We understand that retained search is incredibly complex and can be a hard-to-manage process, especially if you’re working within a start-up recruitment business. But that doesn’t mean you need to give up on the idea of building long-term partnerships with your clients.
An engagement fee agreement is much more flexible and offers the same benefits as retained — with much less pressure on you, the recruiter. In this article we look at some of the benefits of the engagement fee model over retained search and the differences between the two, so that you can decide which one fits you best.
So, what are the basics of each?
- Search & reporting expectations
- Involves 3-part placement
- Is highly structured
- Involves longlisting and shortlisting
- Requires a very dedicated process
- Very role or vacancy-specific
- Demanding and can be difficult to deliver results
- You may face more objections
- Offers the same secure commitment
- Involves a down-payment
- Promotes hard work for the success fee
- Offers role-flexibility for the client
- Encourages a long-term partnership
- Enables a more accessible offering
- Client secures the recruiter’s commitment
- It may be easier to overcome objections
Slip into the driver’s seat
It's more important than ever for companies to be agile and responsive to changing market conditions – predictions tell us so. An engagement fee agreement, or partnership agreement, on the other hand, allows you, and your client, to keep control over the process while navigating any market landscape.
The silver lining
After entering a retainer agreement if it happens that you didn’t manage to deliver on a particular job, or if for any reason, the role you’re working changes or is no longer available, it’s hard to understand where to go next with the relationship.
In an engagement fee type of partnership, you won’t be facing this kind of worrying scenario, because the initial commitment can be easily ported to a new role. And most importantly, the partnership kept alive.
Learn all about building your recruitment business
An engagement fee agreement is beneficial for everyone. As a client, it allows control and certainty over processes, especially in partnership with a recruiter that’s in it for the long run and truly understands the needs of the business. On the other hand, it allows recruiters to focus on providing the best quality talent consistently while benefiting from the flexibility and security of a continuous cooperation.
Having a clear understanding of the different offering models out there, deciding on how you set your business up to scale and how you secure recurrent revenue is one of the - if not the most- important things you need to focus on when starting a recruitment business.
We can support you in learning all about retained search, engagement fees, RPOs, and other various partnership models as well as the best way to elevate your offering, on our Monthly Advisory.