The two main hiring vehicles
that companies use for outsource hiring of management, industry specific
sales and other professional staff are contingent recruiters or a
retained executive search consultant.
If a company does not want
to outsource this work, but would rather achieve their search
internally, they may find it a more difficult than they anticipated in
achieving their hiring objectives. Anyone can make a hire, but not
necessarily the right or best hire. Often, many qualified candidates do
not respond to ads, and are overlooked. In addition to search and
identification, other time consuming, essential components exist. This
may include evaluation, assessment, negotiation, and reference checking
to name but a few. The right firm will help assure the best hire for
both company and candidate.
Retained vs. Contingency - Is the central difference an issue of how the recruiter gets paid?
Contrary
to popular myth, the central difference between retained and contingent
recruiting is not based on how the recruiter conducting the search is
compensated, but the process. Ultimately, compensation structure is the
main factor in determining the way the search is conducted. It has to by
its very nature. A contingent recruiter is paid only when a hire is
made. On the flip side of the coin, a retained search consultant is paid
a portion of the fee up front to conduct a search that almost always
results in a hire. If you are considering a retained executive search
firm, but hesitate, due to the fact that your company has to pay before
seeing results, you are wise in your thinking. The way to resolve that
worry is to contact the search firm's references. If they have worked
with multiple firms over an extended period of time, this is an
indication that they are legitimate. In addition, if they have
successfully completed most if not all of the projects with the client,
it becomes evident that the firm is capable of doing what they say they
can do. If they do not have a sustaining, successful track record, their
reputation will precede them. The key is to look at whether they have a
long-term vision, or a short goal when dealing with clients.
The
way the fee is paid has everything to do with how the entire process is
carried out and the results that can be expected. When a firm retains
the services of a contingent recruiting firm, they are allowing that
firm to present qualified candidates they may consider hiring. When a
firm obtains the services of a retained executive search firm, they are
paying for the process of conducting the search. Expectations for the
right hire should be expected.