Retained and contingent services are both recruitment services, but they differ in the way they are structured and the benefits they offer.
Retained services are typically more comprehensive and offer a more proactive approach to recruitment. They involve a long-term agreement between the client and the recruitment firm, in which the latter provides an ongoing and dedicated recruitment service. The recruitment firm acts as an extension of the client’s HR department and is responsible for identifying, sourcing, and presenting a high number of qualified candidates for each role.
Contingent services, on the other hand, are more reactive and are used when a specific role needs to be filled. The recruitment firm is only paid a fee if they successfully place a candidate in the role. This type of service can be less comprehensive and may not provide the same level of support and guidance throughout the hiring process as a retained service.
When it comes to working with dedicated boutique recruitment firms or global retained firms, the results often speak for themselves. Statistics taken from a survey across 12 of the top multinational companies across consumer, healthcare and consulting services show that boutique recruitment firms outperform those global retained shops by 35% when it comes to success rate and 20% when it comes to speed of closing.
Recruiting for the Japan market is a different beast to other markets and you need a partner who understands the ins and outs of the landscape. A global network may not mean much in this case. Some of the reasons why a boutique recruitment firm performs better include:
- Personalized approach: Boutique recruitment companies often have a smaller team, which allows them to provide a more personalized and tailored service to each of their clients. This can result in a better understanding of their clients’ needs and a more focused and efficient recruitment process.
- Stronger relationships: Boutique recruitment companies often have closer relationships with their clients, which can lead to better communication and a more collaborative approach to recruitment.
- Specialist expertise: Boutique recruitment companies often specialize in specific industries or types of roles, which can result in a deeper understanding of the market and the needs of their clients.
- Faster response time: Boutique recruitment companies often have a smaller team, which can result in faster response times and a more agile recruitment process.
These are just a few of the potential advantages that a boutique recruitment company might have over a big recruitment company for retained services. Of course, each company is unique and will have its own strengths and weaknesses, so it’s important to evaluate the specific needs of your organization and the services offered by each company before making a decision.