When it comes to using an external source for making an important hire, nothing is more important than getting it right the first time. After all, who wants to spend budget dollars on an outside expert and get poor results?
Many companies have turned to use contingent recruiting firms because no fee is payable until after a hire is made but that model comes with significant risks.
First, the contingent model is driven by candidates and is client agnostic. Therefore, the focus is on placing the candidate more than filling the role. For example, a contingent recruiter finds a red-hot candidate and presents them on one position for a potential client company. Since the competition to fill that role usually includes multiple firms under the idea that more candidates overall will be presented, the odds of placing the red-hot candidate into that specific role are very low, likely less than 10%. How does the contingent recruiter increase the odds of placing the candidate? They turn around and market them to your competitors. So now, as a hiring team, instead of having a red-hot candidate in your pipeline only, you have a red-hot candidate in nine other pipelines creating potential friction and risk.
Second, since contingent firms are candidate-driven, it is difficult for each candidate to be given a thorough deep-dive assessment. This adds the necessity of the client performing more screening work to make sure the candidate is not just qualified on paper but also to determine if their career goals, personality, compensation expectations, technical skills and so on are aligned with the organization’s opportunity, leadership and culture.
With a retained search, risk can be managed because the model is client-centric and candidate agnostic. This results in candidates being recruited exclusively for a specific client on each discrete search. It protects the client’s hiring process from unnecessary competition and disruption, provides the opportunity for deep candidate assessment work and brings a select group of finalist candidates to the client that are all qualified and capable of performing in the role.
One more note, even the best contingent recruitment firms do not fill more than 20% of their searches. For retained firms, fully 74% of searches are completed successfully. And most of the assignments not completed were closed out because of a change in control or strategy that changed or eliminated the role.
For critical and strategic hires, consult with a retained search firm and learn how to minimize the risk and maximize the opportunity for success.
Partner With a Retained Search Firm
For critical and strategic hires, consult with a retained search firm and learn how to minimize the risk and maximize the opportunity for success. Partner with the search experts at Evolving Talent Group today.