Contingency Search

How contingency recruiting works

The employer sends a job description to one or more agencies, usually under signed fee terms. Recruiters source and screen candidates, then submit resumes with a short write-up. The employer interviews whoever it wants. If it hires someone an agency submitted, that agency invoices its placement fee on the start date, typically backed by a 60 to 90 day guarantee period. If it hires nobody from the agency, it owes nothing.

Because the agency is paid only for success, it works the roles most likely to fill fastest. A contingency recruiter with 25 open jobs across 10 clients will spend most of their week on the five jobs with clear requirements, realistic salaries and responsive hiring managers.

Contingent vs retained search

In a retained search, the employer pays part of the fee up front, works with one firm exclusively and gets a defined process: market mapping, a slate of assessed candidates, regular reporting. In contingency search, there is no upfront commitment and no exclusivity, and the agency decides how much effort a role deserves.

Use contingency for roles where qualified candidates exist in reasonable numbers and the main need is speed and reach: accountants, nurses, IT specialists, operations supervisors, sales representatives. Use retained for senior, confidential or very scarce roles, where the employer needs a firm to run the search start to finish.

Exclusive contingency

A middle option is exclusive contingency: one agency gets the role for a set time, often 30 to 60 days, but is still paid only on hire. Employers get a committed partner without paying a retainer; agencies get confidence that their work will not be undercut. Some agencies offer a lower fee or a longer guarantee in exchange for exclusivity. For high-volume programs, such as a contact center opening a new site that needs 15 team leads, exclusivity with one or two agencies produces better candidates than a free-for-all among six.

Getting better results from contingency agencies

• Limit the number of agencies. Two or three committed agencies beat eight half-interested ones. Too many agencies also cause duplicate submissions and fee disputes.
• Give feedback within 48 hours. Agencies prioritize clients who respond. A resume that sits for a week tells the recruiter the role is not real.
• Be honest about salary. A role posted $15,000 below market will get no effort, regardless of fee.
• Brief the recruiter properly. A 20-minute call with the hiring manager is worth more than any job description.
• Agree on candidate ownership rules in writing before the first submission, including what happens when a candidate is already in your applicant tracking system.

Common mistakes

Employers often treat contingency agencies as a resume feed and then wonder why candidates are weak. Others give the same role to agencies and their internal team with no coordination, so the same candidate is contacted three times. Agencies, for their part, sometimes submit candidates without their permission to establish ownership, which damages trust with both the candidate and the client. Require written candidate consent for each submission. For senior roles where none of this works, consider executive search instead.