When to Use a Retained Recruiter Instead of a Contingency Recruiter
- Paul Mitchell
- Jun 9
- 2 min read
When you're hiring for a business-critical or leadership role, the cost of a bad hire isn't just inconvenient—it’s expensive, disruptive, and potentially damaging to your employee morale and brand.
Yet many companies approach high-level hiring with the same tools they use for mid-level or entry-level roles. Don’t make the same costly mistake.
If you're serious about landing top-tier talent, it's time to consider a different path: retained executive search, which in PMG Executive Search & Recruiting’s case, includes the industry’s best guarantee.
Contingency vs. Retained Search: What's the Difference?
🔹 Contingency Recruiters
You only pay if they place a candidate
Often juggle multiple competing roles
Focused on speed, not depth
Best for volume or lower-skill searches
Fees: typically 15%–25% of salary
🔹 Retained Recruiters
You pay a portion of the fee upfront
Recruiter works exclusively on your search
Focused on precision, alignment, and results
Ideal for leadership, confidential, or complex hires
Fees: typically 18%–35% of salary
Why Retained Search Is the Better Investment
1. 🎯 Full Commitment to Your Role
A retained recruiter isn't chasing dozens of open roles. You're securing their dedicated time and attention—which means deeper research, smarter targeting, and better communication
2. 👥 Access to Hidden Talent
Retained recruiters go beyond job boards. They proactively target passive candidates—high performers who aren’t actively looking but would make a move for the right opportunity.
3. 🔍 Thorough, Customized Process
From market mapping to cultural alignment, retained recruiters invest in understanding your business. Expect:
Strategy sessions
Detailed vetting
Weekly progress reports
Offer negotiation
Onboarding support
4. 🤫 Confidentiality You Can Trust
Replacing someone discreetly? Opening a new market? Retained recruiters know how to operate quietly and protect your brand throughout the search.
5. 📈 Results That Last
Contingency recruiters are often incentivized by speed. Retained recruiters are focused on quality and fit—leading to stronger long-term performance and retention.
But What About the Cost?
Yes, retained search has a higher fee structure on paper—typically 18% to 35% of the candidate’s first-year salary.
But here’s what you’re avoiding:
Weeks (or months) of wasted interviews
Poor fit and internal disruption
Lost business and stalled momentum
The cost of re-hiring after someone quits or fails
But What About the Cost?
But What About the Guarantee?
Most contingency recruiters provide a 30 to 90-day replacement guarantee while most retained recruiters provide a 3 to 6-month guarantee. PMG Executive Search & Recruiting provides a full year replacement guarantee for retained search - that's how confident their perfomance is.
When you factor in the ROI of hiring the right person, retained search often costs less in the long run.
The Bottom Line
If you’re hiring someone who will lead a team, shape your culture, or drive revenue, you can’t afford to get it wrong.
At PMG Executive Search & Recruiting, we offer retained search services that deliver precision, discretion, and impact. We become your partner in the process—not just a vendor throwing resumes at the wall.
💬 Let’s TalkWhen you're ready to hire your next key role—with confidence—reach out. Retained search may be the smartest investment you make this year.
Contact Paul at (888) 657-6202, paul@pmgsearch.com, or https://www.pmgsearch.com/corporate-recruiter
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