The choice between retained and contingency search is really a choice about incentives. For leadership roles, the difference decides the outcome.
When engaging a search firm, companies face a structural choice: retained or contingency. It sounds like a commercial detail. It is actually a choice about incentives — and for leadership roles, incentives decide the outcome.
The two models In contingency search, the firm is paid only if its candidate is hired. In retained search, the company commits to an exclusive engagement and pays in stages for a dedicated process, regardless of where the final hire comes from.
Why incentives matter Contingency rewards speed and volume. The firm is racing other firms and the clock, so it has every incentive to submit quickly and broadly, and little incentive to invest in deep assessment or to advise against a marginal candidate. Retained search rewards getting it *right* — the firm is paid to run a thorough process, so it can afford to map the whole market, assess properly, and tell you hard truths.
What retained search buys - Market mapping — A systematic search of the passive market, not just available candidates. - Assessment depth — Rigorous evaluation of fit, not a rushed shortlist. - Honest counsel — A partner who is paid to advise, including advising you not to hire. - Confidentiality — Essential for sensitive mandates, which contingency cannot protect.
When contingency is fine For high-volume, lower-risk roles with an available market, contingency can be efficient. The mistake is using it for leadership roles where the cost of getting it wrong dwarfs any fee saving.
The real question Ask what you are optimising for. If it is a quick fill of an available role, contingency may suit. If it is conviction in your most important hire, retained search is not the expensive option — it is the prudent one.
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Frequently asked questions
What is the difference between retained and contingency search?
Contingency firms are paid only if their candidate is hired, which rewards speed and volume. Retained firms are engaged exclusively and paid for a dedicated, thorough process — which rewards getting the hire right rather than fast.
Is retained search worth the higher commitment?
For leadership roles, yes. The exclusivity buys market mapping, deep assessment, honest counsel and confidentiality — and the cost of a wrong senior hire far outweighs any fee saved by using contingency for a role that warrants rigour.
Leaders you can bet the company on.
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