By Jennifer Schmitt, Founder & Principal Recruiter, Wisepath Recruiting Group
One of the first questions companies often ask when considering an outside recruiting partner is:
“How do your fees work?”
That is reasonable.
But it usually should not be the first question.
Before comparing percentages or payment schedules, I would ask:
What kind of search are you actually trying to run?
Recruiting a Finance Manager is different from replacing a CFO.
Hiring several people into repeatable positions is different from identifying one executive who needs a highly specific combination of experience, leadership ability, and industry context.
That is why contingency and retained recruiting should not be viewed simply as two pricing options.
They are different search models designed for different hiring situations.
What Is Contingency Recruiting?
In a traditional contingency arrangement, the recruiting firm is generally paid when the employer hires a candidate introduced through that firm.
There is typically little or no upfront search fee.
That flexibility can make contingency recruiting attractive for many professional-level searches.
It may work particularly well when the position is clearly defined, there is a reasonably broad candidate pool, confidentiality is not a major concern, speed matters, the employer can interview and make decisions quickly, and the role does not require extensive market research before sourcing begins.
What Is Retained Search?
In a retained search, the employer formally engages a search firm to conduct a dedicated search.
Fees are generally paid in stages rather than only after a hire.
The engagement may include role calibration, stakeholder alignment, market research, target-company identification, passive candidate outreach, compensation discussion, structured assessment, and ongoing search strategy.
The employer is paying not simply for a resume that results in a hire.
They are engaging a firm to run the search process.
Neither Model Is Automatically Better
A strong contingency recruiter can deliver an excellent hire.
A retained search can still fail if the role is poorly defined, the employer cannot make decisions, or the search partner is not right for the assignment.
The better question is:
Which model creates the right level of search effort for this particular hire?
When Contingency Recruiting Can Make Sense
It may make sense when:
- the position is well defined,
- there is a reasonably accessible candidate market,
- the employer can move quickly,
- the search is not highly confidential,
- and the organization primarily needs additional sourcing capacity.
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When Retained Search May Be the Better Fit
It may make sense when:
- the role is business-critical,
- the candidate pool is small,
- the strongest candidates are likely passive,
- confidentiality matters,
- or the hiring team needs substantial market intelligence and search support.
Start With the Cost of Getting the Search Wrong
Do not choose based on the fee alone.
Ask:
What happens if the role remains vacant?
What happens if we hire the wrong person?
How much leadership time will the search require?
How difficult is the person to replace?
How much of the market can our internal team realistically reach?
Does confidentiality matter?
How much help do we need defining and evaluating the role?
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Do Not Confuse Multiple Recruiters With Greater Market Coverage
Engaging multiple recruiting firms can increase reach in some situations.
In others, candidates receive the same opportunity from multiple recruiters, different firms describe the position differently, duplicate submissions occur, and candidate volume increases without consistent evaluation.
More recruiting firms do not automatically create a better search.
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Exclusivity Can Matter Even Outside Traditional Retained Search
The industry is not limited to two rigid models.
Some firms use exclusive contingency, engaged search, hybrid structures, milestone-based arrangements, or other variations.
Employers should focus less on the label and more on the actual engagement.
Ask:
- Is the search exclusive?
- When are fees earned?
- What happens before sourcing?
- Will passive candidates be approached?
- What assessment is included?
- What happens if the search becomes difficult?
- Is there a replacement provision?
- Who actually manages the search?
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What Happens Before the First Resume Matters
For a complex search, a strong intake should explore why the role exists, business priorities, first-year outcomes, reporting structure, team composition, leadership expectations, required experience, compensation, candidate motivations, interview process, and obstacles to closing the candidate.
That information shapes who should be approached.
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Ask Who Will Actually Run the Search
Before engaging a firm, ask:
Who will I work with once the contract is signed?
Who will conduct the intake, speak with candidates, represent the company, calibrate the search, provide market feedback, and stay involved?
A strong relationship with the person actually running the search can matter as much as the firm’s logo.
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How Wisepath Approaches Search Strategy
At Wisepath Recruiting Group, we believe the recruiting process should match the hiring need.
Not every role requires the same degree of research, outreach, evaluation, or search intensity.
Before recommending an approach, we consider role criticality, candidate scarcity, confidentiality, internal recruiting capacity, market complexity, and the level of support the hiring team needs.
Candidates are evaluated beyond resume keywords based on real performance, leadership style, work style, communication, values alignment, and the capabilities required for the specific role.
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Questions to Ask Any Recruiting Firm Before Signing
Ask:
- Who will manage the search?
- What happens before outreach begins?
- How will candidates be found?
- How will they be evaluated?
- How will market feedback be communicated?
- What are the fees and when are they earned?
- Is there exclusivity?
- What happens if the search becomes difficult?
- Are there replacement terms?
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Not Sure Which Recruiting Approach Fits Your Hire?
The right starting point may not be choosing a fee structure.
It may be determining how difficult the search really is, what the candidate market looks like, and how much recruiting support your organization actually needs.