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Retained vs. Contingency

Retained search firms and Contingency agencies have distinct variations. Understanding these differences can help you make an informed decision when you want to use outside resources for talent acquisition.

Retained Firms Contingency Agencies
Represent you (the client) only and conduct search assignments on an exclusive contract basis only. Represent individuals seeking placement and competes with other firms or agencies for the placement.
Directed at placing middle to senior management organizational levels. Usually search for lower level organizational positions including but not restricted to individual placements.
Efforts are focused on a specific, targeted range of potential candidates, most are not actively in the job market. The methodology is process and result oriented. Efforts are focused on a specific, targeted range of potential candidates, most are not actively in the job market. The methodology is process and result oriented.
Executive Search team typically invests 80-160 hours per month per client assignment in recruiting, evaluation, screening and client interaction. With no guarantee of payment for services performed, the recruiter cannot afford to invest much time in a search beyond basic recruiting and submission of resumes.
Usually submits 3-5 final candidates to client in 6-8 weeks. Candidates' technical skills, personality traits and management reputation are checked prior to submission. Continues to work until the position is satisfactorily filled. Focus is on assessing "fit" and skill. Can present resumes within 1-2 weeks of obtaining job order, may submit substantial paperwork to increase probability of a placement. Works well when employer seeks to review a large number of resumes and conduct multiple interviews without pre-screening.
Requires minimal owner, executive and HR time investment until interview process begins. Requires considerable client human resource involvement in screening resumes, preliminary interviewing and evaluating candidates presented before the interview process begins.


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