Retained vs. Contingency Search: Which is Right for Your Hire?
Choosing the right recruitment model is critical. The two most common types are **retained** and **contingency**. While both aim to fill open roles, their methodologies, philosophies, and ideal use cases are fundamentally different. Understanding these differences is key to ensuring you engage the right kind of partner for your needs.
| Feature | Retained Search | Contingency Search |
|---|---|---|
| Payment Model | Exclusive partnership. Fee paid in installments (retainer), typically one-third upfront. | No upfront cost. "Success fee" paid only upon candidate hire. |
| Commitment | Dedicated & Exclusive. The firm is committed to filling the role and provides a dedicated team. | Non-exclusive. Multiple firms may compete. The focus is on speed over depth. |
| Ideal Use Case | Senior-level, critical, or confidential roles (CEO, CFO, VP). Niche and hard-to-fill positions. | Junior-to-mid-level roles, multiple similar openings, less urgent hires. |
| Process | In-depth, consultative process: market research, deep vetting, strategic advice. | Faster, resume-focused process. Often a "race" to submit candidates from an existing database. |
| Candidate Pool | Access to the entire market, specializing in "passive" candidates who are not actively looking. | Primarily focused on active job seekers and candidates in their database. |
| Relationship | Strategic, long-term partnership with the client. Acts as an advisor. | Transactional relationship focused on filling a specific job order. |
| Success Rate | Very high (typically >90%) due to the dedicated, exhaustive process. | Lower, as focus is divided among many non-exclusive roles. Can result in no placement. |
When to Choose Retained Search
You should strongly consider a retained search when:
- The role is at the executive or senior leadership level.
- The hire is mission-critical to the company's future.
- The search must be kept confidential.
- The ideal candidate has a rare skill set and is likely not looking for a job.
- You need a true strategic partner to provide market intelligence and advice.
When Contingency Search Makes Sense
A contingency model can be effective when:
- You are hiring for multiple junior or mid-level roles with common skill sets.
- The role is not urgent, and you want to see a large volume of resumes quickly.
- Your budget does not allow for an upfront investment in a retainer.
- You are primarily looking to engage candidates who are already active in the job market.