Allows companies to engage one or more search firm(s) simultaneously while you or your internal recruiting department is trying to fill the position. You only pay the contingent search firm if you hire their candidate.
Contingent consultants stay contingent because they have been unable to elevate their reputation with their customers to a retained business model. This happens due to inconsistent performance and the lack of a proven process. They only offer a 60 to 90 day candidate warranty. Most companies are unable to identify a good culture fit within 60-90 days making their investment at high risk. Candidates are recommended as soon as they identify them whether they are the best available candidates or not because you, the other search firms engaged or your internal recruiting department may recommend the same candidate first. They do little to no recruiting because it is the most time intensive way to identify candidates. Most of their candidates are actively or passively seeking a new position. They come from databases and job postings. Most have unstable employment histories and are not top 10-20% performers. You can find this talent pool without engaging a search firm. The Nantais Group does not engage in contingent searches.
Advantages: A well-defined proven process that consistently identifies high caliber talent. They remove most of the waste out of the process and normally you only have to interview 4-6 candidates to find the one you want to present an offer.
Most offer a 1 year candidate guarantee only on executive search. They have best practices in place in many of the key areas to satisfy their clients consistently.
Disadvantages: Normal placement fee’s are 30-35% of 1st year total compensation. It’s paid 1/3 upfront, 1/3 when candidates are recommended, and the final 1/3 is paid after the candidate start date. Many retained search firms have a minimum placement fee and charge a management fee in addition to the placement fee.
Most do not offer performance guarantees or refunds and do not have culture mapping processes in place for best culture fit. See the TNG Retained Search difference below.
TNG RETAINED SEARCH
Our key performance indicators (KPI’s) have led the search industry for the past 10 years++. Proven DMAIC search process consistently identifies top 10-20% performers. 92% of our candidates are recruited directly from client preferred companies and industries. This hidden talent is unavailable to most companies or their internal recruiting departments. Unique culturing mapping process for best culture match delivering industry leading candidate retention. Customized cost saving strategies for every search engagement. Our 25% fee offers the best value in the search industry. It is based on the 1st year guaranteed compensation unlike many of our competitors charging 30 to 35% on total 1st year compensation. We offer a 1 year candidate warranty on every search engagement not only executive search. Guaranteed client satisfaction or money refunded is not found elsewhere.
Disadvantages: We decline search engagements for the following reasons:
We are unable to put the formula of success in place. The company reputation is not strong enough to attract top 10-20% performers. Compensation, benefits and/or relocation support is not competitive. Our recruiting practices are too busy to accept new search engagements.