There is a common misconception that all Recruitment models are effectively the same. In reality, they differ significantly in both their general approach (and depth) to satisfying an employer’s hiring need.

So, what’s the difference? More importantly - Which one is best for you?

Retained Search

With this method, the Recruitment agency is paid a retainer fee, a percentage of the placement fee, at the beginning of the search. Typically, the total fee is calculated based on a % of the annual salary of the candidate selected.

The Recruiter then operates on an exclusive basis, with no one else sourcing candidates, and they provides updates on the progress of their search to the employer.

Generally, retained searches take longer than contingent searches. This is because the Recruiter will generally interview the client to fully understand the position they are sourcing, conducts research on candidates, interviews, and does background checks.

Contingency Search

Unlike in the retained search, the Recruiter in this model does not get paid until (or unless) the employer hires a candidate that they sourced.

With this model, the Recruiter is oftentimes not operating exclusively. Instead, they are competing with an internal HR department, direct applicants, or other Recruitment agencies.

Contingent searches tend to be quicker than retained. The Recruiter will learn the basics about the position they are sourcing for, but their interactions with the client and their interviewing and screening methods will not be as in depth as in the Retained model.

This is generally because a Recruiter conducting a contingent search cannot afford to invest an inordinate amount of time in the process, as they are in competition with other parties and may not secure the hire.

So which is right for you?

Both search methods have their place, but ultimately the decision depends on several factors:

• Your hiring need: is it a junior role? More senior position?
• How much time do you want to invest in the process?
• The need for a replacement guarantee

If you are an employer looking to fill a more junior role (easy to fill), and aren’t looking to invest a ton of time into the process – A contingent search is best.

Contingency Recruiters often come equipped with a large network, or database of candidates who have applied for roles with them in the past.

Because the timeframe in a contingent search is condensed, and the Recruiter doesn’t spend as much time screening for the ‘perfect fit’, more responsibility is put on the employer to screen and interview.

Retained searches are better suited for more senior level positions, or roles that tend to be difficult to fill.

As well, it’s important to understand that in a changing job market, new Recruiting models are emerging.

"...it's important to understand that in a changing job market, new Recruiting models are emerging."

On Demand

For example, Recruitment agencies who want to stay competitive are now offering flexible models that allow you (the employer) to take on part of the recruitment process yourself.

Models like this work well for employers who may need assistance sourcing candidates, but want to conduct interviews or go through the screening process themselves.

These ‘On Demand’ models are transparent and allow you to see exactly what you are paying for (number of hours, advertising dollars spent, etc)

Unsurprisingly, this more flexible methods tend to cost around 50-60% less.

At TPD, we offer 'Recruiting on Demand' services to clients.

Providing this type of service creates a genuine partnership with our clients, allowing us to truly understand a company's strategic business and hiring goals. We provide a customized, branded talent-management platform to clients, and offer a competitive 'pay as you go' payment model that is results-driven.

Instead of paying a high fee up front, our clients only pay when they require the services of our Recruiters.