Retained search firms often focus on the high-level, top-tier management hires needed by an organization. These hires are very strategic and mistakes are too costly to allow.
As the term "retained" implies, a fee is negotiated up-front for the search, and the agency is paid reguardless of it's success in filling the position. This is directly opposed to contingency recruiting, where fees are collected only upon the successful hire. AllBusiness has a good description of how retained search works for you:
Retained search firms are consulting oriented -- they get the same fees no matter how long it takes to find the right job candidate. Retained search firms fill your company's vacancies by getting to know your company's needs and finding the person with the exact skills. They are generally best for senior-level management positions where there are fewer qualified candidates and the challenge is recruiting the talent from a competitor. Because of that, retained search firms don't always succeed. In fact, the industrywide "fill rate" for retained search is less than 100 percent -- some say it's more like 70 percent.
Options to Consider:
- Retainers and Exclusivity agreements go hand-in-hand.
- If you have several hires to make in a specialized area of your business, a good contingency firm that specializes in hiring for it may agree to a retainer, if the opportunity is right for both of you.
- Clearly understand the limits and expiration of a retained search agreement before you get into it--and how to get out if needed.
I use retained search because it gives me more control. I have to pay the money up front, but that way I get candidates who stay
Posted by: Xpmic | October 22, 2006 3:02 PM | Permalink to Comment