If you’re in the market for a new hire, you might be wondering about retained search. What is it? How does retained search compare to other recruiting solutions like contingency or retained headhunter? Retained search agreements have grown rapidly over the last decade and are here to stay.
In this article, we will discuss what they are and why they’ve become such a popular choice among employers. We’ll also provide information on how retained searches work so that you can decide whether or not it’s right for your organization!
What Is Retained Search?
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Working on retained contract means the recruiter will charge an upfront fee to the client when a contract is signed. The search that follows will be exclusive and will only lead to filling through this recruitment company.
When you retain a recruiting agency, they work closely with you and take their time to find the perfect hire. They use an agreed-upon methodology to put together a shortlist of three to ten candidates that will be presented to you for review
The retained search process takes between six to twelve weeks, depending on the level of expertise required for a position. The agreement typically lasts between three and 12 months; however, you can opt-out at any time if you don’t find what you need.
What is contingent recruitment?
In contingent recruitment, the recruiter is competing for a given role either against other agencies or with the client. The recruiter will only get paid if they successfully fill this role.
The recruitment industry has a reputation for throwing applicants against the wall because of this way of doing business. When recruiters work in this manner, they have to be quick and find as many eligible candidates as possible through database searches to please their clients. This isn’t the best method for finding qualified talent for the client because it doesn’t take time or care into consideration when screening applicants.
Top Benefits With Retained Search Agency
- Immediate response time, as the agency is on call 24/365 and can respond to your request immediately.
- Cost efficiency – staffing agencies will share a percentage of their fees with you when they find an employee who meets all requirements. This means that retained search agreements are generally less expensive for companies than other alternatives.
- Retained search agencies will screen candidates for you, saving time and money on interviewing process. The screening process ensures that the candidate is qualified for the position before they’re brought in to interview with your team, which makes it less costly than other recruiting solutions like contingency hiring or using an executive recruiter.
- Quality – retained search agreements are not only cost-efficient but also provide a high quality of service because recruiters know what’s expected from them by their clients. This means that the staff members recruited through these services can be more productive.
- Flexibility – one benefit retained search has over all others is its flexibility when working with different companies/organizations at various stages of growth (from start-ups to Fortune 500 organizations). As the company or organization grows, it’s easy to change retained search agreements and adjust staffing needs accordingly.
- The retained search takes a more proactive approach to recruiting. Compared to other solutions which focus on those who are actively seeking positions, retained search allows for the consideration of those who may not be in a database or have shown interest themselves.
- Staffing Agreements – all staff members recruited by companies using retained search agreements enter into an employment contract directly with their employer (the company hiring the recruiters), rather than just being contracted out on a freelance basis. This means retained search agreements can be more cost-effective than other recruitment models because they don’t require the company to pay a recruiter commission or agency fees on top of salaries, benefits and other costs for each worker recruited
- Retained Search Agreements – differed from contingency search agreements in that recruiters are paid whether they find the right hire or not. Recruitment agencies who enter into retained search contracts with your organization will work towards filling vacant positions by using any type of sourcing method (including social media platforms like LinkedIn), rather than just relying on job boards and referrals from current employees as contingent recruiters do
- A retained search agreement takes more time and money up front, but the increased quality of candidates will be worth it in the long run.
- Retained search opens up potential candidates who are already employed, meaning they’re able to expand and widen their search. This can entice a rare or highly sought-after skill set more easily.
Recruiting Methods: Retained Versus Contingent
Retained recruiters can take their time to find the perfect candidate and usually delivers more candidates for interviews. Contingency recruiters might be more attractive because they tend to have a shorter lead time, but it’s not guaranteed that any of their placements turn into long-term employees. They often rush to find you large quantities of resumes for the position you need; something which could prove wasteful if it turns out your perfect candidate is already in the pipeline.
Retained search is a deeply personal and long-term commitment. This means that the length of the project can be an important factor in deciding if a retained search is right for you. Contingency recruiters will simply move on to another client or applicant after they don’t make any progress on the original one, so it may not be a good fit if you can’t afford there to be “dead time” where no one’s working on your project.
In closing …
In the context of the current job market, where candidate supply is scarce and desirable specificity is needed for hiring needs, retained search from a recruiting agency is a sound decision.
Put your job search on autopilot. With the retained search, you have one point of contact for the entire recruitment process, which is efficient and all in one place so you are kept informed at every phase to stay fully in control.
Contact us today for more information about ModernRecruiters retained search services and how we can help you find the talent you’re looking for.