The Contingent or Retained Search

How to know which is right for you 

Let's assume you have four open positions. For the sake of this article, two of them are critical. That means a lot is riding on attracting the right talent.  You've already gone through your company's processes, and there are no internal candidates. Your efforts have not turned up acceptable external candidates, either.  So does conventional wisdom tell you to get as many recruiters involved in this search as soon as possible? Well . . . maybe not. 

Like most things, searches are not a one-size-fits-all approach. Different positions require different talent, and it's the level of talent you need that will dictate your recruiting options. Let's break this down so you can determine the option that's right for you. 

First Things First - Let's Define the Search Terms 

Contingent = I need a duck.  If you bring me a duck, I'll pay your fee.

Exclusive = I need a duck and I'm not telling anyone else I need a duck. Go get me a duck and I'll pay your fee.

Engaged = I need a duck. Go get me a duck. Here's a chunk of money to get you committed and for you to know that I'm committed, too.

Retained = I need a duck. Go search for a duck. This is serious.  I want to buy your time so you'll get my duck. Here's a chunk of money up front, and I'll pay you 1/3 in a few days and the balance a few days later. GET ME A DUCK! 

The difference is in the level of service, the level of commitment and communication between you and the recruiter, and the level of risk the recruiter is willing to assume. 

Contingent or Retained: How to Know

There is a time and place for contingent recruiting, but sometimes searches are best served using a retained/engaged arrangement for five key reasons:

Key Reason #1: Concentration

If you focus someone's efforts, you will get better results.  To use a retail analogy, if you send one boy to the stockroom to complete a task, you have one boy working; if you send two, you have half a boy; if you send more than two, no one is working. The same is often true of contingent recruiters who assume you have more than one boy in the stockroom. A retained/engaged arrangement focuses the recruiter on your search, and that's what you want for your critical openings.

Key Reason #2: Commitment

The recruiter will be committed to completing the task because they have a higher level of confidence that there is a payday. No other recruiter will be in the way. This way it becomes a logical process instead of a race.  In addition, it proves your commitment to the recruiter. It says "we're both on board with one common goal" - and that is to fill your position with a talented individual who adds value to the bottom line.

Key Reason #3: Consistent Message - Don't mess up your brand!

Having three-plus recruiters running after the same two searches will make your company and the recruiters look less professional and will create a sense of turnover or desperation that no company needs. Top candidates don't give credence to a company with high turnover. In today's economy, it's wise to show as much stability as possible.

Key Reason #4: A consistent process improves results

You will get: ONE format. ONE process. ONE timetable. ONE consistent message. ONE point of contact.

Key Reason #5: Comparison

Your recruiter can be - and should be - your consultant.  If they know every candidate and own every candidate, they can help you compare those candidates without bias.  Also, because of Key Reason #4 (consistent process), you're able to compare "apples with apples."  Your recruiter will also be a consultant to the candidate, helping them with the decision-making process.  So feed your recruiter as much information as they ask for.  It's worth a little "up front" time with your recruiter to determine what makes your company and your opportunity attractive to the candidate. Spending an extra 30 minutes here will help you beat out your competition.  After all, your recruiter is really in the information business - not the people business.

It's Your Call

The difference between working with your recruiter on a contingent or retained/engaged basis comes down to how critical the position is to you and your company. If you're just looking for someone to do a job, then the Johnny Appleseed approach (giving the search to as many recruiters as you deem necessary) may be acceptable. However, if you're looking for key talent to improve the company's bottom line, then serious consideration needs to be given to the retained/engaged search. So now that you know what kind of duck you need, it's your call. Go get your duck!