The Difference Between Retained Search Vs. Contingency Recruiting Posted

As a leading executive search firm in Northern California, one of the most common inquiries we get is: What is the difference between a retained and contingency search – and which is the most appropriate for the position I am trying to fill?

In its simplest form, a retained search is when your company contracts with a search firm in order to identify and screen suitable candidates for a particular position. A portion of the agreed upon fee (a retainer) is paid upfront and the remainder as the search progresses.

With a contingency search, the aim is also to find the best candidate for a particular position. However, your company doesn’t pay the search firm until you hire one of their candidates. In other words, payment is contingent upon delivering a candidate that gets hired.

Besides the method of payment, there are certainly other differences between retained and contingency searches. For instance, in a contingency search, job seekers looking for work are typically targeted as the recruiter looks to match candidates with available openings. Contingency searches are used primarily and most effectively at the middle and lower management levels. They are ideal for positions where:

  • Salary level is less than $100,000;
  • Many individuals are likely to be qualified for the position;
  • Multiple vacancies with the same job description are being filled.

Retained searches, on the other hand, often target the passive candidate – those individuals who may not be actively looking for a new job, but would be interested if approached with the right opportunity. These kinds of searches are most appropriate when the salary level of the position is above $100,000 and when the position being filled is a mission critical one.

Neither contingency nor retained search firms accept fees from individuals for the purpose of helping them find a job (at least, they shouldn’t if they are a reputable firm). However, both types of searches help to ease the workload of organizations and allow employers to focus on aspects other than recruiting and hiring.

If you need to hire for a management level position – or would like to learn more about which type of search is right for your needs, call Pacific ExecSearch. As a leading executive search firm in Northern California, we have extensive experience in sourcing, evaluating and helping companies hire top industry professionals. To learn more about how we can help your organization, please contact us today.