Contingency, Retainer or Split-Retainer Fee: Which way is best for you?
As of 2016, we are slowly moving away from contingency agreements, and focusing more on the retainer option as the standard for our clients; most of our clients are on retainer, and have been for years. Our references will tell you, this is the best way to go to save the most money, and have the longest guarantee period. For a small group of providers, this can be uncomfortable the first time, that's why we offer the split-retainer option for the first-search with us.
When a company utilizes a retainer relationship with a recruiter, it is on more of a trusted partner basis. The recruiter is being hired and paid as an outside extension of a client’s internal team. With this type of arrangement, recruiters are constructing a dedicated search and process to find the right candidate. The focus is on quality and appropriateness for the position. The best interests of the client are at the forefront – where they should be.
With a retained search, recruiters are anxious to get the word out about the company that has the position(s) available. They are protected from predatory competition from other recruiters because they usually have an exclusive working relationship with their clients.
If you choose to go this route, a highly discounted flat-rate fee is paid up front, in full to begin the search.
Split-Retainer Fee (limited to first-search with new client only)
A Split-Retainer fee agreement with a recruiter represents a middle ground, and is a great way to establish trust while getting to see how the firm services the needs of the new client. It is part retainer (60% paid up-front) and part contingency (40% paid upon start-date). There is a low flat fee that is agreed upon to begin the search, discounted from what the normal rate would be; this fee is not as low as the full-retainer rate, but still lower than the contingency rate.
All searches come with a guarantee period ranging from 60 days to 180 days (depending on the position). If any type of retainer is paid up-front and the candidate hired is not the firms referral…a full credit of all monies paid will be issued immediately which may be used Company-wide, for any position, with no expiration date.
- Three references checked and submitted on a template for the candidates file
- Basic license background check
- Job postings
- Unlimited candidate searches