TL;DR
Recruitment engagements generally take one of three shapes. Contingent means the agency is paid only on a successful hire. Retained means the search firm is paid in stages for dedicated work on an exclusive assignment. Engaged, sometimes called partially retained, sits between the two, with a smaller commitment upfront and the balance on completion.
The right model depends on the role, not on the firm's preference. Volume and readily available profiles suit contingent. Scarce, senior or confidential roles suit retained or engaged work, because they require mapping and approaching people who are not looking.
Key points
- Contingent works when candidates are available and the market is broad.
- Retained and engaged work suit scarce, senior or confidential roles.
- Fees are usually a percentage of first-year compensation; structures vary.
- Agree exclusivity, replacement terms and what happens if the brief changes.
The three models
| Model | How payment works | Best suited to | Trade-off |
|---|---|---|---|
| Contingent | Fee only on successful hire | Roles with available candidates, several firms competing | Effort follows the easiest roles; less depth per search |
| Engaged | Part upfront, balance on completion | Specialist roles needing dedicated effort | Requires commitment before the outcome is known |
| Retained | Staged payments across the search | Senior, scarce or confidential roles | Highest commitment, highest dedicated effort |
What drives cost
- Scarcity of the profile. FPGA and senior quant research roles take far more mapping than general software roles.
- Seniority. Leadership searches involve more stakeholders, references and confidentiality work.
- Geography. Cross-border searches add relocation, visa and regulatory steps.
- Confidentiality requirements. Replacement searches and new strategies need extra care.
- Market conditions. How contested the profile currently is.
Fees in executive search are commonly expressed as a percentage of first-year total compensation, with the range depending on the factors above. We quote per assignment after the brief conversation, so you know the number before committing.
Terms worth agreeing in writing
| Term | Why it matters |
|---|---|
| Scope | Which roles and locations the engagement covers |
| Exclusivity | Whether other firms are working the same role |
| Timeline | Expected shortlist and completion milestones |
| Replacement or guarantee | What happens if a hire leaves within an agreed period |
| Off-limits | Which companies the search firm will not approach during the engagement |
| Fee basis | What counts as first-year compensation, including bonus treatment |
| Data handling | How candidate information is stored and shared |
When multiple agencies hurt
For scarce senior roles, having several firms approach the same small pool damages your reputation with candidates, creates duplicate approaches and reduces confidentiality. In these markets, one well-managed exclusive search usually outperforms three contingent ones.
For broader roles with many available candidates, competition between contingent firms can work well.
How we work
SYTalent works on retained and engaged terms for specialist and senior searches, and on contingent terms where the role genuinely suits it. We say which we think fits after the brief conversation, including when a role does not need a search firm at all. See how we run a search.
To discuss terms for a specific role, discuss your hiring needs or email piyush@sytalent.com.
Frequently asked questions
What is the difference between retained and contingent recruitment?
Retained search is paid in stages for dedicated, usually exclusive work on a role. Contingent recruitment is paid only when a hire is made, and firms typically work several roles in parallel.
What do executive search firms charge?
Executive search fees are commonly a percentage of the candidate's first-year total compensation, varying with scarcity, seniority and geography. Retained assignments are usually staged across the search rather than paid on placement, which is what funds systematic mapping rather than a database shortlist. Contingent work is paid only on placement and is priced accordingly. Any firm should quote per assignment, in writing, including replacement terms, before you commit.
Should we use more than one agency for the same role?
For scarce senior roles, usually not. When the realistic pool is a few dozen people, two or three agencies working the same role means the same candidates receive multiple approaches about the same job, often with inconsistent information. That damages confidentiality, makes the employer look disorganised, and in practice reduces rather than increases the chance of a hire. Multiple agencies make sense only where the market is genuinely open and volume matters more than assessment.
What replacement terms are standard?
Many firms offer a replacement or partial refund if a hire leaves within an agreed period. The terms vary, so confirm them in writing before starting.