Frequently asked questions about executive search often result from a lack of understanding of the two major types of practitioners in our industry. Here is a factual guide for your information.
| CONTINGENCY FIRMS | RETAINER FIRMS |
| 1. Frequently represent individuals seeking placement. | 1. Represent Companies employer only. |
| 2. Are usually in competition with other similar firms or agencies for the placement. |
2. Conduct search assignments on an exclusive contract basis only. |
| 3. Professional staff is usually compensated on commission for placements made. |
3. Professional staff is usually compensated on salary and bonus with incentives for client business development. |
| 4. Usually search for lower level organizational positions including but not restricted to individual contributors. |
4. Usually work at middle to senior management organizational levels. |
| 5. Tend to spend little time on initial research and specification; often never meet company management or prospects. |
5. Must know client organization and position responsibility/requirements thoroughly before initiating search. Typically document this in a position description. |
| 6. Focus primarily on applicants/candidates actively seeking employment; recruiting is placement-oriented. |
6. Recruiting efforts are strategically focused on a broadly targeted range of potential candidates, most of whom are not active in the job market; recruiting is process and result oriented. |
| 7. Search consultant works concurrently with a multitude of open job orders. |
7. Typically the search consultant is personally committed to 3-5 assignments at any given time and is responsible for the success or failure of each. |
| 8. With no guarantee of payment for services performed, the consultant cannot afford to invest much time in a search beyond basic recruiting and submission of resumes. |
8. Search consultant typically invests 40-160 hours per month per client assignment in recruiting, evaluation, screening and client interaction. |
| 9. Will present most candidates within 1-2 weeks of obtaining job order; may submit substantial paperwork to increase probability of a placement by pushing for interviews and hoping for interest on both sides. |
9. Usually recommends 3-10 highly qualified and ranked candidates to client company in 4-8 weeks. |
| 10. Contingency search requires considerable Human Resource involvement in screening, interviewing and evaluating candidates presented. |
10. Requires minimal Human Resources and General Management time investment until interview process begins. |
| 11. Under no obligation to guarantee or produce results due to contingency fee arrangement (paid on placement only). |
11. Reputable firms offer a professional guarantee of candidate success and are committed to thorough and ethical practices and results including an off limits policy. |
| 12. Fees range from 15-33% of compensation and are paid by company on placement (or shortly there after). |
12. Fees range from 25-33% of compensation (or flat quote) plus expenses and are paid by company in installments. |
| 13. Decision to pay a fee is usually made by Human Resources and is budgetary motivated. |
13. Authorization for search is usually made by company General Management and Human Resources Management with rigorous selection criteria. |