitment:

1. Higher Quality of Candidates

• Focused Effort: Retained search firms typically dedicate more time and resources to finding top-tier candidates because they are compensated regardless of the outcome. This allows them to conduct a more thorough search, often including passive candidates who are not actively looking for a job.
• Deep Dive into Candidate Pool: These firms often have more in-depth market knowledge and a broader network, enabling them to source and headhunt highly qualified candidates who might not be accessible through contingent recruiters.

2. Exclusive Partnership

• Commitment: Retained search firms work exclusively with the hiring company, ensuring that their interests are fully aligned with the client’s needs. This often results in a deeper understanding of the company culture, values, and specific role requirements.
• Confidentiality: Companies often use retained search for senior or confidential roles because the search firm will represent the company exclusively, managing sensitive information more securely.

3. Thorough and Consultative Process

• Comprehensive Process: Retained search typically involves a more strategic approach, including extensive candidate vetting, interviews, suitability assessments and even psychometric assessments. The process is often more consultative, with the recruiter acting as an advisor to ensure the best fit.
• Long-Term Focus: Retained recruiters focus on long-term placements, as their reputation and future business depend on successfully filling the role with a candidate who will thrive in the position.

4. Guaranteed Investment

• Upfront Fee: Retained search firms charge an upfront fee, which can ensure a higher level of commitment and priority from the recruiter. This investment from the client ensures that the recruiter is motivated to deliver results quickly and efficiently.
• Dedicated Resources: Since the firm is paid upfront, they can allocate dedicated resources and time to the search, rather than juggling multiple clients as in the contingent model.
• Enhanced Level of Service: In order to guarantee the client's investment, retained recruiters will often enhance the level of service by offering an in-depth business discussion around the organisation, the creation of EVPs, headhunting, branded advertising, video recorded candidate assessments, psychometric assessment tools, extended guarantees and many more

5. Speed and Efficiency

• Prioritised Search: Because the retained recruiter is paid a portion of their fee upfront, they prioritise the search, often resulting in a faster process compared to contingent recruiters who work on a success-only basis. Contingent recruiters will prioritise speed over quality as the recruiter who sends the CV first will in most cases retain the candidate therefore, the quality of the process goes out of the window.
• Fewer Candidates but Better Fit: The goal is not to present many candidates but to present the best ones, reducing the time the client spends reviewing and interviewing unsuitable candidates.

6. Market Insight and Competitive Intelligence

• Industry Expertise: Retained search firms often specialise in specific industries, providing clients with valuable market insights/salary surveys and competitive intelligence that can inform the hiring process and broader talent strategies.
• Benchmarking: They can help benchmark candidates against industry standards, ensuring that the client is aware of the calibre of talent available and competitive compensation packages.

7. Long-Term Relationships

• Ongoing Partnership: Retained search often leads to a long-term partnership/trust, where the recruiter gains deep knowledge of the company over time, leading to more effective future searches.
• Post-Placement Support: Many retained search firms offer post-placement support to ensure the candidate’s successful integration and performance, further enhancing the likelihood of a successful hire.

In summary, retained search is often the preferred choice for high-level, specialized, or confidential roles where quality, commitment, and a consultative approach are paramount. The investment in a retained search can result in a more tailored, efficient, and ultimately successful hiring process.

For more information on EMEA's retained search services, please contact Ajay Bhella ajay.bhella@emearecruitment.com