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.

1. Retained or Contingent Recruiter
Which should You Hire?

2. A summary of the differences
between Retained and Contingent
Recruiting, and the pros and cons of
each

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. 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. 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. 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. 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. 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. 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. 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. www.RecruiterAccess.com