At DJKCO, retained searches are for positions for top level assignments. The salary range is normally 175k +. In this relationship the client pays the recruiter fee in three equal installments. This method works well where client wants to have stretched payments. The search begins when the client signs the exclusive retainer agreement and pays the initial retainer. The remaining two payments are tied to specific time lines or performance outcomes. The client has greater control of the process of the candidates. The recruiter is not at liberty to present the candidates identified to other companies until the client either fills the position or releases the candidate by stating no interest.
In order to justify this type of relationship, client must have highest priority on the position. The standard fee for retained search is 30% of first year base salary with a 180 day warranty, to replace candidate free. Also, in addition to the fee, retained consultants ask clients to reimburse them for out-of- pocket expenses-mainly travel expenses for candidate interviews. Contingent and Retingent recruiters normally do not incur these expenses.
Retained Recruiters are not motivated to sell candidates in helping them find a position. The same method used in contingency search. They are being paid for the process of selecting the best candidate. This method works best when there is a high level of trust from all parties involved.