Retained Executive Search Vs Contingency

One of the primary differences between retained executive searches and contingency searches is the type of positions each method is primarily used for. Traditionally, retained executive searches are used to fill important executive or C-level positions that are seldom announced to the public. Think high-impact, company-defining positions such as CEO, VP, and the like.

Another important distinction between retained executive searches and contingency searches is cost. Retained executive search firms are paid regardless of who or when a candidate is hired, and the retainers charged can be more than the costs associated with contingency searches. However, retained searches offer a more premium level of service. And because these kinds of positions are so essential to the success of a business, many businesses choose retained searches despite the higher costs in hopes of landing a more qualified candidate.

Benefits of retained executive searches include increased quality regarding candidates, a more in-depth consultation with the recruitment firm prior to launching the search, stricter screening of candidates, and access to passive candidates, or candidates who are not actively seeking a new job opportunity. Some cons of retained searches include increased costs and the fact that there are sometimes no guarantees despite retainers paid.