Deborah Richard

President

Pedley-Richard & Associates

• The retained search business was born in the late 1950’s largely beginning from management consulting. Since then the search business has continued to evolve and grow into the industry it is today. There are several types of search firms and each function operates in different ways. So to answer the question…”when should I engage a search firm?”… depends on your particular business and recruiting needs. An organization must analyze its recruiting function and strategy to determine the best course of action for immediate goals and building flexibility for the future. Recruiting is, and should be, a fluid function in an organization that grows and contracts based on the health, wealth and growth of the company.

• Search firms are not retained for every open position a client company has available. When an open position has been identified as critical for the health and welfare of the organization and the client company does not have the resources, bandwidth or knowledge for the search then a search firm should be engaged. The benefits of engaging a search firm is the dedicated research, outreach and assessment of potential top talent in your industry. Identifying, evaluating, and attracting this talent takes time, effort, and experience. Those who have chosen careers in search are committed and dedicated to the craft bringing expertise, marketplace knowledge and resources to the recruiting process. Search consultants are skilled in research, cold calling, and penetrating into competitive and similar companies to reach the best possible passive candidates. Firms are typically specialized by industry, job function and are proficient in cutting edge trends. Search professionals are deeply networked and well versed in penetrating special markets and industries. They can quietly approach competitors without notice, have candid conversations and provide objective input as well as work as a negotiator on behalf on your organization. Search organizations work in a confidential environment and apply discretion every step of the way. They become a strategic arm of your organization to deliver qualified candidates.

• Is the cost worth it? Attracting and retaining top talent can be costly. For critical, niche skill sets it can be cost effective to hire a search firm to source, screen and identify potential talent allowing your organization to focus on what they do best: the business. Additional services, such as reference checks, compensation information; job specification creation; assessments and negotiation are also included. Think of the consequences of not filling a critical position, what are the real costs associated with that within your organization?

• What does the search process look like? The search firm starts with an in-depth review of qualifications, responsibilities, and company culture prior to developing a strategy for the search. Search consultants compile research, identify potential candidates from personal networks and begin seeking out passive candidates that meet your specifications. This is accomplished through competitive analysis, targeting contacts and performing thorough reviews. Candidates will not be submitted to a client company until completely vetted to specifications. The length of this process varies based on market, specifications and industry.

Contingency

Contingency search firms are usually used for low and mid-level positions and fees are paid out once the candidate is hired by the employer. These firms tend to work multiple positions, submit numerous resumes and submit candidates to multiple employers.

Retained

Retained search firms have an exclusive relationship with the employer. Typically the retained firm works on senior level and hard to find positions as well as the critical hires for the company. They are typically paid for their expenses and a percentage of the candidate’s salary. The fee is usually paid 1/3 up front and the remainder at the end of the search. In this case, the fee is paid whether the candidate is hired or not.

Contained

A variation of the Retained search is a “contained” search firm. In this case, a small amount of the fee is paid upfront to engage the firm and pay expenses. The remaining amount of the fee is collected when the candidate is hired. The fee is a percentage of the salary. The remaining amount is not paid if the candidate is not hired but the upfront fee is non-refundable.

If you would like to discuss your personal recruiting needs with Pedley-Richard & Associates or have any questions, please feel free to contact me.

Deborah RichardPedley-Richard & Associates

512-418-3256drichard@pedley-richard.com