Types of Executive Search: Retained vs. Contingency

Choosing the right search firm is important for successful executive recruitment. Two primary models dominate this arena: retained executive search and contingency search. Understanding the differences between these models is crucial for organizations and executives alike.

Retained Executive Search:

Retained search firms work exclusively with clients to fill high-level or specialized positions. Clients pay a fee upfront to show they are committed to using ample resources and expertise for the search. Benefits of retained recruitment to corporations include:

• Engagement Basis: Retained search firms only work with the client, providing a personalized and customized search process.
• Payment: Clients pay an upfront retainer fee, reflecting the firm’s commitment to delivering high-quality candidates. See full details here: How Much Does Executive Search Cost?
• Candidate Quality: Retained firms provide high quality candidates who meet the client organization’s requirements and fit in with their culture.
• Confidentiality: They prioritize discretion, crucial for senior-level positions or when dealing with sensitive information.
• Focus: Executive search firms focus on senior-level positions and specialized roles, requiring industry knowledge and extensive networks.
• Approach: Their approach is thorough and personalized, aiming to identify the best candidates through extensive research and assessment.
• Competition: They offer exclusive access to candidates, minimizing competition from other firms.

Contingency Executive Search:

Contingency search firms receive payment when they successfully find and place a candidate, and they collaborate with multiple clients. They often focus on filling junior to mid-level positions and may prioritize speed over depth in their candidate search. Here’s a snapshot of their key characteristics:

• Engagement Basis: Contingency firms compete with others to find suitable candidates, without exclusivity, alongside internal recruitment teams.
• Payment: They only get paid upon finding a candidate, making their services accessible to organizations with limited budgets.
• Candidate Quality: The quality of candidates may fluctuate when utilizing a broad pool of candidates, and they may not consistently align perfectly with the client’s requirements.
• Confidentiality: While they maintain a level of confidentiality, it may not be as stringent as with retained search firms.
• Focus: Contingency firms typically target junior to mid-level positions, where speed and cost-effectiveness are paramount.
• Approach: Their approach tends to be more transactional, focusing on quickly identifying and presenting candidates to the client.
• Competition: They compete with other contingency firms and internal recruitment teams, potentially leading to conflicts of interest.

Comparing Retained Executive Search vs. Contingency Executive Search

To better understand the distinctions between retained and contingency search firms, let’s summarize their differences in a comparison table:

Deciding between retained executive and contingency search firms depends on factors like position level, budget, and desired service level. While retained firms offer a personalized and exclusive approach, contingency firms provide speed and cost-effectiveness. By understanding each model and their needs, organizations and executives can make informed decisions for successful executive recruitment.

Ultimately, good communication, trust, and a shared commitment to excellence are essential for a successful partnership between the client organization and the search firm, regardless of the chosen model.

To fully understand how the process of engaging retained executive search specialists works read this blog:

The Process of Engaging Retained Executive Search Specialists

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