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Retained or Contingent Recruiter     Which should You Hire?
A summary of the differencesbetween Retained and ContingentRecruiting, and the pros and cons ofeach
Typical Position Type         Retained             Contingent•   Senior executives   • Mid-level executives•   Key positio...
Search Process         Retained                        Contingent• Proactive outreach to find     • Reactive search using ...
Engagement Agreement        Retained                   Contingent• Search on an               • Only paid if a candidate  ...
Fees        Retained                    Contingent• Retainer paid regardless   • Fee only paid if there is  of placement  ...
Client Relationship         Retained                       Contingent• Process is                     • Search process is ...
Candidate Research         Retained                          Contingent• Focus on a wide range of          • Candidates pr...
Management Involvement           Retained                          Contingent• Can save senior management        • Hiring ...
Cost/Benefit           Retained                            Contingent• Cost typically higher               • Lower cost• H...
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The Pros and Cons of Retained and Contingent Recruiting

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When selecting a recruiter for your company's search, the first decision you must make is whether to use a retained or contingency recruiter. This summary can help you make that decision.

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The Pros and Cons of Retained and Contingent Recruiting

  1. 1. Retained or Contingent Recruiter Which should You Hire?
  2. 2. A summary of the differencesbetween Retained and ContingentRecruiting, and the pros and cons ofeach
  3. 3. Typical Position Type Retained Contingent• Senior executives • Mid-level executives• Key positions • Professionals• Hard to fill • Skill positions• Cultural “fit” is • Many qualified important candidates • “Fit” not critical
  4. 4. Search Process Retained Contingent• Proactive outreach to find • Reactive search using the best possible candidate databases, internet• Client gets recruiter’s full postings, ads, etc. commitment, focus and • Often can’t be as thorough resources due to time limitations• Regular • Focus on identifying feedback, consultation qualified candidates, less on throughout the search candidate “fit” • Client makes their own assessments
  5. 5. Engagement Agreement Retained Contingent• Search on an • Only paid if a candidate exclusive, paid retainer is hired basis • Often compete with• Retainer fee paid other recruiters to make whether or not a placement placement is made • Candidates may be• Candidates only offered for several jobs presented to one client simultaneously at a time
  6. 6. Fees Retained Contingent• Retainer paid regardless • Fee only paid if there is of placement a placement• Fee usually % of annual • Fee typically % of comp or fixed $ amount annual comp• Fee paid in installments • Fee paid upon hiring
  7. 7. Client Relationship Retained Contingent• Process is • Search process is consultative, research- transactional and based placement oriented• Recruiter spends significant • With no guarantee of time getting to know payment, recruiter can’t company, position and afford to invest too much requirements time in a search beyond• Regular feedback to basic recruiting and management on market submission of resumes perception of the company, comp and issues affecting ability to recruit
  8. 8. Candidate Research Retained Contingent• Focus on a wide range of • Candidates presented potential candidates quickly, randomly/not• Includes outreach to “passive” prioritized candidates currently employed • Present candidates within 1-2 and not actively looking for a weeks of job order job • Company HR/management• Most suitable candidates must filter resumes and conduct interviewed face-to-face by interviews recruiter • Recruiter may submit many• Recruiter usually recommends resumes to increase probability 3-5 highly qualified candidates of placement to client in 4-8 weeks
  9. 9. Management Involvement Retained Contingent• Can save senior management • Hiring manager may be time and effort flooded with resumes and• Provide comprehensive confronted with assessing consulting and reporting them (resume, references, interview, • Requires much more HR reports, background & involvement in resume education check) screening, interviewing, evalua• Minimal HR/management ting, background/ed checking time investment until final candidates interview process begins
  10. 10. Cost/Benefit Retained Contingent• Cost typically higher • Lower cost• Higher fees should be weighed • Decision to hire contingency firm against the potential cost of a is frequently budget motivated hiring mistake • Little recruiter time to find• A bad hire for a crucial position passive high-quality candidates can have significant negative • With less time spent on learning consequences that can take about the company, job and client time, management attention and needs, chance of a hiring error money to recover from increased• Hire a retained search firm when you need the best candidate for a key position, cultural “fit” is imperative and can ill-afford a mistake
  11. 11. www.RecruiterAccess.com

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