With varying economic situations hitting the corporate sectors, the executive search industry is redesigning its business model to suit the economic variations, Economic Times reported. The report added that according to experts companies have started looking more towards contingent search firms. Contingent search firms charge only when a candidate is selected, while retained search firms charge an advance of 33 per cent, then 33 per cent when the profiles are shortlisted and balance on closure.
Amid current economic scenario, the retained search firms these days are becoming more accountable for the searches these days moreover they are also offering free replacement after six months of placing the CEO. The report quoted Spectrum Talent Management Director Vidur Gupta as saying, "The reason is primarily the cost factor, Contingent being way more economical, quicker as many consultants engaged and much more competitive because of the success dependant fee is now being seen as a more viable option."
Read the complete report here