5 things to know about retained recruitment

You want to fill an open position? You have advertised the job for weeks but have not found suitable candidates? Do you consider using retained recruitment? What is it? What are pros and cons of retained recruitment?

What is retained recruitment?

Retained recruitment (also known as retained headhunter, search and selection, executive search) is a type of recruitment. A company which wants to fill an open position pays a retained search consultant to conduct hunting which usually – but not always – leads to employment. The fee that a retained recruitment charges their client is not low.

Retained recruiters focus on understanding their client’s fields and needs. They spend time, resources and a methodology to find the most suitable person for the job. They usually present three to ten people with ideal experience, skills, location, personality, salary, job expectations, ... before interviews begin. Then the hiring company will pick the person who is the most suitable.

Advantages of using retained recruitment

1. They invest more effort in the search

You can expect that retained recruiters invest more time and work harder for your order. They are earning money from implementing a search. Thus, they are motivated to do it well. Generally, retained search delivers the best result.

Retained recruiters work closely with you to identify the needs; develop strategic methodology, actions steps and a relistic timeline that can help them perform best practices.

See also >>> Pros and cons of using an executive search firm

2. They evaluate candidates

Other types of search firms try to find candidates and send resumes to the hiring company as quickly as they can. They do not have time to screen candidates before presenting them to the clients. Thus, it is your job to evaluate each person.

In contrast, retained recruiters perform executive searches based on skills, experience, cultural fits, salary, benefits; as well as carry out multiples interviews directly or indirectly via telephones, video calls to assess if the candidates fit open positions. Therefore, retained searches usually result in high-quality idividuals and all you have to do is choose the one you like the best.

3. They can fill high-level positions

Retained recruiters tend to work in finding executive-level and hard-to-fill roles such as Chief Executive Officer or industry-specific roles such as Art Director. They can approach top individuals of the recruitment market who desire bigger salaries, bigger benefits and take massive levels of responsibilities.

Retained recruitment maintains a large network that can be used to find talents later on.

4. They provide post-employment support and reviews

A retained search firm reviews the employed candidate with the client to ensure that the candidate is performing well and collect feedbacks from both the employer and employee to improve their service. In contrast, there is no support and review following an employment contract.

Also, retained agencies usually guarantee their clients candidates in one to three months.

Disadvantages of using retained recruitment

1. You loose more control

The main disadvantage of using retained recruitment is that you cannot control everything, you place more trust in the recruiter.

2. The fee is higher

Gennerally, the fee for retained recruitment service is pretty high. You even have to pay a percentage of the fee before the recruiters conduct the search. Because they invest more time and resources for your cause, they need to be sure they are paid to maintain high-end businesses. The fees can vary, depending on the service and reputation of the agency. They charge a percentage of the first year’s salary the employed candidate is offered. Sometimes, it can be up to around 50%.

3. You have to wait

It takes more time for a retained recruiter to process the recuitment. The reason is: the retained search results in perfect fit candidates and they cannot do it in a short period of time.

When to use retained recruitment

So, when do you need to use the service of a retained recruitment agency?

    -     When the salary level of the open position is high and you want to hire the best person available.

    -     When the position is hard to fill.

    -     When the recruitment process requires a high degree of privacy.

    -     When you want a thirdparty agency to screen and avaluate the candidates independently before setting up the final interview.

    -     When you need a recruiter who puts much more effort into the recruitment process, who invests much more time to understand your business’s industry.

Although you have to pay a higher fee, the result that retained recruitment delivers usually the best.

See also >>> Which one is better: contingency recruitment or retained executive search?

How to find a retained recruitment agency

There are some ways you can use to find a retained recruitment agency.

1. Use your network

Ask your friends and your business relationships for their recommendations. They may have contacts of some recruiters they would like to use to fill their open positions.

2. Use Google

You can use some key words like ‘executive search’, ‘retained search’, ‘retained recruitment’, ‘retained headhunter’ to google potential agencies. Using Google can be a simple but effectivee way to help you find a good recruiter. However, remember to research the firm carefully before you set up any assignment because using retained recruitment means giving more trust.

3. They may contact you

If you post the job opening on job boards, search firms may contact to offer you their services. Many executive search agencies use this method to aproach potential clients.

See also >>> Executive Search & Selection Services of HRchannels Group

Image sources: Internet.