- Over half of Philippine businesses fear they won’t survive the next decade without change. That’s why strong leadership is essential for long-term success.
- Contingency search is a smart strategy to access a wide talent pool without upfront costs amidst the competitive job market.
- This model is ideal for local businesses because it’s cost-effective, low-risk, flexible, scalable, and results-driven.
- Sysgen RPO specializes in connecting businesses to competent candidates in finance, engineering, digital marketing, and IT.
Did you know that 71% of Filipino CEOs say a lack of workforce skills is a major barrier to business model reinvention?
This is a serious concern, especially since 54% of local businesses believe they won’t be economically viable in the next decade if they continue on their current path.
With such high stakes, having the right leadership in mid to senior-level roles has become more crucial. However, finding top executive talent remains challenging for many organizations without a strategic and efficient recruitment approach.
This is where the contingency search becomes a game-changer—a results-driven solution that helps businesses access top talent without upfront costs.
In this article, we’ll explore why contingency search is a smart, flexible choice for Philippine businesses and how it can help you attract and recruit the right leaders for long-term success.
Understanding Contingency Search
Contingency search is an executive recruitment strategy where employers only pay upon a successful hire. Commonly used for mid-to-senior-level roles, this model allows you to access a broad talent pool without upfront costs.
How Does Contingency Search Work?
- Client Engagement: Companies partner with recruitment agencies to find suitable candidates for an open high-level position.
- Candidate Sourcing: Recruiters actively search their networks, databases, and industry connections to identify top talent.
- Screening and Shortlisting: Potential candidates undergo initial assessments and interviews before being presented to the hiring company.
- Interview and Selection: The client conducts interviews and makes a final hiring decision.
- Placement and Payment: The recruiter receives a fee only if their candidate is successfully hired, making this a low-risk option for companies.
The Best Times to Use Contingency Search
- For Mid-to-Senior-Level Roles: Works best for positions that require experienced professionals but do not necessarily fall under C-suite or executive leadership, such as department heads or senior managers.
- When You Need Multiple Candidates: If your company has several openings for similar roles, a contingency search can help you identify and evaluate multiple qualified candidates simultaneously from different agencies.
- If You Want to Explore the Market: You can adopt a contingency search to assess the market without committing to an exclusive search. This is especially useful when considering future hiring needs or succession planning.
- When Speed is a Priority: Contingency recruiters are motivated to act fast, often competing to present the best candidates first. You can leverage this when replacing a departing employee or filling a critical vacancy under tight deadlines.
Why Contingency Search Is Ideal for Philippine Businesses
A PwC report reveals that 45% of Filipino CEOs plan leadership changes within the next three to five years. However, only 23% of companies have a formal succession plan, increasing the risk of leadership gaps and operational disruptions.
Let’s look at the benefits of contingency search to help local businesses secure top talent efficiently and cost-effectively.
1. Cost-Effective and Low-Risk
Hiring the wrong people isn’t just inconvenient, but it’s also expensive. According to Business.com, a bad hire can cost you up to 30% of your employee’s first-year earnings. That’s around ₱144,180 and ₱399,732, depending on the manager’s salary.
Beyond the financial hit, replacing an employee is time-consuming. On average, it takes around six months to recruit and onboard a new mid-level manager. During this period, productivity dips, workloads increase for other employees, and business operations may suffer.
With a contingency search, you only pay when a successful hire is made, eliminating upfront costs and reducing financial risk. This ensures you get access to qualified candidates without unnecessary recruitment expenses.
2. Faster Access to Top Talent
The longer a hiring process takes, the harder it becomes to secure top candidates. Although recruitment only lasts approximately 43 days, it can get delayed due to indecision, poor organization, or lengthy interview rounds.
Top candidates value efficiency. A report claims that 70% of job seekers consider the smoothness of the recruitment process a key factor when choosing between multiple offers.
A drawn-out process not only risks losing skilled professionals but also affects your company’s reputation as an employer. However, contingency search services can help you secure pre-vetted, competent candidates, avoiding these issues.
3. Flexible and Scalable Hiring Solution
Business needs change, and so do hiring demands. Whether you’re scaling quickly or filling urgent roles, a contingency search provides a flexible recruitment approach that adapts to your company’s evolving needs.
For example, if you’re just growing your business with limited resources, committing to an in-house recruitment team may not be practical. On top of saving from their salary expenses, a contingency search allows you to hire on demand, making it an effective solution for small and medium enterprises (SMEs).
4. Performance-Based Results
Unlike other executive recruitment models that require hourly, flat, or retainer fees, a contingency search is entirely results-driven—meaning you only pay when a qualified candidate is placed in your company.
Recruitment firms remain fully invested in finding the right candidate quickly and efficiently. Since their compensation is directly tied to a successful hire, they will prioritize quality over quantity.
This can be beneficial in instances where a key employee resigns unexpectedly since a contingency search ensures that your business operations remain stable while providing strong candidate options without upfront commitments.
Find the Right Leaders Faster with Sysgen RPO’s Contingency Search
Building a strong leadership team is essential for long-term success, but finding top talent can be challenging without the right recruitment strategy amidst today’s competitive job market.
Contingency search services offer a cost-effective, results-driven approach that offers you access to highly qualified candidates without upfront financial commitments.
Recruitment firms like Sysgen RPO specialize in low-risk executive recruitment, connecting your business with highly qualified candidates in finance, engineering, digital marketing, and information technology (IT).
Are you struggling to find and recruit the right leaders quickly and efficiently? Reach out today to discover how we can make hiring simple, strategic, and stress-free for you!
