Should you use a contingency search or a retained search? The answer lies in the importance of the role in question.
What is the difference between a contingency search and a retained search? If your company needs to fill a role within your organization, which one should you consider?
Typically, a contingency search is used because either the role in question is a lower-level position that might not be quite as impactful, the time to fill the role or the speed of the search isn’t paramount, or you prefer a lower-risk scenario for your leadership team. In a contingency search, you can potentially choose two or three search firms and have them compete because there’s no real investment on the front end.
Which search you should use depends on the importance of the position in question.
Retained searches, on the other hand, are a more financially committed search. It means, in essence, that you’re choosing one search firm. There are several reasons to consider retained searches. One of the top reasons is the level of the role. If it’s a very impactful role to your company, your best bet is to use a retained search. Retained searches are also much quicker than contingency searches. When a search is financially committed and/or there is exclusivity, and if a search firm knows they’re the only firm on it, they’re going to be far more focused on that search until that role gets filled.
To put it more simply, a retained search is like being married, whereas a contingency search is like dating. Also, don’t forget the effect your search has on the perception of the candidates in the marketplace. When a company uses a retained search firm, it absolutely sends a message to the candidates of the importance of the role. If the level of the role is high and the firm is using a contingency search, however, it could set off a flurry of red flags.
If you have any more questions about the difference between a contingency search and a retained search, please feel free to reach out to me. I look forward to working with you in the future!
