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AccordingToDanny is a website run by Danny Cahill of Hobson Associates, on which he or one of his experts provide answers to your most difficult staffing and executive search questions. ACCESS is pleased to provide you monthly with a question and answer from his website. Here are this month's Q&A:

Q: Hi Danny,
For the past 11 years we have primarily been a contingency search firm but in the past 2 years we have been trying to migrate to more of a retained model. We have been asking for and getting retainers for more senior level positions with select customers.

About six weeks ago we engaged in a retained search for a $250k VP position at 30%. We asked for and received a non-refundable engagement fee and installment fee (combined 30% of estimated total fee). The CEO and COO are both heavily involved with the search and they wanted it done quickly. Within four weeks we had identified a total of seven candidates. Four we felt were perfectly qualified for the position and three were a bit overqualified but the client wanted to see them too. Now the client has decided to upgrade the position to a GM/SVP in the $300k - $400k range. They want to interview two of the three candidates that were over qualified for the original position and have indicated that if they don't work out then they would want to restart the search with all new parameters.

I'm concerned about starting over with another aggressive timeline only to have them potentially decide to change the parameters again or perhaps not fill the position at all. My question is that since we have already completed probably 85% of the work for the initial position, is it unreasonable to expect them to pay another retainer for the new position if they decide to do a restart?

A: Danny's response:
It’s not unreasonable at all for you to want another retainer after doing all that work and they have decided to restart the search.

It’s just not going to happen!!!

I can guarantee you they will feel that changing the parameters is a client’s prerogative; they have already paid for the privilege by paying your retainer fee. They will see the search as having been upgraded, not started over, and they will resist forcefully paying you any more upfront money.

But that’s not your problem! Your problem is you only get the real money, the balance, when they hire. So by all means pull out all the stops:
1. Point out to them how much work you’ve done chasing candidates that were right under the old spec’s but not under the new ones
2. Make it clear how all of these candidates you now have to let down are potential clients of yours and they will be angry at having been put through hoops before the job was clearly defined.
3. Be over the top about how this can’t be repeated at the next level of candidate, and you need to know they have serious urgency and won’t change their minds again.
This “dressing down’s” purpose is to get them to hire quickly, not to milk more upfront cash out of them. I would go the other way, and say, “look, we normally would require another retainer to essentially start over, but I will waive that and do my dead level best if you are SURE this time we have our target’s coordinates." (then if they volunteer money, take it, but in the end we want a trigger to be pulled!)

Get used to this as you continue your migration into retainer. They expect more service, they want you to jump when they say jump, and as you are learning, they feel it is within their rights to “shop.” That’s the trade off for money up front. Contingency recruiters are bachelors. Retained recruiters have a ring on their finger.

To get an answer to your own question, please visit the AccordingToDanny website.