Why Contingency Fails
Contingency recruiting is the most widely utilized service model adopted by placement agencies.
Despite this fact it also has many shortcomings and by its inherent nature is designed for failure.
The standard agency model was created for contract services, and just in time staffing hiring initiatives.
Largely used for non-technical and unskilled laborers the model is not conducive to direct-hire and especially highly skilled disciplines such as information technology.
In a contingency search the agency serves as a supplementary resource and is essentially competing with a company's own in-house recruiters, and often other outside vendors.
There is no exclusivity granted.
Failure By Design
The model creates a client/vendor relationship in which the agency serves as an external extension of a company's in-house recruiting team.
Contingency search is purely a sales-driven process governed by KPI's, timelines, and base metrics.
Contingency search does not allow an agency to execute strategies to penetrate into a specific target market.
Efforts are aimed at “Active” candidates who are currently in the market and interviewing for multiple opportunities.
Often involving a contingency recruiting strategy, the client is concurrently engaging multiple vendors all working to fill the exact same role.
Fosters a static process of information exchange and data-driven communication and undermines collaboration, and coordination in a strategic partnership with the client.
Multiple vendors function with a common goal and zero common communication, or coordination.
Multiple vendors create redundancy of efforts and lead to market saturation that can undermine recruitment activities.
Candidates receive solicitations from multiple vendors on the same role which undermines the credibility of both the process and the client hiring company.
Why Consider A Retained Recruitment Solution