Retained vs. contingent search – which has the best outcome?

Not all recruiters are alike. Similarly, retained vs contingency recruitment processes differ greatly. What many clients aren’t aware of is the differences between contingent and retained search.

The main difference is that as part of a retained search, the headhunting firm is paid an upfront fee and works on an exclusive basis; they will be exclusively working on your search as opposed any others in conjunction. Contingency recruitment, on the other hand, works on a ‘no win, no fee’ basis. Multiple recruiters may be invited to look for the right talent. Whichever finds the successful candidate gets paid; the other do not.

Pros & cons

Both retained and contingent recruitment have their benefits and drawbacks. Retained is more expensive upfront, but mostly costs the same overall and produces a better quality talent pool of candidates. When a client pays part of the fee up front, they demonstrate commitment to hire work in close partnership with the client through to the placement. The benefit to the client is they get the search consultant’s undivided attention and ensures a much deeper dive into the talent pool, ensuring no stone is left unturned.

Working with several recruiters on a contingency recruitment basis at first may appear to have a more far-reaching approach. However, this recruitment strategy can have unintended consequences. Firstly, no one recruiter is responsible for the search, meaning that any of the recruiters you have given the brief to are free to walk away at any one time. Clients I speak to often say if they have worked with contingent recruiters and the brief is hard to fill, they lose interest and chase after roles which are easier to fill. Similarly, they may have something more lucrative on their books. The high demand for real estate talent coupled with shortage of quality candidates means that contingent recruiters may well have to spend time and effort on a search yet if there is no commitment from the client in the way of an up-front fee, the role may fall lower down on the list of priorities.

In retained search, confidentiality, sensitivity and discretion are all essential and critical to the success of the placement. Think of a search consultant as your ambassador to your brand; using a retained search company is recommended as you can control what image they portray of you. Recruiters tend to work with many brands at once and are therefore less likely to sell your brand in the best possible light as they are not working exclusively.

A messy process dilutes the message

Candidates who are approached by several recruiters for the same role seems to be common amongst senior level candidates I speak to. The effect? Clients can look desperate and dilute the exclusivity of the role. Highly skilled, in demand candidates who are called by several recruiters about the same role results in them seeing the potential employer as somewhat 2nd rate and not focussed.

Imagine that same candidate is approached about a similar role by only one search consultant; the image they are forming of the role and client is already far superior. It demonstrates straight away that the company is serious about the hire and the importance being placed on it.?In a tight candidate, getting each of these factors right is more essential than ever.

Retained search = stress-free recruitment

When clients come to me asking for retained services, it is common to hear that they have been managing several recruiters for a prolonged period. Stress, being in time-consuming meetings and calls with recruiters are not a productive use of anyone’s’ time. Working with a retained search consultant, on the other hand, means you have one dedicated person who will oversee the whole brief from start to finish and will work rapidly and diligently. Often the process can be drastically shortened to two or three weeks. Hunter Scott has a 100% fill ratio, meaning success is almost guaranteed.

In contingency recruitment, you may find a good candidate. In retained, you will find the best the market has to offer due to the thorough process put in place, leaving no stone unturned.

Contingent vs retained for senior hires

Senior hires at C-Suite, Directors, Partners or VPs all require certain skill sets and leadership qualities a contingent recruiter just wouldn’t be equipped or used to dealing with. Further, they wouldn’t have the time or resources to dedicate to sourcing and selecting the best candidates.

Choosing the right way to attract and retain candidates plays as an important part as ever in the current climate. In time-short schedules, where budgets are being hit, and competition amongst real estate companies for the best talent is fierce, going for the seemingly cheaper option of a contingent recruiter may cost more in the long-term.

Portraying the right image to candidates from the very first call is essential; exclusivity, quality, professionalism, discreetness and confidence in the brand are the ingredients to elicit candidates’ trust and interest in moving forward.

Hunter Scott as your trusted retained search partner

We offer executive search and retained search for real estate board level, CEO and leadership hires, offering a bespoke and rigorous search process to identify and attract high performing teams.

Each search is led by Lucy Winberg, an executive headhunter with 12 years in the headhunting industry and 15 years’ in real estate. Market knowledge, an extensive network of senior level talent and capability to attract the best candidates to your brand are all routes to success. Lucy is well-versed in helping companies to attract candidates who are more representative of communities and each search executed produces a diverse shortlist.

For more information, contact +44 (0) 208 323 2552 / +1 (212) 210 2285 or email [email protected].