When you need to fill a senior leadership position, the executive search method you choose will directly impact your hiring success. Two primary approaches dominate the landscape: retained search and contingent search. Each serves different purposes and delivers distinct advantages depending on your specific needs.
Understanding these differences will help you make an informed decision that aligns with your company’s goals, timeline, and budget constraints. Read along as we take a deep dive into choosing between retained and contingent executive search providers.
What Is Retained Executive Search?
Retained executive search operates as an exclusive partnership between your company and a search firm. You pay an upfront fee that secures the firm’s dedicated commitment to filling your position. Keep in mind that the full cost of the partnership might get broken down into at least three payments that you make once the agency delivers on certain progress milestones. However, you must always pay the initial fee before the agency performs any work: this fee is itself the retainer.
Once you provide the retainer, the search firm commits its full resources to your search. This includes conducting comprehensive market research and targeted outreach to identify both active and passive candidates.
Retained searches can vary in timeline, though 90 to 120 days from start to finish is a reasonable estimate for many positions. That said, the complexity of the position you’re trying to fill and the availability of qualified candidates, as well as your search firm’s network, all play a role in determining timeline.
Regardless, when you partner with an agency on retainer, you essentially guarantee that they will work for as long as it takes to fulfill the position appropriately. They can commit to deeper candidate assessments, making them particularly useful for C-suite positions, board roles, and other critical leadership positions.
What Is Contingent Executive Search?
Contingent executive search works on a success-only basis. You pay the search firm only after they successfully place a candidate who remains with your company past the guarantee period (usually 90 days).
Additionally, unlike with retainer agencies, contingent search agencies don’t require an exclusive partnership. This means you can hire multiple firms to fill your position simultaneously, creating a competitive environment.
This model appeals to companies with immediate hiring needs and those working with tighter budgets. The search firm earns payment only upon successful placement, which means they have a strong incentive to move quickly and present viable candidates.
Contingent searches typically move faster than retained searches, with placement timelines ranging from 30 to 60 days. Again, this is only an estimate; actual timelines vary widely depending on the scope and practicality of the search. But the typically faster timeline works well for positions that need to be filled urgently or for roles with clearly defined requirements.
Key Differences That Matter
At this point, you have a general idea of what’s at stake when you’re choosing between retained and contingent executive search. Now, let’s explore the specific factors that distinguish these two approaches in more detail.
Investment and Commitment Levels
Retained search firms dedicate specific consultants to your search and limit the number of searches they handle simultaneously. Contingent firms may work on dozens of searches at once, which means they divide attention across multiple clients.
Candidate Quality and Accessibility
Retained firms have established relationships with senior-level passive candidates who rarely respond to contingent recruiters. Overall, candidates tend to view retained search as more prestigious and legitimate. This is largely because contingent search agencies are more focused on casting a wide net and then filtering for qualified candidates, whereas retained agencies target their search from the get-go.
Market Coverage and Research Depth
Retained searches include comprehensive market mapping, competitive intelligence, and detailed candidate assessments. Contingent searches focus primarily on quickly identifying available candidates before diving deeper into their viability for the role.
Service Level and Ongoing Support
Retained firms provide regular updates, detailed progress reports, and strategic advice throughout the process. After all, you are paying them to be your dedicated search providers, which comes with ongoing communication. Conversely, contingent firms typically offer less communication and fewer value-added services.
When Retained Search Makes Sense
Retained search delivers the clearest value in these hiring scenarios:
- senior executive positions requiring discretion and confidentiality
- board positions and other governance roles
- specialized roles with limited talent pools
- mission-critical positions where hiring mistakes cost significantly
- cultural transformation initiatives requiring specific leadership qualities
- confidential searches replacing underperforming executives
Companies pursuing retained search usually prioritize quality over speed and recognize that top-tier talent requires a consultative approach. The upfront investment makes sense when the cost of a bad hire exceeds the search fee multiple times over.
When Contingent Search Works Better
On the other hand, contingent search can adequately serve these hiring scenarios:
- mid-level management positions with clear requirements
- functional roles in competitive talent markets
- replacement hires for known quantities
- geographic constraints limiting candidate pools
- budget limitations preventing upfront investment
- multiple similar positions requiring volume hiring
The contingent model works best when you have internal recruiting capabilities and need external support for specific searches rather than comprehensive talent advisory services.
Making Your Decision
So which should you go with: retained or contingent search? Your choice depends on your budget, timeline, situation criticality, and internal hiring abilities.
Budget Constraints vs. ROI
You might need to choose contingent search if you simply can’t afford the cost of a retainer. That said, budget constraints shouldn’t be the primary deciding factor if they don’t need to be. Consider the true cost of a hiring mistake at the senior level, which often includes severance payments, search fees for replacement, lost productivity, team disruption, and more.
Timeline
Timeline requirements matter significantly. Retained searches usually take longer but produce better long-term outcomes. Contingent searches tend to move faster but may sacrifice thoroughness for speed.
The Position’s Criticality
Position criticality should also guide your decision. Revenue-generating roles, transformation leaders, and positions with significant team responsibility typically justify retained search investment. Conversely, support roles and clearly defined positions may work well with contingent approaches.
Internal Recruiting Ability
Lastly, consider your internal recruiting capabilities. Companies with strong internal talent teams are more likely to successfully manage contingent relationships. Organizations lacking recruiting expertise benefit more from retained search partnerships.
The Bottom Line on Search Strategy
Both retained and contingent executive search have legitimate places in talent acquisition strategy. The key lies in matching the approach to your specific situation rather than defaulting to one method for all searches.
The Christopher Group: Your Retained Search Agency
If you decide that retained search is the answer for your company, reach out to The Christopher Group. We are a C-level search firm that works on retainer. When you hire us, you gain access to a highly qualified team that will take the time to understand your company, learn the role, and identify the best candidates in the market. Schedule your free client consultation today!