When companies need to hire, they can either handle the search internally or partner with an external talent search firm. For those that decide to seek outside help, two primary models dominate the recruiting space, retained and contingent search. While both focus on helping organizations hire, the way they operate and the results they tend to produce can differ significantly.
How the Models Work
The choice between these two models often leads to a fundamental question: what is the best approach for your organization’s needs? Understanding the implications of both models is crucial, especially when considering options like Retained vs Contingent Executive Search.
In a retained search, the firm is hired exclusively to fill a specific role. They’re paid a portion of their fee (or the full fee) upfront and they are expected to deliver a full, strategic search from start to finish. It’s a collaborative, consultative approach that typically includes market research, candidate outreach, extensive interviews, vetting, and more.
Contingent search, by contrast, is paid only if and when a hire is made. There’s no guaranteed payment for their effort. A company might engage several contingent firms at the same time. This means whoever gets the hire first, gets the fee.
Different Approaches to the Candidate Market
Retained search firms tend to focus on identifying passive candidates. These are professionals who aren’t actively job-hunting and may need to be convinced to even consider moving. Confidentiality can often also be critical. Many of these candidates won’t respond to a mass outreach or any job ads.
Contingent firms more often focus on candidates who are already applying for jobs or have highlighted “open for work” on LinkedIn. These individuals are easier, and less costly to reach and quicker to respond, but are the more “active” candidates.
Process Depth and Commitment
The retained model allows for a structured process. Firms meet with the hiring team, build a position profile, and research the market thoroughly. They invest in long, video interviews and detailed candidate write-ups and stay involved through final negotiations.
Contingent search is often faster but lighter. Firms work from a job description and focus on forwarding resumes that roughly match. The client typically takes on more of the evaluations and screenings of many of candidates.
Neither approach is inherently better, it depends on the role.
When Each Model Makes Sense
Retained search is usually reserved for leadership roles or difficult to fill positions. Companies often opt for a deeper process when cultural fit, strategic alignment, or industry specialization matter.
Contingent search works well when hiring entry to mid-level roles, the talent pool is broad, and the requirements are less specific. It can be a practical solution when multiple hires are needed or when the company has the internal bandwidth to manage evaluating a high-volume of candidates.
The Business Case
It’s tempting to view contingent search as “free” until a hire is made. But there are tradeoffs. Firms working on contingency often take on dozens of roles at a time and must prioritize those with the highest chance of a payout. As a result, some searches stall or go cold if they can’t easily find candidates to submit.
Retained search requires an upfront commitment, but in return, clients get more focused attention and typically higher completion rates. Some firms fill more than 90% of retained roles they take on, compared to 30–50% for contingent, depending on the firm and the market.
Final Thoughts
Both models have a place. What matters is matching the search approach to the importance of the hires. For roles tied closely to growth, leadership, or long-term strategy, retained search will offer more value. For roles that have less specific requirements, are lower-risk, or easier to source, contingent search may be the better fit.
Hiring well is always an investment. The right model ensures that investment delivers the returns you need.
