Is Retained Better Than Contingency?

As a hiring manager, the choices you make in the recruitment process can dramatically impact your business. This begs the question, "Is Retained Better Than Contingency?".

Choosing the appropriate recruitment process, whether retained search for a meticulous, high-impact approach or contingency recruitment for quick and flexible solutions—is important. The right process ensures that the chosen candidates line up with the company’s strategic goals and cultural values, ultimately influencing the businesses trajectory. Thus, the hiring manager’s decision not only affects immediate operational competence but also determines the long-term growth and stability of the business.

The Hidden Costs of an Empty Seat

Time is money... literally. Every unfilled role within your company represents more than just a gap in your team; it’s a significant financial liability.

In the UK, the average cost of a vacant position is a staggering £22,000 per year. This figure includes lost productivity, missed business opportunities, and the increased workload on your existing staff.

The financial implications are only part of the story. When your team members are forced to take on additional responsibilities due to unfilled positions, their performance can suffer. This not only leads to potential losses in revenue but can also affect the overall morale and mental wellbeing of your employees. Prolonged vacancies increase the risk of burnout and turnover, creating a vicious cycle that can be difficult to break. This reality underscores the importance of filling roles as efficiently and effectively as possible, using the recruitment strategy that best suits your needs.

Retained Search: The Focused and Strategic Collaboration

For hiring managers who value a diligent, quality-focused approach to recruitment, retained search is often the preferred method.

This strategy is typically employed for senior, executive, or highly specialised roles/positions where finding the right candidate is essential.

• Exclusive Commitment: Retained search offers a partnership with your recruitment firm, which focuses exclusively on filling your role. This approach ensures that the search is thorough and exhaustive, giving you access to top-tier candidates who are qualified and a strong fit for the business.

• Thorough Vetting: Recruiters engaged in a retained search bring industry expertise and a consultative approach to the table. They provide valuable insights into market trends, candidate availability, and salary expectations, ensuring that each candidate is rigorously vetted to meet your specific requirements.

• Long-Term Success: The primary goal of retained search is to secure a candidate who will drive long-term success within your business. While this process may take longer, the tailored search is designed to ensure a strategic hire that will have a significant impact on your company’s future.

Although retained search typically involves an upfront fee, this investment pays off by reducing the risk of a bad hire. Mitigating the ongoing costs associated with vacant positions and ultimately protecting your business’s bottom line.

Contingency Recruitment: Speed and Flexibility

Contingency recruitment, in contrast, is ideal for hiring managers who need to fill roles quickly and are looking for a more cost-effective solution. This approach is particularly useful for mid-level or general positions where the candidate pool is larger, and the urgency to fill the role is high.

• Speed-Oriented: Contingency recruiters work on a “no placement, no fee” basis, which drives them to move quickly. This can be highly beneficial when you need to fill a role urgently to prevent further strain on your existing team.

• Cost-Effective: One of the key advantages of contingency recruitment is its lower risk upfront—you only pay once a candidate is placed. This makes it a particularly attractive option for roles where speed is more critical than finding a perfect fit.

• Wider Reach: You increase the chances of quickly finding suitable candidates, as recruiters compete to fill your vacancy first.

However, the emphasis on speed can sometimes result in a less targeted search, potentially leading to hires that may not be the best fit for the long term. This is an important consideration, especially for roles where a perfect fit is crucial for sustained success.

Choosing The Right Approach

Choosing the right recruitment approach is about more than just filling a role—it’s about safeguarding the wellbeing and performance of your existing team. When roles remain unfilled, the increased workloads for your current staff can lead to negative impacts. Performance may drop, morale can suffer, and the risk of burnout increases. These factors reduce overall productivity and result in higher turnover rates, further exacerbating the issue and leading to additional recruitment needs.

In essence, your choice between retained search and contingency recruitment should also factor in how these strategies will affect your team. A well-considered approach can help maintain a balanced workload, ensure high morale, and ultimately contribute to a healthier, more productive workplace.

The decision between retained search and contingency recruitment ultimately comes down to your hiring goals and the specific needs of your business.

• If Speed is Essential: Contingency recruitment might be the best choice, especially if you need to fill a role quickly to alleviate the pressure on your team and avoid escalating costs.

• If Quality is Non-Negotiable: For critical roles where the right candidate is essential for long-term success, retained search offers a dedicated and thorough process, even if it takes a bit longer.

Take Recruitment Seriously

As we've mentioned before every empty seat in your company is more than just a vacancy. It’s a drain on resources and a risk to your team’s wellbeing. By choosing the right recruitment approach, whether it’s the quality-focused retained search or the fast-moving contingency recruitment—you can fill these roles effectively, protect your team’s wellbeing, and keep your business thriving.

Taking your hiring process seriously means considering not just the immediate need to fill a role, but also the long-term impact on your business and your employees. With the right strategy in place, you can ensure that your company remains competitive, productive, and a great place to work.

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