Retained vs Contingency: Why the Best Recruiters Are Making the Switch cover art

Retained vs Contingency: Why the Best Recruiters Are Making the Switch

Retained vs Contingency: Why the Best Recruiters Are Making the Switch

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Rather than treating retained search as an exclusive or high-end specialism, the discussion challenges the myths around it and makes the case that for the right recruiter, retained is simply a better, more professional way of working. The episode covers how to position it with clients, why contingency has a limited shelf life in an AI-driven market, and what recruiters should honestly ask themselves before making the move.


Key Takeaways

Retained is a mindset, not a pricing model.

The biggest barrier to retained recruitment is not the fee structure - it is how recruiters position themselves. Those who default to contingency often do so out of habit or assumption, not because retained would not work for their clients or market.


Contingency has a limited shelf life.

Recruiters who operate purely as fast-moving, CV-flicking salespeople are increasingly vulnerable. As AI tools allow clients to handle more of the transactional recruitment themselves, the value of a recruiter who cannot offer genuine insight or process depth will diminish.


Clients want guaranteed results - retained gives both sides certainty.

Clients want to know a role will be filled. Recruiters need guaranteed revenue to invest proper time and effort. Retained aligns those interests. An upfront payment - whatever the structure - signals a serious professional relationship on both sides.


Retained is not just exec search and it is not always third, third, third.

It can be a talent mapping project, a monthly retainer, a multi-hire campaign or a straightforward single assignment with an upfront component. The structure is flexible - what matters is that both parties are committed.


Build a reputation in your niche before pitching retained.

Having a voice in your market - through content, insight and genuine expertise - makes it significantly easier to win retained work. If clients already see you as an authority, the conversation about how you work becomes much more natural.


Key Moments

"I don't think most recruiters have a pricing problem with retained. I think they have a positioning problem."


"There is a difference between being a good biller and being a good recruiter. It took me a long time to understand that about myself."


"Ask yourself honestly - am I good at recruitment, or am I good at sales through the lens of recruitment?"


About Recruitment Founders Club

Recruitment Founders Club is your launchpad to owning a successful recruitment business. We provide comprehensive mentorship and cover your start-up costs for the first 12 months. Coupled with our robust network and ongoing support, we not only help you start your own business, we ensure you thrive.

Find out more: https://recruitmentfoundersclub.com/

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