When it comes to a hiring project, you typically face a choice between two main types of engagement with recruitment agencies: retained search and contingent search. Both approaches serve different purposes and can have distinct outcomes depending on the specific needs of your organisation and the search at hand.

Here are some of the key differences between retained and contingent searches, how you should approach determining which is right for your hiring needs, and some of the benefits of engaging in a retained search.

Understanding retained search vs. contingent search

A retained search is a more dedicated and focused approach to recruitment. The agency you engage with takes on an exclusive partnership, committing significant time and resources to finding the perfect match for your role. This method is especially effective for roles that require highly specialised skills or for senior-level positions where precision is more important than speed or volume.

The recruitment process is more thorough in comparison, with the agency conducting deeper assessments to ensure that only the most suitable candidates are presented. This exclusivity allows the agency to prioritise your role above others, resulting in a more tailored and strategic search process, and the partnership involves paying a portion of the placement fee before a search commences.

A contingent search is a more competitive, volume-driven approach. You might be engaged with a few agencies, each competing to find a suitable candidate as quickly as possible. In this arrangement, speed and the number of candidates are prioritised over precise matching. In contrast to a retained agreement, the fee for a successful project is paid post-placement, meaning that the focus may be on delivering a high volume of candidates to increase the chances of a match. This approach can work well for roles where the skill requirements are broader, with a larger pool of candidates, and where your internal teams have the resource to screen and assess a greater number of candidates.

How do I know if a retained search is the right recruitment partnership for me?

Deciding between a retained and a contingent search really depends on the nature of the role you need to fill.

If you're recruiting for a position that requires specialised skills or is a critical senior-level role, a retained search is likely your best option. As the depth of the search process is more important than the speed or volume of candidates, a retained search will allow an agency to thoroughly screen and assess candidates, providing you with a highly qualified shortlist.

A retained search is also beneficial for teams that lack the time or resources to sift through a high volume of candidates. The agency handles more of the heavy lifting during the recruitment process, so only the most suitable, interview-ready candidates are presented, saving you and your team time and effort.

If the accuracy of the candidate match is more critical than the number of applicants, you might choose a retained search to get a more accurate output. The focus shifts from finding a large pool of candidates to identifying only those who are the closest fit for your specific needs.

The benefits of a retained search.

1. Higher priority and early resource allocation

With a retained search, your placement becomes a top priority for the recruitment agency. The upfront commitment allows the agency to allocate additional resources early in the process, increasing the likelihood of a successful and timely hire.

2. First access to top candidates

In a retained search, you receive first refusal on the most qualified candidates before they are submitted to roles with other clients. This exclusivity means you have the opportunity to secure top talent ahead of the competition.

3. In-depth screening and assessment

Retained searches involve a more thorough and in-depth screening process. The recruitment agency conducts comprehensive assessments on your behalf, leave you with a shortlist of candidates who have been evaluated against your specific criteria, resulting in higher-quality matches.

4. Additional services

Beyond the core recruitment services, a retained search can include value-added offerings such as job description writing, custom salary and benefits benchmarking, candidate experience/NPS surveying, and psychometric assessments. Decided at the point of project commencement, these services can save you resource, and provide you with data-driven insights that lead to a greater likelihood of making the right hire.

5. Improved candidate experience

A retained search minimises the number of agencies approaching the same candidates for the same role. The approach leads to a better candidate experience, as they aren't bombarded with multiple requests from different agencies, which can often lead to confusion or frustration.

The case for exclusive agency partnerships.

The nature of a retained search naturally involves agency exclusivity, which typically means the agency you partner with will take on fewer projects at a time. Without the pressure of competing against other agencies, the recruitment process becomes more targeted and precise, and success rates are higher. This reduces the likelihood of duplicating efforts and ensures that you’re not overwhelmed with candidates who may also be presented by other firms.

Working exclusively with an agency throughout the entire recruitment process simplifies communication and ensures consistency when you’re evaluating candidates, which makes for a more streamlined and effective recruitment project.

For more information about selecting the right partnership terms for your search, reach out to us today.