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I’m Venessa Vasilakeris from the McQuaig Institute, where we help companies make better hiring decisions through our suite of psychometric assessments. We measure personality and cognitive ability – factors that are crucial in recruitment and overall talent management. With over a decade at McQuaig and extensive experience in contingency and retained search, I’ve seen firsthand how personality assessment can predict job performance.
The Shifting Landscape Of Recruitment Services
The recruitment industry has experienced unprecedented growth, particularly in the UK, where the number of recruitment companies has surged from 8,000 to approximately 35,000 in just 15-16 years. This dramatic increase highlights the intensifying competition in the industry and emphasizes the need for strong differentiation. Many recruitment professionals find themselves competing with numerous agencies for the same positions, often putting in substantial effort without guaranteed returns.
Understanding The Value Of Retained Search
The transition to retained search is often driven by a desire for more revenue certainty. Whether working in contingency or retained search, the workload remains similar, but the guaranteed revenue differs significantly. Moreover, there’s an increasing desire among recruitment firms to be viewed as partners rather than vendors, which is more challenging to achieve with contingency search models.
A common objection to retained search revolves around paying upfront without guaranteed results, especially when clients are accustomed to contingency relationships. To address this, firms can implement service level agreements and placement guarantees. Many companies starting this transition adopt a hybrid model, with a portion of fees paid upfront and the remainder upon successful placement, effectively sharing the risk between both parties.
Enhancing Search Success Through Assessment Tools
Leading search firms incorporate behavioral or cognitive assessment into their offering at every stage of the search process. These tools help understand client needs more thoroughly and uncover potential gaps in candidate profiles early on. They can also support interview processes, as many clients, while excellent at their jobs, may not be experienced in hiring.
The assessment tools shouldn’t be the sole decision-maker but rather serve to highlight areas that need deeper exploration during interviews. When differences between candidates and benchmarks emerge, it’s not about automatic elimination but rather about exploring how these differences might be managed or leveraged. This approach facilitates more meaningful conversations about candidate fit and potential.
Building Long-Term Partnerships Through Value-Added Services
Post-placement services have become increasingly important in differentiation strategy. By following up with both candidates and clients on a scheduled basis, firms can gather valuable data to mitigate potential issues. Some companies take a consultative approach, facilitating conversations between new hires and their managers about working styles and expectations.
The tech aspect of the process, including assessment tools, should support rather than replace the human element. While technological advancement is impressive, recruitment remains a human industry. Candidates often complain about cold, impersonal application procedures, even in tech-savvy generations like Gen Z. The key is finding the right balance where technology enhances rather than diminishes the human connection.
To transition from vendor to partner status, firms need to demonstrate the value of upfront alignment and collaboration. This involves framing intake meetings as mutual strategy sessions rather than simple order-taking exercises. By bringing market insights, compensation knowledge, and trend awareness to these conversations, recruitment firms can provide immediate value while building stronger partnerships.
The journey from contingency to retained search doesn’t happen overnight, but by gradually embedding value-added services and adopting a partnership mindset, firms can make the transition successfully. Tools like McQuaig’s assessment suite can enable these activities in a low-effort, high-impact way, helping firms differentiate themselves in an increasingly competitive market.
In the end, the goal is to become regarded as an extension of the client’s team – a trusted partner who understands their needs and culture deeply. This evolution from transactional relationships to true partnerships represents the future of recruitment, where success comes from delivering comprehensive, value-driven services that go beyond simple placement.
Finally
Ready to transform your recruitment practice with psychometric excellence? To learn more about implementing the McQuaig Institute’s assessment tools and evolving your business model from contingency to retained search, visit mcquaig.com.
Thanks,
Sharon
