If you've used a recruiter before, you've probably engaged on a contingent basis — the recruiter works the role, and you pay a fee only if and when they place someone. It's the default model for most recruitment, and for many roles, it works perfectly well.
But for some searches — senior hires, niche technical roles, confidential replacements, or positions in genuinely talent-short markets — contingent recruitment produces frustrating results. Understanding why, and knowing when a retained model makes more sense, can save you significant time, money, and stress.
How contingent recruitment works
In a contingent arrangement, the recruiter takes on your role with no upfront fee. They work it alongside other roles in their portfolio, present candidates when they find them, and invoice you only on a successful placement. You may also have the role listed with multiple agencies simultaneously.
The advantages are clear: low initial risk, no outlay unless someone is placed, and multiple recruiters potentially working on your behalf.
The limitation is equally clear: because the recruiter only earns if they place, the commercial incentive is to present candidates quickly rather than thoroughly. In a competitive market, a recruiter working five contingent roles simultaneously will prioritise the ones most likely to result in a fee — which means roles that are easy to fill, not roles that are important to fill. Senior, niche, or difficult roles often sit at the bottom of that priority list.
Contingent recruitment works well for volume and speed. Retained recruitment works better for quality and complexity. Knowing which you need before you brief a role changes the outcome.
How retained recruitment works
In a retained search, you pay an upfront fee — typically a portion of the total placement fee — to secure exclusive, dedicated attention on your role. The recruiter commits fully to the search: market mapping, direct headhunting, structured process, regular reporting, and a thorough shortlist rather than whoever is available right now.
Because the search is exclusive and partially funded upfront, the recruiter has both the commercial security and the professional obligation to do the work properly — including approaching passive candidates who would never respond to a job ad.
Which model suits which situation
Contingent works well when:
- The role is at a level where a reasonable pool of active candidates exists
- Speed is more important than exhaustive market coverage
- The role is relatively straightforward to define and assess for
- You're comfortable running multiple agencies simultaneously
Retained works better when:
- The role is senior, highly specialised, or genuinely hard to fill
- You need to reach candidates who aren't actively on the market
- Confidentiality is important — you can't advertise the role publicly
- The cost of a bad hire or an extended vacancy is high
- You want one recruiter fully committed to your search rather than several doing it partially
The exclusive model — a practical middle ground
For many clients, an exclusive contingent arrangement offers a useful middle ground. You're not paying a retainer upfront, but you're committing the search to one recruiter exclusively. In return, that recruiter can justify dedicating significantly more time and resources to the role than they would under a multi-agency arrangement — including direct approaches to passive candidates.
At ChapterSix, most searches run on an exclusive or retained basis. Not because it's more profitable — the fee percentages are similar — but because it produces consistently better outcomes. A search that's properly resourced, properly managed, and not being raced against three other agencies is a search that delivers the right person, not just the first available one.
If you'd like to discuss which model makes sense for a role you're looking to fill, I'm happy to have that conversation. No obligation — just a straightforward assessment of your situation and what's likely to work.