Retained vs. Contingent Search
– The Candidate's View
"A Search firm can be a strategic partner in your career progression. But remember, it's your career. Stay in control, and don't be afraid to ask questions. The firm that is comfortable with the questions and gives you the answers is the one you want to work with."
First let's get the terminology down:
A retained search firm is hired by a company to fill a specific position. The company and the retained search firm work together as a team, in an exclusive relationship, and the search firm is paid for their efforts as the search progresses. The search firm understands the hiring company's culture, and becomes thoroughly familiar with the specific position which is the object of the search, and thus can work closely with both the client and the candidate to assess the cultural, technical, and personal fit that will result in success. The retained process ensures that a qualified candidate is found based on the company's particular specifications.
A contingent search firm is contacted by a company to fill a position. The company contacting a contingent firm can and will engage multiple firms. The contingent search firm earns a fee only if a resume they submit to the client results in that person being hired. This requires the contingent search firms to deal in a high volume, transactional type of relationship, quickly submitting many resumes to a client, and often the same resume to multiple clients. The process does not usually allow the level of in-depth, personal contact and service to both client and candidate that would be common in the retained search process.
Company is the hiring company. They are the potential employer who has the need to fill for a specific position. This is who the candidate will ultimately be working for. The recruiter (search firm) represents the company in seeking a qualified candidate.
Questions to Ask the Recruiter
"If you are a member of a professional association, on a mailing list, or have professional colleagues, you may have received a few calls from search firms over the past few months and years. Sometimes the calls are positive; sometimes they are an annoyance. How do you know if it's a good call? How can you properly handle the call and continue to manage your own career?"
Have you actually been retained by the company?
A retained firm should always be able to answer "yes"; a contingent firm may not have been engaged – but may want to generate candidates to present to the company as a way to entice the company to engage them.
Will we interview face-to-face if my resume looks like a fit for the position?
For any firm to properly represent you, they need to spend time with you. If it is a local firm, you should require a face-to-face meeting.
Can I find out about the company with the opening?
While some hiring companies prefer that their search be kept confidential, the vast majority are more than willing to use the company's name. You will want to know if they are an employer that you would want to join. Retained search firms, by the nature of their partnering relationship with the hiring company, are not concerned about the possibility of a candidate contacting the company directly. Typically, the company will simply refer the candidate back to the retained firm working on the search. Contingent firms have a legitimate concern that if a candidate contacts the company directly and is hired, their firm will not be paid.
Will I be informed before you send my credentials to the employer?
This answer should always be "yes"! For you to be in control of your own career, this has to happen. You need to ask this question before submitting your resume to the firm. It is in your best interest to know which employers receive your resume.
Will you send my resume to anyone else without my knowledge?
This question should be answered "no". If there is any hesitation from the firm, or if you have any doubt, do not send the search firm your resume.
How can I find out if the Search Firm is reputable?
If you don't know the firm, or if you are concerned about the firm's reputation, ask for references from the search firm. Or, do some research on your own. One bad search experience, one that takes control away from you, can be detrimental to your long-term career.