(Franchise Recruiters is the only entirely retained search firm in franchising.)
Contingency
Retained
Average Fees
25% of compensation – so if you hire a better person and pay more, your fees increase.
25% of estimated compensation. No surprises later.
Risks
If multiple contingency recruiters are used, you run the risk of paying twice.
None. Fees are decided in advance.
Selectivity
Contingency recruiters typically do not exercise selectivity. If they bring you a candidate that you hire, you must pay their fee. Thus, they are in the "resume production business." They will provide as many resumes as possible, inundating some companies with potential candidates.
Retained recruiters typically will send five to ten resumes of highly qualified candidates.
Pre-qualified for job interest at the desired pay rate and in the appropriate city.
Generally not. The more resumes you receive, the more likely they are to send you a commissionable candidate. The Contingency Recruiter’s motto: "When in doubt, send it out."
Always pre-qualified. These issues are discussed up front with each candidate. A retained recruiter would generally be embarrassed if they sent a candidate that was not interested because of location or pay.
Screening
Candidate screening is often perfunctory. Just enough information to classify them into database "pigeonholes."
Screening starts with thorough interview of the hiring company to assess what kind of candidate would best fit. All candidates are thoroughly screened for that fit, as the best recruiters offer a one-year guarantee on all placements.
Candidate Quality
The best candidates often are reluctant to provide resumes to contingency recruiters, as they are afraid that their resume will be sent out indiscriminately. They do not want to let everyone in the industry know that they are "shopping."
Retained Recruiters will go to the best candidates for a job, instead of focusing on "job hunters." Often, these candidates are not actively looking for employment when the search is initiated
