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Contingent Vs Retained: Why Make The Switch?
23/10/2024
In the world of recruitment, businesses face a crucial decision: should they opt for contingent recruitment, where fees are only paid on a successful placement, or shift to a retained search model that ensures a dedicated partnership and higher success rates? While contingent recruitment has been a common choice, many companies are finding that switching to retained search can significantly improve the hiring process, particularly for high-stakes or niche roles.
Why Choose Retained Search?
Retained search offers a strategic, dedicated approach, tailored to your company’s specific hiring needs. Here are some key reasons why making the switch could benefit your business:
1. Guaranteed Outcomes
Retained search is all about quality over quantity. The recruiter takes full accountability for filling the role, ensuring a focused effort to deliver the best candidate for the position. For roles where there is minimal margin for error, retained search mitigates risks and secures the right talent.
2. Dedicated Resources
When working with a retained search partner, you receive priority access to a dedicated recruitment team. This team invests time in deeply understanding your company’s culture, values, and role requirements. The result? More accurate candidate matches and faster hiring times.
3. Proactive Candidate Engagement
Unlike contingent recruitment, which may rely heavily on candidates actively searching for jobs, retained search allows for proactive headhunting. Recruiters can tap into passive talent—candidates who aren’t actively looking for new roles but are open to opportunities. This broader approach helps secure top-tier talent that others may overlook.
4. Brand Protection
Retained search provides full control over the messaging and experience candidates receive. When using multiple contingent agencies, messaging can become inconsistent, leading to brand confusion. A retained partnership ensures that your employer brand is represented professionally, enhancing your reputation in the talent market.
5. Efficient Hiring Process
The retained search model ensures transparency and communication throughout the process. Weekly updates keep both the recruiter and the client aligned, preventing delays and miscommunication. The recruitment process becomes more efficient, and the time-to-hire is significantly reduced.
Common Misconception: Is Retained More Expensive?
One of the biggest misconceptions is that retained search costs more than contingent recruitment. While retained search does involve an upfront financial commitment, the long-term benefits far outweigh the cost. In fact, contingency hire failure rates in the first year are around 25%, compared to just 10% in retained searches. This is crucial considering that bad hires can cost up to three times the employee’s salary, making the true cost of contingent recruitment much higher than anticipated.
The Hidden Cost of Bad Hires
Wrong hires are the highest hidden cost in any business, and the effects go beyond salary losses. A bad hire can lower team morale, reduce productivity, and result in additional hiring costs. By reducing these risks, retained search ensures better long-term value by securing the right talent for your business needs.
Is Retained Search Right for You?
Retained search is best suited for companies with:
- Niche or specialist roles that require in-depth market knowledge.
- Critical hires where the margin for error is low.
- Confidential roles, such as senior leadership positions, where discretion is essential.
- A desire to spread recruitment costs over time while maintaining consistent progress.
At Reqiva, our retained search process involves a structured, five-step approach that guarantees success. From the initial discovery meeting to market mapping, candidate assessment, and offer management, we ensure a transparent and proactive partnership every step of the way.
If you're looking to optimise your recruitment strategy and ensure successful hires, get in touch with us to learn more about how a retained approach can transform your hiring process.