Retained vs Contingency Recruiting
When hiring leadership or high-impact roles, companies often ask: Should we use a retained search firm or a contingency recruiter?
Many people assume “executive search” automatically means retained. That’s not always true.
The real difference is in payment structure and engagement model, not necessarily in the level of the role.
For companies in Property Management and Supply Chain & Logistics, understanding this distinction matters.
What Is Retained Recruiting?
Retained recruiting is a payment structure.
In this model:
A portion of the fee is paid upfront
Additional payments are made at agreed milestones
The search firm works the assignment exclusively
The fee is owed regardless of whether the role is filled
Retained search is often used for:
C-suite roles
Highly confidential searches
Board-level positions
Extremely niche or hard-to-find talent
The upfront investment signals commitment from both sides and allows the firm to dedicate significant resources to the search.
What Is Contingency Recruiting?
Contingency recruiting is also a payment structure.
In this model:
There are no upfront fees
The recruiter is paid only upon successful placement
Companies may work with multiple firms
This structure reduces financial risk for the employer and often works well for:
Regional and Director-level roles
Operations leadership
Maintenance leadership
Accounting and support functions
Mid-to-senior level Supply Chain roles
The key distinction: contingency does not mean lower-level recruiting. Many executive-level placements are successfully completed under contingency agreements.
What Is Executive Search?
Executive search refers to the level, complexity, and strategic nature of the role, not the fee structure.
Executive search typically involves:
Direct sourcing of passive candidates
Targeted outreach to competitors
Confidential market mapping
Strategic consultation with hiring leadership
An executive search can be structured as retained or contingency depending on the engagement agreement.
This is where confusion often happens.
Retained is a pricing model.
Executive search is a search methodology.
They are not the same thing.
Retained vs Contingency: Key Differences
Retained Recruiting Model
Upfront Investment:
Yes. A portion of the fee is paid at the start of the search.
Payment Structure:
Milestone-based payments regardless of final outcome.
Exclusivity:
Typically exclusive.
Best Fit For:
C-suite roles
Confidential searches
Highly specialized or niche positions
Board or succession planning searches
Employer Risk Level:
Higher upfront financial commitment.
Contingency Recruiting Model
Upfront Investment:
No. Payment is only made upon successful placement.
Payment Structure:
Success-based fee after hire.
Exclusivity:
May be exclusive or competitive depending on agreement.
Best Fit For:
Director and VP-level roles
Regional leadership
Operations and maintenance leadership
Mid-to-senior Supply Chain roles
Corporate support functions
Employer Risk Level:
Lower financial risk.
Key Takeaway
Both retained and contingency models can support executive-level searches. The difference is not the caliber of talent — it’s the engagement structure.
What Makes Sense in Property Management?
In today’s Property Management market, most leadership roles are successfully completed under contingency agreements.
Examples include:
Regional Property Managers
Directors of Property Management
Community Managers
Maintenance Supervisors
Corporate Accounting leaders
These roles are critical to performance and NOI, but they typically do not require a retained structure.
For most Property Management organizations, a contingency executive search model provides:
Speed
Flexibility
Reduced financial risk
Strong access to passive talent
Retained search may make sense for C-suite or confidential succession planning, but it is not automatically required for leadership-level hires.
What Makes Sense in Supply Chain & Logistics?
In the Supply Chain & Logistics market, hiring needs often move quickly.
Operations roles tied to throughput, distribution, or facility performance rarely benefit from extended retained timelines unless:
The role is highly technical and niche
The search is confidential
The company requires full exclusivity
For most Director-level and VP-level operational hires, a contingency executive search model remains highly effective when executed by a specialized firm.
How to Decide Which Model Is Right
Ask yourself:
Is this a C-suite or board-level role?
Is confidentiality critical?
Do we require exclusivity?
Are we comfortable with upfront investment?
How urgent is the hire?
If the role is executive but not confidential or hyper-niche, contingency may still be the smarter structure.
If the role is mission-critical, highly sensitive, or extremely specialized, retained can be appropriate.
The structure should fit the search.
Not the other way around.
Final Thoughts
The conversation is not about which model is “better.” It’s about alignment.
The right recruiting partner should be able to:
Execute executive-level searches
Advise you on engagement structure
Align the model to your hiring goals
Deliver high-caliber talent efficiently
Whether retained or contingency, what matters most is market expertise, execution, and access to the right candidates.
If you are hiring Property Management or Supply Chain & Logistics leadership and want guidance on the right structure for your market, Elevair Search Partners can help you determine the most effective approach.