Recruiting – Contingency and Retained Searches: Is there anything in between? YES!

Filed under: Best Practices

Contingency and Retained Searches: Is there anything in between? YES!

See Rob’s Accompanying Video!

You have a need. Maybe a GLARING need at one or more positions within your organization, and you’ve exhausted your network to no avail. You’ve posted on LinkedIN and tried job boards, but no luck. You’ve engaged in some contingent searches but recruiters seem to come and go – sometimes with a flurry of activity initially, but no sustained, steady flow of quality talent, and still the vacant seat remains. More and more often this question comes to us from our clients: “I need help with recruiting, but contingency searches haven’t worked and Retained Searches seem geared solely to Executive Roles – is there anything in between?” Funny you should ask…

The answer is Yes. As with most things, there are vehicles and approaches built for different tasks. While many of these have certain inherent benefits, most come with limitations as well. Contingency arrangements offer a low risk approach to engaging with recruiters as the hiring company is only obligated to pay for services once a hire is made and guarantee is met. This sounds promising until results are mixed, resume flow dwindles, and the recruiter fades. Why would this happen? Contingency incentivizes short, quick searches. Speed. Generally, a challenging position requires a campaign and a methodical, diligent execution of it. Without any commitment from the company, it is difficult to justify/risk this time-intensive approach for the contingent recruiters.

So the alternative is Retained? Possibly, yes, but it depends on your need. Retained is much more involved, mutually committed, and typically, much longer term. They include higher fees with ⅓ paid upfront, ⅓ paid upon completion of agreed upon milestones, and ⅓ upon completion of the search. For Executive Management roles, these are often the way to go since the compensation, the equity, the team fit and the impact of the role are all greater. With greater responsibility comes greater need for getting the hire right AND a greater time investment on both sides.

So where do we go when we have an important need, we want a partner in recruiting who has a vested interest in completing the search and yet don’t need something quite as involved or expensive as a fully Retained approach? We have an Engaged agreement. Similar to Retained, there is a mutually committed component to the search where ⅓ of the fee is due up front. However, the overall fee is reduced from 33% (Retained) to 25% of the candidate’s first year salary, and the remaining ⅔ of the fee isn’t due until after the search is successfully completed. This insures that both sides are invested, and gives the recruiter the opportunity to craft the recruiting strategy (who, what, where, when and why) correctly and approach the potential candidates with much more tact and professionalism. Success rates are much higher than contingent searches, and generally relationships between the hiring manager and recruiter are much more cohesive and partnered.

There is a bit of risk for taking on any mutually committed search, but between the time saved in not managing multiple vendors, and the quality of results from a search executed properly, the upside should justify the investment.

 

Rob Reeves / Redfish Technology
Founder/CEO
O: 208.788.8260
E: rob[at]redfishtech[dot]com
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Building Growth-Mode Tech Companies with Hand-Picked Talent Since 1999

External Recruiting Resources and Services – You Have Options!

Filed under: Redfish Speaks

External Recruiting Resources and Services – You Have Options!

 

By: Jon Piggins, Director of Business Development @ http://www.redfishtech.com

http://www.linkedin.com/in/jonpiggins/

 

External Recruiting Resources and Services

 

Many companies are not aware of the options they have when considering the use of external recruiting services. They often assume all recruiting firms are the same, providing contingency searches for a % of a candidate’s salary upon a successful placement.

 

A good recruiting firm should offer you options and even customize their solution. Have a number of hires to build our a sales team? Recognize the benefit your recruiting partner will realize from multiple placements and negotiate a flat fee per placement to help with budgeting & costs. Need to replace a VP? Engage with your recruiting partner on a retained search to ensure confidentiality & exclusivity. Is there seasonality to your hiring plans or do you need the flexibility of scaling your recruiting efforts (up or down)? Take advantage of the hourly services of a dedicated recruiter (or team of recruiters) and adjust your hours & spend as needed. Need to fill a specific role quickly? Sign on to work with your recruiting firm in a low risk contingency basis, where you only pay if a successful placement is made.

 

As you can see, rather than a question of whether or not to use a 3rd party recruiter, you should be asking how you should best utilize external recruiting help for your specific needs. Here are the services Redfish provides for our clients. We also create customized offerings and combine our services for our clients…again, it’s all about how, not if we can help.

 

Redfish Technology’s Recruiting Service Offerings:

 

CONTINGENCY
When? You need a challenging role filled quickly – one that requires true “headhunting”, finding people who are not actively looking.
– Simple, one-time payment based on a % of the 1st years’ starting salary.
– Can serve as a productive compliment to your recruiting efforts, or act as the Recruiting function for your company.
– Low risk, no expense until a successful placement is made.
– Full cycle recruiting, from sourcing candidates to managing the interview process, collection of references, and the negotiation of offers.
– 30 Day guarantee, should a candidate resign or be terminated within that time, with the exception of downsizing or lay-off, Redfish will replace them at no additional cost.
– Immediate results, recruiters are paid to fill positions as quickly as possible…their income depends on it.
– Leverage our network and recruiting tools, including Linkedin job postings, at no additional cost.
– Access to entire team of Redfish recruiters’ network of candidates.
– Dedicated Redfish recruiter assigned to your account. You’ll get the benefits of our entire team working on your role(s), with the efficiency of working with a single point of contact dedicated to your company.

 

HOURLY (Recruiting as a Service)
When? You have multiple hires across departments, or anticipate that your hiring needs will vary throughout the year.
– Reduce & control your recruiting expenses: flat hourly rate for multiple placements vs a % of salary or retainer for each placement made by an agency.
– Outsource your recruiting function at a fraction of the cost.
– No infrastructure expense for ATS or other internal recruiting tools.
– A quick way to get help when you need to make multiple hires.
– Scale as needed, we can adjust our hours (and your spend) based on your changing needs.
– Full cycle recruiting, from sourcing to managing the interview process, collection of references, and the negotiation of offers.
– Leverage our national network & recruiting tools, including Linkedin job postings, at no additional cost.
– Full cycle recruiting services are included and tailored to match your processes & procedures.
– Dedicated Redfish recruiter assigned to your account. You’ll get the benefits of our entire team working on your role(s), with the efficiency of working with a single point of contact dedicated to your company.

 

FLAT FEE
When? You have less than 10 hires for the same/similar position or department over the next 6 to 12 months.
– Flat monthly fee, receive a discount with a 6 or 12 month commitment, and control/fix your recruiting expense.
– You need opportunistic resumes sent your way throughout the year. Redfish will always pitch your company to relevant candidates and introduce them to you as potential “opportunistic hires”.
– 30 Day guarantee, should a candidate resign or be terminated within that time, with the exception of downsizing or lay-off, Redfish will replace them at no additional cost.
– Full cycle recruiting, from sourcing to managing the interview process, collection of references, and the negotiation of offers.
– Fees are often lower than retained or contingency.

 

RETAINED
When? You are looking to make a very senior, high profile or confidential hire.
– Fixed fee per placement based on a mutually agreed upon median pay rate for a specific role (1/3rd up front, 1/3rd 30 days in, 1/3rd 30 days after placement).
– Redfish plays an important role in high profile or confidential retained searches, maintaining discretion and navigating delicate situations and negotiations.
– Extended 90 day guarantee, should a candidate resign or be terminated within that time, with the exception of downsizing or lay-off, Redfish will replace them at no additional cost.
– Final 1/3rd of payment is waived if a successful placement is not made within 90 days.
– Exclusive 1st right of refusal on all candidates submitted for your roles.
– Priority & exclusivity, as Redfish limits retained service for a maximum of 4 clients at any given time.
– Full cycle recruiting, from sourcing to managing the interview process, collection of references, and the negotiation of offers.

What is my return on investment when using a head hunter?

Filed under: Best Practices, Employer, Hiring Strategies, Recruiter / Recruiting

 

What is my return on investment when using a head hunter?

That is a good question!

How do you quantify the time and manpower employed to locate top talent with the best company fit?

If you are in a smaller company, you probably have to invest you own time, time that you are not working on your business objectives, or you may have an administrative or junior colleague trying to understand the experience and skills you need and balance their own job duties.

If you are in a larger company, you may even have an HR or internal recruiter. What is often missing is the ability to access top talent, across industry segments, whether from competitors or partners. One way to put a number on it is to ask yourself what you could have accomplished during the time you were looking for the right person, and how much time you spent with a potential candidate who didn’t meet your hiring objectives.

Redfish Tech is a nation-wide recruiter. We specialize in High Tech and Renewable and Alternate Energy sectors.

We have 15 years of experience and extensive networks in these industries. We can pull talent from all across the continent, and locate the right person quickly. We qualify candidates in terms of both experience and skills, and as regards company cultural fit.

We partner with companies to streamline the process and get the right person within your time frame so that you can focus your time and energy on your core competencies. Redfish has access to top talent who may not be actively looking for a job, and we often are the first to know when experienced people have started looking for their next opportunity to contribute to a new company.

We partner with you and put our extensive recruiting experience to work for you.  We undertake the advertising, perform background checks, keep you informed as to job market conditions, and offer salary and benefit recommendations based on industry trends.

We work on a retained or contingency basis, depending on the needs of your company and the difficulty of filling the position. A partnership with Redfish gives you a greater competitive edge and improved bottom line. Now that is worth taking to the bank.