What is the difference between retained and contingency search?

Retained search is an exclusive, upfront-paid recruitment model for senior roles, while contingency search is non-exclusive and paid only upon a successful hire, typically used for mid-level or volume hiring.

When should companies use a retained search firm?

Companies should use a retained search firm when hiring for executive, confidential, or hard-to-fill strategic roles that require deep vetting and market research.

Is contingency search more cost-effective than retained search?

Contingency search appears more cost-effective upfront but may result in lower-quality hires. Retained search often leads to better long-term value due to higher-quality candidate matching.

Can a company use both retained and contingency search?

Yes, many companies use both. Retained search is ideal for senior roles, while contingency search is effective for faster, mid-level, or high-volume hiring needs.

Which recruitment model is best for executive hiring?

Retained search is best suited for executive hiring due to its exclusive, in-depth, and consultative approach.

What is a retainer in executive search?

A retainer in executive search is an upfront fee paid by a company to a recruitment firm to conduct an exclusive and dedicated search for high-level or executive candidates.

What is the opposite of retained search?

The opposite of retained search is contingency search, where recruiters are only paid if the candidate they recommend is hired.

What is the difference between RPO and contingency?

RPO (Recruitment Process Outsourcing) is a long-term solution where a third party manages your recruitment process. Contingency search is transactional and only pays the recruiter upon a successful hire.

Retained and Contingency Search: Know the Difference?

Vinod Chavan
Jul 28
4 min read

Updated: Sep 23

Retained vs. Contingency Search: What’s the Difference?

Recruiting the right professionals can make or break your business success. Before you begin hiring, there’s an important decision to make: retained vs. contingency search. Which model aligns better with your company’s goals, hiring needs, and budget?

This guide will help you understand both recruitment models, compare their benefits, and determine the best fit for your organization.

What Is Retained Search?

Definition and Key Characteristics

Retained search is a premium recruitment solution where you engage a hiring agency exclusively to fill a specific role. It involves a partial payment upfront, ensuring full dedication to sourcing top-tier candidates.

Key highlights:

Exclusive recruiter commitment
Detailed market research and candidate profiling
Ideal for executive and senior-level roles
Discreet and strategic hiring process

Best Scenarios for Retained Search

C-suite and leadership roles
Niche or hard-to-fill positions
Confidential hiring needs
Long-term strategic roles requiring top talent

What Is Contingency Search?

Definition and Characteristics

Contingency search means working with recruiters on a success-only basis. You pay only if the candidate is hired. It's a fast, flexible option, suitable for companies that need to fill multiple roles quickly.

Features include:

No upfront fees
Non-exclusive engagement with multiple agencies
Rapid sourcing with broader candidate outreach

When to Use Contingency Search

You're hiring for mid-level or junior positions
Need to fill multiple roles quickly
Looking for a cost-effective option
You want to compare candidates from different sources

Retained vs. Contingency Search: Key Differences

Comparing retained vs. contingency search across critical factors helps identify the best recruitment strategy:

Criteria	Retained Search	Contingency Search
Payment Terms	Partial fee upfront, remainder post-hire	Payment only after successful placement
Agency Focus	Dedicated, long-term approach	Less exclusive, multiple agencies involved
Hiring Quality	Deep vetting and strategy alignment	Faster hires, broader candidate range
Ideal For	Strategic, high-impact roles	Quick hiring for operational positions
Confidentiality	High	Lower

Advantages and Disadvantages

Retained Search: Pros and Cons

Pros

Top-level talent acquisition
Confidentiality ensured
Strategic hiring approach
Reduced competition from multiple recruiters

Cons

Requires upfront investment
Longer timelines
Less suitable for urgent, bulk hiring

Contingency Search: Pros and Cons

Pros

No hiring, no payment
Fast process
Access to multiple talent sources

Cons

Less commitment from recruiters
Lower vetting standards
Competitive pressure may lower quality

How to Choose the Right Model

Choosing between retained and contingency search can be challenging. Here are some considerations:

Are you looking for a senior leader or just need to fill a role quickly? Retained search is better for quality and precision; contingency is great for speed and scale.
Retained search requires an upfront investment but offers greater long-term value. Contingency search is risk-free in terms of payment but may result in a less targeted outcome.
For mission-critical hires, retained search ensures focus and confidentiality. For general hiring needs, contingency search allows flexibility and speed.

Are Hybrid Models a Better Choice?

Some businesses use hybrid recruitment strategies, blending retained and contingency elements. For example:

Retain a recruiter for senior roles.
Use contingency search for volume-based hiring.

Others choose Recruitment Process Outsourcing (RPO) for complete hiring support across levels.

Conclusion: Choose What Aligns with Your Hiring Goals

There’s no one-size-fits-all in recruitment. The choice between retained and contingency search depends on the nature of the role, urgency, budget, and strategic importance. Each model has unique benefits, and understanding these can help you build a recruitment strategy that attracts the right talent at the right time.

Retained search is ideal when quality, confidentiality, and strategy matter most.
Contingency search works best when time and cost are top priorities.

Choosing the right recruitment model ensures smarter hiring, better candidates, and long-term business growth.

Sundus

Sundus is one of the top recruitment agencies in Dubai, UAE, and Saudi Arabia, providing both retained and contingency recruitment solutions, tailored to meet your business needs in the UAE, Saudi Arabia, and across the GCC. Whether you're hiring for C-level executives or high-volume roles, our team of experts ensures a smooth, strategic, and successful hiring process.

Contact us today to discuss your hiring strategy.

Frequently Asked Questions (FAQs)

Retained search is an exclusive recruitment model where companies pay an upfront fee to hire for senior-level or specialized roles. Contingency search is non-exclusive, and payment is made only when a successful hire is completed, usually for mid-level or volume-based hiring.
Companies should choose Executive search firms when hiring for executive, strategic, or confidential roles that demand detailed candidate assessments, market research, and full recruiter commitment.
Yes, many businesses adopt a hybrid model. Retained search is used for top-level roles, while contingency search supports high-volume or mid-level recruitment.
Retained search is best suited for executive hiring due to its exclusive focus, strategic process, and ability to target passive, high-caliber candidates.
A retainer is an upfront payment made to a recruitment agency to begin an exclusive search for executive or niche roles. It secures the recruiter’s full attention and covers research, sourcing, and outreach efforts.
RPO (Recruitment Process Outsourcing) is a strategic partnership where a company outsources all or part of its hiring process. Contingency search is a short-term solution focused on filling specific roles, with payment only after placement.

Retained and Contingency Search: Know the Difference?