Executive Summary
Contingency search firms get compensated for their services only after they have placed a candidate with a client company. This differentiates them from retained search firms, which are paid regardless of the outcome of a particular search.
Generally, a contingency firm will take a broader approach to a search, typically uncovering a wider range of resumes than retained firms. Contingency firms are more likely to focus on filling mid-level management positions while retained search firms are typically used to search for top-level executives.
While some contingency firms concentrate on specific industries, most of the contingency firms represented on this list provide services to a wide range of industries and clients.
Local contingency firms had a strong year in 1998. Combined revenues of the top 15 firms in L.A. County jumped more than 20 percent over 1997, to $44.75 million. That’s a far cry from 1992, when local unemployment was soaring and the industry felt the pinch.
The Pacesetter
Source Services/Romac International also topped the list last year when it was known as Source Services Corp. In April 1998, the company merged with Romaq International and took its new name. The merger more than doubled the company’s size, to $700 million in nationwide revenues.
Headquartered in Dallas, the firm has four divisions that operate out of Los Angeles. Source Finance is responsible for accounting and financial professionals, and Source Edp specializes in information technology candidates. The other two divisions, Source Consulting and Accountant Source Temps, focus on information technology consulting and temporary accounting and financial staffing, respectively.
The company was most active in placing entertainment-industry executives last year, according to John Spencer, regional vice president, followed by financial services. It also has been active in placing executives with expertise in e-commerce.
In the past nine months, Romaq has increased its L.A. County recruiting staff by 80 percent, Spencer said.
