How Contingency & Retained Search Methods Differ

There are several key differences between retained and contingency recruiting in the way the process is carried out.

A retained consultant is typically working exclusively on one search and is expected to evaluate all candidates being considered for the position. A contingency consultant usually does not have an exclusive assignment, but instead is in pursuit of qualified candidates for presentation to several openings throughout the marketplace.

As a result, a retained consultant is focused on a single search until it reaches closure and allows the search to be completed in a shorter period of time. Consultants working on a contingency basis are working several key assignments at any one time and therefore must allocate their time to achieve success across the marketplace.

Fees for the two kinds of service are similar - typically 25 - 35% of guaranteed first-year compensation for the hired candidate. Retained searches require an estimate of the fee and as a result bill for a portion of the fee to initiate the engagement, with subsequent invoices leading to a final bill that makes an adjustment based on the actual compensation package awarded to the hired candidate. Contingency searches, on the other hand, bill upon hiring.

Both methods can be very effective, efficient, and cost-effective. A decision between the two methods can be brought down to questions of timing and confidentiality. If your needs are immediate and you would prefer to maintain market anonymity, a retained search may be most appropriate. If timing is not as critical, you may wish to entertain a contingency search. Contact us today to work out the best approach for your needs.