Retained vs. Contingency Search: Which Is Right for Your Next Executive Hire?
When companies hire outside help to fill a senior role, they usually choose between two main models: retained search and contingency search. Both can work well. The right choice depends on the role, the market, and how important the hire is to your business.
What is contingency search?
In a contingency search, the recruiting firm is paid only if you hire a candidate they present. If you fill the role another way, or do not fill it at all, you usually owe nothing.
Contingency search is often a good fit for:
- Mid-level roles with a large pool of candidates
- Roles that are common and easy to define
- Situations where you are also hiring through other channels
Because the firm is only paid if it wins, contingency recruiters often work several searches at once and may focus on candidates who are already looking.
What is retained search?
In a retained search, you hire a firm to run the search from start to finish. The fee is usually paid in stages: part at the start, part during the search, and the rest when the hire is made.
Retained search is often the better choice for:
- C-suite and VP-level roles
- Hard-to-fill roles with a small talent pool
- Confidential searches, such as replacing a current leader
- Roles that are critical to the company's success
With a retained search, the firm commits time and resources to your project. That usually means a deeper search, more outreach to passive candidates, and a more structured process.
Why passive candidates matter
The best senior leaders are often not looking for a new job. They are busy doing well in their current role. To reach them, a search firm has to identify them, contact them directly, and make a strong case for why your opportunity is worth considering.
This kind of direct outreach takes time and skill. It is one of the main reasons companies choose retained search for important roles.
Questions to ask any search firm
Before you choose a partner, ask:
- How many searches will this consultant be working on at the same time?
- How will you find candidates who are not actively looking?
- What does the process look like, step by step?
- How often will we get updates?
- What happens if the person we hire leaves early?
Good answers to these questions will tell you a lot about how the search will go.
Our approach
We focus on senior leadership roles in aerospace and defense, manufacturing, and technology and AI. If you are weighing your options for an upcoming hire, contact our team to talk it through.