Contingency vs retained recruitment: which fits?

Most recruitment agencies charge a percentage of the new hire's first-year salary, usually 15–30%. What differs is when you pay it, and that changes how the recruiter works on your role far more than the percentage does.

Contingency: paid only on hire

With contingency recruitment, you pay nothing until a candidate signs. That sounds risk-free, and financially it nearly is. The catch is that the agency carries the risk of the search, so it puts its time where a fee is most likely: roles that are easy to fill, with salaries that are easy to agree.

• The same role is often sent to three or more agencies, so it becomes a race to send CVs first
• You get volume quickly, but you do the screening
• Hard or senior roles tend to slip down the agency's list
• Most agencies offer a 4–6 month replacement guarantee

Retained (installment): paid in stages

With retained recruitment, the same 15–30% fee is split into installments, typically a deposit at the start, a payment when you receive a shortlist, and the rest when the candidate signs. A common split is 25% / 25% / 50%. Because part of the fee is committed upfront, one recruiter works on your role exclusively, to agreed deadlines.

• One dedicated recruiter instead of several agencies competing
• A shortlist of three to five interviewed candidates, not a pile of CVs
• Weekly updates on the search, so you see the work
• The same 4–6 month replacement guarantee

How the cost compares

Take a senior engineer at a €60,000 annual salary and a 20% fee. Under contingency, you pay €12,000 when the person signs. Under a retained search with a 25 / 25 / 50 split, you pay €3,000 to start, €3,000 at the shortlist and €6,000 on hire: the same €12,000. The difference is €6,000 paid before the hire, which is lost if you don't hire. That's the price of a recruiter who is committed to your role.

When to choose contingency

• Junior or common roles with plenty of candidates on the market
• One-off hires where speed matters more than fit
• You have the time to screen CVs from several agencies

When to choose retained

• Senior, niche or leadership roles
• Roles where a bad hire is expensive
• You want one partner who represents your company well to candidates
• You need a hiring date you can plan around

Contingency buys you a chance at a hire. Retained buys you someone's commitment to make one.

Dataforge doesn't work on pure contingency. We offer retained search paid in installments, hourly recruiting and recruitment process outsourcing (RPO). Each has its own page with a fee calculator, so you can compare the cost for your role before you call us.