Contingency Recruitment vs Retained Search & Selection, what’s the difference?

Contingency Recruitment vs Retained Search & Selection, what’s the difference?

11 reasons why retained is a win win for all !!

A MUST read for hiring managers paying Headhunting fees or experiencing poor Contingency Recruitment results.

What is Contingency Recruitment?

This type of candidate search is ‘solely’ focused on attracting candidates within the open market, by open market we refer to candidates who are presently looking for a new position and most likely have their CV registered on databases, online job boards or are applying to adverts. The fee is typically invoiced on the candidate’s start date – ‘payment on placement only OR no win no fee’.

Mercury Hampton have a vacancy conversation rate on Contingency recruitment assignments of 74% [this is double the industry average, but still not 100%]. However, over 92% of Mercury Hamptons vacancies are retained, here’s why:

Cons of Contingency:

1. a comprehensive market search. If candidates aren’t available on the open market this search can be frustrating, and sometimes impossible!!
2. External threats! It’s never wise to engage multiple recruiters for a contingency search, however it’s a common misconception that this provides the best results. Recruiter’s prioritise their most committed clients, once competition is invited your vacancy will not be a priority. In most cases they are covered after 4.00pm once all retained assignments have received 90% of the working days’ time.
3. Contingency based searches involve more than one recruiter searching in the same candidate pool, this can result in a poor impression of the hiring company due to numerous recruiters discussing the same role with the same candidates.
4. Contingency recruitment is speed based…..first over the finish line wins! However, this just encourages CV throwing to secure the fee. This results in a quality compromise as Recruitment Consultants focus more on getting to the finish line before the competition, rather than taking the time to secure the best candidate.
5. Contingency recruitment results in less commitment on both sides, recruiter and client.
6. The recruiter has no pressure to fill your vacancy!
7. The industry average conversation rate for contingency recruitment is roughly 37%, ours is 74%!

Pros:

1. No upfront costs.
2. No costs at all if the vacancy is not filled.

What is Retained Recruitment?

Retained Recruitment assignments are often referred to as Search & Selection or Headhunting. This is usually reserved for critical hires or niche appointments whereby the candidate pool is likely to be heavily reduced or difficult to attract. It is the perfect solution for mid-senior hires and strictly confidential appointments [none mass-market positions]. It’s especially effective in sales or commercial disciplines and technology driven appointments.

Mercury Hampton have a conversation rate on retained assignments of 100%. Here’s why:

Pros of Retained:

1. The Recruitment Consultant will only take a retainer fee on the basis that they can fill the vacancy in confidence – you have their 100% commitment at all times.
2. All Contingency assignments will take a back seat whilst your recruiter looks after your needs as a priority.
3. Headhunt / Search & Selection approach. Candidates are proactively enticed rather than placing all your hopes on ‘open’ market candidates above. It’s a full market search with no stones left unturned.
4. A candidate map is created in which YOU [the client] are in control of. This includes identifying target candidates within competitors or companies who employ people with the required skillset.
5. Client and recruiter work in partnership and remain in total control throughout.
6. Increased advertising spend (selection), in most cases the retainer fee is used to engage additional resources, especially advertising.
7. No external threats prevent CV throwing – client and recruiter decide were the finish line is!
8. The search & selection process is 100% quality focused and not a speed based search – NO CV THROWING!
9. A vigorous recruitment process with full psychometric profiling, including technical aptitude testing.
10. The Recruitment Consultant is able to forecast your placement fee [unlike a Contingency assignment] no time is wasted time, this is very important!  Guaranteed return on the time invested. Recruiters are commercially focused, their client relationships is important when it comes to repeat business. Retained assignments need to be filled no matter what!
11. Retained Search & Selection has an average conversation rate of 80%, ours in 100%!

Cons:

1. In some cases, selecting the wrong Headhunter for a retained assignment can result in paying a retention fee without completing on the role!

Mercury Hampton offer a full Headhunting service with psychometric testing for the same cost as Contingency recruitment! It’s a total win win situation! We were founded with a view to bridging the gap between extortionate headhunting fees & low quality, speed based contingency recruitment.

For more information please contact us 01925 937 311 or info@mercuryhampton.com