Might seem an unlikely time to introduce retainers in to your product offering and be successful with it, but this is exactly what I have done with a number of my clients.

Traditionally, retained has been seen as the preserve of higher end recruiters for senior positions. The usual model is that clients pay in 3 parts, 1/3^rd when giving over the assignment, 1/3^rd when submitting the shortlist and the final 1/3^rd when the candidate is placed. By changing this model you can make this really appealing to clients.

The key to this is that though there are fewer jobs about, those that exist are key appointments that the clients can’t afford to get wrong.

The retained service you are offering has the following key characteristics that really appeal:

1: Time & expertise

Contingency recruitment is about payment for success only. No win no fee. Commercially you have to limit the time spent searching due to the risk involved of finding no one.

Retained is about payment for time and expertise. You contract for the amount of time and sources you will use dedicated only to the client. Put simply, they can be 1 of 10 jobs or 1 of 1! This includes reporting on progress and formal feedback.

2: Chance of success

The success ratio of the average contingency recruiter is 20% or 1:5. The success ratio of the average retained assignment is 85%. A much better chance of success due to dedicated time and service. The previous argument of ‘Not wanting to put all the eggs in one basket’ is easy to overcome in an applicant rich market.

3: Investment

Because the risk is shared, I discount the rate for retained against the contingency rate by 2.5%. It’s cheaper for much more work! I also increase the 100% guarantee period to six months to show my confidence in the process. (Remember you are only guaranteeing the placement portion.)

4: Payments

To assist my cash strapped clients I have agreed to spread payments in equal installments over 5 months. This is paid by direct debit on the 28^th of each month. The clients love this option because it helps cash flow from one big hit, and my clients have been able to build up a cash pipeline that means each month they have already covered their overheads.

This has worked at all salary levels and in all markets. I run a workshop to teach the principles.

If you need any more advice feel free to mail me on [email protected]