Definition: A retained search, often associated with executive search firms, is a type of recruitment service where a company hires a search firm to find a candidate for a specific high-level position, typically for senior management or specialized professional roles.
Unlike contingency recruiting, where the recruiter is only paid if their candidate is hired, in a retained search, the search firm is paid a retainer fee upfront and works exclusively.
When to use a retained search?
Retained search is most appropriate under the following circumstances:
- Senior-Level or Executive Positions: When filling high-level roles where the impact of the hire is significant, and the required combination of skills and experience is rare.
- Specialized Roles: For positions that require a very specific set of skills, often in niche industries, where the talent pool is narrow and passive candidates are the norm.
- Confidential Searches: When a company needs to replace a high-ranking individual without alerting staff or competitors, or when the search itself is sensitive.
- Strategic Hires: For roles that are critical to the organization’s strategic direction or for succession planning, where the right fit is crucial for future success.
- Difficult-to-Fill Positions: When previous recruitment efforts have failed to secure the right candidate, suggesting the need for a more thorough and dedicated search approach.
- Geographic Challenges: In cases where the search requires a wide net across different regions or countries, which can complicate the sourcing process.
- Urgency and Commitment: When a position must be filled promptly and with a high degree of certainty, retained search firms are committed to completing the search as per the agreed timeline.
- Access to Passive Candidates: For roles where the ideal candidates are typically not active job seekers and need to be approached with discretion and strategy.
By using a retained search in these scenarios, a company can benefit from the dedicated resources and expertise of a search firm to identify and secure the best talent for critical roles.
Retained search process
- Client Consultation and Briefing: The search begins with in-depth discussions between the client and the search firm to understand the company’s culture, the specific requirements of the role, desired candidate profile, and strategic objectives of the hire.
- Research and Strategy Development: The search firm conducts market research to identify target companies and potential candidates. A search strategy is then formulated, detailing the approach for sourcing candidates.
- Candidate Identification: Utilizing their networks, databases, and research, the search firm identifies potential candidates. This includes both active job seekers and passive candidates who may not be actively looking for new opportunities but match the criteria.
- Outreach and Engagement: The search firm reaches out to potential candidates to assess their interest and suitability. This often involves discreet discussions to protect confidentiality.
- Candidate Assessment and Shortlisting: Interested candidates are rigorously evaluated through interviews, reference checks, and sometimes assessments or psychometric testing. A shortlist of the most promising candidates is then compiled.
- Client Presentation and Interviews: The search firm presents the shortlisted candidates to the client, along with detailed profiles and assessments. The client then conducts interviews and may engage in further assessments.
- Candidate Selection and Offer Negotiation: Once the client selects the preferred candidate, the search firm assists with the offer negotiation, providing market intelligence and guidance to ensure a competitive offer is extended.
- Placement and Onboarding: After an offer is accepted, the search firm often remains involved, facilitating the candidate’s resignation, transition, and integration into the new role.
- Follow-Up: A retained search firm typically maintains contact with both the client and the placed candidate to ensure a smooth transition, addressing any post-placement issues and confirming the success of the match.
FAQ
What exactly is a retained search?
A retained search is a specialized recruitment service where an organization pays an upfront fee to a search firm to conduct an exclusive and comprehensive search for high-level and critical roles.
How is a retained search different from contingency recruiting?
In a retained search, the search firm is paid an upfront fee and works exclusively on the client’s assignment, providing a dedicated and thorough search process. In contingency recruiting, the recruiter is only paid if their candidate is successfully placed, often leading to a less exhaustive search process.
What are the stages of a retained search process?
The retained search process typically includes client consultation, market research, strategy development, candidate identification, outreach, assessment, shortlisting, client interviews, selection, offer negotiation, placement, and follow-up.
How long does a retained search take?
A retained search can take anywhere from a few weeks to several months, depending on the complexity of the role and the level of specialization required.
What is the typical fee structure for a retained search?
The fee for a retained search is often structured into three parts: an initial retainer fee, a fee upon delivery of a shortlist of candidates, and a final installment upon successful placement.