Finding the perfect balance between cost-effectiveness and quality is a constant challenge in recruitment.
Consider hiring a seasoned mechanic to fix a malfunctioning machine. Despite the seemingly quick fix, the substantial cost extends beyond the time spent physically fixing it. You’re paying for the mechanic’s years of accumulated knowledge and expertise – the ability to identify the issue instantly and precisely, based on a wealth of experience. Knowing which ‘buttons’ to push is valuable when nobody else does.
Similarly, experienced recruiters deeply understand the market and talent pool. They can identify top talent based on skills, experience, and knowledge, saving you valuable resources in the long run.
Navigating the Cost-Quality Conundrum in Recruitment
Two common models, each with distinct advantages and limitations, define the industry standard:
CONTINGENCY MODEL
PROS: Quick turnaround times, as agencies prioritise filling vacancies quickly. Payment is made only upon successful placement, reducing financial risk for the client.
CONS: It may incentivise agencies to prioritise readily available candidates over best fit, especially when multiple agencies compete for the same role. This focus on speed can sometimes lead to less thorough candidate screening.
RETAINED MODEL
PROS: Allows for a more thorough and targeted search, often focusing on high-level positions.
CONS: Non-refundable upfront costs and no guarantees of a successful placement.
While the success-only fee model of contingency recruitment might appear attractive due to its lack of upfront costs, there are limitations. Engaging multiple agencies can increase overall costs compared to an exclusivity arrangement. Additionally, competition among agencies vying for the same role can lead to potentially lower quality service as they may prioritise speed over thoroughness. Managing multiple agencies rarely delivers the in-depth focus and personalised service needed to identify the perfect candidate.
On the other hand, the retained model is where a client typically pays two-thirds of a non-refundable fee once a shortlist of candidates has been delivered following an extensive search and interview process. While this carries a higher initial risk, it ensures a dedicated and focused search, maximising the chances of finding the ideal candidate.
The key takeaway? Both models have their place. Understanding their strengths and weaknesses lets you make informed decisions based on your hiring needs.
But What If There’s Another Way?
Could a hybrid model, combining the efficiency and cost-effectiveness of contingency with the dedication and thoroughness of retained models, offer a better solution?
“We believe there is an optimal middle ground,” says Chris Notley, MD at Chamberlain. “Combining the meticulousness and expertise of a retained agency with the cost-effectiveness and flexibility of a contingency model offers clients the best of both worlds.”
An engagement fee, deducted upon successful placement, fosters a mutually beneficial partnership and minimises risk for both parties. The client’s upfront contribution demonstrates commitment to the search, preventing unapproved roles, internal hires, or benchmarking activities. This frees the agency to deliver high-quality services, without the pressure of undercutting fees from inexperienced recruiters, leading to a dedicated and collaborative effort that maximises the chances of finding the ideal candidate.
Expertise You Can Trust
When you choose Chamberlain, you’re not just paying for a process or quick fix – you’re gaining access to expertise dedicated to finding the perfect talent to drive your business forward.
We offer a comprehensive and hybrid approach:
- Employer branding support: We help you attract top talent by crafting a compelling employer brand narrative.
- Exceptional candidate experience: We prioritise a positive candidate journey, leading to higher-quality referrals and a stronger talent pipeline.
- Valuable market insights: We leverage our extensive network and experience to provide data-driven insights that inform your strategic hiring decisions.
Our philosophy is simple: ‘Do it well or not at all.’ That’s why we’ll only work on roles that fit our area of expertise: placing candidates at all levels, from senior analysts to C-level executives across the lending lifecycle.
Choose Chamberlain and experience the difference a dedicated and experienced recruitment partner can make.
Please get in touch
Chris NotleyManaging Director
chris.notley@chamberlaincareers.com
