Just the other day, we were asked to define a “contained” search by a prospective client. As always, we want to share key information such as this with the entire community.
What is a Contained Search?
A “contained” search represents a hybrid blend of a traditional contingency search (total fee collected only after placement of qualified candidate) and a retained search (guaranteed fee collected up front or in stages based upon pre-determined time frames or deliverables).
{Contingency + Retained = Contained}
In the case of the contained search, a small portion of the total expected fee is collected up front, with the remainder collected only after successful placement of a qualified candidate. For example, take a situation wherein the total fee is estimated at $15,000: the up front portion or deposit in a contained fee arrangement would be $3,000. The portion due only after a successful placement would then be the remaining $12,000.
What are the advantages of a Contained Search?
While it is true that such an arrangement allows for your professional search partner (DTR, in this case) to dedicate and prioritize resources, the true benefit comes from the enhanced commitment made by the client and cost savings made available to the client. By paying a portion of the fee up front (deposit), the hiring company has skin in the game and tends to be more active in and committed to the process.
As a result of the efficiencies gained through the contained search model, we are able to pass along savings to our clients of up to 25% as compared to traditional contingency searches.
When we say active and committed, we are referring to a hiring company spending the requisite time pre-search achieving clarity as to the role and its requirements as well as those efforts undertaken during the search process to provide timely, well thought out feedback, and to facilitate timely, productive interviews by key decision makers with top candidates.
Understanding the Deposit
In context of our contained search model, a modest deposit representing 20% of the placement fee is collected at the time of contract execution and immediately prior to the talent search process beginning.
Why? By paying a portion of the fee up front, the hiring company or client has “skin in the game” and tends to be more active in and committed to the process. As a result, we have found that contained searches produce superior outcomes in terms of both the quality of hire and reduced time required to achieve the objective. This approach allows us to meet your talent acquisition timing and budget needs.
The DTR Difference
Regardless of whether you are currently in need of an SVP of Digital Strategy, an eCommerce application developer, director of social media, email marketing manager or a contracted SEO specialist, we are your one-stop, digital talent acquisition shop. In summary, we offer:
- A combined 50+ years’ experience recruiting, training and managing digital talent
- All team members have hands-on digital business and/or technology experience
- Contained searches are a win-win as the model results in the prioritization of DTR resources while incentivizing clients to be more active in and committed to the process as a result of having skin in the game (deposit)
- A proven talent definition – identification – evaluation – acquisition methodology
