Disadvantages of Contingent Search

Breaking Down Alternatives That Deliver Better ROI

The legacy contingency search model is the most common recruitment strategy used today. But that doesn’t mean it’s the best choice for businesses.

Under contingent search, recruitment firms only get paid if a candidate they submit is hired. They’re also competing with other external recruiters and internal talent acquisition teams, racing to be the first to submit a candidate and complete the transaction.

This creates a highly inefficient recruitment strategy that can have serious consequences for your business. 

In this blog post, we’ll explore the underlying problem with contingent search and provide alternative solutions that deliver a higher return on investment.

Contingency Search: A Race to the Bottom

By definition, the word contingent means "by chance," or "likely but not certain." In a contingent search model, payment to search firms is contingent on finding a candidate to fill a specific position.

With contingency search models, recruitment agencies are motivated by speed – not alignment with your company’s long-term goals. It’s all about submitting a candidate quickly to secure the placement fee. 

The prioritization of speed over business alignment sacrifices thoughtful candidate engagement and client partnership. This can lead to serious consequences, including:

Fractional Effort

Search firms divide their resources among multiple clients, none of whom are guaranteed to pay. This limits their ability to fully understand your business and culture, reducing the effectiveness of their candidate outreach.

Brand and Reputation Damage

Candidates might be contacted by multiple firms for the same role, which can confuse and damage your company’s reputation.

Low Success Rates

Shockingly, 75-80% of contingent searches fail to deliver results. Despite this, 90% of third-party recruitment firms continue to operate under this broken model.

A Better Way: Strategic Partnerships Over Speed

It’s time to rethink the contingency model and embrace a more strategic approach — one that fosters genuine partnerships and aligns with your long-term business objectives. 

The greatest ROI comes from models that allow recruitment firms to dedicate their time and resources to finding the best candidates, not just the first. This gives them the time they need to use their specialized tools, curated networks, and years of experience to engage both active and passive candidates. 

These alternative strategies ensure candidates who are submitted to you align with not just the job description, but also your company’s strategic goals and culture.

Here’s how we break it down at Requisite Talent Partners, based on your needs and what kind of business you have:

Engaged Search

A targeted strategy that’s best for technical and professional roles, from experienced individual contributors to manager-level positions. This model allows us to function as an extension of your internal team, ensuring deep alignment with your business needs.

Retained Search

A partnership-based strategy that is ideal for leadership roles (director level and above,) where the stakes are high. A retained search model ensures a thorough and dedicated process to source and vet true leaders.

Integrated Talent Solutions

A scalable, supportive strategy perfect for small and medium-sized businesses, high-growth companies, or departments within large enterprises needing to fill multiple roles. An integrated model provides cost-effective access to expert resources.

What’s the Cost of Doing It Right?

In today's competitive talent market, securing top technical, professional, and leadership talent demands a different approach. Recruitment is not a transactional, volume-driven exercise; it’s a fluid, strategic investment. 

Partnering with a recruitment firm that understands your business and is motivated by your success – rather than speed – will yield greater returns.

Ready to See Results?

Requisite Talent Partners helps clients navigate the ever-changing labor market, building connections that drive innovation, growth, and results. 

Whether you need an Engaged Search for technical roles, a Retained Search for leadership positions, or a comprehensive Integrated Talent Solution, we’re ready to partner with you and help drive success.

Contact us to secure the talent needed to reach your objectives.

When you have a vacancy to fill on your team, it’s natural to want to find the perfect candidate. But that search for perfection could be costing you.

In the world of talent acquisition, we hear the term "unicorn candidate" used to describe the ideal, almost mythical employee who possesses an impeccable blend of skills, experience, and cultural fit. These are candidates who, in theory, can drive extraordinary value for the organization from day one. 

Of course, finding that perfect candidate is often a lot more difficult than it sounds – and actually could be hurting you.

In this blog post, we break down the challenges and pitfalls associated with waiting for perfection and provide solutions that can yield better results.

The Subjective Nature of the ‘Unicorn Candidate’

The first – and perhaps most significant – hurdle in the hunt for a unicorn candidate is the subjective nature of what makes a candidate perfect. 

What hiring managers view as a perfect fit is often heavily influenced by their past experiences, biases, and specific team dynamics. This means what one person considers a perfect fit for a job may be entirely different than what someone else has in mind thanks to their different backgrounds.

For example, one hiring manager might prioritize a candidate's ability to lead cross-functional teams based on their previous success with a similar employee. Another might emphasize cutting-edge technical skills due to a past project that thrived under such expertise. 

That subjectivity can lead to unrealistic expectations, where the ideal candidate must tick every box on a long list of requirements. This often makes it nearly impossible to find a candidate who satisfies everyone's expectations.

The Challenges of Engaging ‘Unicorn Candidates’

Unicorn candidates are often deeply embedded in their current roles and organizations. They are the high performers, who are often well-rewarded and engaged in challenging, fulfilling work. Their employers recognize their value and invest heavily in their retention. 

This means you’ll need more than just a compelling job offer to attract these candidates. It also requires a strategic approach involving time, money, and relationship-building.

Engaging with these candidates involves understanding their motivations and career aspirations, which might not always align with a straightforward job switch. You’ll need to demonstrate how your opportunity offers unique growth, impact, and work-life balance that their current role might lack.

The Cost of Waiting for Perfection

Taking into consideration how difficult it can be to find a “perfect” candidate and then engage and attract that candidate, is the wait worth it?

While organizations wait for the “unicorn candidate,” the cost of an unfilled position grows. Critical job functions remain unperformed, projects stall, and team morale can suffer under the strain of additional workload. 

In today's fast-paced business environment, this delay can translate into tangible financial losses and missed opportunities.
Rather than holding out for the perfect fit, it might be more beneficial to consider candidates who meet most of the key criteria and possess growth potential. With the right development and support, these candidates can often exceed expectations and bring fresh perspectives and energy to the role.

A Balanced Approach to Talent Acquisition

The quest for “unicorn candidates” is understandable but often overlooks the practicalities of the current job market. By balancing the ideal with the attainable, organizations can more effectively fill critical roles and drive business success. 

Here are a few strategies to consider:

Redefine the Ideal Candidate

Clarify the must-have skills and experiences versus the nice-to-haves. Focus on core competencies that align with the job's critical success factors.

Invest in Development

Be open to candidates who show strong potential and a willingness to learn. Investing in their growth can yield significant long-term benefits.

Strengthen Employer Branding

Cultivate a strong, attractive employer brand that naturally draws top talent. Highlight your organization's unique value proposition to differentiate yourself in a competitive market.

Leverage Relationships

Build and maintain relationships with high-potential candidates, even if they are not ready to move immediately. A strong network can be a valuable asset in future hiring needs.

While the allure of the unicorn candidate is strong, a more balanced and realistic approach to hiring can lead to more sustainable and successful outcomes. 

By understanding the challenges and adopting flexible strategies, organizations can build robust teams ready to tackle today's dynamic business challenges.

If you need help with your talent acquisition strategies, Requisite Talent Partners is here to help. Our team can work with you to strengthen your employer branding, find high-quality passive candidates, and leverage our deep talent network to help you succeed.

Ready to break through your talent ceiling? Get in touch with us!

When acquiring talent, understanding the difference between vertical and lateral recruitment is crucial for successful outcomes. These two approaches not only target distinct types of candidates but also demand unique strategies for sourcing, messaging, and flexibility. 

Imagine your organization is poised for growth and you need to decide whether to seek out industry veterans or fresh perspectives from different fields. Knowing when and how to use vertical versus lateral recruitment can be the key to securing the talent that will drive your organization forward. 

In this blog post, we’ll dive into the nuances of each recruitment approach and offer actionable insights to help you make informed decisions and optimize your talent acquisition strategy. 

Vertical Recruitment: Climbing the Career Ladder

What is Vertical Recruitment?

Vertical recruitment focuses on attracting talent for roles that offer a significant step up in their career. These positions typically come with increased responsibilities, a higher title, and the potential for long-term growth within the company. 

Vertical recruitment is often about aligning with the company’s future goals and securing leaders or key players who can help drive the business forward.

In vertical recruitment, employers are generally less flexible because they are looking for specific skills, experience, and leadership qualities. They have a clear vision of what they need to achieve their long-term goals. 

On the other hand, the candidate may need to be more flexible — whether it’s relocation, adjusting to a higher level of responsibility, or aligning with the company’s future vision. Candidates in vertical recruitment are typically running toward something — seeking career advancement, leadership opportunities, and the chance to make a significant impact.

How to Reach Vertical Recruitment Candidates:

• Focus on Ambition: Target candidates looking to advance their careers and those motivated by growth opportunities.
• Emphasize Leadership and Impact: Highlight the role’s importance in shaping the company's future and how the right person can significantly impact success.
• Be Selective: Prioritize candidates with a proven track record in leadership or those who have demonstrated their ability to step into more significant roles.

Lateral Recruitment: Moving with Purpose

What is Lateral Recruitment?

Lateral recruitment involves acquiring talent for roles similar to their current position but at a different company. In these scenarios, talent is often running away from something — a toxic work environment, dissatisfaction with current leadership, or a lack of career satisfaction.

In lateral recruitment, the company needs to be more flexible because candidates in these situations are often less willing to compromise. They know what they want and are looking for a better fit in terms of work environment, culture, or compensation. This means the candidate is less flexible about what they are willing to accept.

How to Reach Lateral Recruitment Candidates:

• Highlight Cultural Fit: Emphasize how your company’s culture and values align with the candidate’s needs and desires.
• Focus on Immediate Benefits: Showcase the tangible benefits of the role, such as work-life balance, compensation, and job satisfaction.
• Tailor the Approach: Understand that these candidates have specific requirements and be prepared to meet them with specific ways your organization addresses those requirements.

Critical Differences Between Vertical and Lateral Recruitment

Understanding the core differences between vertical and lateral recruitment can help you craft more effective recruitment strategies:

1. Flexibility:
   • Vertical Recruitment: Employers are less flexible, and candidates must be more adaptable to meet the demands of the role.
   • Lateral Recruitment: Companies need to be more flexible, as candidates are typically less willing to compromise on their requirements.
2. Motivation:
   • Vertical Recruitment: Candidates are generally motivated by growth and career advancement — they’re moving toward new opportunities.
   • Lateral Recruitment: Candidates may be motivated by the need to leave an unsatisfactory situation — they are moving away from current issues.
3. Focus:
   • Vertical Recruitment: This approach is aligned with the company’s future state, focusing on long-term goals and objectives, organizational change, and growth.
   • Lateral Recruitment: This strategy addresses present needs, such as filling immediate gaps or improving team dynamics.

Tailoring Your Recruitment Strategy

Both vertical and lateral recruitment are vital to building a successful team but require different approaches and considerations. Understanding the unique dynamics of each strategy will help you better align your recruitment efforts to attract the right candidates.

At Requisite Talent Partners, we understand the intricacies of both vertical and lateral recruitment. Whether you're looking to bring in a leader who can shape your organization's future or need a skilled professional to enhance your team’s current performance, we’re here to guide you through the process with tailored strategies that meet your specific needs.