Contingency vs retained search

Contingency and retained search agencies are named after their payment terms.

  • Contingency agencies are paid a fee upon placement and clients may engage multiple agencies at once
  • Retained search agencies are paid an upfront or scheduled fee and clients will not engage other agencies

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:

  • Organisation and its stakeholders
  • Short and long-term objectives of the organisation and role
  • Skills required for the role
  • Psychological and behavioural profile of the vacancy

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%.

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