What is Retained Search? Retained Firms Are a Relationship Business
A retained executive search firm follows a clear and proven methodology. Generally, Partners at retained recruiting firms take on fewer searches and spend more time on each one. At Bridge Partners, our Partners work on no more than 5 active searches at a time, with two Partners supporting each from beginning to end.
At the outset of a retained search, Partners meet with key stakeholders to understand organizational culture and craft an inclusive job description. In parallel, our research team strategically identifies a diverse group of highly-targeted potential candidates. We then extensively assess and interview interested candidates, and provide clients with detailed progress reports to keep them up-to-date and informed at all stages of the search, through to the point of an offer being accepted. Bridge Partners, as well as other retained firms, are a true partner in the executive search process from the very beginning until the first day of a candidate’s new role.
Retained search is indeed more expensive - the retained search fee is typically 33% of the placement’s first year total cash compensation and it is paid on specific dates, rather than on offer acceptance – but we guarantee placed candidates for a significant period of time, and our rate of retention and repeat business is unmatched.
What is Contingent Search? Contingent Firms Are a Volume Business
The contingent headhunter prioritizes volume because that’s how the business works. It’s a successful business model. For them. By definition, contingent firms only get paid if they find the winner, often in competition with other contingent firms; accordingly, those businesses need to increase their odds for success by taking on as many assignments as possible.
Within the firm, individual recruiters are tasked with meeting as many active job seekers as possible to fill the firm’s database with resumes that can later be vetted. For each job, recruiters mine the internal database and post the job specifications online, hoping that the right candidate will pop up. Potential candidates are lightly vetted before they are presented to you, and you are the one who determines whether the individual is qualified or wide of the mark. If the winning candidate for your role fails to be identified early in the process, the contingent recruiter has a diminishing incentive to keep digging, as there are other job openings in front of them that are now easier to fill.
That said, this relative light touch with candidates is reflected in the standard contingent terms, most obviously a lower fee (typically 15% to 25% of the candidate’s base salary) and a guarantee typically for 90 days.