Are Retained Recruiters worth it?

In my last two posts, Beyond The Fee and Are Internal Recruiters Enough, I shared some of the advantages and disadvantages for hiring managers working with in-house and contingency recruiters. Now, a look at the benefits and downside of working with retained recruiters.?

Retained Search

Retained search goes well beyond simple recruitment. It's a collaborative effort where a dedicated recruiter (or search firm) becomes your partner from the very beginning. They'll work hand-in-hand with you to define your ideal candidate profile and craft compelling job descriptions that resonate with high-caliber individuals.

Once you engage a retained recruiter, they become an extension of your team, committed to filling the vacancy with the perfect fit. They leverage their expertise to continuously source, vet, and present top talent until the position is successfully filled. Retained search is all about exceeding expectations and ensuring you secure the talent your organization needs to thrive.

Why Companies Should Engage With A Retained Recruiter

Strategic and Targeted?

A significant advantage lies with retained recruiters in their ability to discreetly connect with passive candidates. They have the resources and connections to approach these highly skilled professionals who are employed but potentially open to new opportunities, particularly if presented with the right fit. These candidates typically do not respond to job postings or solicitations from in-house and/or contingency recruiters. Ultimately, retained recruiters increase your chances of attracting top talent who might otherwise not be actively searching.

Value Beyond Cost

While retained search does involve an upfront fee and may have a higher overall cost compared to other methods, it's an investment in securing exceptional talent. This premium service is often chosen for mid to c-suite senior-level positions and board members, where the right hire can significantly impact your organization's future.

Committed to Success: Filling the Gap

Dedicated, Focus, and Expertise…retained recruiters offer a highly personalized service. Unlike contingent recruiters who juggle multiple searches, a retained recruiter becomes a dedicated partner for your specific opening. They invest significant time upfront to understand your company culture, the ideal candidate profile, and the role's nuances. This in-depth understanding allows them to source and present only the most qualified candidates, saving you time and ensuring a better fit.

Comprehensive Candidate Evaluation and Guidance: Retained recruiters go beyond basic resume screening. They conduct in-depth interviews, reference checks, and skill assessments to thoroughly evaluate a candidate's fit for your company and the specific role. They also act as a strategic advisor throughout the process, providing guidance on interview structuring, compensation packages, and negotiation strategies. This comprehensive approach helps you make well-informed hiring decisions that minimize risks and maximize long-term success.

What are some disadvantages for hiring managers to work with retained recruiters:

Like most things in life, there’s always pros and cons. As I mentioned in a previous post, “one size does not fit all”. Let’s take a look at some of the downsides of engaging a retained recruiter.

High Cost: Probably the number one concern for companies is the cost. In fact, just the word, “retained” stops the conversation with most hiring managers. Retained recruiters typically charge a significant fee, often a percentage of the hired candidate's annual salary (20-35%). This can be a substantial investment, especially for high-level positions. (With that said, most payment arrangements are broken down into three parts and backed up with a guarantee from the recruiter. And, we’re seeing more independent recruiters work with clients on pricing and payment terms)

Upfront Clarity and Limited Adaptability: Retained searches require a high degree of clarity from the hiring manager at the outset. This includes a well-defined ideal candidate profile, compensation range, and specific skills needed. Since retained recruiters invest significant time and resources in tailoring their search to your initial specifications, changes mid-search can be disruptive and costly. Adding new requirements or altering the compensation package might necessitate revising the search strategy, potentially extending the timeline and incurring additional fees from the recruiter. This disadvantage emphasizes the importance of upfront planning and open communication with the recruiter to minimize the need for adjustments later on.

Longer Timeframe: Retained searches can take longer compared to contingent searches. The in-depth research, candidate vetting, and focus on a single search can extend the hiring process. This might not be ideal if you need to fill a critical role urgently. However, though it may take a little longer the quality of the candidate is typically better.?

So, Are Retained Recruiters Worth It?

The answer, like most things in hiring, depends on your specific needs. Here's a quick recap:

Pros:

• Strategic & Targeted: Access to top, passive talent you might miss otherwise.
• Value Beyond Cost: An investment in securing exceptional talent for critical roles.
• Committed to Success: Personalized service, dedicated focus, expertise in candidate evaluation and guidance.

Cons:

• High Cost: Upfront fees can be significant.
• Limited Adaptability: Requires clear expectations at the outset, changes can be costly.
• Longer Timeframe: More in-depth search may take longer than other methods.

Ultimately, retained recruiters are a valuable tool for attracting top talent, especially for senior positions. If you have a clear vision, budget, and timeline, they can be a strategic partner in achieving your hiring goals.

Want to learn more? Feel free to comment below or connect with me directly to discuss your specific hiring needs. Schedule a brief discovery call with me here and let’s discuss what recruiting model will be best to build your team (https://calendly.com/hcsi/pete )