Executive search recruitment: Retained vs. Contingency Search

As recruiters, we know that finding the right people for your team can be challenging. How you go about hiring top-tier leaders that can actually move the needle for your company is just as important as who you end up hiring.

In our world, we usually talk about two types of executive hiring – Retained and Contingency. Both are effective at completing the task, but they function completely different and have totally different styles. Because we work on both sides of the equation, we want to break down how they actually work.

By doing this, you can select the solution that works best for your budget, timeline, and goals.

What is Retained Executive Search? 

A retained search is an exclusive, deep-dive partnership between your company and us.

The model is used when you are looking for big deal leadership roles such as C-suite executives, super specialized experts, or roles that your company literally cannot function without.

It costs you an upfront fee to lock us in with this model. We will devote all of our time, energy, and research into finding the perfect match. We won’t look for someone who will simply fill a seat in your office, it’s about your next game-changer.

Here’s what you actually get with retained recruiting:

• We’re all aboard. We work only on the role. We don’t compete with other recruiting agencies, so we can focus 100% of our efforts on what your company really needs.
• Next level candidates. We dig deep to find the “hidden” gems. These are highly qualified people who aren’t actively scrolling through job boards, but would jump for the right opportunity.
• Purely discretion. Leadership changes can be touchy. If you’re a replacement or working on a new project that has to be a secret, we keep it all under wraps.
• Deep research and strategy. We don’t just review resumes. We do deep market research, we look at culture fit, we run serious leadership assessments and we make sure that whoever we find is going to be around for the long haul.

What is Contingency Executive Search?

A contingency search is a different approach to hiring. Here you pay us only when you hire a candidate we send you. There is no up front fee so you can use more than one recruiting agency at a time to see who can bring the best candidates first.

• Friendly competition. As it is non-exclusive, we are often competing with other firms (and your internal HR team) to get you candidates first.
• Zero risk upfront. You pay nothing until someone actually signs an offer letter. That’s fine if you want to keep the initial costs low.
• Speed counts. Contingency recruiters are fast. This is generally the way to go if you have a big talent pool and need someone working by next Monday.

We focus on active job seekers primarily because speed matters, and we want to find people who are ready to interview.

Side by Side: Contingency or Retained?

Very simply, here is how they compare:

The difference between the two

When it comes to recruitment, the approach can vary significantly. Although these two types share the same goal of putting the right people to your company, they still vary at some point. It is important to know how they are different from each other before making any decision. Here are three key differences between contingency and retained search:

1. Payment Structure

In contingency recruitment, agencies are paid only when a candidate they’ve referred is hired. Retained search involves an upfront fee regardless of the outcome, ensuring dedicated attention to the search.

2. Level of Exclusivity

Contingency recruitment often involves multiple agencies simultaneously searching for candidates, while retained search typically offers exclusive focus and commitment from a single agency.

3. Engagement Level

Retained executive search fosters a deeper engagement between the agency and the company, leading to a more thorough understanding of the company’s culture and specific needs. Contingency recruitment might have a faster turnaround but with less involvement.

4. Candidate Screening and Quality

Contingency Recruitment conducts less comprehensive candidate screening, aiming to swiftly present candidates who meet basic requirements.

The focus is often on quantity over quality – means it aims to hire the best employees. Retained search emphasizes candidate quality, and usually involves recruiters investing considerable time in thorough vetting.

This process ensures alignment with required skills, company culture and long-term goals, resulting in a smaller yet highly promising candidate pool.

Which One Do You Actually Need?

It depends. What role are you trying to fill?

If you need a new CEO, department head or key leader to change your company culture, choose a retained search. A bad hire at that level is a time and money loss, so the extra attention, privacy and deep scouting is worth the investment.

If you need a mid-level position filled quickly and don’t require a search for top secret talent, but rather are happy to get tons of great resumes into your hands quickly; contingency recruiting is an extremely sensible and very cost-effective solution.

Both models can work for you in the end. So it really depends on what your timeline looks like, and how much support you need from your recruiting partner. If you are confused on who to hire next and have a team that can take care of it, let us know.

We will help you assess your goals and plot the right road to securing the talent you need.

See also: How Much Does Executive Search Cost?