The Benefits of Using Retained Search

Finding the right talent isn’t easy, especially when recruiting for very specific, niche roles that require unique skill sets. Here, you’ll learn how to best utilize your time with retained search and turn your challenges into opportunities. Onward to finding the best candidate!

As the hiring manager responsible for filling a niche position, you’re probably wondering which recruitment service will be the most helpful. If you have a niche role for an unusual skill set or a vacancy that requires very specific qualifications, retained search is your best option. Retained search (a type of executive search) allows a recruitment specialist to focus on and prioritize your role in a more proactive way.

Recruitment agencies use the term “retained search” to refer to “headhunting,” a proactive recruiting method. This type of recruitment search is a partnership between the client and the recruiter, shortlisting the best and most qualified candidates. Other terms include “engaged search” or “executive hire” but all have the same meaning.

In a contingent search, a fixed price per placement is agreed upon at the start, payable on successful candidate’s start date — in other words, a contingent recruiter is only paid if they succeed at finding someone. In a retained search, however, a percentage of the agreed price is paid up-front with the remainder payable upon successful completion of the assignment. If the assignment is not completed, the payment is refunded in full. With fill rates at 85-95%, this option offers a measure of certainty and a full commitment to fill the vacancy.

Without a guaranteed commission, a contingent recruiter is assuming a higher risk — and as such, they may be motivated to place candidates faster than their retained search counterparts. Since a retained recruiter receives a flat fee upfront, their income is not dependent on the outcome. Many companies prefer this method for its convenience and higher level of certainty and stability. 

As mentioned above, the difference between Contingent and Retained Search is with retained search the hiring manager pays an up-front fee in order to have the search conducted. A contingent search typically works under a “No Win, No Fee” method. The contingency is the recruitment firm is not paid until the candidate accepts the position with the client.  

Often, there is competition with other recruitment firms. Contingent search may engage multiple recruitment firms, usually with strict submission deadlines. The hiring manager only pays the recruitment firm that places the candidate.

When an agency is given a new role to fill, it must be prioritized. There is not enough time to treat every new role as the number one priority. Further, for a contingent search, you might have given your role to multiple recruiting agencies. Those agencies want to fill that role as fast as they possibly can, creating a race to the finish line to be paid. Sometimes, speed can take priority over candidate quality. Retained or executive search gives you access to a team committed to giving your role priority.