4 reasons not to pay a recruitment retainer

Greg Wyatt • Nov 21, 2022

From time to time, when I recommend running a project with a retainer, employers baulk at the upfront cost.

This is how I look at it.

If we assume you're talking to me because a typical cookie-cutter transactional approach isn't cutting it, and you need something 'better' (there's nothing inherently wrong with transactional btw). You want a recruiter who focuses on quality by working selectively at low vacancy volume.

And we assume you are happy with how I've transparently illustrated my approach, process and track record (which is 100% for retained work). No BS - no hidden headhunting network or smoke-hidden mirrors.

You also accept that a retainer / instruction fee covers the specific tools, resources and research time to find the person you need when you need them. That the benefit is principally for you because my profit is derived from the final fee, not the retainer.

That we've established the overall fee is the same, irrespective of the size of the instruction fee, and it's backed up by an industry-beating guarantee.

Then there are only four reasons why you might baulk:

1/ you don't have permission to pay a retainer

You like the idea in principle but your boss doesn't buy it. We should have involved them at the outset. It's my fault for not establishing this, not yours.

2/ you aren't confident I can fulfil on my commitment to you.

Isn't this worth further discussion, so I can instil in you that confidence? And if I can't then it's not the retainer that's the issue, it's that you don't trust me. If we can't find that trust, which I am accountable for building, other recruiters are available.

Therefore it's me, not the retainer that's the problem.

3/ you aren't confident that your decision to fill the role will stick.

You think there's a risk you might decide not to recruit after all, and don't want to incur unnecessary costs.

I get it. We work in a time of unique vagaries, and sometimes things change.

But then if you expect me to invest in fit-for-purpose tools, resources and research, with the risk of not covering these costs - that's a notable business risk, and would you expect me to run a business that way?

or

4/ you didn't want 'better' after all

Sure I can look at using my general resource to work without a retainer, but what does that say when you want something 'better', yet aren't willing to enable me to give you my best?

Did I miss something?

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