Retained versus Contingent Search

This is an all too common comparison of services in the search industry.  While the terms are common in discussions about the search field, the nuances about the differences are anything but common. These nuances are rarely understood by a candidate; they are more commonly understood within the corporate ranks (by the people making the decision to hire a search firm), although the fine points are often misunderstood.

Retained versus Executive Search?

This is a distinction or discussion rarely entered.  The terms are often used interchangeably.  While there are no absolute rules in the search field, almost all executive searches are retained.  But not all retained searches are at traditional executive levels.

Why use retained search below an executive level position?

No client has ever called us with an easy search and a large fee.  Our typical call, regardless of level of position. is because a client cannot find the person they seek (or does not know how to find the person they seek).  They have often tried before calling us - through postings and contingent search firms.

To answer the question, here are two statements to consider:

• Retained search is structured to provide more of a consulting relationship.
• A retained recruiter does not have the same financial interest in a placement as does a contingent recruiter.

That's why they call it search.

As a retained firm, we don't assume that we have the resume of the person our client wants to hire.  The common statement at our firm is listed above - "that's why they call it search." Our assumption is actually the opposite - that we need to partner with a client to understand the important attributes of the role and nuances of the cultural need so that we can go and find the person for the role.  We aren't selling our inventory.  We are selling our ability to search - and assess for skills and fit (with fit being an equal consideration in most cases).  You are not hiring a firm to fetch and e-mail.  You are hiring a firm to be your partner - and to search, assess and deliver.

Fees are often used to sell the difference in services. Yet the dollar amount difference is not even a rounding-error in terms of the impact a great hire can have over an average one.  

The fee difference - negligible.  The outcome difference - priceless.

While not the full purpose of this Blog entry, you can find a piece on the differences at http://www.abelnmagy.com/clients/retained-vs-contingent-search.

Call us - let's partner and deliver.