Contingent vs retained search comes down to one question: do you pay for the work, or only for the result? A contingent firm is paid when its candidate is hired, and it will often work your role alongside other firms. A retained firm is engaged exclusively, paid in stages, and expected to run a structured search from start to finish. If you run a Canadian company with fewer than 500 employees and you are about to hire one senior leader, the fee is the number everyone quotes, but it is rarely the number that decides how the search goes. This guide compares the two models on fees, speed, reliability and fit, with every amount in Canadian dollars and the fee basis stated, so you can judge a quote before you sign it.
Key Differences Between Contingent and Retained Search
Under a contingent model, the recruiter is paid only if you hire a candidate the firm presented. Nothing is owed while the search runs, and the arrangement is often non-exclusive, so the same mandate may sit with several firms. The candidates tend to be active job seekers and people already in the firm's network. Under a retained model, you engage one firm exclusively and pay in stages whether or not the search ends in a hire. In return, the process is built around your role: a written brief, a map of the market, and a shortlist the firm commits to delivering.
| Factor | Contingent search | Retained search |
|---|---|---|
| Payment trigger | A candidate the firm presented is hired | Engagement of the firm, then milestones of the search |
| Exclusivity | Often non-exclusive; several firms may work the role | Exclusive to one firm |
| Candidate pool | Active candidates and the firm's existing network | Active and passive candidates, found through market mapping |
| Payment timing | One payment after the hire | Instalments: at engagement, at shortlist, at placement |
| Employer risk | Low financial risk, higher risk the search stalls | Fee is owed even if no hire results |
| Best-fit role | Well-defined senior roles with an active candidate pool | Confidential, board-critical or hard-to-fill seats |
The Contingent Search Model
Contingent search is the model most employers meet first. There is no upfront cost, and the agencies that work this way are paid only when they place someone. That makes it easy to start and easy to run in parallel with your own posting or with another recruiter. The trade-off is focus. A contingent recruiter divides time among every open role in the firm, and the work concentrates on candidates who are already looking or already known to the firm.
The Retained Search Model
Retained search treats the firm as a partner for the length of the mandate. Because the engagement is exclusive and paid, the firm can spend the time to map the market, approach people who are not looking, and reach hidden talent that never answers a job posting. Hiring leaders sometimes want to know what that looks like in practice; we cover what happens inside a retained executive search separately. The point here is the contrast: retained buys a committed process, contingent buys a result you pay for only if it arrives.
Fee Comparison for Contingent and Retained Search
Fee ranges vary by firm, by role and by country, and published figures come mostly from recruiting firms describing their own market. Treat them as orientation, not as a price list. Talentfoot Executive Search puts contingency fees at 20 to 30 percent of first-year compensation, owed only on a successful hire, and retained fees at 30 to 35 percent of first-year total compensation, paid in instalments (Talentfoot, May 2026). For Canada specifically, Toronto-based IQ Partners reports that agencies generally charge 15 to 30 percent of the candidate's first-year salary, with about 20 percent typical for standard placements, and that retained fees on high-stakes executive placements may exceed 30 percent (IQ Partners, May 2025).
Two quotes are only comparable on the same basis. One firm may charge 25 percent of base salary, another 25 percent of base plus target bonus, and a third may add equity or a minimum fee. Pin's 2026 guide, for example, applies contingent fees to first-year base salary but retained fees to guaranteed cash compensation. Before comparing percentages, ask each firm what the percentage is applied to, what expenses sit on top, and what you get in value if the hire leaves early. We look at the true cost of each search model in more detail elsewhere.
Payment Structure of Each Search Fee
A contingent fee is one payment, due after the hire accepts and starts. A retained fee is split into milestones of the search. The common pattern is one third at engagement, one third when the shortlist is delivered and one third at placement (Talentfoot, May 2026). Ask when each instalment falls due and whether any part is credited if the search is cancelled.
Illustrative CAD Cost of Each Model
This example is illustrative only. It is not a BJRC quote, and it uses fee percentages from the ranges above applied to base salary alone.
- Salary: CAD 160,000
- Contingent at 20 percent: 160,000 x 0.20 = CAD 32,000
- Retained at 30 percent: 160,000 x 0.30 = CAD 48,000
- Sticker gap: CAD 16,000
If the fee base includes a bonus, both figures rise. On a retained mandate, the third due at engagement (CAD 16,000 in this example) is spent whether or not you hire. The fair comparison is not the CAD 16,000 gap alone. A contingent search that stalls has no cost in fees but a real one in search risk: the seat stays empty, your team covers the work, and you start over. A retained search that delivers costs more on paper and may cost less once the vacancy time is counted.
Speed and Reliability of Contingent and Retained Search
Published time-to-fill figures differ because firms measure different clocks, and no independent survey separates the two models. The most specific figure we found comes from Pin, a recruiting software vendor, which describes retained firms as targeting 90 to 120 days from engagement to offer (Pin, 2026). The same source says contingency speed "varies wildly" and does not give a range, so we do not either. The trade-off in brief: contingent can move fast on a well-defined role, while retained gives up some speed for a committed, structured search.
Commitment and Completion in Each Model
The incentive difference is simple. A firm on an exclusive, paid engagement is committed to finish, because the work is already funded and its name is on the mandate. A contingent firm is paid only if it places first, so it often prioritises roles that look easy to fill. A hard senior search can slip down the list, since hours spent on it may produce nothing. That is not a flaw in contingent recruiters. It is how the model pays them, and it is the most effective argument for matching the model to the difficulty of the role.
Time to Fill and Candidate Access
Contingent firms work the active market quickly: people who are job hunting or already in the firm's database can be in front of you within days. Retained firms follow a defined timeline and go deeper, approaching passive candidates who are performing well where they are. If the right person is likely to be on the market today, contingent reaches them sooner. If the right person is employed and not looking, a faster search will not find them.
Mid-Market Senior Hires Suited to Contingent Search
Contingent search fits a defined, budget-sensitive senior job with a real active candidate pool: a controller, a sales director or an operations manager in a company that can describe the role in a page. It suits you when avoiding an upfront cost matters, when you are comfortable with more than one firm working the mandate, and when the search is neither confidential nor critical to the board. If a good candidate is likely to answer a posting, you can find them without paying for a deep search, and you pay only if the firm delivers.
Critical Mid-Market Roles Suited to Retained Search
Retained search fits the seat where a mis-hire is expensive and the pool is thin: a confidential CEO or CFO succession, a role the board is watching, or a technical executive that few people in Canada can fill. These are high-impact appointments for the company, where named-consultant accountability, market mapping and a committed process justify the cost. Quality of candidate matters more than speed, and you want one firm responsible for the outcome. Confidentiality also pushes toward retained, because a single firm approaching a limited list of people is easier to control than several firms circulating the same role.
Choosing Between Contingent and Retained Search
The model should follow the role and the risk, not the budget alone. Neither is better in the abstract; the question is which is the better fit for this seat. The three criteria below do most of the sorting, and how personalization shapes executive search explains why the same role can need a different approach in two different companies.
Model Fit for the Role
Contingent suits defined mid-level to senior roles where the experience you need is common enough to be found in the active market. Retained suits confidential or business-critical seats where the right experience is rare, the search must stay quiet, or the person will report to the board or the CEO.
The Fee Versus the Cost of a Mis-Hire
Set the fee gap against what a failed senior hire costs: months of lost output, a second search, a team that loses confidence, and sometimes clients or staff who leave with the executive. If the value of the hire is high and the downside of a miss is large, a higher fee for a more committed process is usually worth paying. If the role is replaceable and the pool is deep, the same logic points the other way. Check the guarantee in either model, including how long it runs and what it covers.
The Hybrid or Container Search Option
Between the two sits a hybrid, often called container or engaged search. You pay a partial engagement fee upfront to secure the firm's commitment and exclusivity, and the balance is due when you hire. JRG Partners, a US firm that offers the model, describes the upfront share as typically 20 to 35 percent of the estimated total fee, with the remainder due on an accepted offer (JRG Partners, July 2026). It can fit a mid-market budget when you want a firm that is committed to the search without the full cost of retained. Ask exactly what the engagement fee buys, and whether it is credited against the final fee.
Choose the Right Search Model for the Next Senior Hire With BJRC Recruiting
If you are weighing a senior hire, talk it through with us before you sign anything. As a recruiter, we can help you test the role against the criteria above and give you our view on which model fits it. Our executive search is contingent: there is no fee to start, and payment is due after a successful placement. Weigh our view with that in mind. If you are looking for an executive search firm in Toronto, tell us about the seat and we will tell you what we see.
Frequently Asked Questions About Contingent vs Retained Search
Is Retained Search Worth the Fee for a Mid-Market Company?
Yes, when the role is confidential or business-critical and a poor hire would cost the company more than the extra fee. For a defined role with an active pool, it often is not. The retained section above sets out which seats qualify.
Can a Confidential Search Run on a Contingent Basis?
It can, but the working conditions are limited. Several firms, a wider circle of people who know the role and no commitment to approach specific individuals all work against confidentiality. Market mapping and a single accountable firm, as described in the retained section, are better suited to it.
Which Search Model Is Faster, Contingent or Retained?
Contingent can be faster when you know exactly who you are looking for and they are in the active market. Retained is more predictable because the firm commits to a timeline. The speed section explains the trade-off; the figure there applies to retained only.
How Much Does Each Search Model Cost?
The fee section gives the published ranges, the sources and a worked example in CAD. The answer to how much depends on the fee basis, so compare any two quotes on the same basis: base salary or total compensation, expenses, minimum fees and guarantee.
Does a Contingent Search Require Any Upfront Payment?
No. A contingent search is paid on placement, while a retained search is paid in stages, often starting with a retainer at engagement. The payment structure section shows how each is billed.
