Mutual Benefits of a Contingent Search
Retained executive searches are often the appropriate option for highly sensitive searches requiring confidentiality and nuance to protect the hiring organization’s brand. However, exclusive contingent executive searches, where the client only pays if a candidate is recruited and hired by the firm, can provide the best outcome for both the company and the recruitment organization.
The Power of Internal Referrals
Internal referrals are the most effective method for hiring executives. 30% of all executive hires are made through referrals, and the retention rate for these hires is 14% higher than those sourced from job boards and recruiters, making the solicitation of internal referrals the ideal option for hiring executives (Bureau of Labor Statistics).
Benefits of a Specialized Contingent Search
However, once a company's referral network is exhausted, partnering with a specialized contingent recruiting firm is a strong alternative. Here are two significant benefits of engaging a contingent firm on an exclusive basis for both the brand and recruiting firm:
Cost Efficiency: The hiring organization avoids the fees associated with retained firms when an internal referral is identified. These fees can instead be allocated as a sign-on bonus or to enhance the relocation package.
Recruiter Brand: When a contingent firm markets your role, they have the unique opportunity to share your company's story with potential candidates, who may also be potential customers. This storytelling is invaluable to the recruiting firm, and propels its internal flywheel, as it fosters meaningful discussions with influential individuals, even if the firm does not fill the role.
Retained firms often portray contingent recruiting as a less desirable service. However, if the goals of the executive search are well-defined, a partnership with a specialized contingent recruiting firm can offer mutual benefits. This approach keeps your options open and benefits both parties.
Learn more about a dedicated contingent recruiting search by scheduling a meeting here.