Scott Watson & Associates, Inc.

Executive Search Consultants

Questions and Answers

1. What are the advantages of using retained search as opposed to contingency search.

2. Does retained executive search and contingency placement yield the same results?

3. What about expense . . . which costs more, retained or contingency?

4. I keep hearing about research . . . how is research used in executive search?

5. Do you ever work on a contingency search basis?

6. What do you look for in a candidate?

1What are the advantages of using retained search as opposed to contingency search?

Retained executive search is very different from agency based contingency recruitment. Contingency recruiters are generally trying to find the best job for the candidates they know that are currently "looking".

Executive search, on the other hand, is assignment driven. The objective is to find the best possible candidate for the position. This candidate is seldom "looking" and may not even be in the search firms database.

A good retained search consultant will have specialized industry knowledge and contacts. They will be able to identify the potential candidates that most closely match the position's specifications. And they will represent the client exclusively with regard to the identified candidates.

A contingency recruiter, on the other hand, can be expected to market an identified candidate to as many potential employers as possible in order to make a placement and get paid.

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2Does retained executive search and contingency placement yield the same results?

Sometime it may, but usually the answer is NO.

Contingency recruiters are paid only if the candidate that they present is actually hired. A contingency recruiter can only afford to spend a limited amount of time on each assignment because getting paid is always uncertain. His best chance is to market candidates that are "looking" to as many different employers as possible.

The contingency recruiter knows that any job opening may be put on hold, or filled internally, or filled by a candidate answering an ad, or filled thru an internal referral, or filled by a competing recruiter, or filled by a candidate applying directly. For this reason, a contingency recruiter can not invest the time and effort required to recruit the best candidate for the position.

The retained search consultant, on the other hand, is employed by the client to identify and recruit the best candidate that most closely fits the clients specifications. Since payment is assured, all efforts can be focused on identifying and recruiting top candidates.

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3What about expense . . . which costs more, retained or contingency?

Retained search and contingency placement cost roughly the same. The difference is in how the recruiter is paid.

Contingency recruiters are paid in a lump sum when a candidate referred by them is actually hired.

Retained search consultants, on the other hand, are paid one third of the estimated fee when the assignment is accepted, a progress payment of another third after 30 days, and the balance when the candidates is actually hired. These terms may vary slightly depending on search circumstances and other factors. A specific written agreement outlining the terms and conditions for the engagement is entered into at the outset. This agreement would normally be prepared by the search firm.

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4I keep hearing about research . . . how is research used in executive search?

Research is generally used in retained executive search. The reason is that it is time consuming and expensive. Research will first be conducted to obtain a thorough understanding of the client's company, competitors, industry, geography and position to be filled. Next, industries and companies will be identified that may contain people with the key talents, skills and experience desired to fill the clients position. Next the potential candidates with those companies will be identified, contacted and, if appropriate, recruited to fill the clients position.

Detailed research is one of the advantages of retained search. The retained consultant, assured of being paid, is in a position to fund the cost of this research. Research such as this can be expected to add quality to the candidate list being considered.

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5Do you ever work on a contingency search basis?

Yes, during the course of our everyday activities we frequently come in contact with financial and banking candidates that are not a fit for specific searches we may be working at the time but who are quality professionals. We  put these people in our database for future reference. We are also contacted by highly qualified professionals who express an interest in exploring other career opportunities. We put these candidates into our database as well. Our database contains many thousands of potential candidates.

When we can be helpful, we are happy to introduce appropriate candidates to potential employers on a contingency basis. If a successful candidate cannot be found from within our database, we would suggest a retained search.

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6What do you look for in a candidate?

I initially look for a personality and style that will blend well with my client's culture and values. I also look for a successful track record with a solid history of performance. I like to see a candidate who has successfully handled adversity. And above all, I look for candidates who have demonstrated integrity, even when the chips were down.

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