Hiring the right finance talent can be a complex task for businesses, especially when filling critical or specialized positions. Companies often partner with staffing firms to streamline the hiring process, and one of the first decisions to make is choosing between a retained search and a contingency search. But what exactly are these search methods, and how do they differ? More importantly, which one is right for your business when it comes to hiring finance professionals?

In this blog, we’ll break down the differences between retained and contingency search, along with the benefits of each, so you can make an informed decision for your company’s finance hiring needs.

What is Retained Search?

Retained search is a service provided by a staffing or executive search firm that is engaged exclusively by a company to fill high-level or specialized positions. In this arrangement, the hiring company pays the search firm an upfront fee or retainer to begin the search process, with the total fee typically structured in installments. The firm works closely with the business to understand its needs, culture, and goals, and the search is often more thorough and consultative.

Key Characteristics of Retained Search:

• Exclusive Partnership: The staffing firm works solely on this search and dedicates its resources to finding the best candidate for the role.
• Upfront Investment: A retainer fee is paid by the hiring company at the start of the engagement.
• Focus on Specialized and Senior Roles: This search method is ideal for executive, C-suite, or highly specialized finance positions.
• Customized and Thorough Process: The firm conducts a detailed search, often involving headhunting, deep market research, and extensive candidate vetting.

What is Contingency Search?

Contingency search, on the other hand, is a non-exclusive arrangement where multiple staffing firms may be tasked with filling a position. The search firm only receives payment if and when they successfully place a candidate in the role. This method is often used for mid-level and entry-level positions where speed is a higher priority than exclusivity.

Key Characteristics of Contingency Search:

• No Upfront Fee: The firm is paid only when the candidate is successfully placed.
• Non-Exclusive Partnership: Multiple firms can be engaged for the same role, and it’s a race to present the best candidate first.
• High-Volume or Mid-Level Roles: Contingency search is often best suited for mid-level or less specialized finance roles, where the candidate pool is larger.
• Faster Process: Because multiple firms may be working on the same search, the process can move quickly, though it may lack the depth of a retained search.

Pros and Cons of Retained Search

Pros:

• Dedicated Resources: The staffing firm devotes significant time and effort to the search, ensuring the most qualified candidates are identified.
• Access to Passive Candidates: Retained firms often reach out to passive candidates (those not actively seeking a job) who may be the perfect fit for a specialized or senior finance role.
• Thorough Vetting Process: Because retained search firms work closely with the company, they typically conduct a more in-depth assessment of candidates to ensure the right fit culturally and professionally.

Cons:

• Higher Cost: The upfront fee and installment payments can make this a more expensive option.
• Longer Timeline: The search process is often more comprehensive, which can result in a longer hiring period.

Pros and Cons of Contingency Search

Pros:

• No Financial Risk: Since payment is only made upon a successful placement, there is no upfront financial commitment.
• Faster Turnaround: The competitive nature of the search can lead to faster results, making it a good option for companies that need to fill positions quickly.
• Wider Net: Multiple firms may be engaged, increasing the chances of finding suitable candidates quickly.

Cons:

• Less Focused Search: Because firms are only paid upon placement, they may prioritize speed over quality, resulting in less rigorous candidate vetting.
• Potential for Multiple Submissions: With multiple firms engaged, you may receive overlapping candidates or a higher volume of applicants that require internal vetting.
• Less Commitment to Culture Fit: Contingency search firms may not have the same level of understanding of your business, which can lead to mismatches in company culture and role fit.

Which is Best for Your Finance Hiring Needs?

The choice between retained search and contingency search depends largely on the specific needs of your business and the type of finance position you’re looking to fill.

Retained Search is ideal if you are hiring for a senior-level, executive, or highly specialized finance role. If the position requires a particular skill set or expertise—such as a CFO, VP of Finance, or M&A specialist—a retained search firm will invest the time and resources needed to find the right candidate. The depth and exclusivity of this process ensure that even passive candidates are considered, and cultural fit is prioritized.

Contingency Search is better suited for mid-level finance roles or when speed is essential. If you’re looking to fill positions such as financial analysts, accountants, or payroll specialists, contingency search can be a cost-effective and quick solution. The lack of an upfront fee and the competitive nature of the process may yield faster results, especially when multiple firms are engaged in the search.

Conclusion

Understanding the differences between retained search and contingency search is essential for making the right decision for your finance hiring strategy. While retained search provides a dedicated and thorough approach for high-level roles, contingency search offers a quicker, more cost-effective solution for filling mid-level positions. By aligning your search method with the specific needs of the role, you can ensure a smoother, more successful hiring process.

If you’re unsure which approach is best for your current hiring needs, a specialized staffing firm like Burchard and Associates can help you assess your options and guide you toward the most effective strategy for your business. Whether it’s a retained or contingency search, partnering with the right firm can make all the difference in finding the perfect finance professional for your team. Contact us today to learn more about how we can help.