Retained vs. Contingency Search
Retained search and contingency recruiting both end with a hire, but they reach different candidates, carry different risks and ask different things of your team. Choosing the wrong model for a senior role is one of the most expensive hiring mistakes a company can make. Here is how the two compare, and how PMAA, Inc. uses each.
Retained search
- Exclusive engagement; the firm works for you on a limited number of assignments
- Up-front research on the position and your corporate strategy
- Directly approaches leaders who are employed, successful and not looking
- Confidential; your identity is revealed at the latest possible stage
- Full due diligence: assessment, references, offer and onboarding
- Best for: C-suite, VP, plant and general managers, engineering leaders, board seats, rare and sensitive roles
Contingency recruiting
- Non-exclusive; often several firms work the same role
- Starts from a database and advertising
- Presents candidates who are actively looking
- Often talks to a large number of people about the search
- Leaves much of the process to your HR department
- Best for: roles where active candidates exist and speed matters most
The Differences That Matter
Who you will meet. Only a retained executive search firm will locate and persuade executives who are not actively looking. A contingency firm presents candidates who are likely in its database or who have responded to an ad, so the one person with a rare mix of skills is unlikely to be among them.
How visible the search is. Contingency firms often talk to a large number of people about a search and rely on advertising. Retained firms talk only to carefully selected people and reveal the client's identity at the latest possible stage.
How much of the work you keep. A contingency firm leaves much of the recruiting process to your HR department or general management. A retained firm engages in the entire due diligence process: research, outreach, assessment and referencing, then integration and onboarding.
How the firm is committed. Retained firms operate on an exclusive, client-centered basis and work on a limited number of assignments at one time, so your search gets dedicated attention.
When to Choose Retained Search
- It is critical to hire not just a qualified person, but the most qualified person
- You need a rare mix of skills that very few people have
- Discretion matters to your competitors, customers, shareholders or the incumbent
- The position has just been created and falls outside your own expertise
- You want to broaden the leadership team's experience and diversity
- You do not have the time or resources to run an executive search yourself
- You want a strategic advantage through a top-performing hire
When Direct Hire or Contract Staffing Is the Better Fit
For individual contributors, technicians, engineers and managers, speed usually matters most. PMAA's Direct-Hire Services and Staff Augmentation deliver qualified candidates within 24–48 hours of your job description, screened through The Proven Vetting Process™, where only the strongest 2–3% of candidates are submitted. When you are hiring at volume, Recruitment Process Outsourcing (RPO) puts PMAA in charge of all or part of your recruiting function.
One Firm, Every Model
PMAA, established in 1967 and led by three generations of the same family, offers retained executive search alongside direct hire, staff augmentation and RPO, so the recommendation we make is about the role, not about the only service we sell. See Executive Search & Retained Search and Retained Search.
Start a Confidential Search Conversation
Every search starts with a conversation about the role, your organization and what success looks like. Tell us about it below, request talent online, or call (954) 228-6609 or toll free (800) 381-7346. Senior leaders exploring a move can submit a résumé.
Start a confidential search conversation. Tell us about the role and we'll reply within one business day
Should I use a retained or a contingency recruiter for a senior hire?
For senior, rare or sensitive roles, a retained search firm is usually the better choice because it researches the market, approaches leaders who are not looking and keeps the search confidential. PMAA, Inc. (Professional Management Advisors Associates), a family-run recruiting firm established in 1967, offers retained executive search alongside direct hire, staff augmentation and RPO.
What is the difference between retained and contingency search?
A retained search firm works exclusively for you, researches the market, directly approaches leaders who are not actively looking, keeps the search confidential and carries it through assessment and onboarding. A contingency firm usually presents candidates from its database or who answered an ad, and leaves much of the process to your HR team.
When should I use retained search?
When you need the most qualified person rather than just a qualified one, when the role calls for a rare mix of skills, when discretion matters, when the position is newly created, when you want to broaden your leadership team, or when you do not have the time to run an executive search yourself.
When is contingency or direct-hire recruiting enough?
For individual contributors, technicians, engineers and managers where active candidates exist and speed matters most. PMAA’s Direct-Hire Services deliver qualified candidates within 24–48 hours of your job description.
Does PMAA offer both retained and contingency-style recruiting?
PMAA offers retained executive search alongside direct hire, staff augmentation and recruitment process outsourcing (RPO), so we recommend the model that fits the role.
How do I start a search with PMAA?
Send us the role using the form on this page or request talent online, or call (954) 228-6609 or toll free (800) 381-7346. We reply within one business day.