Choosing the right and best talents has always been hard for every company. The reason being the fact that you need some great expertise in skills, cultural and leadership style fitting the candidate and aloes deep understanding of the company’s culture. This is usually so with the hiring of the executive level positions because these are people that will be involved in the major decisions making process of the business influencing its culture and success. A good number of companies out there are seeking the services of an executive recruitment firm, to get the right talent and also improve their success.
Depending on the positions that you need filled and the stage of growth of the company, you can either go for the retained search or contingent search agreement as both come with pros and cons.
The retained search firms generally have access to a larger database of the highly qualified candidates and also a network of the industry leaders making them perfect for the executive level positions. 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 have to pay some amount to get to the off-limits agreement with the larger search companies. This model is mostly used by the client looking to fill the senior-level positions. The placement cost will vary depending on the search company that you choose, and will be around thirty percent of the total annual compensation cost.
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. You will also get some guarantee for a replacement candidate should the one that they place leave before the preset milestone of time, and even training to help them transit smoothly. There is then the contingent model for the lower and mid-level recruitments, and these ones are not exclusive and that means that multiple firms can work on the same search. The cost for this will be lower than the total yearly return of the retained search and varies with the difficulty and industry.
Every recruitment model usually comes with their own advantages and disadvantages and you choose depending on the position that you want to fill. 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.