Retained Versus Contingent Search. For those who are not aware, retained search is a fixed fee paid in instalments and contingent search is when a fee is only paid upon successful completion of a placement. Here is a good link comparing the two.
http://www.miningrecruitmentgroup.com/employers_retained.php
Lately, I've become more and more convinced that retained search is the best way to go for both recruiters and employers, as the quality of a retained service is so much better. Here is why.
Some may argue that the incentive of a contingent fee will make recruiters work harder to fill the role. My two cents is that recruiters who work contingent searches end up recruiting for multiple positions at the same time, and tend to give a lot of focus early on during the "hot" period of a search, but as the search progresses, the energy decreases, the thought of other firms working the deal come to light, the uncertainty of the deal lingers, and instead the focus turns to roles that are fresh. Whereas for a retained fee, with security, trust, and fear of failure looming, a recruiter bust his or her hump to satisfy the client to ensure the right candidate gets hired, so that the client is confident we can do the job.
Ask a recruiter who works on contingency how frustrating it can be when you bust butt for 3 weeks to help a client to have one of the following occur: 1) You submit a great candidate, but the client found them hours before you submitted them. 2) Another recruiter sent in 1 candidate, whereas you sent in 4, but the client hired the 1 you didn't submit. 3) The Client decides 4 weeks in to the search that they will defer the role for a while. 4) I could keep going...
The point is that contingent work is frustrating and it wares on people. Some would say this is sales. You win one, lose nine. I agree with this undoubtedly, but it leads to scientism on a recruiters part and they end up making poor decisions and not providing the same quality of service that the retained model invokes.
The "risk that a firm could earn a fee without a result argument" from companies does not hold water either, and would be a pretty short-term outlook for a recruiter. How many employers would engage the same firm if they felt the quality of the service provided was not up to snuff the first time? Answer is none.
Another argument I’ve heard is that having multiple recruiters helps broaden the scope of candidates, and increases the likelihood of finding the right candidate. Surprisingly, I disagree.
Give me a strong recruiter, and he or she will search to the moon and back to fill your position and there aren't many rocks that go uncovered. Having multiple recruiters creates more issues, such as having to deal with who submitted a resume first, or having to review duplicate resume submissions.
The only argument I can understand is an Employer’s hesitancy to work with a Company that they have never heard of or have not previously dealt with before. And while I do see this concern, it’s pretty easy to overcome this one. Go on LinkedIn, review their website, ask for references. There are many things you can do to overcome this issue even on the first go.
I guess I could rant on this forever, but the bottom line is retained search is the better option for all parties involved, Employers, Recruiters and Candidates, and although we may give in and take contingent work to prove ourselves, perhaps it’s better to only service Clients who respect this.