Retingency, (aka: container or engaged) is a solution that is becoming more viable to our client’s. It straddles the fence between contingency and full retained search. Under a retingency agreement, DJKCO charges clients 20% of the first year salary. An initial engagement fee of 25% of projected fee to begin the search and 75% remaining balance at the end of the search. We also have a 120 day guarantee free replacement. The engagement fee to be applied toward the final invoice once the position is filled. Retingency guarantees dedicated resources for our clients to include a researcher and a recruiter for each position. This has become a proven solution for critical openings with very specific or challenging special niche requirements. Besides the reduction in fees, our clients also like this approach when they have many needs that are similar or “grouped” in nature.
DJKCO will utilize this initial retainer to engage our internal research department and generate search-specific research targeting potential candidates from specific companies, industries, geographies or skill-sets.
Because we work on these critical executive openings on “mini-retainer,” we get potential candidates by using Client company name to respond who might not otherwise respond to “contingency” inquiries.
What are the benefits of a Retingent search?
Many companies like this method because both parties have “skin in the game” which is motivation for everyone involved. The Retingent engagement fee relationship is designed to capture the recruiter’s attention and secures the client a firm level of commitment and resource allocation. This arrangement is most appropriate when the client places a great priority on the position and timing for filling the position is critical.
Retingent recruiter relationships work well for companies if these conditions apply:
The need is urgent and critical to the company’s mission.
There may be some decent candidates in a front runner position but you are not sure that there may be other candidates better qualified.
You are looking for accountability from a recruiter which provides a high level of trust on both sides.
You are willing to pay for the expertise for their time to seek out the best candidates.
Client would like to have candidate control before they are sent to their competitors.
Client enjoys the process of working with a recruiter on a joint venture relationship.
Clients have a dedicated resource that is engaged on the search until completion, no matter how difficult the search may be.
Which search option is best for you?
It depends. Contingency recruiter relationships may work best for you in the following circumstances:
There are high quality candidates available.
The need is less urgent and mission critical.
You have more time to interview and vet candidates.
When is a good time to use Retingent search?
You like working on a retainer basis but do not want to pay a retained fee to a recruiter who doesn’t complete the search. Client is still responsible for full amount of fee should you identify a candidate on your own or cancel the search.
You like working on a retainer concept but you are starting a relationship with a recruiter who is untested with your company.
You are interested in seeing if this method is more effective for your company.
You have a strong commitment in having the search completed.