What Is the Difference Between Retained and Contingency HR Recruitment?
If you’re hiring for a role and speaking to HR recruitment agencies, you’ve probably heard terms like retained search and contingency recruitment being thrown around. But what do they really mean and more importantly, what’s the difference between them?
In this article, we’ll break down both models in plain English. We’ll explore how each one works, how they impact your hiring process, and what they mean for your longer-term recruitment success.
First, a Simple Definition:
Contingency HR Recruitment
You only pay the recruiter if they successfully place a candidate in your business. It’s outcome-based, and there’s usually no upfront cost.
Retained HR Recruitment
You commit to working exclusively with a recruiter, and pay part of the fee upfront, with the rest due in stages as milestones are hit (such as shortlisting or successful placement).
Let’s Compare Them Side-by-Side:
Contingency HR Recruitment
Retained HR Recruitment
Payment
Only if a placement is made
Staged fees, some paid up front
Exclusivity
Usually non-exclusive
Exclusive partnership
Speed vs Quality
Fast, but often surface-level
Focused, tailored search
Candidate Reach
Active candidates (those applying to jobs)
Active and passive candidates (not job hunting)
Risk
Lower financial risk, higher process risk
Shared commitment, lower process risk
Long-Term Value
Short-term fix
Long-term strategic hire
Contingency Recruitment Explained
Contingency recruitment is the most common model used for roles that need to be filled quickly or where there’s a large pool of available candidates. There’s no upfront cost, so multiple agencies might compete to find someone first. While this can work for straightforward hires, there are some common drawbacks:
Speed over depth: Recruiters are incentivised to be first, not necessarily the most thorough.
Less commitment from both sides: Because you haven’t committed to one recruiter, they’re often juggling you alongside several other clients.
Limited candidate reach: You’re mostly seeing active candidates (those already applying to jobs), rather than the best person for the role.
Contingency recruitment is useful when:
You’re hiring for a junior or mid-level role.
The candidate market is large.
You’re not ready to commit financially upfront.
Retained Recruitment Explained
Retained recruitment is a more strategic, partnership-led approach. You choose one recruiter to work with exclusively and pay in stages as they work through the hiring process.
You’re not just paying for CVs you’re investing in a search process, including:
A fully scoped-out brief.
Employer brand positioning.
Candidate mapping (including passive candidates who aren’t actively job-hunting).
Interview support, onboarding advice, and more.
Retained recruiters work more like an extension of your team than an external supplier. The upfront investment gives them the time and headspace to get under the skin of your business and find someone truly aligned and not just someone available.
Retained recruitment works best when:
You’re hiring for a senior, specialist, or business-critical role.
You want a deep search across active and passive markets.
You need a partner who understands your culture and future plans.
You want to reduce the risk of a bad hire.
How Does This Impact the Recruitment Process?
In a contingency model, the process is fast but can feel chaotic. You might see a flood of CVs, but little real alignment with what you need long-term. You’re also likely dealing with multiple recruiters, meaning candidate communication and employer brand messaging can get messy.
In a retained model, the process is more structured and consultative. You’ll have one point of contact, clear milestones, and a tailored shortlist of high-quality candidates. It’s a slower start but leads to stronger results.
What Does This Mean Long-Term?
Choosing between retained and contingency recruitment isn’t just about this hire it’s about the kind of hiring experience (and outcomes) you want.
Contingency might get you someone quickly, but they may not stay.
Retained gives you someone who’s not only qualified, but a long-term fit for your culture and growth plans.
Investing in retained recruitment also builds a longer-term relationship with your recruiter. They start to understand your business on a deeper level, meaning future hires become even faster and more aligned.
Which One Is Right for You?
There’s no one-size-fits-all answer – it depends on the role, your urgency, and how important long-term fit is. At The HR Recruiters we help clients navigate both models depending on what’s right for them.
But here’s the golden rule:
If the role matters to your business, don’t leave it to chance.
A retained model gives you control, insight, and a committed partner. And when hiring is done right, it’s not just about filling a gap it’s about fuelling your growth.
If you would like to discuss HR Recruitment further then please, Contact Us
