When it comes to hiring talent and working with a specialized search firm, companies often face the choice between two of our industry’s popular recruitment models: contingent search and retained search. Each method has its own merits, of course. So, understanding the differences between each of these approaches can help you make the best decision to suit your hiring goals. Here are the basics:
What is Contingent Search?
Contingent search is a performance-based recruitment model where the agency recruiter is only paid when they successfully place a candidate in your company. Recruiters work with multiple clients and job requisitions at a time, searching and identifying a variety of potential candidates. This approach is widely used for mid-level positions and when the employer wants to reach a broad pool of candidates without any upfront investment.
Key Features of Contingent Search:
- No upfront fees: Recruiters are only paid if they successfully place a candidate.
- Multiple firms: Companies often use more than one recruiter for the same job, creating a very competitive environment.
- Volume-based approach: Recruiters may present several candidates quickly to increase the chances of filling the role.
- Quicker pace: Since payment is dependent on placement and potentially other firms’ engagement, contingent recruiters often aim for faster results.
Advantages of Contingent Search:
- Cost-effective: There’s no financial risk for the employer until a candidate is hired.
- Speed: Contingent recruiters often move quickly to place candidates before their competitors.
- Broad candidate pool: Multiple recruiters typically work with a wider range of candidates, offering more options.
Challenges of Contingent Search:
- Less focus: Since contingent recruiters handle multiple clients simultaneously, the quality of the candidate search may not be as thorough as in retained searches.
- Volume over quality: In some cases, the emphasis may be on quantity, leading to less refined candidate matches.
- Lower exclusivity: Contingent recruiters may not invest as much time in understanding and responding to the company’s unique needs to present their candidates first. (This may actually slow your process, as you sift through candidates that don’t quite fit.)
What is Retained Search?
Retained search is a much more exclusive recruitment model, where companies engage a search firm on an exclusive basis. A portion of the fee is paid upfront, regardless of whether a candidate is placed. Retained search is typically used for mid to senior-level, niche, or highly specialized roles where a more strategic and in-depth approach is necessary.
Key Features of Retained Search:
- Exclusive engagement: The search firm works exclusively on the specific role as a priority.
- Upfront payment: The company pays part of the fee at the beginning of the search process, with additional payments upon reaching milestones.
- Thorough search process: Retained recruiters typically invest more time in understanding the company’s needs, culture, and long-term goals.
- Focus on quality: This method emphasizes finding the best possible candidate, not just filling the position quickly.
Advantages of Retained Search:
- Tailored approach: Recruiters develop a deeper understanding of the company’s culture and hiring needs.
- Higher quality candidates: The process is more focused and selective, resulting in stronger candidate matches.
- Commitment: Retained recruiters are committed to filling the position, knowing they are exclusively working on the role and an initial investment has been made in their firm.
- Ideal for specialized roles: Retained search is well-suited for mid to senior level and hard-to-fill roles.
Challenges of Retained Search:
- Higher cost: The upfront fee may be a barrier for some companies, especially those with tight budgets.
- Slower process: Because the focus is on quality, retained searches can take longer to complete.
- Risk of no placement: Even though fees are paid upfront, there is no guarantee of a hire, making it potentially riskier for companies.
Key Differences Between Contingent and Retained Search
| Criteria | Contingent Search | Retained Search |
|---|---|---|
| Payment Model | Paid only upon successful placement | Paid upfront, with milestone payments |
| Exclusivity | Non-exclusive, multiple recruiters can compete | Exclusive engagement |
| Focus | Speed and volume | Quality and precision |
| Typical Roles | Mid-level, high-volume positions | Senior, executive, or highly specialized roles |
| Candidate Pool | Wide, less tailored to the specific company | Narrow, more targeted, and aligned with the company |
| Timeframe | Usually faster | May take a longer, more strategic search |
Which Recruitment Model is Right for You?
It can be hard to say sometimes, right? Things can literally change in a moment’s notice or hopefully with at least two weeks’ notice. But deciding which direction to go is based on a multitude of factors. By understanding the strengths and limitations of each option, companies can optimize their recruitment efforts and secure the best talent for their needs. Hopefully, this blog helps.
Why Milliner Talent Solutions Offers Both Contingent and Retained Recruitment.
We welcome and offer both approaches because, when you get right down to it, it’s not about what’s best for us. It’s about what’s best for you, our client.
Yes, we love exclusivity with our searches and relationships – who doesn’t? And we work tirelessly to get our clients to the point where they only think of us when needs arise. But it takes time to build that trust and we strive to earn it. That means giving each search, client, and opportunity the importance it deserves. And ensuring you have the right candidate at the right time. Want to talk about our process and your next hiring need? Contact us today. info@millinertalent.com
