This article outlines the distinctions between retained and contingent search, drawing on accepted industry practices and independent sources. It is intended as a practical, neutral guide for business leaders evaluating which model aligns with their priorities.
1. What Is Retained Executive Search?
Retained search is an exclusive, research-driven model used for senior leadership and strategically critical roles. The hiring organization engages one firm, pays a portion of the fee upfront, and receives a comprehensive advisory service focused on identifying and securing the best possible executive—not simply the first available candidate.
Key characteristics include:
• Exclusive engagement with one search partner
• Upfront retainer fee tied to the work performed rather than the outcome alone
• Structured research and market mapping
• Confidential outreach to passive candidates
• Advisory support during candidate evaluation, interviews, and negotiation
• Consultative feedback on talent availability, compensation expectations, and organizational attractiveness
• Stewardship of the brand in the market
AESC, the global professional association for retained executive search firms, describes retained search as “a consultative partnership built on deep research, market insight, and professional judgment.”¹
Retained search is designed for leadership roles that require discretion, accuracy, and a broad analysis of the available talent.
2. What Is Contingent Search?
Contingent search is a performance-based recruiting model in which fees are paid only if a placement is made. Companies may use multiple firms simultaneously, and the focus is on speed, candidate presentation, and breadth of coverage.
Core characteristics include:
• Payment only upon successful hire
• Non-exclusive arrangements with multiple agencies
• Competitive submission of candidates
• Limited research scope, typically emphasizing active or semi-active candidates
• Shorter search timelines due to competitive incentives
• Less involvement in candidate qualification or advisory work
SHRM notes that contingent search is commonly used for “mid-level roles where a wide candidate pool exists and urgency outweighs depth of search.”²
Contingent firms primarily compete on speed and access, whereas retained search competes on rigor and accuracy.
3. How Fee Structures Shape Incentives
Understanding the incentive structure is central to choosing the correct model.
Retained Search Incentives
The retainer fee structure aligns incentives around:
• Completeness of research
• Thorough candidate evaluation
• Long-term fit rather than quick wins
• Representation of the client brand
• Confidentiality and discretion
• Market transparency and reporting
Because payment is tied to the process—not the speed of a candidate’s acceptance—retained firms can invest the time required to identify the right executive, not merely a fast option.
Contingent Search Incentives
Contingent models, which pay only on success, create different pressures:
• Speed is prioritized over depth
• Candidate ownership takes precedence over thorough evaluation
• Multiple firms may present the same candidate simultaneously
• Less incentive for in-depth market analysis
• Limited confidentiality protections, since firms must market the role quickly and broadly to stay competitive
Korn Ferry notes that “performance-based recruiting models tend to generate rapid submissions rather than comprehensive leadership evaluation.”³
While contingent search is valuable in certain scenarios, the underlying incentives differ dramatically from retained search.
4. Use Cases for Retained Search
Retained search is selected when stakes are high, complexity is significant, or discretion is essential. Common situations include:
A. Executive and C-Suite Roles
CEO, CFO, COO, CRO, CHRO, General Counsel, and other top leadership positions require:
• Broader talent evaluation
• Confidential engagement
• Shareholder and board visibility
• Long-term succession implications
B. Private Equity Portfolio Leadership
PE-backed companies often require leadership capable of:
• Managing rapid transformation
• Scaling processes from founder-led to institutional-grade
• Supporting transaction-driven timelines
• Implementing reporting and operational frameworks
These requirements necessitate deep market research and targeted outreach.
C. Specialized or Hard-to-Fill Positions
Functions requiring rare expertise—financial reporting, technical accounting, multi-site operations, SaaS metrics leadership, cybersecurity—have limited candidate pools and high competition.
D. Confidential Replacements and Pre-Announcement Roles
Retained search is used when:
• Replacing an incumbent quietly
• Expanding or restructuring before internal alignment
• Preparing for financing or ownership changes
• Managing politically sensitive leadership transitions
Harvard Business Review highlights the importance of confidentiality in “leadership transitions tied to unannounced operational, strategic, or financial decisions.”⁴
E. Roles with High Impact on Company Performance
When leadership mistakes carry significant cultural, financial, or regulatory consequences, retained search is the disciplined and defensible choice.
5. Use Cases for Contingent Search
Contingent search remains appropriate in scenarios where:
A. Speed and Volume Matter
When a company needs multiple hires quickly—analysts, staff accountants, inside sales—contingent search is appropriate.
B. The Talent Pool Is Large and Readily Accessible
Roles with abundant active candidates (e.g., general operations, customer support) benefit from contingent recruiting’s responsiveness.
C. The Role Is Not Confidential
Roles where public postings are acceptable and internal sensitivities are low.
D. Budget Limitations Require Success-Based Fees
When companies need flexibility and cannot commit to upfront search costs.
Contingent search is optimized for coverage and responsiveness rather than leadership vetting.
6. Choosing the Right Model: Decision Framework
A simple decision framework helps determine whether retained or contingent search is appropriate:
| Factor | Retained Search | Contingent Search |
| Role seniority | Executive & VP-level | Mid-level & staff |
| Talent scarcity | Limited, specialized | Broad, abundant |
| Confidentiality | Essential | Not required |
| Research depth | Extensive | Limited |
| Timeline | Precision over speed | Speed over depth |
| Organizational risk | High | Low to moderate |
| Need for advisory guidance | Strong | Limited |
| Evaluation complexity | High | Moderate |
Organizations often use both models, depending on function and urgency—but use them deliberately, not interchangeably.
7. Conclusion
The choice between retained and contingent search comes down to the complexity of the role, the consequences of an unsuccessful hire, confidentiality needs, the size of the addressable talent pool, and the level of advisory insight required.
For senior leadership, confidential transitions, or highly specialized positions, retained search provides a structured, research-backed approach that emphasizes accuracy, judgment, and long-term fit.
For roles where speed, volume, and broad coverage take priority, contingent search delivers responsiveness and flexibility.
Understanding the structural differences helps organizations engage the right model for the right need—and ensures leadership hiring supports the company’s strategic objectives.
References
1. Association of Executive Search and Leadership Consultants (AESC). Guiding Principles for Executive Search and Leadership Consulting.
2. Society for Human Resource Management (SHRM). Executive Recruiting and Hiring Models.
3. Korn Ferry Institute. Performance-Based vs. Advisory Recruiting Approaches.
4. Harvard Business Review. Managing Confidential Leadership Transitions.
