Why Small and Midsized Hospitals Should Use Retained Search Recruiting Model

In the healthcare industry, small and midsized hospitals often face a challenge in finding the right talent for executive and senior-level positions. The traditional approach of contingency-based recruiting can lead to a number of problems. In this blog post, we will discuss why small and mid-sized hospitals should consider hiring recruiting agencies on a “retained” basis instead of a contingent basis, outlining the problems with “contingent search” models and the benefits of “retained search” models in the healthcare recruiting industry.

Contingent Search Model: Problems and Limitations

Contingent search models are commonly used in the healthcare industry. However, the contingent approach to recruitment can be problematic for small and midsized hospitals. One of the main problems with contingent search models is that the recruitment firm is not incentivized to prioritize the search for the hospital. In this model, the recruitment agency only receives compensation if a placement is made. As a result, the agency may work on several different projects at the same time and only devote a limited amount of time and resources to each search. This can lead to rushed decisions, poor candidate screening, and a lack of focus on the specific needs of the hospital.

Another problem with contingent search models is that they can result in a higher risk of bad hires. Since the recruitment agency is only compensated if a placement is made, they may be more likely to present candidates who are not a good fit for the role. Additionally, because the agency is working on multiple projects, they may not be fully invested in the success of the placement.

Benefits of Retained Search Models in Healthcare Recruiting

In contrast to the contingent search model, a retained search model ensures that the recruitment agency is fully invested in the success of the placement. Retained search agencies, as described in [1], are expected to have advanced knowledge of the industry and better understand what the hospital needs in a great employee. They charge a placement fee based on the annual salary, which incentivizes them to find the best candidate for the job.

There are several benefits to utilizing a retained search model for healthcare recruiting. Firstly, retained search firms prioritize the search for the hospital, which ensures that the placement takes higher priority than commission-based placements. As a result, the hospital receives a more thorough search and better candidate screening. Secondly, the retained search model reduces the risk of bad hires, as described in [3]. Retained search agencies are incentivized to present only the best candidates for the job, which reduces the risk of a bad hire.

Conclusion

In conclusion, small and mid-sized hospitals can benefit from hiring recruiting agencies on a “retained” basis instead of a contingent basis. Retained search models prioritize the search for the hospital, and reduce the risk of bad hires. In contrast, contingent search models can lead to rushed decisions, poor candidate screening, and a higher risk of bad hires. By choosing a retained search model, hospitals can ensure that they receive the best possible candidates for executive and senior-level positions.