Recruiter’s Incentives Align with Yours in Retained Search to Deliver Real Value for Your Money
Retained search consistently delivers top quality candidates to executive roles and provides real value by driving accountability.
Once you decide to use a recruiting firm to fill your senior level role, you next must decide between using a “retained” or a “contingent” recruiter. While many hiring managers don’t understand the difference or know how to determine which to use, considering the dollars at stake and the impact on your organization, it is in your company’s best interest to spend some time understanding how it all works.
Retained Search Versus Contingent – Understanding the Difference
A contingent recruiter earns a fee only when the organization hires a candidate they have submitted to an organization. There is no obligation on the part of the recruiter to provide a candidate. And there is no compensation to the recruiter unless their candidate is hired, no matter what level of work is conducted. Typically, this also means that whichever recruiter provides the resume to the client first gets paid. They receive nothing if their submittal of the candidate isn’t the first one.
A retained recruiter conducts a search upon receipt of a retainer – usually 1/3 of the estimated placement fee; and typically is hired to be the exclusive search partner to fill the position. Payment of a retainer aligns the client company’s goals with the recruiter’s goals, and drives accountability on both sides. The hiring manager has an expectation that the recruiter is working to deliver results, since they have paid for it. On the flip side, the recruiter has an expectation that his or her work will be rewarded, and they can spend time fully vetting the candidates before submittal. In the case of Manhattan Resources, the remainder of the placement fee is not due until 30 days after the candidate starts work, which still provides incentive to the recruiter to fill the position as quickly as possible.
When Would You Choose Contingent Search?
“Contingent search works well when there are a large number of qualified applicants for a role, such as with traditional staffing of entry level positions,” said CEO Chris Schoettelkotte of Manhattan Resources. “Contingency search can round up a pool of qualified candidates quickly for those roles.”
“Retained search is best when filling roles requiring careful analysis of the person’s competencies, ability to execute and cultural fit within the organization,” said Chris. “The retained search recruiter can spend time with the hiring manager and the team, getting to know the company’s culture and then assessing candidates for fit. In addition, oftentimes the best candidates are not applying to posted positions, as they are busy working. When the role is mission critical, and candidates are not plentiful, the retained search model saves time and money.”
A Unique Approach to Retained Search at Manhattan Resources
“Over the years, we have developed a winning method to develop high performance teams,” said Schoettelkotte. “The most common reason new employees leave within the first year is incompatibility on cultural and personal grounds. It is not workplace skills inadequacy,” said Chris. “At Manhattan Resources, our team works hard to eliminate this possibility. We spend time with the client on location and experience the culture first hand. We guarantee our executive placements for a full year, as a result.”
You can discover how Manhattan Resources approach to search and transparent process result in successful high-performance teams by clicking here.
Manhattan Resources was named to Forbes 2017 List of Best Executive Recruiting Firms. To learn more about retained search, please feel free to contact us.