What is retained recruitment?
It is almost the exact opposite of contingency recruitment. That’s it, that is all we needed to know. Move on to the next article. Wait… it’s not that easy, there are many benefits that you may not know about. To sum it up you are paying to ‘retain’ a recruiter for your job. This guarantees them exclusivity and an income from the job, once they find the ideal candidate. Yes, you are giving up some control over the process here, however that isn’t necessarily a bad thing.
Typically this is type of recruiting fits the top end of the recruitment market, and more of boutique approach.
Job searches that fall under Retained recruitment tend to be almost exclusively for high salaries, and where suitable candidates are hard to come by. This type of recruiting is typically referred to as headhunting, executive search, or search & selection. Again, this typically for hard to fill roles like: Director of Extraction, Director of Cultivation, Accountants, or event Director of Sales.
Benefits of retained recruitment
I’m sure you gathered this from about but generally this type of recruiting process with get you a recruiter who will spend a lot more time and resources filling your job. Recruiters are much more motivated because there is guaranteed something for them at the end of the search. I who can blame them right?
Due to this exclusivity, you know the recruiter doing the search is going to exercise significant consideration and due diligence in sourcing and vetting the candidates. As mentioned before this fits best where potential candidates are often not actively seeking new opportunities.
When looking for a recruiting agency it’s best to take niche and resources into consideration. Especially in the cannabis industry, with most jobs seekers under qualified, or hesitant about a semi legal industry. It is important to call in experts in the field. This is why Vangst Talent was created to help you find those highly desired, specialty candidates.
With these roles of high salaries, high degree of responsibility, and superb benefits, tact is essential. Again recruiters will go out of their way to ensure that client confidentiality is of utmost importance. Especially with this type of recruiting, a recruiter will sustain a large network in order to source candidates. This alone is what can make a headhunter invaluable to a business.
When it comes time to submit candidates a headhunter will provide their client with a summary on each of their for to five candidates. Those of which who have been thoroughly vetted and connected with the recruiter. From this point, all the client has to do is select the candidate they like the most.
Downsides of retained recruitment
Inverse to contingency recruiting the biggest downside to retained recruitment is the client is placing much more trust and investment of resources into the recruiter. As I’ll point out later the cost structure is different from the contingency model, described in my last post. Essentially the recruiter will be paid a percentage of the final fee even before the candidate has been presented.
While this method is generally a slower process than contingency, of course the reason for this longer time period, is the candidates put forward will be expected to be a perfect match for the position. Again, I can’t stress this enough it is very important to use a recruiter who is knowledgeable in what they are doing, and who has a proven track record of delivering quality candidates.
Pricing structure of retained recruitment
Where this differs from contingency is typically a portion will be paid upfront before any candidate has been submitted. This gives the recruiter piece of mind knowing they will at least make a minimal fee for their efforts. Again, the amount, and when this fee is due varies from company to company, but what they all have in common is a fee will be due upfront. Then when a candidate is hired the remain placement fee is due.
This placement fee is typically a percentage of the first year base salary. Similar to contingency recruiting the percentage will vary from agency to agency based off experience, resources, and network. This fee can reach as high as 50% in some cases. On retained recruitment, the fee tends to be slightly higher than contingency but you’re almost guaranteed a much higher quality candidate with minimal effort on your part.