Is Retained Recruitment Right for Me?
We don't always get this right.
There's no shame in that, but it needs to be acknowledged.
Sometimes we're so enamoured by retained recruitment that we happily insist this should be the goal of every recruiter.
In reality, given that every recruiter and recruitment firm has a different setup and different aspirations, a little discretion is helpful.
For starters, retained recruitment is a sizeable step-up in the commitment you give to your clients. It's like going from selling a product to a domestic market to the international market. The potential rewards are many, but it's not a step to be taken lightly.
Yes, if you're a recruiter filling manager-level roles and above, retained recruitment is almost certainly going to deliver greater profits and greater financial security, thanks to the guaranteed payments.
In which case, yes, retained recruitment is right for you.
But the questions that remain are WHEN should you make the switch, and HOW should you make the switch.
Diving into the Deep End
Do you remember the days when teaching a kid to swim mostly involved throwing them into the water and getting ready to save them from drowning if things got out of hand?
I'm pretty sure these days that would be considered child negligence. The fastest route to success isn't always the best.
When we talk to contingency recruiters about retained recruitment we hear concerns about burning bridges with clients, missing out on contingency-only opportunities and wasting time and money on something that simply may not work.
These are all legitimate concerns. So, while there are solutions to all of these issues, that doesn't mean they shouldn't be given careful consideration.
Deciding to try retained recruitment by jumping in the deep end MIGHT work, but you might also end up with a lungful of chlorinated water.
So, to continue the analogy, try dipping a toe in the shallow end first. There's no requirement to gamble your entire business on the venture. Here's a simple way to create, pitch and win your first retainer.
1. Design Your Retained Recruitment Service
Retainers are almost always better for the employer because they get one recruiter giving maximum time and attention to the role, as opposed to several contingency recruiters who are, naturally, splitting their attention across as many as a dozen different opportunities.
But convincing employers of this is easier said than done.
In many cases, no matter what you say to a client, they won't be able to see past the attractive notion of 3-4 recruiters combing the market for them for free.
So, instead of trying to sell the benefits of retained, create a recruitment service with selling points that are easier to position.
A recruitment service that looks more comprehensive than the average contingency service, and actually is more comprehensive.
The easiest place to start is with the candidate assessment stage. Videos, behavioural assessments, competency questionnaires, etc., all have a measurably improved impact on the outcome, and provide the employer with more information on which to base their hiring decision.
Other additions could include job surveys, interview preparation assistance, and post-hire support.
This is the fun part. You get to design the kind of recruitment service you would LOVE to be able to deliver if you had all the time you needed and weren't competing with other firms for the fee.
2. Offer the Service as a "Trial"
The next time an existing client or prospect approaches you about a role, take the details as you would usually, but at the end of the discussion tell them that you have a new recruitment service on offer. Share the details and talk up the benefits.
Finally, explain that because of the extra time and resources, this service carries a higher fee, but if they'd like to try this service out, they can do so at no extra charge, as long as they retain you.
Worst-case scenario, the client says no, and you take on the role on a contingency basis as usual.
If the client says, yes, you have your first retainer ready to go!
3. Deliver the Service and Gather Feedback
Enjoy providing your newly-created recruitment service, and revel in the freedom to give the project the time and attention that retainers afford.
After the project is completed, speak to the client and get their feedback.
Assuming they're delighted with the service, let them know that next time around they can select the same service again, but the fee will be... whatever you've decided is profitable.
You'll be amazed how many employers, just like recruiters, don't want to go back to contingency once they've experienced the benefit of retained.
Easy Does It...
There's no question that retained recruitment works for a lot of recruiters.
Between the increase in fees, the guaranteed payments, the luxury of spending more time on each campaign, it's an attractive package.
And when you factor in the downward pressure on contingency fees, as well as the intense competition for roles, it seems pretty clear that retained recruitment is the long-term future for the industry.
But you're right to question whether this is the right time to make this move. As well as the best and safest way to tackle it.
So, we heartily recommend the steps above, or something similar. It's a simple way to test the waters without having to commit all of your resources into the project and without risking your existing client relationships.
And if this process is effective, you have a platform on which to build and begin offering retainers to more clients and prospects.
If You're Still Unsure...
There's no harm in getting a little extra help.
Book a free consultation with our team and we'll help you consider the question "Is Retained Recruitment Right for Me?" directly.
The consultation is online, one-to-one, and if you decide the time is right, we'll help you put the above plan into action, as well as provide all the tools and software you need to deliver an upgraded recruitment package.
Just click below to book your time slot. It's 100% free and there's no obligation.