Retainer versus Contingency

WHEN TO USE TARGETED RESEARCH IN THE RECRUITMENT PROCESS

Targeted recruitment research is a customized survey of those individuals who meet a client’s specific needs and match the job specifications as outlined and agreed upon.  As such, it is a particularly powerful recruitment method when one or more of the following conditions apply:

• The position is a senior appointment where finding the “best” candidate for the position has significant implications for the organization.
   
• With the heightened emphasis on Corporate Governance it has become even more critical that the organization demonstrate due diligence in their process of finding the best candidate (external and/or internal) for the position.
   
• The core competency sought is not one in which the organization has much experience and therefore where market benchmarking, skill-set overview and potential trade-offs and alternatives provide an important context and significant added-value.
   
• The core competency is scarce and there is a need for “laser beam” targeting to find those individuals who meet the job specifications.

A key difference in the targeted research-based method used by retainer search firms vs. contingency search firms is that the vast majority of potential candidates surfaced in the research process are employed (90+%) and are not actively seeking new employment.  The overriding criteria of the research is that it surfaces the best potential candidates for the job whether they are seeking new employment or not rather than relying solely on newspaper advertisements and stale databases.

Two final points regarding the targeted research method: 

• Its fundamental power lies in its customization and targeting reflective of client-defined needs. It is therefore not a generalized survey of the market and any change or modification to the original job specifications (that are not generated as a result of market feedback) has a significant impact on both the timing and cost of the search.
   
• The research survey is a reflection of the marketplace for a given skill-set and does not create it.  The ‘Discussion Only’ Research Report provides an overview of the current market for a given competency in terms of the quantity of suitable candidates, standards, compensation paid, market perceptions of client, etc.  This allows for valuable insight in the formulation of successful recruitment strategies.