Contingency vs retained search
Contingency and retained search agencies are named after their payment terms.
Under the retained model, the agency is paid over the course of the engagement, regardless of whether the search ends in a placement or not.
The employer pays the agency to establish a holistic picture of the vacancy, which includes assessing the:
The consultant will then develop a talent and market mapping strategy, plus an advertising strategy to find, engage with, and assess the most qualified candidates.
Retained agencies typically offer a longer replacement guarantee of 12+ months, as they are confident in their final recommendation. Additionally, consultants working on retained assignments will typically only work on 2-3 vacancies at any given time, with a filling ration of more than 95%.