What is Contingency Recruitment?

What is Contingency Recruitment?

When companies are looking to hire, a recruitment company may mention contingent or retained recruitment.

The basic meaning is the recruitment company will only receive a fee once the successful candidate joins. Often mentioned as `no win, no fee` A fee is only payable if there is a favourable result.

Contingency can be covered for the recruitment agreement for all jobs, per-job or project by project basis.

Two Paths

Two Paths

What is Retained Recruitment?

Retained recruiters receive a guaranteed fee either in one payment or part-payment.
*Once the contract begins.
*Introduce or present a selection of candidates for the position.
* Once the successful candidate joins.

The retainer fee is often agreed for each job, though it may be different if the company is looking to hire a whole team.

Differences between contingent and retained recruitment?


The retained search fee is often higher

A company who decides to use a company for a retained search is relying on one recruitment company to find a successful candidate.

Contingency recruitment can also use other recruitment methods such as internal HR, referrals, advertising or other recruiters.

Other Points

Some recruitment companies may try to pitch for retained search as this guarantees they will receive a fee for their service.

Contingent and retained recruitment fees can vary a lot, depending on the business area, country and market conditions.


A recent article by Forbes on hiring trends


Top Tips to Passive Recruiting

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