Two types of recruiters walk very different paths to the same goal. Here is the practical difference between retained and contingency recruitment — and why it matters for a senior hire.
The short version. Contingency recruiters are paid only when they place a candidate. Retained search firms are paid in stages, beginning at engagement. That difference in payment structure drives a fundamental difference in behaviour.
How contingency recruitment works. A contingency recruiter runs many searches at once and submits candidates to multiple employers simultaneously. They are paid a fee — typically a percentage of first-year compensation — only if their candidate is hired. Speed and volume are the incentives. The recruiter who submits first has an advantage. There is limited incentive to go deep, and no commitment to a specific mandate.
This model works reasonably well for common professional roles where the active candidate market is large. It works less well for senior leadership positions where the right candidates are not looking and where a hurried, high-volume approach damages the employer's reputation with a small professional community.
How retained search works. In retained search, the hiring organization engages the firm exclusively. A retainer is paid upfront — typically in three stages across the search. The firm commits to one mandate at a time and is accountable for a complete, rigorous process: market mapping, direct outreach, candidate assessment, and a curated shortlist.
The retained firm represents the hiring organization exclusively. Every candidate interaction reflects on that organization. The incentive is to find the right person and protect the employer's reputation in the process.
Which model fits a senior hire? For executive and senior leadership roles — C-suite, vice-president, director-level, board appointments — retained search is almost always the right model. The reasons are straightforward: the stakes are high, the right candidates are not on job boards, discretion is essential, and the cost of a wrong hire is significant.
For mid-level professional roles where the active candidate market is broad and speed matters more than precision, contingency models can work. But for roles where finding the right person matters more than filling the position quickly, retained search is not just preferred — it is the only approach that is actually up to the task.
What about "engaged" or "exclusive" contingency arrangements? Some firms offer arrangements that sit between retained and contingency — exclusive contingency, engaged search, or similar. These vary significantly in practice. The key question is always: what is the firm's actual incentive, and what commitment have they made to this search? If the incentive is placement speed and the commitment is non-exclusive, the practical result will look more like contingency than retained.
Hawthorne works exclusively on a retained basis. If you are weighing your options for a senior hire, the FAQ covers the practical questions or start a conversation here.