The Breakthrough Hiring Playbook: Issue #8
After ten years in recruitment, I still hear this day in, day out. I genuinely struggle to understand how some companies don’t see the value. But with so many different levels of ability all pitching the same idea, I get how the message can get diluted, so I get it (kinda?).
Retained (or similar) is the crème de la crème of service..
When working with the right recruiter or partner. You get their full time and attention. You get more than just CVs, you get the full works. And not only that, but you get your own time back, increased chances (if not an outright guarantee) that the role will be filled, and often an extended rebate period because the recruiter is willing to share more risk. They are simply more invested in the outcome.
So why do we still see a race to the bottom? Multi agency searches. Fastest finger first. A scramble to send CVs before anyone else. We are talking about the lowest end of the spectrum, yet so many companies still think this is the best way to hire.
In today’s article, I am digging deep. I want to share my honest view on each process and hopefully educate on the benefits of doing things properly. If you are hiring this year and using agencies, it is worth knowing what level of service you are really getting when you agree to a multi agency, contingent arrangement.
After all, everyone wants the best candidate for the job..
so why risk not being able to speak with them? Why damage your brand, your chances, and your energy in the process?
What I Am Seeing
Founders thinking they can get a service for free and recruitment can be done on the cheap. Or exec teams thinking that if they go retained, they do not have to do anything to get a successful hire. They pay and carry on with the rest of their work.
The truth is, while there are different ways for a recruiter to work with you, if you are not 100% in, whichever model you choose, you will not hire.
I have seen it all at this point.
Retained is not a silver bullet with no process. And contingent definitely is not a free service you can get cheap. After all, why would the companies that get it pay more for a better model if the cheaper, faster, free one worked just as well?
Why It Happens
I completely get it, giving someone money before they have done anything can feel like a risk. Executive search is typically non refundable, and that can put people off.
But for the first hire or two, this does not have to be the case. Once you trust the recruiter, and the model proves itself after a few roles, when you have worked out how each other operates and what process fits best, that is when you are set up for recruitment success.
You might have to kiss a few frogs to find the right person to help you. Speak to other connections. Ask to speak with a recruiter’s previous clients to understand how they delivered. Do your research before you commit so it does not feel like a waste of money.
A good recruiter will do their homework before taking you on, so why should you not do the same?
One of my customers last year started out working with three agencies on a contingent basis. We placed their first hire after a few messy rounds of feedback and slow decisions. After that, they gave us exclusivity for the next role. That one was filled in nine days. Once they trusted the process, we switched to a retained model and they have not gone back since. That is the difference a bit of commitment makes.
The Stages (and Styles) of Commitment
Because not every hiring partnership is created equal.
Spray and Pray (Zero Commitment) You brief four agencies, each spends 20 minutes on LinkedIn, and all send the same five CVs. Nobody owns it. The recruiter is only paid on success, they cannot spend the time the role needs over the next two weeks because they will not get paid. They work with five to ten other companies in a similar way, hoping to get lucky, or even sharing the same candidates with you all.
Contingent (Low Commitment) You pick one or two partners (ideally). It can work, but only if you give real feedback and move very quickly.
Exclusive (Medium Commitment)You trust one recruiter to focus solely on your role. There is no upfront fee, but there is accountability both ways. They learn to know your business well, you trust them, its a good relationship. They still have to take on other work..
Retained (High Commitment) You have paid a portion upfront, agreed clear deliverables, and expect true ownership. The recruiter represents your brand, runs the search properly, and does not juggle five other urgent briefs.
Embedded / Strategic Partner (Full Commitment) This is where the recruiter becomes part of your business. Pipeline, process, feedback, market mapping, all handled as if they are internal. The first stage where hiring becomes proactive, not reactive.
Recruitment as a Service (RaaS)Think of it as hiring on subscription. You pay a fixed monthly fee, and your recruiter works as an extension of your team, sourcing, screening, and managing process across multiple roles. This seems to be the top option in the US at the moment for start ups. It is great for companies hiring regularly but not ready for a full time talent team. Predictable cost, consistent delivery, etc. We can often set up your processes ready for when you do hire a talent team to slot in.
A Quick Reality Check
Rarely will you get an experienced, niche recruiter to agree to working at stages 1 or 2. If they are any good, and busy delivering retained, exclusive, or RaaS projects, why would they? The goal always has to be to continue moving to a better service as an employer. Not hanging around in option 1 -2. Nothing improves, things don’t get easier..
Contingent is a completely different type of project, low commitment, low predictability, and low reward. Sometimes a recruiter will agree to a stage 2 (contingent) search if they have been introduced by a trusted contact or they genuinely want to prove themselves. I get that a customer is not going to roll out the red carpet on day one, so if a good recruiter has space for a new client, they may need to work this way, proof is always in the pudding. But once they have shown they can deliver, they will almost always push for a better model, because otherwise, you will only ever get a small percentage of their time.
You cannot expect full attention on a half commitment.
For example, 90% of my own work sits in groups 3 to 6. (yes thats right, I’m saying I’m a good recruiter!). I’ve had just two customers in 1 to 2 over the last 12 months, one is now exclusive after I outperformed their other suppliers on four hires, and the other is a brand new client I took on through a referrals referral, the product looked interesting, so I am proving myself first. (No pressure!).
And to be honest, this is something I see far more in the UK. Most hiring still sits at the lower end of the scale, with only a small portion of companies working in an exclusive or retained, executive search style. Recruiters are treated very differently here, which probably explains why so many are now focusing on, or even relocating to, the US market, where the partnership model is valued much more highly.
Does It Cost More?
Usually, yes, but it should.
When customers only look at price, they are missing the point. This is where I believe the biggest miscommunication happens, with some people not being able to share the real value of this model. Like I said, I kinda get it. However, if an agent cannot articulate the value or the problem it solves, do you really want them representing your business to the outside market? Probably not. Move on.
(Maybe give Breakthrough Talent a call?)
When a recruiter is juggling four contingent searches, they will always invest their best time where the odds of being paid are highest. When they are retained or exclusive, that attention goes entirely to you.
It is not about higher cost, it is about better odds. Paying a small upfront fee to make sure someone finishes the job properly is not expensive. Paying nothing and restarting three months later is.
What Could Be Better
Stop choosing a model. Choose an approach. Ask yourself:
- Do we trust this person to represent our brand?
- Are we prepared to communicate like partners, not suppliers?
- Do we want speed, or certainty?
- And no, exclusivity does not mean retained for free.
If you want a professional to commit 100%, give them a reason to. People often forget how they work with customers in their own business, and what a good process does for that relationship. For whatever reason, that same sync does not always happen in recruitment, but it needs to. We aren’t all bad eggs, promise!
Final Thought
The model does not make the partnership. The partnership makes the model.
If you are still asking “contingent or retained?”, you are asking the wrong question (or the wrong person). Ask instead, who do I trust enough to build this team with me?
Thanks again for reading this article, this one is a little closer to home than some of the others. I have tried not to sound like every other recruiter. Over the years I have worked across all types of businesses, processes, and methods. I know what works best and how I personally treat it. Remember, if you are looking for a good recruiter, hey?
I feel like customers do not always consider what each step really means, and still wonder why they do not get the best results. Well, you have the answers now. Hopefully, it helps.
