Why This Matters
A high-stakes leadership hire can define an organisation’s future. Research shows that the cumulative cost of a failed executive hire can exceed ten times the individual’s salary when factoring in performance disruption, cultural fallout, and strategic delays. With stakes this high, organisations cannot afford to treat executive hiring as a transactional exercise. While many turn to external firms for support, understanding the type of search engagement is just as critical as choosing the right candidate.
Two dominant models define the executive recruitment landscape: retained search and contingent recruitment.
Each is shaped by different philosophies, incentive structures, and intended use cases. For organisations making pivotal leadership appointments, understanding these differences is essential to selecting the model best suited to the role’s risk, complexity, and strategic value.
Two Models, Two Distinct Philosophies
Retained and contingent search differ fundamentally in their structure and underlying intent. In a retained model, an organisation partners exclusively with one search firm on a committed basis. The search partner is compensated through an upfront or milestone-based staged fee structure. This fee structure reflects the depth, rigour, and strategic partnership expected of the firm conducting the search. The firm is expected to commit senior-level consultants and research resources and to conduct a customised, end-to-end process focused on delivering candidates who will fit the role’s intent and long-term leadership impact.
In a contingent model, multiple firms may be engaged simultaneously and are only compensated if their candidate is hired. The incentives here are to drive speed and volume: recruiters submit candidates quickly, often from existing databases or active job seeker pools.
Firms such as TheBoardroom Africa, Egon Zehnder, Spencer Stuart, and others universally operate on a retained model. Meanwhile, contingent recruiters like Michael Page, Hays, and Adecco are more prevalent in mid-level, operational or temporary hiring roles, where the focus is on fast results and where the stakes for mishire are lower.
Incentives, Accountability, and Candidate Access
Retained and contingent searches operate within fundamentally different incentive structures. In a retained model, the search firm is compensated not for speed or volume, but for delivering the right outcome. Their fees are tied to the rigour and quality of the process, not simply the act of placing a candidate. This alignment allows retained firms to invest meaningfully in proprietary research, strategic market mapping, and deep due diligence. The process includes a thorough understanding of the organisational context, high-touch candidate engagement, structured interviews grounded in well-defined competency frameworks, triangulated referencing, and values-based assessments. Crucially, retained partners work from a clear understanding of what success looks like in context, shaping the search around strategic fit, leadership potential, and long-term value, rather than just role fulfilment.
This dynamic also shapes candidate engagement in crucial ways. Skilled consultants engage high-calibre, passive candidates, those who aren’t actively job-seeking, by presenting them with tailored, compelling opportunities aligned with the organisation’s vision and leadership needs. Given that only around 30% of potential candidates are actively on the market at any time, retained search, when done well, unlocks access to the remaining 70%, a deeper, higher-calibre pool that requires strategic outreach and a credible, well-crafted brief the consultant thoughtfully designs. They serve as trusted advisors to both clients and candidates, often operating as strategic intermediaries. Their role goes beyond sourcing; they navigate complex, often sensitive conversations on behalf of the organisation, ensuring discretion and protecting the client’s strategic intent and reputation throughout the process. Rather than simply broadcasting a vacancy, they carefully craft role briefs that resonate with top-tier talent, articulating not just the job requirements but also the broader organisational context, leadership mandate, and future opportunities.
Contingent recruiters, by contrast, operate under the pressure to deliver first. With no payment until a placement is made, their business model requires high volume and quick wins. As a result, the process often prioritises activity over alignment and deep market research. The candidates presented are likely to be active job seekers, readily accessible, but not always strategically matched. Contingent recruiters operate without exclusivity and, because they are not retained by the client, often lack access to the full strategic context or the nuances behind a role, making it harder to craft a compelling narrative that resonates with top-tier leaders.
Contingent firms also tend to circulate opportunities more broadly and rapidly, often relying on job boards, internal databases, and active job seekers. In high-visibility searches, this approach can lead to duplicate outreach to the same candidates by multiple agencies, creating noise, inconsistent messaging, and sometimes confusion about the legitimacy or seriousness of the opportunity.
From the candidate’s perspective, this fragmented outreach can diminish the perceived importance of the role or reflect poorly on the hiring organisation. For roles where reputation, discretion, and strategic positioning matter, such market confusion can be especially damaging, turning away the very leaders a company hopes to attract.
Process, Partnership, and Perception
The experience of a retained search includes:
- Role scoping aligned with strategy and future needs
- Stakeholder alignment and culture analysis
- Deep research and market mapping beyond active candidates
- In-depth candidate evaluation, competency-based frameworks, referencing, and onboarding support
It is consultative, insight-driven, and tailored to the specific leadership context.
By contrast, a contingent search is considered to be:
- More transactional.
- The recruiter’s role often ends at CV submission.
- There is limited involvement in refining the brief, managing candidate expectations, or advising on final selection.
For senior-level roles, the absence of strategic counsel and advisory rigour in contingent searches can compound the inherent risks of executive hiring. Without a structured process to assess fit, align stakeholders, and anticipate potential challenges, organisations may inadvertently increase the likelihood of missteps in a decision with far-reaching cultural and performance implications.
There are also perception dynamics at play. Top candidates respond differently to retained searches, often viewing them as more confidential, serious, and worthy of attention. When a role is presented by multiple recruiters or appears on public platforms via several channels, it can signal disorganisation or a lack of commitment. In high-profile searches, this undermines trust and appeal.
When to Use Each Model
- The role is C-suite, board-level, senior executive, or otherwise strategically critical
- The candidate landscape is niche or requires passive outreach
- Cultural fit and leadership alignment matter more than speed
- Confidentiality and brand control are essential
- You seek a true thought partner in the hiring journey
- The role is mid-level, operational, a temporary role, or has a large candidate pool
- Speed and volume are more important than strategic fit
- Budget constraints require fee-on-placement models
- The organisation has strong internal capacity to evaluate and manage candidates independently.
Common Misconceptions
- “Retained search guarantees a hire.” Not exactly. What it guarantees is deep commitment, rigorous process, and strategic alignment. But retained searches consistently deliver higher success rates in both placement and long-term retention.
- “Contingent is cheaper.” Upfront costs may be lower, but total cost, lost time, mis-hire risk, and organisational disruption can be much higher.
- “Multiple recruiters mean better reach.” Not necessarily. They often compete for the same candidates, creating market noise and diluting your brand.
- “Retained is only for large corporations.” Impact matters more than size. If a hire is pivotal to your future, the retained model applies.
Closing Reflection: Aligning Model to Moment
Search is not just about filling vacancies; it is about shaping the future of leadership. Choosing the right search model reflects how seriously an organisation takes that responsibility. For high-impact roles, where the cost of getting it wrong is strategic, cultural, and reputational, retained search offers the depth, discretion, and commitment needed to get it right.
Understanding the nuances between retained and contingent search empowers boards, CEOs, and founders to choose a path that aligns with their leadership stakes, and to treat every key hire not just as a recruitment need, but as a lever for long-term value.
