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Types of Executive Recruitment: Retained vs. Contingency

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De Vore Recruiting
Types of Executive Recruitment: Retained vs. Contingency

Choosing the right search firm is important for successful executive recruitment. Two primary models dominate this arena: retained executive search and contingency search. Understanding the differences between these models is crucial for organizations and executives alike.


Retained Executive Search:

Retained search firms work exclusively with clients to fill high-level or specialized positions. Clients pay a fee upfront to show they are committed to using ample resources and expertise for the search. Benefits of retained recruitment to corporations include:


  • Engagement Basis: Retained search firms only work with the client, providing a personalized and customized search process.
  • Payment: Clients pay an upfront retainer fee, reflecting the firm’s commitment to delivering high-quality candidates.
  • Candidate Quality: Retained firms provide high quality candidates who meet the client organization’s requirements and fit in with their culture.
  • Confidentiality: They prioritize discretion, crucial for senior-level positions or when dealing with sensitive information.
  • Focus: Executive search firms focus on senior-level positions and specialized roles, requiring industry knowledge and extensive networks.
  • Approach: Their approach is thorough and personalized, aiming to identify the best candidates through extensive research and assessment.
  • Competition: They offer exclusive access to candidates, minimizing competition from other firms.


Contingency Executive Search:

Contingency search firms receive payment when they successfully find and place a candidate, and they collaborate with multiple clients. They often focus on filling junior to mid-level positions and may prioritize speed over depth in their candidate search. Here’s a snapshot of their key characteristics:


  • Engagement Basis: Contingency firms compete with others to find suitable candidates, without exclusivity, alongside internal recruitment teams.
  • Payment: They only get paid upon finding a candidate, making their services accessible to organizations with limited budgets.
  • Candidate Quality: The quality of candidates may fluctuate when utilizing a broad pool of candidates, and they may not consistently align perfectly with the client’s requirements.
  • Confidentiality: While they maintain a level of confidentiality, it may not be as stringent as with retained search firms.
  • Focus: Contingency firms typically target junior to mid-level positions, where speed and cost-effectiveness are paramount.
  • Approach: Their approach tends to be more transactional, focusing on quickly identifying and presenting candidates to the client.
  • Competition: They compete with other contingency firms and internal recruitment teams, potentially leading to conflicts of interest.


Continue reading here: Types of Executive Recruitment: Retained vs. Contingency

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