Talent Acquisition
Human Capital is your organizations most valuable asset. Whenever you have an important role to fill it is reasonable to inquire into Executive Search. At no period in history has finding the perfect candidate become more challenging and critical to a companies success and growth. There are currently 3 types of recruitment options and firms within the market place.
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1) Retained or Hybrid Search - ask us today
2) Contingency Search - ask us today
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Option 1: Retained Search Firms
Retained search firms are the platinum standard for c-suite and executive roles critical to a corporations growth and ongoing success. Retained search fees work through a retainer. They focus exclusively on board and senior executive-level positions and hard to find technical roles. Much like legal counsel who are paid retainers, they are paid regardless of the outcome. In other words, should the client decide not to move forward with a candidate from the group presented by the retained firm.
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Retained firms specialize in senior executive search - they remain the preferred choice for important senior executive searches. As a result, their fees are higher, and they focus on the quality of the candidates over quantity. Retained search works on the search on an exclusive basis. No other search firms or recruiters, internal or external, work on the search. They create a close relationship with the client as trusted advisors. They offer vast industry, functional, and geographic expertise. They attract top performing talent because they understand how to engage their interest and provide access to senior executives within their network.
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Your company must be large enough to afford the fee. Many firms will consider taking part of the fee in options or create an agreement for multiple searches for a reduced fee.
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Retained Search firms deliver candidates that you cannot afford not to hire. The candidates that will grow and mold your company exponentially beyond where you are today. The higher fee must be weighed against the opportunity cost of not using a retained search as it pertains to exponential return on investment (ROI).
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Option 2: Contingency Search Firms
Contingency search firms work on a contingency basis. Contingency firms are only paid if they make a placement. Some clients might think hey that is great however this means the contingency firm may not fill the position for you. In fact, because your not paying them to do the work of recruiting, they don't have to work on the search at all and they don't even have to notify you if they've abandoned the search. Their willingness to work on the search depends on how easily and quickly they can fill the search. This business model means they do not take the time to get to "know" your business. The contingent firm is not exclusive to you and once a placeable candidate is discovered they market that candidate to other businesses including your competitors. This might mean that perfect recruit for your team heads to another firm or your competitions firm simply because they have a higher negotiated rate or longstanding relationship elsewhere. Their business model is based on the need to make placements to cover their costs and get paid - however it makes for an awkward relationship. Are they really on your "team" if they are presenting top level candidates to other businesses including your competition? Also when this candidate undoubtedly receives multiple offers it drives up the compensation, which in turn increases the contingency placement fees. Contingency firms focus on quantity over quality as the agreements are not exclusive and multiple firms race to make placements based on negotiated rates from 21-30% of the candidates annual salary plus anticipated annual bonuses. If you are of the mindset that you would like an exclusive, engaged HR partnership please search offerings from our dedicated boutique search firm.
Option 3: Hybrid Retained-Contingency Firms
Hybrid Retained-Contingency Firms split the difference between retained and contingency search firms. Part of the fee is paid as retainer and the remainder paid when the placement is completed. This creates a mutual investment and vested interest in the placement coming to fruition and completion. Most hybrid search firms accept exclusive engagements and create an environment to find better quality candidates.
Summary
1) Retained Executive Search is the most expensive and usually the best option for senior executive search, C-suite, Sr. VP, and certain high level technical roles.
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2) Contingency Search is the least expensive option, they rarely tackle senior executive searches are not exclusive and focus on quantity over quality. Competing with multiple search firms and multiple businesses for the same candidate with little time to proactively research and recruit passive candidates.
3) Hybrid Retained-Contingency Search finds the middle ground between retained and contingency firms. Often work exclusively, creates mutual vested interest in a top quality placement however rarely invests in executive search research. Best suited to entry level executive roles such as Sr. Director, General Manager, VP roles, or certain hard to find roles.
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Please reach out to discuss your upcoming recruitment plans and how we may better assist your current team or grow a team that is not yet in place!
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