Insights / Process
Retained vs contingent search, explained.
Two ways to pay a search firm. They lead to very different searches.
In a retained search, a company hires one firm exclusively and pays in stages as the search moves forward. In a contingent search, the firm is paid only if its candidate gets hired, and the company may use several firms at once. Retained fits senior, confidential or hard-to-fill roles. Contingent fits well-defined roles in a known market.
How does a retained search work?
The company signs with one firm. The firm commits time to the search before anyone gets hired. Payment comes in stages as the work moves forward, under the terms in the engagement letter.
Because the firm is exclusive and paid for the work, it can build a full market map, approach people who aren't looking and run a structured assessment. A retained firm also usually offers a guarantee on the hire.
How does a contingent search work?
The firm is paid only if its candidate is hired. Companies often give the same role to several firms. The firm that sends the hired candidate gets paid. The others get nothing.
That model rewards speed. Contingent firms tend to send candidates they already know, quickly. That can work well for roles where the market is known and many people could do the job.
What are the trade-offs?
| Retained | Contingent | |
|---|---|---|
| Exclusivity | One firm | Often several firms |
| When paid | In stages through the search | Only on a hire |
| Market coverage | A full map built for the role | Candidates the firm already knows |
| Confidential searches | Well suited | Harder to control |
| Best fit | Senior, critical or confidential roles | Defined roles in a known market |
General market mechanics. Terms for any specific search are set in its engagement letter.
Which model should you use for a CFO?
For a CFO, retained is usually the right choice. The role is senior, the best people aren't looking, and the search is often confidential.
For a controller or a finance manager in a known market, contingent can make sense. The pool is larger and speed matters more than a full map.
Our blog has a longer look at retained versus contingency for a CFO.
What should a retained search include?
- Stakeholder interviews before the search starts
- A written success profile, agreed before outreach
- An original market map built for the role
- A clear shortlist date
- Structured interviews and deep references
- A written guarantee on the hire
At Steward Well, every retained search includes all of these. Our written commitments are a calibrated shortlist in 21 days, a completed search in 45 to 90 days and a 12-month guarantee. See our engagements page for how the two models compare.
What are the warning signs of a bad fit?
- A retained firm that sends resumes in the first week without a success profile
- A firm that can't tell you who will run your search day to day
- A contingent firm that won't say where its candidates came from
- Several firms calling the same candidates about your role
The last one hurts the most. Strong candidates notice when three firms call them about the same job, and they start to wonder what's wrong with it.
How should you compare search firm proposals?
Put the proposals side by side and look past the price. Compare who runs the search, how the market map is built, when you'll see a shortlist and what happens if the hire leaves early.
A proposal that can't answer those plainly is a warning. The firm may not know yet who will do the work, or how.
What does exclusivity mean for candidates?
Exclusivity helps candidates too. They hear about the role from one person, who knows the company well and tells a consistent story.
That builds trust. A candidate who trusts the search is more likely to share real concerns early, like a family move or a counteroffer. Those concerns sink searches when they surface late.
Is a guarantee different under each model?
Usually. Retained searches tend to carry a longer, written guarantee, often a replacement search if the hire leaves within a set period. Contingent searches more often offer a shorter replacement window or a partial credit.
Read the terms closely. Ask what happens if the hire is let go, not just if they quit. Ask whether the replacement search runs to the same standard as the first one. Every Steward Well retained placement carries a written 12-month guarantee, with the terms set in the engagement letter.
How do you choose a firm?
Ask who will actually do the work. Ask for the timeline in writing. Ask what the guarantee covers. And ask how the firm will describe your company to people who have never heard of it.
The answers tell you more than any pitch deck. Our approach page shows how we answer each one.
Questions buyers ask first
What is retained executive search?
A search where one firm is hired exclusively and paid in stages as the work moves forward, usually with a guarantee on the hire.
What is contingent search?
A search where the firm is paid only if its candidate is hired. Companies often use several firms at once.
Which is better for a CFO?
Retained, in most cases. The role is senior, often confidential, and the best candidates aren't looking.
Can a search start contingent and become retained?
Some firms allow it. It works best when the role turns out harder than expected and needs a full market map.
See where your search stands before it starts.
The readiness diagnostic takes two minutes. It shows the gaps that slow a search down. When you're ready, a partner takes the first call.