The short version: retained and contingency search solve different problems. Retained search suits senior, business-critical, or confidential roles where assessment depth and a committed shortlist matter more than raw speed. Contingency search suits higher-volume, less senior roles where you're willing to trade depth for a pay-on-success model. The trouble starts when the two are treated as interchangeable, they aren't.
How each model works
Retained search is an exclusive engagement paid in stages, whether or not a hire is ultimately made. That fee structure is what buys the depth: the firm commits senior time to a full market map, proactively approaches candidates who aren't actively looking, runs structured assessment, and delivers a curated shortlist it stands behind. You are paying for the process, not just the result.
Contingency search flips the economics. There's no upfront cost, often several firms work the same role at once, and the recruiter is paid only if their candidate is the one hired. For roles with a deep pool of active candidates, that speed-and-no-risk trade can work well. But the incentive points toward speed-to-fill, and the deeper work, passive-candidate outreach, structured assessment, confidentiality, usually sits outside the economics.
Side by side
| Retained search | Contingency search | |
|---|---|---|
| Fee structure | Staged fee, paid across the search regardless of outcome | Paid only on a successful placement |
| Best-fit roles | C-suite, board, VP, and business-critical or confidential hires | Higher-volume, less senior, readily fillable roles |
| Exclusivity | Exclusive, one firm owns the search | Often non-exclusive; multiple firms compete |
| Candidate pool | Includes passive candidates not actively looking | Mostly active candidates and existing databases |
| Assessment depth | Structured, in-depth evaluation of traits and judgment | Lighter screening, geared to speed |
| Shortlist | Curated shortlist the firm commits to | Candidates surfaced as available |
| Confidentiality | High, suited to sensitive transitions | Lower, given multiple parties involved |
| Recruiter incentive | Aligned to the right hire | Aligned to a fast hire |
How to choose
The deciding question is rarely cost, it's consequence. Choose retained when the hire is senior, business-critical, confidential, or hard to reach through active candidates alone, and when getting it right clearly outweighs getting it fast. Choose contingency when the role is readily fillable, less senior, and you'd rather minimize upfront cost and risk. And when in doubt, ask where the model points the recruiter's incentive: retained aligns the firm to the right hire, contingency to a fast one.
Allport Partners works mostly on a retained basis, for exactly that reason: the roles we're built for (senior, board-level, and confidential) are the ones where depth and objectivity matter more than speed. You can see how that plays out in our five-stage methodology.