Retained Search vs. Engaged Search: Key Differences You Need to Know
When it comes to recruiting top talent for your organization, choosing the right search method can make all the difference. Two common models Retained Search and Engaged Search each have their unique advantages and applications. Understanding these differences will help you make informed decisions about which approach is best for your hiring needs.
In this article, we’ll explore the key differences between Retained and Engaged Search, and guide you on how to choose the right search method for your recruitment strategy.
What is Retained Search?
Retained Search is a recruitment method where a company hires a recruitment agency on an exclusive basis to find candidates for a particular role. Typically, this approach is used for high-level, executive positions or roles that require a very specialized skill set. The hiring company pays a retainer fee to the agency, which secures their commitment to the search process.
The recruitment agency takes a deep, comprehensive approach to sourcing candidates. This often includes proactive headhunting, building long-term relationships with potential candidates, and a more strategic, in-depth process to identify the best fit for the organization.
Key Features of Retained Search:
- Exclusivity: The recruitment agency works solely on this role, giving them a dedicated focus.
- Longer Timelines: Due to the detailed search process, these searches can take longer to complete.
- High-Quality Candidates: The emphasis is on finding the best possible fit, often requiring a more tailored approach.
What is Engaged Search?
In contrast, Engaged Search is more flexible and is typically used for mid-level or lower-tier roles. An organization may engage a recruitment agency to fill a specific position but does not offer the same level of exclusivity or upfront fee structure as with Retained Search.
An Engaged Search involves a more rapid approach, with the agency working on the search while the company might still engage other firms or recruiters to find candidates for the same position. This model is often more suited to roles that are less specialized but still require a high level of competence.
Key Features of Engaged Search:
- Non-Exclusive: Agencies may work with multiple clients on the same position.
- Faster Turnaround: Since the agency is usually working with a broader pool of candidates, Engaged Searches tend to be quicker.
- Flexible Commitment: Clients only pay the agency once candidates are presented, often on a contingency basis.
Key Differences Between Retained and Engaged Search
The primary differences between retained and engaged search come down to cost, exclusivity, commitment, and candidate pool. Below is a comparison table to help clarify these distinctions.
| Factor | Retained Search | Engaged Search |
| Payment Structure | Upfront fee, milestone payments, and final fee | Smaller upfront fee and success fee |
| Exclusivity | Exclusive search with one recruitment firm | Non-exclusive; multiple firms may be engaged |
| Focus | Dedicated focus on finding the right fit | Broad focus, including other firms’ candidates |
| Search Duration | Longer, due to careful vetting | Shorter, quicker to fill mid-level positions |
| Ideal for | Senior-level or executive roles | Mid-level or specialized roles |
Which Search Model is Right for Your Business?
Deciding between retained and engaged search largely depends on your business needs, the urgency of the hire, and the level of expertise required for the role.
When to Choose Retained Search:
Retained search is often the go-to solution for companies looking to fill senior, executive, or niche roles that require a specific skill set or experience. Here are some scenarios where retained search is ideal:
- High-Level Executive Roles: When hiring for positions like CEOs, CTOs, or VPs, the process requires discretion and access to a broad network of passive candidates.
- Specialized Positions: If your business needs talent with highly specialized skills or industry experience, retained search ensures that you’ll have access to the best candidates available, even if they aren’t actively looking.
When to Choose Engaged Search:
Engaged search works well for mid-level and specialized roles that don’t require an executive search. It’s best suited for businesses that need faster results but don’t have the budget for a full retained search.
- Mid-Level Management: When you need to fill roles such as department heads or regional managers, engaged search allows you to access a large pool of candidates in a short time.
- Urgency in Hiring: If the role needs to be filled quickly, the engaged search model ensures that you can work with several firms simultaneously, accelerating the hiring process.
Engaged Search vs Retained Search: Pros and Cons
When deciding between Retained Search and Engaged Search, it’s essential to weigh the advantages and disadvantages of each model. Below, we break down the pros and cons of both approaches to help you make an informed decision based on your recruitment needs.
| Factor | Retained Search | Engaged Search |
| Client Commitment | High, exclusive, long-term commitment | Lower, flexible, no exclusivity |
| Cost | Higher upfront cost due to retainer fee | Lower initial cost, contingency-based payment |
| Speed | Slower, due to in-depth research and focus on quality | Faster, with quicker turnaround on candidates |
| Candidate Quality | High-quality candidates, tailored to the role | Broader pool of candidates, but varying quality |
| Candidate Pool | Smaller, high-quality talent pool | Larger talent pool, faster selection |
| Use Case | Ideal for executive or specialized roles | Suited for mid-level, more general roles |
| Search Process | Extensive, proactive, strategic | Shorter, reactive, broader search |
Case Studies of Success in Retained and Engaged Search
Case Study 1: Retained Search for Executive Roles
A global technology company used Retained Search to hire a new Chief Marketing Officer. The recruitment agency spent several months conducting a thorough search, including competitor analysis and talent mapping. The process was time-consuming but ultimately led to the perfect candidate, resulting in a highly successful placement and long-term relationship with the recruiter.
Case Study 2: Engaged Search for Mid-Level Roles
A fast-growing startup needed to fill several mid-level managerial roles quickly. They opted for Engaged Search, which enabled them to quickly present a broad selection of candidates. Within weeks, they had hired several highly qualified candidates, speeding up their hiring process while still ensuring a strong cultural fit.
FAQs on Retained and Engaged Search
Q1: What are the costs associated with retained and engaged search?
Retained search typically involves a larger upfront investment, with fees paid in stages throughout the process. Engaged search, by contrast, is more budget-friendly, requiring a smaller initial fee and a success-based payment once a candidate is placed.
Q2: Can engaged search work for executive positions?
Engaged search can be effective for some executive roles; however, it’s generally best suited to mid-level positions. Executive searches usually benefit from the exclusivity, focus, and deeper market reach that retained search provides.
Q3: How does candidate quality differ between the two models?
Retained search generally delivers access to higher-caliber, more experienced candidates — particularly for specialized or senior-level roles. Engaged search offers a broader talent pool but tends to focus more on mid-level or less specialized positions.
Q4: What are the advantages of a hybrid search model?
A hybrid model blends the strengths of retained and engaged search. It balances cost-effectiveness with more exclusive access to top-tier talent, making it an appealing option for organizations seeking flexibility without compromising candidate quality.
Conclusion
When it comes to recruiting the right talent, the choice between Retained and Engaged Search is crucial. If you’re looking for a highly specialized or senior-level candidate and are willing to invest in a strategic process, Retained Search is the way to go. However, for more mid-level, fast-fill roles, Engaged Search offers a quicker, cost-effective solution.
If you’re ready to make the right hiring decisions, explore our recruitment services at Food Employment to learn more about how we can help you build the perfect team.
