Hiring the right person in healthcare goes way beyond a budget issue. It affects patient safety, compliance, staff morale, patient satisfaction, and litigation risk. That’s why you want to make sure you use the right hiring model, whether it be contingency search or retained search.
The Basics: Retained vs. Contingency Search
You might be weighing both models and wondering which model is better for your current hiring needs. Both approaches offer a path to sourcing qualified candidates, but their strategies, timelines, and commitments differ significantly.
In a retained search, you engage a search firm with an upfront financial commitment. This firm becomes your exclusive partner. Think of the retained search recruitment model like hiring a consultant: you pay a retaining fee, and they consult with you about your organizational goals, culture, hiring process, onboarding, and the nuances of the position. Then, they provide strong matches and continued support after hiring. You’re paying for a strategic hiring process.
With a contingency search firm, you typically only pay if you hire one of their candidates. Their focus is on finding qualified candidates quickly. You might work with several contingency recruiters simultaneously to get the best results. The contingency search model typically limits the recruiter’s involvement in the hiring process to simply providing you with vetted candidates who match your job description. You’re paying a finder’s fee for speedy options but missing out on additional support.
Key Differences
To help you compare both approaches clearly, here are a few important distinctions:
- Commitment: Retained search firms are your exclusive partners from start to finish. They may help you define the role even before they officially begin the search. After hiring, they may help you with onboarding and assist with the employee’s transition into your company culture. Contingency firms usually consider their job done once they have placed the candidate.
- Payment Structure: Retained firms charge upfront or in installments. Contingency firms charge upon the successful placement of their candidate.
- Candidate Access: Retained firms are more likely to access passive candidates. This means they look beyond just those who are actively job hunting and find candidates who are willing to join your team for the right offer. Contingency firms rely heavily on active job seekers.
- Process Depth: Retained searches involve deep consultation, vetting, and long-term fit analysis. Contingency searches emphasize speed and volume.
In healthcare, these differences carry real consequences. You’re hiring for trust, safety, and leadership. Will a retained or contingency search firm match your needs?
The Cases for Contingency
Contingency searches have their place in healthcare when their speed matches your needs. When the role is for frontline staffing, an easy-to-define position, or a position that needs to be filled right away, having a qualified candidate quickly is probably more important than whether they align perfectly with your organization’s culture.
For example, working with contingency recruiters is a practical choice if your emergency room has recently lost multiple registered nurses. You get resumes for experienced and interested candidates fast, and you only pay if you hire one of the recruiter’s candidates.
Consider the contingency model if you have a well-established internal hiring team that needs supplemental support. The recruiters can provide a stack of resumes for your team to consider while you’re in control of vetting, interviewing, and onboarding new hires. The contingency model focuses on filling your position fast. In exchange, you do more of the heavy lifting to ensure quality.
Retained Search Fits Healthcare
Most healthcare systems are value-driven organizations, and hiring is about having qualified people who share your values and purpose. A retained search firm takes the time to understand your organization’s unique culture, patient population, and mission. That context allows them to recruit the right candidates. Generally, a retained search firm will best address your healthcare hiring needs at the managerial and executive levels.
A retained search firm offers great value if you’re specifically recruiting high-level, specialized, or confidential roles in healthcare. When the firm vets candidates, they will focus on aligning credentials, emotional intelligence, communication skills, and team dynamics. Retained partners also provide follow-up support and onboarding consulting to make sure your critical hire is a long-term success.
Say you are hiring a chief information officer (CIO) to expand your rural clinic’s telehealth services. You need a professional who shares your patient care philosophy and works well with your medical experts to spearhead the initiative for the right purpose. Working with a retained CIO executive recruiter to find a candidate aligned to your values and culture will ultimately save you costs by finding the right fit the first time.
Use the Hiring Model Right for You
The right model depends on your situation. A retained search is likely your best bet if your hiring needs lean toward complexity, leadership, or long-term impact. If you need immediate help with frontline positions, a contingency search might meet your needs more efficiently.
When you understand the difference between retained and contingency search, you gain strategic control over your organization’s growth. As you prepare to fill your next key role, don’t just ask, “Who do we need?” Ask, “How should we find them?” The more intentional you are in choosing your hiring path, the more likely you are to find candidates who align with your values and help you thrive.
