When organizations seek to fill critical leadership roles, they often turn to an executive search firm. However, not all executive search services are created equal. Two primary models exist: retained executive search and contingency recruiting. Understanding the differences between these two approaches is essential for organizations aiming to make informed decisions about their talent acquisition strategies.
Retained Executive Search Firm
Commitment and Engagement
In a retained executive search firm, the client engages the search firm through a formal contract and pays an upfront fee to initiate the search process. The retained model signifies a commitment from both the client and the search firm to work collaboratively throughout the search process.
In-Depth Research and Analysis
Retained search firms invest significant time and resources in understanding the client’s organizational culture, strategic goals, and specific requirements for the role. This in-depth analysis allows them to identify and attract candidates who not only possess the necessary skills but also align with the company’s values and long-term vision.
Focus on Senior-Level Positions
Retained executive search is used for high-level positions such as C-suite executives, senior vice presidents, and other critical leadership roles. The complexity and strategic importance of these positions require a thorough and tailored approach to candidate selection.
Comprehensive Candidate Evaluation
Retained search firms conduct extensive assessments of potential candidates, including interviews, reference checks, and background investigations. This rigorous vetting process ensures that clients receive a shortlist of highly qualified candidates who meet their specific criteria.
Long-Term Partnership
The retained model fosters a long-term partnership between the client and the search firm.
Contingency Recruiting Executive Search Firm
Payment Structure
In contrast to retained search, contingency recruiting operates on a success-based fee structure. This model can lead to a more transactional relationship between the firm and the client.i
Broader Candidate Pool
Contingency recruiters often work with a larger pool of candidates, including those seeking mid-level positions. They may not invest as much time in understanding the client’s culture or specific needs, which can lead to a less tailored candidate selection process.
Faster Turnaround
Contingency recruiting typically emphasizes speed, as firms are motivated to fill positions quickly to receive their fees.
Limited Candidate Assessment
While contingency recruiters may conduct initial screenings and interviews, the level of assessment may not be as comprehensive as that of retained search firms. This can lead to a higher risk of misalignment between candidates and the client’s needs.
Short-Term Focus
The contingency model often emphasizes immediate results over long-term partnerships. Once a placement is made, the search firm has limited involvement in the onboarding process or follow-up with the client.
For critical leadership roles that require a tailored approach and thorough evaluation, retained executive search is often the preferred choice.
Conversely, for more immediate hiring needs or mid-level positions, contingency recruiting may offer a quicker solution.
FAQ’s
Is a retained executive search firm the right choice for my business?
When deciding which kind of agency to approach for your talent needs, you should ask yourself questions specifically related to the roles you are hiring for.
How readily available is the talent needed for the role?
If talent is abundant, calling on a dedicated Executive Search firm makes sense. If it’s hard to find, partnering with Sapphire Human Search is your best bet.