What is the difference between retained and contingency search?

In retained search, a company pays a search firm a fee at the start and the firm works the role exclusively, usually for senior roles. In contingency recruitment, an agency is paid only when its candidate is hired, and several agencies can work the same role. Boardroom CXO charges Rs 10,000 (including GST) at the start and the rest on joining.

Retained search

The Association of Executive Search and Leadership Consultants (AESC), the global body for the profession, describes retained executive search as focused on executive and senior-level positions and board directors. A consulting fee or retainer is charged at the beginning of the relationship, and retained firms work on an exclusive basis.

Contingency recruitment

The AESC describes contingency recruiters as agencies paid after a candidate has been identified and hired. A company is not tied to one agency and may use several on the same role. Contingency recruiters typically fill entry-level to mid-level positions.

Where Boardroom CXO sits

We start each search with a Rs 10,000 service fee (including GST). It is adjusted against the final fee of one month's CTC, which is invoiced when your hire joins. Most of the fee is therefore tied to a hire, while the search itself works the way executive search does: we map pay, define the role, and headhunt directly from competitor companies rather than sending CVs from a database.

Which model fits which hire

For a high-volume or junior role, where many qualified people are actively applying, a contingency agency or a job portal can be enough. For a CXO role, the best candidate is usually already doing the job somewhere else and is not looking. Reaching them takes research and a confidential approach, which is the work a search firm is paid to do.

Questions to ask any firm before you sign

• What do I pay before a hire is made, and what do I pay when the hire joins?
• Is the firm working the role alone, or alongside other agencies?
• Will candidates come from a database of applicants, or from a direct approach to people in role?
• How is the client's name kept confidential during the approach?
• What happens if the hire leaves early? Ask for it in writing.