If you’re about to embark on a search for a senior level professional, you will need to decide whether to use your company’s in-house recruiter, a contingency search firm or a retained search firm. There are three main differences between these options: how they look for candidates, their processes and how they get paid. In-house recruiters often times are human resources professionals or the actual hiring manager. Their time, resources and network are very limited and they often can’t allocate much more than one to two hours a day maximum. There is no monetary incentive. On the other hand, internal referrals can come from a company employee, who would receive a referral fee if the candidate is hired and retained through the probationary period. This can be a very effective and successful solution to recruit and retain senior-level talent to the organization. Contingency firms are transaction-oriented. They maintain relationships with various companies and candidates, have the freedom to cross-present and are exposed to many opportunities. Contingency search firms present qualified candidates’ resumes and perhaps a bio. They typically send numerous candidates to the client to filter. Potential for conflict exists between firms, clients and candidates presented to multiple organizations. Confidentiality could be at risk and there is no “off-limits” policy. Contingency firms typically have a diversified network spanning multiple industries and disciplines for a specific region. Some contingency firms have a niche and focus on specific skill sets, industries and disciplines. If you’re seeking the broadest pool of talent and are looking to fill a position quickly, contingency firms may be the way to go. Not all firms take the time to understand your company’s history, milestones, culture and plans for the future. Your hiring managers are probably receiving calls from contingency recruiters often pitching their prospective candidates who may or may not be a good fit. They get paid only if you hire one of their candidates presented to you. Guarantee ranges from 30 to 90 days. Retained search firms are consulting-oriented and their recruiters typically focus on one to two clients and searches at a time. Retained search firms fill your company’s positions by taking the time to get to know your company. They focus on finding candidates with the education, skills and experience you’re searching for. They work for you and only you. They consider themselves an extension of the client. Retained consultants tend to consider only candidates identified through their own research or referred to them by trusted sources. They are best suited for senior-level positions where there are fewer qualified candidates, and the challenge often times is recruiting the talent from the competition. Retained search firms may undertake significant screening, assessments and background checks, usually narrowing down the search for a position to two to three candidates. The fee is to be paid to the search firm by the employer during the search process and is typically a flat amount. The fee is paid to the search firm in the event that the employer fills the position through another resource. Guarantee ranges from six to 12 months. Other reasons to hire a retained search firm are the following:
• A new position requires extensive research and market penetration to provide the selection committee with adequate information to properly define a profile and promote a role.
• A confidential replacement search must be conducted in a timely and discreet manner.
• A company can target the search with a comprehensive investigation of the talent pool from your competition.
• A talent search is required to supplement succession planning and growth strategies.
• A senior-level role is open, and the organization must be represented in a professional, courteous and discreet manner.
• A high-level executive will most likely explore an opportunity if a company is represented by a firm with an exclusive retained search arrangement. An executive should feel confident that any dialogue with a retained search firm will be discreet, confidential and efficient.
Whoever you work with, one rule remains the same: Cultivate a long-lasting, give-and-take relationship with your recruiter and you may find the best prizes come to those who wait.
••• Jennifer Laxton is a senior partner with Executive Search Associates Inc., www .esa.com. You can reach her at 707-525-1010 ext. 101 or jklaxton@esa.com.
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