Retained vs Contingency Recruitment Companies Which Type Should Your Business Outsource?
Hiring can often be a lengthy process of going through dozens or even hundreds of applications in order to find the right applicant who will fill the needs of your company. Because time is often money, it may be a financially advantageous idea to consider outsourcing a recruiting firm or recruiting company to undergo the hiring process for your business. After all, the highest number in more than a decade and almost double the 2012 percentage, companies reported in 2013 that 5.9% of their external hires had been found by search firms.
However, when choosing between recruiting services it is necessary to examine the two types of recruiters in order to determine which type of service may benefit your company the most. There are two types of recruiters: a retained search recruiter and a contingency recruiter.
The Retained Search Recruiter
A retained search recruiter means that the recruiter is working on a retained basis. The individual or retained recruitment service will charge your business a fee before they begin searching for potential applicants and employees.
Additionally, a retained search recruiter is exclusive in their business which means that if your business chooses to work alongside retained recruiting company, your business must only work with that company throughout the duration of the recruiting process.
If you’re worried about a recruiter not following your business’ hiring instructions when looking for a candidate, a retained search recruiter is typically a great investment because of how closely they work with their clients. Retained recruiters will agree to your business’ hiring methodology and will take their time to ensure that your business is not only receiving an adequate employee, but an employee who matches the morals and ideals of your business.
The Contingency Recruiter
Unlike the retained search recruiter, a contingency recruiter will not charge a fee at the start of the hiring process. Rather, like a lawyer or agent, a contingency recruiter typically works for free until a candidate that has been chosen by the recruiting service is hired into the wanted position of your business. Also unlike retained recruiters, the contingency recruiter doesn’t demand total exclusivity and therefore must compete with other recruitment companies you may have hired, your business’ own internal HR department, and applicants who have applied directly.
Because of the competition, contingency recruiters work quickly and are more likely to grab potential candidates for interviews faster than other departments or companies particularly when the position may be difficult to fill and the applicant pool is small.
Which One Works Best For You?
Choosing between a retained or contingency recruitment company depends on the style of your business and how you conduct your hiring. If your business doesn’t have a lot of time in order to fill the shoes of a particular position, a contingency recruitment company may do well for you.
If your business is looking for the best possible candidate and is willing to wait for the right person to apply, a retained search recruitment company may do well for you. Whichever choice you make, your business will do well by outsourcing a recruitment company as it will save your business time and money.