Contingency vs Retained recruitment: what’s the deal for law firms?

What’s the best approach to secure leading legal talent for your Firm?

Does your firm favour appointing multiple recruiters on a PSL or does it opt for a strategic, retained service?

The truth is that both options yield results, but contingent v retained should be a consideration when deciding on your recruitment pipeline for the next 12 months.

What’s the difference?

Contingent recruitment is the ‘go to’ model. This usually involves your Firm asking your PSL agencies to find talent for a specific role. The reality is that agencies will use the same job boards to advertise and promote the role and often chase the same candidates – in a passive candidate market, it’s difficult not to!  Since a fee is not guaranteed, there is a temptation to introduce candidates that aren’t exactly right for the role in the hope that a placement will be made and a fee secured. It’s a tough market!

Contingent recruitment is low risk for employers but high risk for recruiters. This can often result in a less personal and more transactional relationship with Firms. Of course, there are ways to modify this by Firms working closely with one or two selected agencies and by sharing your recruitment plans for say, the next 12 months. This approach enhances the relationship between the Firm and the agency and promotes collaboration and transparency between the parties, leading to stronger partnerships and better results.

Retained recruitment promotes a more strategic approach to sourcing top talent. This approach is often favoured for high level talent where the appointed agency has deep sector and market knowledge, combined with notable expertise in successful senior hires. An upfront fee is paid with the brief, followed by a further fee on candidate shortlisting and a final fee on candidate appointment. The benefit? Exclusivity and expertise. The agency will appoint a key head-hunter to manage the relationship and spearhead the search. This collaboration usually results in success for both parties and strengthens the partnership between the two businesses.

So, what do we suggest?

Blend the two models.  Be strategic in your approach to talent acquisition and don’t allow your firms credibility to be diminished by too many agencies saturating your brand. Build meaningful relationships with key agencies who know your business and can add value to the talent process.

Work collaboratively for stronger, long-term partnerships.

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