Retained executive search is one of the best investments you can make in your business, no matter how large or small. Why? Because the most important decision a company or organization makes is its investment in leadership. Well-placed leaders challenge the status quo, inspire people to maximize their potential, and lead your company with growth strategies.
At Manhattan Resources, we gain great satisfaction from seeing the success of our client companies thanks to strong, qualified leadership. Many of the leaders we have placed in client organizations have lead their companies to success. This is the beauty of a retained search in the executive space. It lets you hire leaders uniquely suited to lead teams for powerful results.
On the other side, poorly hired managers can harm a company. Because resources spent on talent recruitment are significant, identifying and applying effective search models are worth the time and effort.
Selecting the Best Search Model
Retained executive search and contingency search are the two primary search models.
Executive search firms often find candidates with diverse backgrounds and access candidates who are not actively seeking new positions. Retained recruiters engage in all aspects of the recruiting process, from defining the search through candidate integration. Of course, they do charge a consulting fee (retainer) for the assignment, consistent with their in-depth advisory work. Similarly, executive search consultants deliver high-quality service, a slate of highly qualified candidates, and also develop long-term relationships built on trust.
Contingent recruiters seek to place as many candidates as possible in the shortest possible time. They tend to work with many assignments concurrently. If a particular assignment is not getting traction, contingency recruiters have little incentive to continue. Contingent recruiters offer their service with no money up front. Ultimately, they receive compensation for candidates hired from resumes they present. Fees may be lower, reflecting their limited scope of work, but this is not always the case. Contingent recruiters deliver broad access to “ready to move candidates” and a quick presentation of a large number of resumes.
A retained search consultant invests time and resources to understand the client’s industry, company culture, and individual needs. In comparison, contingency recruiters focus on pulling as many resumes out of their database as fast as they can.
Advanced Assessment Methods With Retained Executive Search
Executive search consultants use competency-based interviewing practices and advanced assessment tools to identify talent that best matches the business culture and needs for the client. Multiple interviews with candidates over time and various technologies such as telephone, video conference and face-to-face whenever possible are standard procedures. Also, pure search methods seeking the best talent, even those who are not in anyone’s database, are routine and required to find top talent. This is in direct contrast to the contingent recruiters who rely more on supplying resumes from their database as quickly as possible. Too often it is a matter of quality versus speed.
In contrast, contingent recruiters do not have the time and seldom interview candidates more than once to assess capabilities or do any type of formal assessment. They are all about database search and getting resumes to hiring managers.
What Makes Retained Executive Search the Most Effective Recruiting Method
Retained executive search professionals work with their clients on an exclusive basis. They are dedicated to best practices and doing the job right. Retained recruiters work closely with the client by developing a methodology, action steps, and timing that is realistic and matches client needs. They are truly management consultants. As a result, you are not working alone when you are working with a retained recruiter.
The goal of the executive search consultant is to present four to five high-quality candidates with the skills, fit, salary, and more desired by you as their client. For example, the intelligence of the retained recruiter is provided through exhaustive research on the industry, competitors, and ideal candidates.
Retained recruiters consistently screen candidates and assess them using current assessment tools. As a result, they are pre-qualified to fit the position and your company culture.
Putting Your Investment to Work for Success
Retained executive search fees range from 25% to 35% with a pre-established amount payable on the front end. Typically, contingency recruiters charge a similar amount upon placement. However, they provide you with much less in return for your investment. The contingency recruiters model is a “No Win, No Pay basis.” Therefore, the dedication of the contingency recruiter’s actions is very limited. They are not set-up to provide the same level of professional services as a retained search model would provide.
With a retained search consultant, you always receive full briefings on the search process, competitors, the market, and the talent pool with regular updates
In conclusion, for best practices and most effective executive search service the retained search model for mid-to-senior level positions is the choice for winning companies.
About Manhattan Resources
Manhattan Resources is a retained executive search and advisory services firm with deep experience supporting clients in varied industries. We have roots in oil & gas, retail energy, power & utilities, and petrochemicals, to manufacturing & distribution, legal, and engineering & construction, to name a few. For this reason, Manhattan Resources invites you to experience an executive search and business solutions partner like no other. As always, we are there to help you fill mission-critical leadership roles, build short-term teams, and tackle your most significant challenges. Manhattan Resources has the agility, innovation and business acumen to assume a bold approach. As a result, we will help you take your business to the next level. Find out how the experts can help. Contact Us >>