Working with recruitment firms

Given the number of people looking for new jobs today, either through choice or necessity, we thought it would be helpful to set out our views on how job seekers can best use recruiters to help them in their search. There are two main types of recruitment firms, and different ways of interacting with each.

As I said, there are two types of recruitment firms: Those that operate on a retained basis and those that operate on contingency basis. Contingency firms earn a fee based upon candidate placement.

They may present a number of excellent candidates, but unless one of their candidates is hired, they are not paid for any part of their work. Retained firms are paid by the client to conduct, on an exclusive basis, a comprehensive recruiting process to fill a specific position. Most of their fee is paid as a retainer as the work progresses. The recruitment approach they apply includes identification of a broad range of candidates, and they will therefore contact both candidates they know already, and others who they identify as potentially qualified for the role.

The big question is how these firms can help you. Due to their relationships with the client, and their fee arrangements, retainer and contingency firms differ in how they can help you.

Retained firms cannot represent you. They are paid by their client companies to find the right candidate for a position. These firms can provide immediate help to you only if they are currently working on an assignment that is appropriate to your background. Regardless of how much they like you personally, or how impressed they are with your resume, they cannot market you to companies.

Contingency firms are free to deal with any company that they believe may have an interest in your experience. For example, if you have a strong background in retail development, you may find a contingency recruiter who is willing to market your resume to firms in that business. The recruiter may have contacts with particular retail developers and may be happy to call them and present your credentials.

Your decision to choose one type of firm over the other will typically reflect your current employment situation and your level of experience. Retained executive search firms typically deal with more senior positions and can help you only if they are working on something applicable to your background. When they contact you, it is important to realize that you are only one candidate among many, and that the search process itself may take several months to complete. Even if you go through several interviews, you should not assume that you are likely to be offered the position. Therefore, if you need to find a new position in the immediate future, do not rely on a single retained executive search firm to help you.

If you are currently employed and simply wish to hear about opportunities that may be appropriate for you, submit your resumes to executive search firms that specialize in your field. Since these firms work only on an exclusive basis, no firm will be working on the same set of assignments as any other firm, and so you should get your information to all appropriate firms.