Printer-friendly versionSend to friend

The three most common types of search are contingency, retained, and engagement. As mentioned, this program applies to retained and engagement searches only. The basic differences are:

Contingency – the employer agrees to pay a search fee only if one of the search firm’s candidate’s gets hired. There is no other commitment by either party, and it’s not unusual for employers to engage more than one firm on the same search. Contingency search is usually used for mid- to lower-level positions and sometimes for sales positions.

Retained search – the employer contracts with a firm to fill a position and agrees to pay the search fee, usually in three installments. However, the fee is not contingent upon hiring one of the presented candidates. This model is virtually always an exclusive arrangement and is usually used for mid- to higher-level positions (management, executive, and board of directors) as well as high level sales positions.
 
Engagement search – less common, this is a hybrid of contingency and retained. The employer agrees to pay a portion of the search fee up-front, to ensure mutual commitment to the search. The remainder of the fee is paid only if one of the search firm’s candidates gets hired. Engagement search, which is growing in popularity, usually includes exclusivity. It ensures a partnership, yet limits the employer’s financial commitment in the event the position doesn’t get filled, or the candidate is found from another source. Engagement search is sometimes used for mid-level or sales positions.

Return to Client Referral Program main page.