Comparison

Retained Search vs Contingency Search

Two fee models for working with recruiters. Here's when to pay upfront for dedicated focus vs. paying only on successful hire.

Quick answer

Retained search makes sense for senior or hard-to-fill roles where you need dedicated recruiter focus and are willing to pay upfront for exclusivity. Contingency works well for mid-level roles where multiple recruiters competing can accelerate your search, and you prefer paying only when someone starts.

Side by side

How they compare.

	Retained Search	Contingency Search
Payment timing	Upfront + completion	Only on hire
Typical fee range	25-35%	18-25%
Exclusivity
Dedicated recruiter focus		Varies
Multiple recruiters on role
Risk to employer	Higher	Lower
Best for seniority level	Executive/senior	Mid-level
Search urgency	Can be deliberate	Often faster
Candidate confidentiality	Typically higher	Varies

What is it

What is retained search?

Retained search means paying a recruiter upfront (usually 1/3 of the fee) to conduct an exclusive search. The recruiter dedicates significant time to your role, often conducting market mapping, competitor analysis, and deep sourcing. The remaining fee is paid in stages—typically 1/3 at candidate shortlist and 1/3 on hire. Retained searches are common for executive roles, board positions, and highly specialized positions.

What is it

What is contingency search?

Contingency search means paying only when a hire is made. Recruiters work on multiple searches simultaneously and are compensated only for placements. This model is common for mid-level professional roles. Because payment is contingent on success, employers often work with multiple recruiters on the same role, creating competition that can speed up the search.

Trade-offs

Pros and cons.

Retained Search

Pros

Dedicated recruiter focus on your search
Exclusive relationship—no duplicate candidate submissions
More thorough market research and candidate assessment
Better for confidential searches
Recruiter incentivized to find the right fit, not just any fit

Cons

Upfront payment required regardless of outcome
Higher total fees (typically 25-35%)
Locked into one recruiter's network and approach
Slower process—thoroughness takes time
Risk if the recruiter relationship doesn't work out

Contingency Search

Pros

No upfront cost—pay only on successful hire
Lower fees (typically 18-25%)
Multiple recruiters increase candidate flow
Easy to try different recruiters
Competition can accelerate the search

Cons

Recruiters may prioritize easier-to-fill roles
Less dedicated focus on your specific search
Potential for duplicate candidate submissions
May not attract top recruiters for difficult roles
Less thorough market mapping and research

Decision guide

Which is better for construction hiring?

Use retained search when:

Hiring for executive or C-suite positions
The role requires extensive market research
Confidentiality is critical (replacement search, acquisition)
You want one dedicated partner, not multiple recruiters
The candidate pool is very small and specialized

Use contingency search when:

Hiring for mid-level professional roles
You want multiple recruiters competing on the role
You prefer paying only on successful hire
Speed is more important than exhaustive search
The role has a reasonable candidate supply

Where Placement fits

How Placement approaches this.

Placement operates primarily on a contingency model—you pay only when someone starts. However, we add structure that addresses common contingency weaknesses: recruiters are matched by specialization and track record, performance data is visible, and our 56-day guarantee ensures alignment on quality. For most construction PM, super, and estimator roles, this offers the speed benefits of contingency with more accountability than typical contingency relationships.

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FAQ

Common questions.

It depends on the role. For executive positions (VP of Operations, Chief Estimator), retained search may be worth the investment. For mid-level roles (PM, super, estimator), contingency typically offers better value—especially through a marketplace where multiple specialized recruiters compete.

Sometimes, but retained recruiters have less flexibility because they're committing dedicated resources upfront. The fee reflects the time investment regardless of outcome. Contingency fees are more negotiable because recruiters only get paid on success.

Most retained agreements have guarantees—if the search fails or the hire leaves quickly, the recruiter will redo the search. But you don't get your upfront payments back. This is why retained search only makes sense for roles where you're confident in the recruiter relationship.

Contingency recruiters prioritize roles they can fill. If your role is hard to fill and you're working with generalists, it may get deprioritized. The solution is working with specialized recruiters who have relevant candidate networks—they're more likely to engage seriously.

Absolutely. Many companies use retained search for senior hires and contingency for mid-level roles. The key is matching the model to the role difficulty and seniority level.

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