Contingency vs Retained Recruitment – What is the Difference? – We live in a world that is very dedicated to its competitiveness in every job/task it does. Similarly, in the industrial world, the companies always seek the best strategies and talent acquisition to attract and hire an individuals with potential. The Contingency and Retained Recruitment are the two such models that a company uses to hire candidates for their job vacancies. Their strategic approach helps organizations to make business-friendly decisions and fulfill their hiring needs.
Teamplus Global focuses on delivering customized solutions for staffing needs of a company, and helps the business to build a high-performing team. Teamplus Global understands the market and internal needs of a company and its unique features. Teamplus Global has its experts spread all over the market and industries, which helps them to make customized strategies to hire candidates. This blog is a complete guide and answer to the question Contingency vs Retained Recruitment – What is the Difference, and will help you to understand the two models.
Contingency vs Retained Recruitment
To understand the difference between Contingency and Retained recruitment we need to understand that what really in Contingency and retained, here below is a detailed explanation of both the recruiting model and a comprehensive study which will guide your organization to choose a better one.
Contingency recruitment
Contingency recruitment is known for its Flexibility and speed in the recruiting process. it epitomizes the “no win, no fee” recruitment model, as multiple recruitment agencies compete for a single job opening. An agency gets paid only if the candidate they present gets hired. This model fits best for roles that are not highly specialized and for companies that need to fill vacancies in a short time.
Key Features of Contingency Recruitment:
Payment on Success: Agencies are paid on a “no win, no fee” basis, meaning employers won’t incur any costs until placement is made.
Multiple Agencies: Companies are able to work with multiple agencies at the same time, thereby improving candidate sourcing velocity.
Increased Pace: The very nature of contingency recruitment poses a need for speed since competing firms are trying to outdo each other, thus most agencies try to make placements as quickly as possible.
Best for: General, non-specialized, and urgent roles that need to be filled as soon as possible.
Retained recruitment
Retained recruitment focuses on the quality and the partnership options. Retained recruitment utilizes a more tailored and selective approach. A specific agency is retained for the hiring of a custom position and is solely responsible for conducting the hiring. The agency is either partially or fully paid prior to starting the work, whether or not there is success. Recruit retained services for senior management, executive positions, very technical, or other specialized positions.
Key Features of Retained Recruitment:
Upfront Payment. Agencies are to be paid a retainer fee. Agencies are paid upfront, guaranteeing them search business.
Exclusive Partnership. One agency per open position. Ensures deep understanding which therefore ensures better alignment with the company’s strategies, and culture.
Quality. Agency devotes sufficient time understanding essential objectives of the business and goals leading to improved business investment.
Best For: Executive, technical, or very specialized roles, where getting the candidate is not a problem but finding the right is critical.
Comparision between Contingency Recruitment and Retained Recruitment
| Feature | Contingency Recruitment | Retained Recruitment |
| Payment Model | Paid on successful placement | Paid upfront or in milestones |
| Number of Agencies | Multiple agencies may compete | Exclusive partnership |
| Speed | Faster, high-volume placements | Slower, more thorough search |
| Quality of Hire | Good for general roles | Superior for specialized roles |
| Client Involvement | Moderate | High, consultative partnership |
| Best For | Urgent, non-specialized roles | Executive, niche, key roles |
Which is better for business? Contingency vs Retained Recruitment.
The choice of the recruitment model depends on the type of hiring need, importance of role and financial capabilities.
If an organization need to fill multiple role quickly with a low and fixed budget and the vacancies are not off that high role then contingency recruitment is the best choice.
If a organisation is hiring for a technical role of highly specialized role and for executives then for such staffing need retained recruitment are a better options.
Why partner with Teamplus Global?
Teamplus global is one of the fastest growing staffing solution provider. The history of Teamplus global give a clear picture of how it has proved its capabilities in the field of recruiting services. Some of the key reason that makes teamplus global a perfect choice for staffing solutions are:
- Extensive expertise
- Personalized services
- High quality candidates
- Cost effective and budget friendly
Conclusion
Contingency vs Retained Recruitment – What is the Difference? Is a very important thing to know if you are looking for a recruitment model for your staffing needs. Both the model are good in their respective domains. Contingency model I well suited for the mass hiring under a low budget and retained model is for a hiring for a important and expert role in a organization.