Retained vs Contingent Recruiting: Which is Right for Your Hire?

What is the difference between retained and contingent recruiting?

Retained search means MJL Recruiting & Consulting is your exclusive, dedicated partner from day one, with full focus, priority, a talent market report and a shortlist of the best 3-5 candidates. Contingent search means no hire, no fee: nothing is paid upfront, the full fee is due only when you hire, and the search carries lower priority with no market data.

MJL Recruiting & Consulting offers both, along with an hourly-plus-success-fee option, and will tell you honestly which one fits your role.

Retained and contingent search side by side

How does retained recruiting work?

A retained search starts with your business, not the job description. MJL learns your culture, mission and values, then the role's location, work arrangement, experience, skills and personality fit. You get a free talent market report covering candidate numbers, major employers, average tenure, timing of moves and rough salaries. MJL then sources and screens candidates and presents only the best 3-5. [Read more about retained search here.]

How does contingent recruiting work?

Contingent search is a no hire, no fee option. MJL sources and screens candidates for your role, and you pay nothing unless you hire someone MJL found. The entire fee, 20-35% on average, is paid on the backend, and the standard guarantee period is 90 days. Because there is no upfront commitment, contingent searches carry lower priority and include no market insights. [Read more about contingent search here.]

How much does each option cost?

Retained search costs a $5,000 retainer up front per opening for 1-2 openings, with a minimum total fee of $15,000 per placement. For 3 or more openings, a monthly retainer starts at $10,000. Contingent search costs nothing up front, and the full fee, 20-35% of the hire's compensation on average, is due only when you hire.

Which option is faster?

Both models aim for qualified, pre-screened candidates in about 2 weeks and an accepted offer in 60 days or less. Retained searches usually move more predictably because your role gets top priority and the market report sets realistic timelines before the search begins.

When should you choose retained search?

• The role is senior, business-critical, confidential or hard to fill
• You want to know the talent market, salaries and timeline before you commit
• You are hiring 3 or more people and want one partner focused on all of them
• A wrong hire would be expensive to undo

When should you choose contingent search?

• The role has a broad candidate pool and clear requirements
• You are not under heavy time pressure
• You want to avoid any upfront cost
• You are comfortable with a lower-priority search

What about the hourly plus success fee option?

MJL also offers an hourly-plus-success-fee model, which sits between the two. The hourly rate covers intake and discovery, narrowing the candidate pool, writing copy for the outreach sequence, scheduling calls, screening candidates, submitting candidates and debrief calls.  The success fee is paid when the candidate accepts their offer.  It is the difference between the total cap number on the search and the total hourly billings for the search.  It suits companies that want more of a retained option, but with the cost spread out a little bit more than a standard retained search.

Can you start with contingent and switch to retained?

Yes. If a contingent search needs more focus, you can convert it to a retained search.  The $5,000 retainer for a normal retained search would immediately be due and we'd create a new agreement to sign before continuing on a retained search.

Not sure which model fits your role?  Call us at 425-245-5318 or get your custom quote, and we will recommend the right option, starting with a free talent market report if you're looking at a retained or hourly + success fee search engagement type.