Definition: Retained recruiters are specialized recruitment professionals companies hire to fill senior-level, executive, or other highly specialized positions.
Unlike contingency recruiters, who are paid only when they successfully place a candidate, retained recruiters are paid a retainer fee upfront to conduct a search. They work exclusively on the client’s behalf, often for high-stakes positions where finding the right fit is critical.
Here are some key features of retained recruitment:
- Exclusive Service: Retained recruiters offer an exclusive, dedicated service. The company hiring them usually does not engage other recruiters for the same search, ensuring a focused effort.
- Upfront Payment: They are typically paid an initial retainer (upfront fee), with subsequent payments made as certain milestones are reached in the search process.
- Comprehensive Search: These recruiters conduct an exhaustive search to find the best candidates, often tapping into their extensive networks and using sophisticated sourcing techniques.
- Extended Scope: Their service often includes in-depth candidate assessments, interviews, reference checks, and assistance in negotiation and onboarding.
- Confidentiality: Retained searches may be confidential, especially when a company is looking to replace a current employee or the role is sensitive in nature.
- Strategic Partnership: Retained recruiters often act as consultants, advising the client on the job description, candidate market conditions, and the overall hiring strategy.
FAQ
What is retained recruiting?
Retained recruiting is a service provided by recruitment firms or headhunters where a client company pays a fee upfront to secure the exclusive services of the recruiter to fill a position. This model is often used for senior-level, executive, or highly specialized roles where the candidate’s fit within the company is crucial.
How do retained recruiters charge for their services?
Retained recruiters typically charge a fee that is a percentage of the successful candidate’s first-year compensation. This fee is often paid in three stages: an initial retainer, a payment upon delivery of a shortlist of candidates, and the final payment when a candidate is placed.
Why would a company choose to work with a retained recruiter?
Companies often work with retained recruiters when the position is highly important, such as an executive role, or is highly specialized and complex to fill. The upfront payment secures the recruiter’s total commitment and resources for the search.
What is the difference between a retained recruiter and a contingency recruiter?
The key difference lies in the payment structure and the exclusivity of the search. Retained recruiters are paid upfront and work exclusively on a role, while contingency recruiters are only paid if they successfully place a candidate, often competing with other recruiters.
How confidential is the process with a retained recruiter?
Retained searches are typically highly confidential, which is crucial for sensitive roles or when a company is looking to replace an incumbent without publicizing the intent.
What kind of guarantee do retained recruiters provide?
Most retained recruiters offer a guarantee period during which if the placed candidate leaves or is terminated, the recruiter will conduct a new search for a replacement at no additional cost.
How long does a retained search typically take?
The duration can vary depending on the complexity of the role and the market conditions, but retained searches are generally thorough and can take several weeks to months to complete.
How do retained recruiters find candidates?
Retained recruiters utilize their extensive networks industry knowledge, and often conduct direct outreach to passive candidates who may not be actively seeking a new role but are a fit for the position.
Is it worth paying for a retained recruiter?
For difficult-to-fill, high-stake positions, a retained recruiter’s expertise and dedicated focus can be a valuable investment, reducing the risk of a mis-hire and ensuring the position is filled with the right candidate promptly.