Why Retained Search (Part 4)
Reason #4 why selecting a “Retained Search” partner is a wiser choice
Guaranteeing a Long-Term Hire
Every employer wants to know that the candidate they just hired will last long-term, but given that the product the employer is getting is a person, no HR professional or Recruiter alike can completely predict what the candidate will do.
To ensure peace of mind, most retained search firms will guarantee their hires for at least a year (compared against 90 days with a contingent firm), giving the employer plenty of time to ensure the candidate is working out and there to stay.
Depending on the level of the position, Dynamic Search Consulting guarantees executive hires for 1.5-2 years.
As painful as it is for a search firm to have to do a search over again and replace the candidate at no additional cost, they know it is the right thing to do for a number of reasons, the main one being their reputation.
No client company who hires a candidate from a recruiter and pays a fee will be happy to see that the candidate only lasted 6 months and now they’ve paid a fee and have nothing to show for it.
If unwilling to provide a replacement, that firm is viewed as “transactional” and of poor quality, not providing candidates that last. The longer each placement lasts, the better the recruiter is perceived to be.
By survey from the last decade in the business, a company feels it got sufficient return for the fee spent once the candidate passes the 2-year mark. This is another notable difference from a contingent search model with an average 90-day guarantee and a very transactional business model, often losing customers who come back for a replacement after 120 days when the candidate did not work out and turning them away.
Retained Search as a core value is not transactional but rather relationship-based and focused on the long-term. I know if I do a good job in providing the occasional needed free replacement, my client will in turn continue to hold me in high regard as a valued asset for when the next hiring need arises.
Retained executive search models are incentivized by your company’s success, that is, providing talent that lasts.
Next video: Reason #5 – Thorough Screening & Qualifications Process