Considerations and Differences: Retained versus Contingent Executive Search

Retained	Retained recruiters represent employer clients only and conduct assignments on an exclusive basis. This increases the chances of senior executive candidates agreeing to explore the opportunity.
Contingent	Contingency recruiters will represent either employer clients or individuals seeking placement, or both at the same time.
Retained	Assignments that are retained usually have one or more of the following characteristics: 1) confidential (e.g. replacement search) or 2) senior level position, or 3) demand exceeds supply, or 4) need to avoid "turning down" candidates who at any given time may also be suppliers, vendors, partners, clients.
Contingent	Positions that lend themselves to a contingent search include: 1) lower level position; or 2) broadly defined position in which candidate slate will determine details of qualifications; or 3) there is not an issue if candidates are contacted by multiple recruiters about the same position.
Retained	Retained recruiters are most often used to fill higher level positions with salaries of $100,000 and above, or positions where talent is scarce and demand is high, such as various lower level IT, sales and marketing positions.
Contingent	Contingency firms usually work at lower organization levels. Typically they are utilized for positions with salaries below $100,000.
Retained	A retained recruiter will invest significant time and effort learning about the client's organization, and developing a compelling candidate "value proposition". Search consultant will meet in person with the hiring exec and all candidates.
Contingent	The contingent recruiter does not usually meet in person with the hiring exec nor the candidates. Most, if not all, candidates are screened through phone interviews only.
Retained	The retained recruiter will focus systematic recruiting and evaluation efforts on a broad targeted range of potential candidates, most of who are not in the active job market. The search process continues, even after the client has decided to move forward a promising candidate.
Contingent	Contingency firms, are not paid unless a candidate is successfully placed, so the research phase lasts only until a suitable selection of qualified candidates surfaces before presenting them to the client. Contingency recruiters focus primarily on applicants/candidates actively seeking new employment and are placement oriented.
Retained	A search consultant personally handles only about 3 to 5 assignments on average, at any given time. S/he can afford to do this because the client has paid a retainer up front to ensure dedicated focus.
Contingent	A contingency recruiter may work on as many as 20 job orders at any given time.
Retained	A search consultant may invest 50 to 60 hours per month per client assignment. Retained firms typically can afford to spend more on research staff, data bases and search tools.
Contingent	Without a guarantee of payment for services performed, the contingency recruiter cannot afford to invest as much time.
Retained	A retained recruiter will usually recommend 2-4 highly qualified candidates to the client. This set of candidates has been culled down through a series of assessment steps.
Contingent	A contingency recruiter may submit substantially more paperwork to increase probability of a placement.
Retained	This process requires less client HR and general management time but requires more of the hiring executive's (line manager's) time.
Contingent	The decision to utilize a contingency recruiter usually comes from the HR department, and requires considerable more HR time in screening, interviewing and evaluating.
Retained	Fees -- typically 30 to 33% -- are based on the successful candidate's expected first year total cash compensation. Expenses are billed at cost. Some firms charge administrative fees (up to 15%)
Contingent	Contingency recruiters typically charge fixed fees or percentage of compensation, typically with fees in the 20 to 30% range.
Retained	Reputable firms offer a professional guarantee and commitment to continue working on the search until there is a successful hire (or a mutual decision to cancel the search).
Contingent	Contingency firms are under no obligation to guarantee or produce results due to contingency fee arrangement (paid only upon successful placement).