If you’re considering the prospect of a retained search, you likely have a big role to fill. Maybe it’s a C-Suite position, a senior executive, vice president, board member, or a confidential hire.  

Roles of this magnitude have such a huge impact on an organization that most companies engage an experienced retained executive search firm to conduct the search. Companies choose this recruiting model to ensure they are onboarding the right people for high-stakes, senior-level jobs – and avoiding the wrong ones.  

Questions often arise regarding how talent recruiting models differ. As an established retained search firm, we compiled some of the most frequently asked questions about the distinct retained search method.  

After reviewing these FAQs, feel free to reach out to us for more information or to arrange our assistance in finding the right candidates for your top job.  

1. What is a retained search? 

Retained search is a dedicated, confidential executive search method in which we are contractually committed to finding high-caliber leaders for clients. We focus exclusively on demonstrated, experienced professionals who are decisive under pressure, strategy-minded, emotionally intelligent, accountable for outcomes, resilient through times of uncertainty, and trusted to lead when the cost of failure is high.  

For a hiring company, this type of recruitment is about buying certainty, access to elite talent, and the assurance of long-term performance where failure is not an option. Paying an upfront fee secures the exclusive resources and results you need from us to fill a high impact role in your company or on your board of directors.  

We fully manage the rigorous work required to find the pivotal talent you need, which allows you to focus on your daily operations and business. When you engage Goodwin Recruiting for your retained search, you have a dedicated team committed to your search, and you receive a choice shortlist of optimally qualified candidates to consider. 

2. Should we use a retained search firm? 

Many companies question whether they should use a retained search firm instead of hiring internally or conducting an external search on their own. While internal and independent external hiring work for many roles, mission-critical leadership searches require resources most companies don’t have in-house.  

For example, companies are not in the business of growing nationwide talent networks that include passive candidates. This is significant because 70-85% of senior leadership roles are filled by passive candidates – executives who are not actively job-hunting but are privately recruited in a targeted search.  

High-stakes leadership recruiting demands market access, industry intelligence, and dedicated time and focus for what can be an extended, high-touch search. It requires in-depth vetting, risk-mitigation expertise, and other capabilities most internal HR teams aren’t built to deliver, at least at this level.  

Retained search firms specialize in meeting the explicit requirements for sourcing and attracting top performers. Consider the 80/20 rule, or Pareto Principle. In leadership, it suggests that about 80% of a team’s results come from 20% of its efforts or inputs. Great leaders apply this rule by focusing on tasks, people, and resources that create the biggest impact.  

When you engage in an executive search, you want a leader who operates in that top 20%. Retained search firms like Goodwin Recruiting allow you to hire smarter and selectively by delivering demonstrated performers you can rely on to drive your desired results. 

3. How do retained search fees work?  

Typically, retained searches are invoiced by the search firm and paid by the hiring company in three installments:  

1. The upfront retained search fee is based on a candidate’s first-year annual salary. This amount is calculated based on the average annual base salary for the specific role. The fee is paid to the retained search firm at the signing of the fee agreement or start of the search, when 1/3 of the total invoice amount is due.
   
2. When an employment offer letter is signed by a chosen candidate and the hiring company, the next 1/3 of the invoice amount is due. This amount is based on the actual salary offered, minus the first payment.
   
3. When the chosen candidate officially begins employment, the final 1/3 of the invoice is due, which is also based on the actual annual salary offered. 

4. What is the normal turnaround time for a retained search? 

The total length of time involved in a retained search depends on the position being filled and the details of the search, but our team works quickly to deliver results. At Goodwin Recruiting, our recruiting partners are among the most well-networked experts in the talent recruiting business. If you engage us to perform a retained search, we can share a more specific timeline based on similar past searches.  

It’s important to note that timeliness in communications from the hiring company is of the utmost importance in a retained search. The faster you communicate with your retained search firm, and the faster they communicate back with you, the quicker your turnaround time will be to complete a search. 

5. Do retained searches come with a candidate guarantee?  

Yes. Credible retained search firms include a placement guarantee in their agreements, stating that they will provide a replacement candidate if a hire does not work out within an agreed-upon timeline.  

When you retain Goodwin Recruiting for your search, should the candidate cease employment for any reason during the guarantee period, we will provide a one-time replacement. 

6. Will my retained search be confidential? 

Yes. Experienced executive recruiters offer full confidentiality.  

There are many reasons a hiring company may need to maintain confidentiality during a retained search. For example, a company may need to line up a candidate while there is still someone in that role. Approaching potential candidates also requires trust and the assurance of confidentiality for the candidates themselves, as well as the hiring company.  

In a true spirit of partnership, recruiters of integrity understand and diligently protect the sensitive nature of the talent recruitment and hiring process.  

Let a leader find elite candidates for your executive team or board  

For the fifth year in a row, Goodwin Recruiting is ranked as a Forbes Best Executive Recruiting Firm, and as a Best Professional Recruiting Firm for the sixth year in a row.  

We place professionals in thousands of jobs every year. With more than 1.4 million candidates in our talent network and 1,000+ combined years of experience on our recruiting team, we are your go-to recruiting firm to find unique and talented candidates, from manager to executive-level roles. In addition to retained search, we also offer a contingency recruiting model to give clients flexibility for their timelines and budgets.  

Partner with an experienced retained search firm to find top talent for your critical executive positions. Make a connection with Goodwin Recruiting today.