Often, companies struggle with a long internal recruiting process, then become impatient and weary, and finally reach out to a “professional” – the outside recruiter.
So what approaches do outside recruiters use?
There seems to be a lot of mystery around what recruiters do and how we are compensated. I want to pull back the curtain for you.
A strong recruiter has a network of thousands of contacts in the orthopedics industry. Many of these people are star performers who the recruiter is in contact with regularly. A strong recruiter also has an exceptional referral network, as well as premium LinkedIn search methods.
You can engage with the outside recruiter in two fundamental different ways. Both of these engagements has a place. Below let’s look at both the Contingency and the Retained approach.
The Contingency Search
A contingency search is a non-exclusive service performed by a recruiting firm for zero cost until one of the presented candidates is hired. Because your company only has to pay the recruiting fee after a successful hire occurs, your company will often work with several contingency recruiters at once. You have zero commitment to the recruiter until you hire one of the presented candidates. In the contingency approach, your company can maximize the number of resumes you receive from multiple recruiters, as well as the from company’s website and various job boards.
Most contingency searches are carried out for lower-level positions. There is little commitment by the company and the recruiter. Neither party has skin in the game.
Recruiting fees are paid on a percentage of first year’s salary, but only if and when the candidate is hired. Sometimes there are guarantees in the event that new hire leaves the company within a certain timeframe.
TAKE HOME ADVICE –-> Use a contingency recruiter for your lower-level positions, especially when you need speed, and a large volume of resumes.
The Retained Search
A retained search is an exclusive service performed by a recruiting firm with an up-front cost, called a retainer. You put skin in the game with an up-front retainer, and your recruiter puts skin in the game by bringing to bear total focus on your open position with their years of experience, contacts, and next level tools available to them.
Companies select the retained search for senior and executive-level positions.
Fees for a retained search are a percentage of first years total compensation of the hired candidate. The up-front retainer fee is credited back at hire. Retained searches always come with a guarantee for the event that new hire leaves early.
TAKE HOME ADVICE–->Engage a retained recruiter for for higher-level positions when you need higher calibre candidates. Also, it’s best to engage a retained recruiter for a Confidential search.
Hope this helps to demystify the two outside recruiting approaches.