Choosing the right and best talents has always been hard for every company. This is because you will need to have great expertise in skills, cultural and leadership style that fit the candidate, and also have some deep understanding of the culture of the company. This is especially vital at the executive level because the employees will have great impact in the strategic decisions and the culture of the company. To improve the chances of getting the right talent, more organizations are going for the executive recruitment firms.
The contract can be for the retained or contingent search agreement, and both usually come with different cons and pros and which you mainly choose depending on the hires that you need.
The retained search is the model that comes with superior expertise and dedicated time in your industry, as this is the high-end services. The retained firms usually have some off-limits list that contains the candidates from their current clients, and which you cannot source yours from. You usually will have to pay something yearly to be on the list. The placement fees for this model is usually around thirty percent, based on the search firm that you choose, of the annual total compensation for this position.
There is what you pay for them to initiate the search, the other one during the search and the last one when the candidate is placed. There is usually some guarantee for replacement should the candidate level before some predetermined milestone or time, and even coaching and onboarding programs to help the new hired transition and smoothly. There is the contingent search where clients hire one or more of the search firms to fill in the mod or lower levels positions, and pay after the placement of the candidate that the clients usually hire more than one of the search firms in order to get more of the resume here. With the total annual compensations varying depending on the industry and the difficulty, it is generally lower than that of the retained search.
Generally, you should choose the model depending on the level that you are looking to full in. The retained search firms for instance usually fully comprehend their client’s organizational culture, and their hiring needs too, which makes them perfect for the higher level placements. The different search forms will usually have different strategic positions on your particular industry and hence different access of the people and choosing the right one here is therefore very important.