A contract between search firm and a client falls into one of two categories: a retained search agreement or a contingent search agreement.
Want to hire a manager, an executive-level leader, or a board member, retained search is the best option.
Retained search invests dedicated resources to the client relationship and the success of the search.
Retained Search is the higher-end service in the range of recruitment models, and with that comes dedicated time and superior expertise.
Fee for a placement is usually in the 30% range of the total annual compensation for the position.
Payments are traditionally made in three parts: One as a retainer to initiate the search, one at a timed or milestone date during the search, and one upon the placement of the candidate.
A guarantee to replace a candidate should a candidate leave before a specified time or milestone.
Can also offer onboarding and coaching programs to ensure that the transition of the hire into his or her new role goes smoothly.
The benefits of choosing contingency based search are cost savings in the short term.
Clients that need to fill mid-level to lower-level positions often choose to hire one or multiple contingency search firms to fill the role.
As the name suggests, a contingency search only gets compensated once a candidate is placed.
The fee for a contingent search is typically a lower percentage of the total annual compensation than for a retained search.
Contingent searches are not exclusive in their nature, so there are multiple firms working on the same search.
Companies often contract multiple recruitment firms to maximize the number of resumes received.
Additionally, companies often conduct their own search or recruit from within during this effort.
Advantages of Retained Search
Our retained search eliminates a lot of the risk involved during the hiring process.
Instead of working on many projects at a time, our retained search works on only a handful of projects, giving the search the proper attention it deserves.
Our retained search extends the search to currently employed candidates, ensuring that you hire the best talent, not just the best talent who happen to be available.
Our “retained search methodology” manages all the communications between our client company and the candidate.
We are experts in handling delicate situations and negotiations, which is an essential skill when speaking with senior-level candidates.
Our retained search reads situations and gauges how to accelerate the process and ensure a better chance of finding the perfect candidate for our client.
Without Retained Search – Going Contingent
Without retained search, you typically only have access to candidates who are currently looking to leave their job or who are unemployed – basically only people who come to you.
Searching for mid- to senior-level candidates is time consuming.
Filling high-level positions takes a lot of time, and time is money. The longer the position goes unfilled, the more money is lost.
Turnover costs have been estimated as high as 150% of the position’s annual salary, which is a lot of money for a senior-level role.
Due to high-pressure metrics, contingent firms place on their consultants, companies are deluged by a high-volume of resumes that do not meet the requirements, nor are the candidates the right culture making it necessary for additional screening delaying the hiring process.
Why go with Retained Search?
Recruiting is a learned art. Our team is highly experienced with long careers specializing in executive search within the field of technology – therefore our experience surpasses what others can do.
Through extensive screening, the candidate will be a perfect fit for the organizational culture and for the specific position.
Our retained search work is guaranteed. This promise acts as a safety net when the stakes are high!
Our retained search saves you the time you would spend searching for and interviewing only mediocre candidates.
Our retained search will complete the search more quickly than others and provide more highly qualified candidates, at a lower price.
“People Driven Solution is a company of very high integrity that I know will represent me well and will put a good product out. They will be honest about what they can and can’t do and they’re fair.”
-Kevin Wexler, CEO Reliant Parking Solutions
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