Executive search firms developed after World War II when an expanding economy caused shortages of skilled la-bor. A "middle man" was needed to facilitate employment. In many of these early agencies, the applicant paid the employment fee (Applicant Paid Fee or APF). Today, APF firms are unheard of in healthcare and viewed as an anachronism in the search business.
From APFs there sprang up a new kind of agency. In contingency search, the employer paid the fee, but only if a hire was made. The fee was therefore "contingent" upon placement of a candidate. At about the same time, another fee arrangement evolved.
Focusing on the senior executive level, these agencies took a consulting approach to employment. An executive search firm was engaged exclusively to seek candidates for an employer and a fee was paid during the course of the search. In other words, these firms were "retained," giving birth to the term, "retained search."
In today's environment, there are both contingency and retained firms. On a dollar volume basis, they divide up the employment market fairly equally. But while the results of contingency and retained search are the same (someone gets hired), their approaches are different. Because these firms vary in both approach and payment, you'll need to adjust your expectations and how you deal with them.
Retainer Firms
Your primary advantages in working with a retained firm are:
- Exclusivity on a job opportunity.
- A thorough selection process.
- Full information on the work setting.
- Protected confidentiality.
Recruitment begins with networks in the profession. Consultants identify candidates from target organizations and professional groups such as the American College of Healthcare Executives, state hospital associations and graduate programs in health services administration. Through advertising and direct mail, consultants seek out executives to participate in the process or to offer referrals to other executives.
When you receive a call from a retained search consultant, expect to hear a brief description about the opportunity as well as specifications for the candidate such as years of experience, educational qualifications and specific technical skills. If there's a strong match between the opportunity and your background, the consultant will request your resume and then check references and verify degrees and certifications.
If you seem like an exceptionally good fit, the consultant will arrange to interview you in more depth. Be aware that during this initial screening process, the consultant is trying to produce three to five candidates who meet the client's needs. Expect to receive regular feedback on your standing in the search process, but be assertive about asking questions and be generous in supplying information about yourself, including your special needs for making a move.
If you change your mind about the position, extend the courtesy of dropping out early. It's best for everyone involved: you, the client, the consultant and the other candidates. If you wait until the last minute to drop out, you may not get a second chance.
About six to eight weeks into the engagement, the consultant will send candidate reports of the finalists to the client, including references and interview notes. The client will then decide to interview the finalists or request additional candidates from the consultant.
The retained search approach offers several advantages:
- Before meeting the client personally, you're introduced through a comprehensive and objective package. Your candidacy is given a fair chance, and even if the client decides on someone else, the consultant offers you feed-back that's useful for future interviews.
- If you're selected to interview with the client, the search consultant sticks with you through the process of first and second interviews, community tours and compensation negotiations.
- If you're hired, a retained search firm also offers a one-year guarantee on your success. In other words, if you leave or are terminated within a year, the search firm will conduct another search at no charge. However cynical that may seem, it adds a boost to your move because the client is assured of satisfaction.
- Through retained search, you received an expert recommendation for a high-level position, but preclude the chance of being presented for several positions at once or having a recruiter "campaign" for you.
When you send your resume to a retained search firm, you'll usually receive some sort of acknowledgement. If the organization has more than one office, be sure to send a copy to the head of each office. Once you make the initial contact, it may be some time before you receive a response, but don't get discouraged. Remember that retainer firms work on fewer searches so your activity with any one firm may be limited. However, when activity does occur, it will usually be meaningful and substantial.