By Casey Kraus

With so many firms offering so many options, it can be challenging for hiring teams to decide on a job search partner. Most firms use search models that fit into one of two categories: retained or contingent. But what do those terms mean? We’ll define both search methods and break down some pros and cons to help you make an informed choice between them.

What are Contingent and Retained searches?

At its core, a contingent search means a hiring firm gets started as soon as you sign an agreement with no up-front cost. Specialized Recruiting Group Stillwater uses this model for most of our Direct Hire searches, with a retained search option to increase priority. Contingency search is low-risk and only requires payment when the candidate of your choice accepts the position.

A retained search, naturally, requires you to provide a search firm with an up-front retainer. In exchange, the firm agrees to serve as your exclusive hiring partner. This exclusivity often comes at a higher price than a contingent search but ensures that a firm isn’t pitching the same candidates to more than one company. We use this model for our Executive searches to prioritize finding leaders with highly specialized skills.

Each firm offers a unique process.

It’s essential to keep in mind that these are general definitions of each search method, and every firm has its own take on one or both. SRG Stillwater’s contingent search, for example, offers specialized experience and a guarantee that we will find the right candidate—characteristics typical of retained searches at other firms.

A clearly defined search process is a good sign that a firm has your best interest in mind. It should be easy to find and offer details on how they conduct their retained and/or contingent searches.

SRG Stillwater's "Strategic Search. Simplified." Process

The advantages and disadvantages of Contingent and Retained searches:

Even with firm-to-firm differences, some pros and cons apply to the two search processes across the board.

Pros of contingent search:

• You only pay the firm after they complete a successful search.
• The firm can work with your existing recruiting team to expand your candidate pool, so you aren’t locked into their results.
• You can send the firm more open positions since you aren’t tying up your budget with retainers.
  

Possible cons of contingent search:

• There is no guarantee that the recruiting agency will find a suitable candidate (this is also a pro, as you are not paying in advance for the agency to come up short).
• You may get less personal attention as the recruiting agency might spread its resources to cover more orders for other companies.
• Unskilled contingency recruiters may not invest enough time and effort to find the best fit. Their goal may be to hire someone as quickly as possible so they can get paid.

Pros of retained search:

• Retainers ensure an exclusive partnership with dedicated resources.
• This method can be more cost-effective in the long run, with only one avenue to find talent.
• Paying part of the fee upfront helps ensure the firm keeps your search at a higher priority level.

Possible cons of retained search:

• An exclusivity agreement with the firm means you can’t engage other firms or internal staff during the search process for a position.
• The firm may deliver candidates slowly since the retainer has already been paid. This can be especially difficult for a company that needs talent but is going through tough times.
• There is no guaranteed hire, so this method can be higher-risk and more expensive.

The best method for your company’s search depends on your individual needs, culture, and criteria. We hope this breakdown answers your questions about the differences between retained and contingent searches.

Want to learn more?

If you are looking for a search partner that offers specialized recruitment, evaluation, and onboarding, SRG Stillwater can help. Our recruiters are experienced in Direct Hire searches for positions of all levels, with an emphasis on Executive roles.

If you have any questions or need help filling a role at your company, our Executive and Professional Recruiters would love to speak with you. You can reach SRG Stillwater by filling out our contact form or calling us at 651-383-2020.