Executives Turning to Contingency Firms Amid Recession
Finding the right job is tough. Doing it in a recession is even more difficult. Facing an uncertain economy, more and more job seekers and companies looking to fill high level positions are turning to contingency search firms for help. Why? Mitch Feldman, President of executive search firm, A.E. Feldman, says contingency firms like his have the one thing executives and managers need: quality “information” that will lead them to their next opportunity.
In a retained search, a company enlists the help of a single recruiting firm to conduct the search on an exclusive basis. That firm is paid upfront for the process of conducting a search. On the other hand, contingency firms are hired on a non-exclusive basis. Payment is made only when a job has been filled. Since fees are not collected in advance, a contingency recruiter has no assurance of being paid unless a successful placement is made. And right now, that is critical to their success.
The fact that the work contingency firms do is performance based is giving them a clear advantage in an uncertain economy. Not only are they more motivated to deliver, clients can save a great deal of money in retained fees. Contingency firms also do not tack on extra charges, Feldman notes.
Carol Schwam, CEO of A.E. Feldman, says, “The old expression ‘when times get tough, the tough get going’ is true. We happen to love what we do and we are always driven to win. Clients now have nothing to lose and everything to gain from going contingent.”
Fee structure aside, Feldman says there are a number of things that not only differentiate contingency firms from other types of search firms, but also give them a clear advantage in the job search process. First, he says, contingency firms are “street smart.” Equipped with what he calls a fearless instinct, Feldman says contingency recruiters have the mandate to work harder for their clients. In doing so, he adds, “We don’t waste anyone’s time.”
Secondly, Feldman argues that contingency firms are more resourceful – something not to be underestimated. “Tough times call for ingenuity when it comes to the job market,” he says, “And a contingency firm may be able to offer senior level candidates something that other search firms can’t: creativity.” Feldman says contingency firms can raise the bar, improving a client’s model. He also notes, “There is greater breadth and depth for contingent recruiting firms than ever before.”
Contingency firms are also proactive. As Schwam points out, “There is a morass of information on the web now related to job searches, including instruction on how to network, write a resume or interview more effectively.”
Schwam also notes that retained firms typically argue that contingency firms lose their devotion at some point and drop the search. This argument is simply worn out she says. “If ‘devotion’ refers to ‘money upfront,’ corporations seeking talented executives - now more than ever - should not underestimate a contingency firm’s drive to succeed. ‘Devotion’ equates to the time we invest. Like any other business, we’re equally driven to win and can only do so by delivering top talent and satisfying our clients.”
If you want to grow your career or discuss your company’s talent needs, contact A.E. Feldman’s President, Mitch Feldman today.
