What are the differences between a retainer contract and contingency contract?
Recruiting firms function in one of two ways, either on a retainer basis or a contingency basis. There are many differences between these two types of services beyond the superficial difference of how the recruiter is paid. A retainer executive search is defined as an exclusive project undertaken on behalf of a client to identify and screen suitable candidates for a particular position. Typically used for searching mid to senior level executives with selective criteria, retained search usually produces a carefully screened short list of well-qualified and interested candidates. A portion of the fee is paid upfront with the balance paid when the search is over. Contingency search are typically used for junior or entry-level positions with clearly defined requirements, and when speed of hiring takes precedence over finding the ideal candidate. The search firm receives payment only if they successfully fill the positions and it is not unusual for the same job opening to be assigned to a n
