5 Reasons to Use a Retained Search Firm vs. Commission-Based Recruiters for Nonprofit Executive Searches
When embarking on an executive search, organizations often face a critical decision: whether to engage a retained nonprofit executive search firm, which will work on a specific contract basis, or a commission-based recruiter, who receives a fee only after a candidate is placed. While the latter may appear cost-effective at first glance, here are five key advantages that make retained search firms the preferable choice for when hiring for a leadership role.
- Dedicated Partnership and Trusted Relationship
Retained search firms like The Angeletti Group operate on a partnership model, fostering deep, trusted relationships with their clients. Unlike commission-based recruiters, who often focus on volume and quick placements, retained search firms are committed to understanding the unique needs and culture of your organization.
This approach ensures a precise fit rather than just filling a vacancy swiftly. The ongoing collaboration between your company and the retained firm means they become an extension of your team, working diligently to align their search efforts with your strategic goals and being invested in the outcome.
- Strategic and Consultative Approach
Retained search firms bring a consultative mindset to the recruitment process, extending their role beyond mere talent acquisition. They provide valuable insights into salary benchmarks, competitive positioning, interview guidance, and onboarding strategies.
This holistic approach ensures that the selected candidate is not only the right fit for the role but also set up for long-term success within your organization. The strategic advice offered by retained firms can be instrumental in making informed decisions that align with your company’s broader objectives.
- Access to a Broader and Deeper Talent Pool
One of the significant advantages of retained search firms is the ability to tap into an extensive network of candidates. These candidates are often not actively seeking new opportunities and are therefore less accessible through commission-based or contingent firms.
Retained firms invest time and resources into cultivating relationships with top-tier talent, enabling them to present candidates who may not be visible through traditional job postings. This proactive approach significantly enhances the quality of candidates presented for your executive roles.
- Risk Mitigation and Quality Assurance
The partnership principles of retained search firms emphasizes quality over quantity, significantly reducing the risk of a mis-hire. A poor executive hire can be costly and disruptive, impacting the organization’s performance and morale.
Retained firms are dedicated to mitigating this risk by conducting thorough assessments and evaluations to ensure candidates are a strong match for both the role and the organizational culture. This meticulous approach results in higher retention rates and greater overall satisfaction.
- Ethical Standards and Long-Term Relationship Building
Drawing a parallel from a fundraising industry norm, where the Association of Fundraising Professionals (AFP) prohibits consultants from working on commission, retained search firms follow the same principle. Commission-based recruiting often leads to a “dialing for dollars” mentality, where the focus is on short-term gains rather than ensuring a true fit. Retained search firms, on the other hand, prioritize the art of relationship-building, ensuring that their efforts align with the long-term success of the organization. This ethical approach underscores the commitment to delivering the right candidate, not just a candidate.
Key Takeaways
While commission-based recruiting can be economical and sometimes a quick solution, particularly for junior or high-turnover roles, the stakes are higher for hiring for executive positions.
The consultative approach, dedicated partnership, access to a richer talent pool, strategic insights, and risk mitigation offered by retained executive search firms make them the superior choice for leadership searches.
Investing in a retained search firm ensures that your organization benefits from a tailored, thorough, and strategic recruitment process, ultimately leading to the best possible outcomes for your executive-level hires.
The Angeletti Group’s Executive Search Division’s collective experience provides us with a full understanding of the specific requirements and functions of key positions in education, the arts, healthcare, and social services. We provide our clients with a complete range of nonprofit executive search services from the beginning of a search to its completion, including complementary onboarding services.
Reach out to info@theangelettigroup.com to get started finding your next executive leader.
