Executive recruiting is challenging for any company, especially for high-level positions. Finding the right person for the job can be a time-consuming and expensive process. The good news is that different recruitment methods are available to fill these positions efficiently. Contingency and retained search models are two of the established approaches to recruitment. However, executive hiring solutions that adopt a hybrid approach – the performance-retained search model -can give you optimum results. To understand the performance retained search model, it’s essential to first look at what contingency and retained models are.
Contingency search is a “no fee” recruitment strategy where the employer does not have to pay the recruiter until they successfully fill the position. In other words, if the contingent search fails to provide a match for the specific role, you do not need to pay the recruiter.
This approach can be more cost effective for both parties, as it removes the risk of paying recruiters up front. The recruiter is also incentivized to quickly fill the open role in this arrangement.
However, the fast-track recruitment process can also be a drawback, particularly if you want to build a long-term association with the recruiter.
A contingency recruiter’s involvement involves checking references and conducting interviews with potential candidates. The employer is then responsible for the next steps, including the final interviews, salary negotiation, and making the offer.
Retained Search Solutions
If you are looking for candidates with particular skill sets or to fill challenging leadership roles, a retained search is a better option. Recruiters specializing in retained search solutions can access candidates from a wider talent pool, including non-traditional channels.
As these recruiters work to build strong relationships with the candidates and the employers, their involvement level in the process of professional search and selection is higher. Unlike the contingency model, you will typically pay an upfront fee when signing the contract and installments as hiring milestones are achieved.
The key advantage of this type of arrangement is that the recruitment firm will exclusively work to fill your company’s vacancy. The firm will dedicate its resources and time to finding the best hires who align with your specific needs.
Here are the top advantages of opting for a retained search :
- Wider talent pool
- Long-term association with the recruiting firm
- Ongoing communication
- High-quality candidates
Now that you know what these two terms mean, we can explore what performance retained search means.
Performance Retained Search
As a hybrid search approach, the performance retained search model brings you the best elements of both the contingency and retained search solutions. Businesses benefit from this approach’s flexibility in terms of cost-effectiveness and the ease of recruiting candidates for challenging higher-level roles.
For instance, you can opt for the retained search model to fill roles at the top of your company’s hierarchy. At the same time, you can use the contingency model to fill other leadership roles, including the CFO (chief financial officer, deputy director, or vice president).
At Arango & Associates, we offer a unique performance retained search package by combining the best of our contingency and retained search practices.
Get in touch with us to know how this model can help you streamline your hiring process.