Contingency
Agencies
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Retained
Firms
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Frequently
represent individuals seeking placement.
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Represent
companies/employers only.
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Are
usually in competition with other similar firms or
agencies for the placement.
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Conduct
search assignments on an exclusive contract basis
only.
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Professional
staff is usually compensated on commission for
placements made.
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Professional
staff is usually compensated on salary and bonus with
incentives for business development.
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Usually
search for lower level organizational positions
including but not restricted to individual placements.
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Usually
works at middle-to-senior-management organizational
levels.
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Spend
time identifying a high volume of candidates for the
initial search.
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Must
know client organization and position
responsibility/requirements thoroughly before
initiating search.
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Focus
primarily on applicants/candidates actively seeking
employment, recruiting is placement oriented.
Candidates likely "self-select"
opportunities.
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Recruiting
efforts are focused on a targeted range of potential
candidates, most of whom are not actively in the job market;
recruiting is process and result oriented.
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Recruiter
works concurrently with a multitude of open job
orders.
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The
consultant handles 3-5 assignments at any given time.
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With
no guarantee of payment for services performed, the
recruiter cannot afford to invest much time in a
search beyond basic recruiting and submission of
resumes.
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Demand
Flow style of recruiting. Search team typically
invests 80-160 hours per month per client assignment
in recruiting, evaluation, screening, and client
interaction.
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Works
well when employer seeks to review a large number of
resumes and conduct multiple interviews without
pre-screening. Will present most candidates within 1-2
weeks of obtaining job order, may submit substantial
paperwork to increase probability of a placement.
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Usually
recommends 3-5 pre-screened candidates to client
company in 4-8 weeks. Candidate background is verified
prior to submission. Continues to work until the
position is satisfactorily filled. Focus is on
assessing "fit" and skill.
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Contingency
search requires considerable client human resource
involvement in screening, interviewing and evaluating
candidates presented.
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Requires
minimal Human Resources and General Management time
investment until interview process begins.
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Under
no obligation to guarantee or produce results due to
contingency fee arrangement (paid on placement only).
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Some
firms offer a professional guarantee of candidate
success and are committed to thorough and ethical
practices and results - including an "off limits" policy
(never to recruit a candidate placed).
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Fees
range from 20-33% of compensation and are paid by
company on placement (or shortly thereafter). Does not
charge for expenses.
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Fees
range from 28-35% of compensation (or flat fee) plus
reasonable expenses and are paid by company in
installments. Large firms may charge a
"set-up" fee for new clients, and expenses
range from 10% to 50% of fees billed.
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Decision
to pay a fee is usually made by Human Resources and is
budgetary motivated.
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Authorization
for search is usually made by company General Manager
and Human Resources Management.
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