Contingency and retained recruitment are two distinct fee models used by recruitment agencies. In contingency recruitment, the agency is only paid if they successfully place a candidate. In retained search, the client pays an upfront fee to secure the recruiter’s dedicated focus, with the remainder due on placement. The right model depends on the seniority of the role, the urgency of the hire, and how competitive the talent market is.
Both models are widely used across sectors including fintech recruitment, data science, and executive search. The sections below answer the most common questions candidates and hiring teams ask when deciding between the two approaches.
How does each recruitment model actually work?
Contingency recruitment works on a no-placement, no-fee basis. Multiple agencies can work on the same role simultaneously, each racing to submit the strongest candidates. The client only pays the agreed fee when a candidate they accept starts in the role. Retained search works differently: the client commits to an exclusive partnership with one agency, paying a portion of the fee upfront to secure dedicated resources.
In a contingency arrangement, speed and volume tend to drive the process. Because agencies are competing and absorbing the risk of receiving nothing if unsuccessful, they prioritise roles they believe they can fill quickly. This works well for mid-level positions where a strong pool of active candidates exists.
Retained search is a structured engagement. A typical retained assignment includes an in-depth briefing, market mapping, a targeted approach to passive candidates, and regular progress reporting. The recruiter acts as a genuine extension of the hiring team rather than one of several competing suppliers.
What are the typical fee structures for contingency and retained search?
Contingency recruitment fees are typically calculated as a percentage of the placed candidate’s first-year base salary, commonly ranging from 15% to 25% depending on the specialism and seniority of the role. No fee is charged unless a hire is made. Retained search fees are usually structured in three instalments: one third on engagement, one third at shortlist stage, and one third on placement.
The total percentage in a retained search is often similar to or slightly higher than contingency, but the structure reflects the additional commitment of both parties. For specialist roles such as hiring data scientists or senior risk analysts, the retained model is increasingly standard because it reflects the genuine research effort involved in reaching passive candidates who are not actively looking.
Which recruitment model is better for senior or executive roles?
Retained search is almost always the better model for senior and executive roles. At this level, the strongest candidates are rarely active job seekers. They require a targeted, confidential approach from a recruiter who has invested time understanding both the opportunity and the candidate’s motivations. Contingency recruitment, by contrast, is better suited to roles where a ready pool of active candidates exists.
Executive search in competitive sectors such as fintech, buy-side finance, and data science relies on direct headhunting. A retained recruiter can dedicate the time to build relationships with passive talent, conduct thorough reference checks, and manage a process that reflects the gravity of a senior appointment. Rushing that process by running it as a contingency brief almost always leads to a weaker shortlist.
What are the risks of using contingency recruitment?
The primary risk of contingency recruitment is misaligned incentives. Because agencies only earn a fee on placement, there is structural pressure to submit candidates quickly rather than comprehensively. This can result in a shortlist that reflects who is available rather than who is best suited to the role.
Other risks worth considering include:
- Candidate duplication: When multiple agencies work the same brief, candidates can be submitted by more than one firm, creating confusion and potential disputes over fees.
- Reduced confidentiality: Roles worked on a contingency basis are often more widely broadcast, which can be problematic for sensitive or replacement hires.
- Shallow market coverage: Agencies working without a fee guarantee are unlikely to invest significant time approaching passive candidates who require relationship-building over weeks or months.
- Inconsistent process: Without a single point of accountability, the candidate experience can vary significantly, which reflects on the hiring company’s employer brand.
For roles in specialist areas such as risk management, full-stack development, or blockchain recruitment, these risks are amplified because the talent pool is narrow and the cost of a bad hire is high.
When should a company choose retained over contingency search?
A company should choose retained search when the role is senior, the talent pool is limited, or the hire is business-critical. If the position requires reaching passive candidates, demands confidentiality, or has failed on a contingency basis previously, retained search is the appropriate model.
Specific situations where retained search consistently outperforms contingency include:
- C-suite and VP-level appointments where discretion is essential
- Niche technical roles such as AI and machine learning specialists where the AI talent shortage makes passive outreach necessary
- Newly created roles where the hiring brief itself needs shaping before candidates are approached
- Searches in highly competitive markets such as fintech executive search or quantitative finance
- Roles where a poor hire would carry significant financial or reputational risk
Contingency remains appropriate for volume hiring, roles with a broad active candidate market, or positions where time-to-hire is the primary constraint and multiple parallel submissions are an advantage rather than a problem.
Can a recruiter work on both contingency and retained assignments?
Yes, most specialist recruitment agencies work across both models, applying each to the situations where it is most appropriate. A recruiter might handle mid-level contingency roles in parallel with retained executive searches, provided there are no conflicts of interest between assignments. The model is determined by the nature of the role and the agreement with the client, not by the recruiter’s capability.
What matters is that the recruiter is transparent about which model applies and what the client should expect in terms of process, exclusivity, and timelines. A strong specialist recruitment agency will advise on the right model for each hire rather than defaulting to one approach for all roles. In fast-moving sectors like fintech or data science, this flexibility is particularly valuable because hiring needs span everything from junior analysts to senior executives within the same team.
How Radley James Supports Both Contingency and Retained Hiring
Radley James is a specialist recruitment agency operating across fintech, data science, technology, and financial services. Whether a role calls for a contingency approach or a fully retained executive search, Radley James structures the engagement to match the complexity and seniority of the hire.
Working with Radley James means access to:
- Dedicated specialist recruiters with deep domain knowledge across areas including AI and machine learning, risk management, blockchain, and full-stack development
- A retained search capability designed for senior and executive appointments where passive candidate outreach is essential
- Transparent fee structures and clear process expectations from the first briefing call
- A network built over years of specialist recruitment across buy-side finance, fintech, and data science
- Honest advice on which recruitment model is right for your specific role and market conditions
If you are deciding how to approach your next critical hire, speak to the Radley James team to discuss which recruitment model fits your needs and how to build a shortlist that reflects the best available talent, not just the most available.
