Retained vs Contingent Recruiters: Why Executive Search Will Always Win
/The key to hiring long-term, well-placed leaders starts with understanding the difference between executive search consultants and contingent recruiters. Like it or not, they are not created equal.
Anybody can fill an open position, but finding and hiring top talent is no easy feat. It requires a deep understanding of the company and its goals, as well as proficiency in assessing the skills, experience, leadership style, and cultural fit of the candidates. It’s even more important to get this right when hiring for in-house legal counsel, as these roles have a strong impact on the strategic decisions and overall direction of the company.
This is why many companies choose to work with a professional service to help find good candidates, but what most don’t realize is that there are two primary models of recruiting out there. Those two models are executive search (retained) and contingent recruiters.
While some hiring managers believe that both options are the same, they are most certainly not. The key to hiring a well-placed professional is understanding the distinction between the two.
Executive search consulting
Working on a retained basis means the executive search consultant will charge their client a consulting fee, or retainer, to conduct an executive search. They work on a limited number of assignments at one time because each one is exclusive and fully centered around the client.
Executive search consultants are involved in each phase of the process, from defining the search through candidate onboarding, and have unique access to candidates both on and off the job market. The consultants performing retained search deliver the highest-quality service and top-tier talent with diverse backgrounds, and develop long-term relationships with their clients.
Contingent recruiters
Generally speaking, this type of recruiting can be viewed as opportunistic. Contingent recruiters are incentivized to place as many candidates as possible in the shortest amount of time because they offer their service with no money up front. They only get paid when the candidates that they present get hired. Their fees are generally lower because their scope of work is substantially smaller. They tend to work in bulk, juggling many assignments at once, and if a particular assignment isn’t getting rapid traction, there is little impetus to move forward.
5 Benefits of retained executive search
Access to highly-qualified candidates – Executive search firms have access to a large database of highly-qualified candidates and a network of reputable industry leaders that is unavailable to contingent recruiters. In addition, executive search consultants will use their network to actually headhunt for the top-tier candidates. Proprietary search methods are routinely employed to seek and uncover the best talent, even (and especially) those whom are not in anyone’s database.
Competency-based interviewing – Executive search consultants use personalized, competency-based interviewing practices and advanced assessment tools to help identify the candidates that are best aligned with the company’s culture and the unique needs of the client. There is no plug-and-play model when it comes to screening candidates.
Value placed on the client relationship – Retained recruiters place a high value on the success of the search, as well as on their relationship with the client. This level of investment leads to an unwavering drive to find the right candidate who is the perfect fit for the organization, both culturally and for the position at hand. Candidates go through an extensive vetting process even before they are introduced to the client and, in some cases, receive onboarding services and leadership coaching to ensure a seamless transition once a hire has been made.
Industry expertise – Every company has a unique culture, mission, and hiring needs, so it’s important to find an executive search consultant or retained search firm that truly understands what it takes to place the right people. If hiring for general counsel, for example, look to work with a legal executive search consultant who is strategically positioned to find the ideal candidates for the role.
Low risk – When filling executive-level positions, like those on your in-house legal team, it is critical that hiring mistakes be avoided. The consequences associated with making an ill-judged hire can be huge. By engaging with a retained search firm, you essentially eliminate a lot of the risk involved during the hiring process. Contrary to contingent placement agencies who are incentivized to fill positions regardless of fit, executive search consultants are meticulous about their process and only work on a few assignments at a time. This ensures that each placement is highly-specific and groomed for success.
In short, partnering with a retained search firm that fully understands their clients’ unique goals, objectives, and organizational culture is the best option to ensure the long-term success of executive-level placements.
Carrington Legal Search is devoted to finding the ideal candidates for our clients’ recruitment needs. To make our nationwide network work for you, get in touch at 512-627-7467 or email carrie@carringtonlegal.com