TMG is a Retained Search Firm–What is the difference between a Retained and Contingency Search Firms?
Retained search firms (RSFs) have a relationship/agreement with the client to conduct searches on an exclusive basis. In contrast, Contingency Search Firms (CSFs) do not have exclusivity to present candidates for requisitions /job openings. Rather a CSF may be one of several firms who are aware of a company’s opening and have been duly approved as a preferred vendor to present candidates. Fees RSFs are typically paid a fee of 30-35% of a candidate’s estimated first year cash compensation (base, sign on bonus & target bonus). These fees are usually billed in 3 installments. On the other hand, CSFs usually accrue a fee of 20-30% of a candidate’s base salary ONLY and the CSF will be paid contingent on an actual placement. CSFs do not get reimbursed for approved, out-of-pocket expenses. Position Level RSFs are engaged to conduct searches for executive level roles paying base salaries of at least $125K+. In contrast, CSFs are usually hired to fill lower level management positions paying les
Related Questions
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- TMG is a Retained Search Firm--What is the difference between a Retained and Contingency Search Firms?
