Pay only for performance. The Oxford Group can deliver results with our Contingency Hybrid Approach!
There are times when it only makes sense to pay when the process is complete and your new hire is on board. Contingency recruiting is particularly appropriate for companies looking to fill sales, technical and mid-level to upper management positions on a non-confidential basis.
Under the contingency model, the recruiter’s compensation is typically commission-based. This approach drives the recruiter’s behavior in some or all of the following ways:
Contingency forces recruiters to concentrate their efforts on the searches they can fill with a minimum of effort. The more difficult searches tend to get very little if any attention because the probability of filling them is slim.
Recruiters on contingency are required to collect as many client assignments as possible in order to have a sufficient pool of mandates against which they can promote their candidates.
Recruiters are also under pressure to collect multiple searches of a similar nature from different clients to increase the odds of placing a candidate that is recruited. Obviously as more clients are have interest in a candidate a bidding war starts that could drive up the starting salary, and hence the placement fee.
Contingency also makes it very difficult for the recruiting firm to be loyal to any one Client.
Exclusive contingency or open contingency? Open Contingency results in a horse race in which all the recruiters are in competition to present the candidates they locate first. This enevitably leads to you handling the culling process rather than the recruiter. Exclusive or The Oxford Group hybrid approach will keep this to a minimum.
Another factor is whether you need a deep dive or a shallow dive. A deep dive search can only be accomplished if we have the time to put a research team on identifying all the candidates in a certain company sector and talking to each one of them individually. Fifty percent of the executives in the technology sector have no visiable presence and can only be found by referral or by a research team probing into a company. The average amount of calls required to locate candidates on an exclusive contingency candidates is 117.
Open contingency is basically allowing for a shallow dive locating executives that are easily found. They are usually located from linkedin, competitors and the internet. Open Contingency forces any recruiter to work multiple accounts to secure one placement because there is no guarantee that the recruiter will make a placement even if they locate the right candidate. The average amount of calls on an open contingency is 36.
The Oxford Group will advise you based on your requirements of whether to work contingency retained or our hybrid approach. Oxford’s hybrid of a blended Contingency and Retained will assist you in getting the best of both worlds. Oxford will accept a $5,000 deposit on the search to go toward the placement fee and will return the $5,000 if they have not provided three acceptable candidates within thirty days.
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