Contingency recruiting firms are paid only when a placement is made, making them a flexible choice for lower-risk roles. Retained search agencies, on the other hand, receive an upfront fee to conduct a comprehensive search, often for senior-level or specialized positions.
When deciding between these models, consider urgency, budget, and the importance of discretion. Retained search typically provides more dedicated resources and a targeted approach, whereas contingency can yield results quickly at a lower commitment.
Both models have their place in a balanced hiring strategy, and platforms that support each can help you select the right solution for every vacancy.
| Factor | Contingency Search | Retained Search | | ------ | ----------------- | --------------- | | Payment Structure | Recruiter is paid only upon a successful hire. | Client pays an upfront fee and completion fee. | | Typical Roles | High-volume or lower-risk positions. | Senior or highly specialized positions. | | Commitment Level | Non-exclusive; companies may use multiple agencies. | Exclusive engagement with dedicated resources. | | Example Scenario | Startup quickly hiring several sales reps. | Confidential search for a CFO before an IPO. |
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