Start with the engagement, not a label
“Retained” and “contingency” can describe different commercial structures, levels of exclusivity, payment timing and search commitments. Definitions vary by provider, so an employer should read the proposed agreement rather than assume a universal model.
Compare the questions that affect the search
Ask how the provider defines scope, candidate ownership, sourcing, screening, communication cadence, fees, payment milestones, replacement terms, exclusivity and termination. The useful choice is the one that fits the role and the agreement the parties actually approve.
Keep terms in the written agreement
This page is educational and does not make an offer of retained or contingency service. BEGHR discusses fit and commercial terms with an employer before any recruiting engagement begins.
Retained search: how it usually works
The employer pays installments regardless of outcome, often a third at signing, a third at shortlist and a third at hire, and the firm works the role exclusively with a dedicated researcher. The structure buys attention and confidentiality; it is common for general counsel, partner and senior in-house searches. The cost is paying for work before any candidate is seen, with limited ability to stop.
Contingency search: how it usually works
The employer pays a salary-based fee, typically 20% to 30% of first-year compensation, only when a candidate is hired. Several firms may work the same role at once, so each firm spreads its attention across competing assignments and duplicate introductions are common. The structure costs nothing until a hire, and more than any other model at the hire.
Milestone billing: the BEGHR model
BEGHR bills by milestone within a range agreed before the search: billing starts after applicants are sent, invoices follow at least monthly during billable service delivery, and the total is roughly 50% less than contingency recruiters. The employer sees a shortlist of 3 to 5 screened candidates, weekly reporting and a published placement timeframe of 23 to 35 days, with a 45-day replacement guarantee and 50% off a repeat hire for the same role. Completed billable milestones may be payable without a placement because they pay for agreed work; the agreement states every trigger.
- Fee comparison: BEGHR, Roughly 50% less than contingency recruiters. Get the role-specific estimate through the pricing form. Contingency, A salary-based placement fee, typically 20% to 30% of first-year compensation, confirmed in the firm’s agreement.
- When billing starts: BEGHR, After applicants are sent, under the agreed milestone plan. Contingency, Typically when a candidate is hired, under the firm’s terms.
- How payments work: BEGHR, Milestone billing within an agreed range; progress invoices at least monthly during billable service delivery. Contingency, Typically one placement fee at close rather than progress invoices.
- Reported search results: BEGHR, 86% fill rate on active searches, as reported by BEGHR across its placement service. Contingency, Fill rates vary by firm and are rarely published.
Which structure fits your search
Retained fits a confidential senior search where exclusivity and a dedicated researcher matter more than fee. Contingency fits a role the firm is content to leave open until a candidate appears. Milestone billing fits most associate, counsel and paralegal searches where the employer wants a defined scope, visible progress and a lower total. Whatever the label, read the agreement for scope, billing triggers, candidate ownership, exclusivity, termination and replacement terms before signing.