Retained Search
Retained search is typically implemented when a hiring client company (generally very large companies) has ongoing recruiting needs, possibly for multiple assignments and disciplines, forms a partnership with a search firm to manage recruiting initiatives. This is an absolute search partnership that presents increased success and efficiency ratings. Retained searches command primary attention and assign an Account Executive, Researchers and Recruiters that continually seeks out viable candidates for the client company’s requirements. Both immediate and extended objectives are clearly defined, and then long-term programs are implemented. Conducted as a strategic partnership on an ongoing basis entire recruiting and hiring processes are managed by the firm from position profiling to on boarding. The search organization is fully dedicated to and represents the interests of the client company, and may accept limited clients. Because of the retained status between recruiting firm and client company, the probability of executive candidates agreeing to explore the opportunity increase as does the prospect of an affirmative outcome. A typical assignment may range from 30 to 120 days. The Retained model addresses higher level positions with salaries of $125,000 and above, or positions where talent is scarce and demand is high.
When selecting a recruiting firm for a Retained partnership consideration should be given to firms that have an intimate knowledge of client’s industry, and experience in recruiting a range of professional disciplines and levels. The retained recruiter will focus systematic recruiting and evaluation efforts on a broad range of potential candidates, most of whom are passive in the job market. The search process may continue even after the client has decided to move forward with a promising candidate. The search firm should have the capability to manage multiple assignments at any given time. Search consultants may invest 50 to 60 hours per month per client assignment. Retained firms may spend more on research staff, data bases and search tools, although this is not exclusively true. A retained recruiter will usually recommend 1-3 highly qualified candidates to the client for each role. This set of candidates has been culled down through a series of assessment steps. This process requires client HR and executive management attention, and may require less line management involvement. Search consultants always meet candidates personally — routinely more than once, possibly including video teleconference interviews — before presenting to a client.
Fee structure typically includes a monthly retainer coupled with an adjusted % of the successfully recruited candidate’s first year guaranteed compensation. Depending upon fee structures incidental expenses (travel, video-conferencing, ect.) may or may not be billed. Because of the ongoing engagement of resources operational fees are billed (much like law firms and attorneys).