Retained Recruitment

What is Retained Recruitment?

In a retained recruitment scenario, a company pays a recruitment agency a retainer fee in exchange for access to the agency's candidate pool. The company will next collaborate with the organization to identify the most qualified applicants for the open positions inside the latter.

It takes place when a recruiter receives a sum of money (a retainer) in advance of work, securing a commitment and agreement between the recruiter and the client.

Executive-level positions, which are more difficult to fill, are most frequently connected with retained recruitment. These positions call for a highly qualified and experienced applicant, and the talent pool is typically quite small. The retainer varies in size but is normally between 15% and 30% of the entire expected fee.

Benefits and Drawbacks of Retained Recruitment

• The benefits of retained recruitment include:
• High priority compared to assignments made on the basis of commission 
• Less chance of making poor hiring because quality candidates are sought after for key positions.
• Identify candidates with uncommon capabilities by head-hunting those who may already be working in specialized positions elsewhere.
• Deal with fewer recruitment firms to save time and avoid receiving too many unqualified and inappropriate applicant ideas.
• Access to resources that businesses would not otherwise have - using a recruitment firm that operates under the tenet that quality always takes precedence over quantity provides businesses access to a larger talent pool. 
• Recruitment agencies can access a large number of potential applicants that an organization would not be able to reach on its own because of its broad networks. By doing this, the organization may be able to save time and money that would otherwise be required to carry out the hiring process internally.

The drawbacks of retained recruitment include:

• Requires payment for services upfront before receiving them
• Riskier because there is no assurance that a candidate will be located
• Long contracts may not allow for modifications as the business adapts to its market or industry.
• Low accountability - it can be costly and difficult to gauge the activities, effort, and time of recruiters. Organizations could be required to pay the recruitment agency a sizable up-front cost as well as a success fee if a candidate is hired.

Conclusion

In general, retained recruiting might be an excellent choice for businesses trying to fill a high-level or specialized position. The recruitment firm's experience can help to guarantee that the best applicants are found and hired.