When companies seek to hire full-time talent, they typically have one of three options:
- They can manage the process themselves, using advertising, their networks, and/or LinkedIn;
- They can use retained search consultants; or
- They can use a contingency recruiter.
Most of us have likely gone through the first option, in some form, in order to hire new staff. The advantage is that you retain full control of the process, but you also have to screen responses, interview candidates, check references, and make decisions without an outside perspective.
It's a laborious process and, when added to your normally full plate, can be overwhelming. Therefore, many companies prefer to outsource hiring to recruiters.
Following are the pros and cons for retained vs. contingency searches.
Retained Searches
A retained search means the hiring company pays the recruiter upfront and typically works with them exclusively.
This type of relationship is appropriate when:
- The position you're hiring for is more than $150,000.
- The position is at an executive (or senior) level.
- The skill sets you are hiring for are scarce in the market.
- You want dedicated resources to your hiring needs.
- You want a strategy/plan for identifying, screening, evaluating, and hiring the proper candidate.
- You want market feedback, including candidate names sourced and screened.
- You want to identify potential candidates outside your local market.
- You are certain you need the position filled.
Contingency Searches
A contingency search means the hiring company pays the recruiter only when a new hire starts work.
This type of relationship is appropriate when:
- The position you're hiring for is less than $150,000.
- Many people will likely be qualified for the position.
- You have multiple positions being filled.
- You are considering upgrading talent on your team only if the right candidate is available.
- Your own network is not yielding qualified candidates.
- You want to compare/benchmark candidates to the candidate you have identified (on your own) to ensure you have truly identified the right person,
Which approach you use is solely dependent on your goals for the open position(s). Learn how Clear Focus finds top talent.