…Continued from previous post
Instead of contingent, we’ve changed to a retained model that puts skin in the game on both sides, builds a great long-term relationship, and produces top candidates as we know their organization better than anyone.
If your organization has made the decision to use an outside recruiting firm for your hiring needs, you might get lost in the world of thousands of firms, contingent versus retained, and just figuring out where to start. The battle between firms can be intense and hard to decipher the differentiators between many of them in a commoditized and competitive market.
To start, I’d like to clarify the difference between a contingent firm and a retained firm.
· Contingent- A recruiting firm that earns a fee only when the organization (client) hires the candidate.
· Retained- A recruiting firm that charges an upfront fee to the organization (client) to begin the search. In this model, the recruiting firm is typically searching for the position in an exclusive basis which means they’re the only firm that will work on and fill the position.
Every organization is looking to attract the best talent and in today’s world, that’s a tough chore. Whether you’re looking to have outside assistance for your recruiting efforts due to an overflow of positions (due to growth), a hard to find position, or your company isn’t setup to recruit internally, there are many things to consider and weigh in your decision.
With talent being scarce and a major shift in the market taking place with millennials, you need to make sure you’re in the best position to attract top talent. With millennials infiltrating the job space, how do you grab their attention in such a chaotic world and job market? What’s most important to them? How do you ensure you have a great process in place to get them excited about your organization?
This post has been created to give you an understanding of how the retained process creates a better experience not only for the candidate, but for you and your organization as well. After all, what matters to you most is getting great results and top talent.
Below, we’ve listed some important lessons we’ve learned throughout the journey.
Multiple Firms are Not Better Than One
In most situations, not just recruiting, it’s natural to think multiple irons in the fire are better than one when it comes to producing better results. For recruiting, it’s just the opposite. Here are a few reasons why that isn’t a successful route:
Ready, set, go!
When you have multiple firms looking, it becomes a rat race and who can get it filled first. This is the “throw it at the wall and see what sticks” approach. Speed is the only thing that matters to those recruiting firms as their goal switches from quality, to quantity and as fast as possible. They have a one-track mind: Get more people to you quicker than the other firms.
The quality of candidates decreases substantially and the amount of time you’re going to spend sorting through hundreds of resumes from multiple firms will be overwhelming.
Lack of Knowledge; Role, Culture, Organization, etc.
In order to understand the needs of your organization, a recruiting firm needs to spend time learning about not only the role, but more importantly the culture. This ensures a successful candidate is hired and stays for a long time to come.
With the contingent model, it’s not possible for you to spend enough time with each recruiting firm to make sure they know your organization inside and out. In fact, many aren’t interested. They understand it’s a race to get you people quick and just want to hit the road. Instead, they get a very high-level overview of the company from you (maybe), scrape their database of people who could fit the role, and shoot over 30+ resumes for you to review. You’re essentially doing their job for them. Plain and simple, this just doesn’t produce results, and no one wins. How is a firm supposed to “sell” a candidate on your organization and have them be excited about joining without having true knowledge? It takes a lot of time and teamwork to gain a deep understanding of your opportunity presented, culture, and what leads to success at your organization.
This is a transnational relationship. In the contingent model, recruiting firms are one of many, and on their end, you’re one of many. To recruiting firms, once they get you a solid number of candidates, they move onto their next client. They’re just hoping you select one of their candidates and see success/payment on the backend. There is no real relationship or skin in the game on either side for recruiting firms to go the extra mile. They want to get paid and move on.
This is a bad experience for both the client and candidate. There is no real relationship built on either side. In addition, for future roles, nothing will change—it will always be the same process and transnational feel. You as the client have no control over their workload or effort being put in as you’re not providing them with payment. This is a “free for all” and that’s the effort they’re going to put forth.
In the retained model, you’re building a true partnership, and both have skin in the game. Your retained firm will take the time to learn about your organization, culture, structure, and why people are successful there. This is going to lead to a better relationship with your firm, but also lead to longer-term/successful placements.
To be continued…