Contingency Search

Contingency Search

A Contingency Search by definition indicates that the search firm will only collect a fee if a suitable candidate is successfully hired for a particular position. This type of search may or may not be structured contractually with the client company and is 100% “back-end” loaded. Contingency search generally indicates no exclusivity for the recruiting firm, which may communicate marginal commitment by the hiring company.

Contingency firms tend to operate like brokerages, working hurriedly in an attempt to uncover lots of resumes. To the client company this arrangement appears to be useful because unless the contingency firm introduces a viable candidate that gets hired for the position, there are no associated costs. However, because the uncertain nature of a contingency model does not guarantee the recruiting firm compensation for real time and effort expended, the tendency exists for some contingency recruiters to submit resumes for candidates that may not have been thoroughly vetted, interviewed or even made aware that their resume was being submitted for consideration. Companies should steer clear of “recruiters” that tend only to be “drive-by-shooters” with resumes. This method is engaged by unprincipled firms that engage in “beat the clock” practices; that is, to haphazardly transmit resumes of candidates to the client company without the candidate’s knowledge. The intention is to be the first to submit the resumes of candidates, qualified or not, screened or not, just to eliminate competition from professional firms that fully vet, qualify, isolate and magnetize candidates prior to their submission. Candidates in such searches are sometimes recycled or drawn from job boards leaving untapped a vast pool of talented passive candidates. Such “shoot-first-talk-later” organizations cloud legitimate recruiting for hiring companies, is highly unethical and may open the door to troublesome situations.

With contingency arrangements potentially dictating less inspired recruiting and qualifying methods (vs mutually committed search models), the chances of a candidate /client mismatch is increased. Consideration should be given to the importance of the position before deciding on contingency search. Fees for contingency search usually average between 20-25%, no less than the percentage a company would invest for a committed, dutiful partnering firm.

Companies that need assistance with recruiting and opt for contingency arrangements are counseled to engage only firms that fully understand and practice in the needed discipline.  The “you get what you pay for” principle may apply here. Hiring companies that do not make the commitment necessary for reliable recruitment, and contact a multitude of contingency recruiters thinking that it will culminate in more candidates – often experience less effective outcome. Bilateral commitment yields best results.