When considering how to approach the task of finding new talent – once you have determined your requirements – the first question you might be faced with is whether or not to use a recruitment team. Whether you’re sourcing from a very small candidate pool, finding a new hire confidentially, or looking for someone to manage a complex process for you while adding invaluable insight, recruiters can take a heavy workload off your desk, especially when seeking senior talent.
Once you have decided you want to work with an executive search and selection team, the next question is whether to hire a firm through a retained service option or on a contingency basis.
What is the Difference Between Contingency and Retained Search?
The contingency based search and selection process is structured so that 100% of the fee is payable upon successful placement. In this format the process usually works faster as it is more competitive and relies on the recruiters network of available talent and direct headhunting skills to find someone as soon as possible. In the retained search approach, the recruiter has a guaranteed contract and the client pays a fee in installments throughout the process. A standard agreement likely begins with an upfront retainer, another portion at the shortlist stage, and the balance upon hire.
Retained search has significant benefits, particularly for complex, high level roles as these scenarios often require a significant amount of search process verification and documentation. For example, if a board of directors is taking responsibility for a new hire they will want a recruiter to provide a measured amount of justification, talent verification, process documentation and supporting evidence of shortlisted candidates’ qualifications. This takes substantially more resources and therefore usually requires the retained service arrangement.
Goldbeck’s New Hybrid Retainer/Contingency Executive Search Service
Goldbeck Recruiting is now offering a hybrid Retained Executive Search service that combines elements of retained search with a substantial portion of the fee still contingent upon successful placement. Henry Goldbeck, President and Senior Recruiter says “We have seen a rise in higher level management placements over the past few years due to an increase in global recruitment and senior executives or business owners moving into retirement. The launch of our Retained Executive Search Division allows us to meet the demands of our clients in a more structured and efficient manner.” Goldbeck is implementing this unique fee structure where the retained search fee is 75% success based as a way to minimize the risks to the client associated with typical retained fee structures.
At Goldbeck recruiting, we pride ourselves on offering the best of both worlds whether you choose retainer or contingency. All of our search and selection work is dedicated and thorough regardless of the fee arrangement, and our retained search model offers much of the success-based fee that clients find attractive in a purely contingent fee model.