SHOULD YOU SPECIALIZE IN RETAINED SEARCH?
Today we will address the retained search business model. Often it seems a smarter decision to create a business where you are paid before you begin to work on a search. There are pros and cons you must consider, before you decide to open a Retained Search Firm.
Retained searches mandate the following:
- A detailed retained search agreement that outlines how and when you are paid. Normal agreements pay1/3 up front, 1/3 after a specified number of qualified candidates are either presented or interviewed. The last 1/3 is paid when a hire is made.
- Comprehensive written reports and details through the entire search process.
- Exclusive rights to candidates surfaced, until the client determines they have no interest.
- Often retained clients want resumes of all candidates recruited.
- Most retained searches are for higher level positions.
- Candidates surfaced must not be easily found on job boards, but should be passive highly qualified candidates.
- Candidates submitted must be from preferred companies identified by the client.
When you are paid up front, your client expects you to provide them with the candidate they will hire as well as strong back up candidates. Retained searches are not easy to attract when you do not have a track record of successful placement, but it is possible. If you do accept a retained search and do not produce top talent, you can lose credibility and will not obtain future retained searches from the client.