What is contingency search?
Contingency search is the model most companies in India are familiar with. You share a role with one or more recruitment agencies, and you pay a fee only if you hire a candidate an agency introduced. The fee is usually calculated as a percentage of the hire's annual fixed compensation (CTC).
Because agencies are paid only on success, contingency search works well when:
- The role is specialist or mid-senior, with a reasonably sized talent pool.
- You are hiring several similar roles and want a steady flow of profiles.
- The search does not need to be confidential.
- You have an in-house team that can manage parts of the process.
The trade-off is commitment. When several agencies work on the same role and only one is paid, each agency has an incentive to move fast rather than deep. Agencies may also prioritise roles where their chance of success is highest.
What is retained search?
In a retained search, you appoint one search firm exclusively and pay the fee in stages, typically with a portion on appointment, a portion at shortlist and the balance when the candidate joins. In return, the firm commits dedicated time to research, map and approach the market for your role.
A retained search usually includes:
- A detailed mandate agreed with the CEO, board or global leadership.
- A market map of target companies, sectors and potential candidates, shared with you.
- Direct, discreet approaches to passive candidates who are not on job boards.
- In-depth assessment, referencing and regular progress reports.
- Offer and onboarding support, including notice-period and counter-offer management.
Retained search is the norm for CFOs, CXOs, GCC site heads and confidential replacements, where a wrong hire is expensive and the best candidates need to be found rather than attracted.
What a retained search looks like in practice
Although every firm runs its process differently, a well-run retained search in India usually moves through the same stages:
Mandate meeting
The firm meets the CEO, board members or global leaders to understand the business, the role and the culture the new leader will join.
Position brief
The firm writes a candidate-facing brief that both sides approve, so every approach tells the same story.
Research and market map
The team identifies target organisations and potential candidates, including people in adjacent sectors.
Approach and longlist
Candidates are approached directly and confidentially, and their interest and fit are tested.
Shortlist and interviews
A smaller group of assessed candidates is presented, with written reports on each.
Referencing, offer and joining
The firm manages references, compensation discussions, notice periods and the risk of counter-offers.
Throughout, a retained partner reports on progress and on what the market is saying, for example if the budget or the specification needs adjusting. That feedback loop is one of the main reasons leadership hires are run this way.
Why the payment model changes behaviour
The way a firm is paid shapes how it works. A contingency recruiter competing with other agencies is rewarded for speed, so the focus is naturally on candidates who are available now. A retained firm is rewarded for completing the mandate well, so it can invest time in candidates who are not looking and in conversations that take weeks to mature. Neither model is better in every case; the right choice depends on how hard the role is to fill and how costly a wrong hire would be.
What you should receive in a retained search
A retained fee buys a process, not just a candidate. Before you sign, ask the firm to confirm in writing what you will receive at each stage. These are the outputs a well-run search usually produces.
| Deliverable | What it should contain |
|---|---|
| Mandate document | The role, reporting lines, key outcomes, must-have experience and the agreed compensation range. |
| Position brief | A candidate-facing summary of the organisation and the role, approved by you. |
| Market map | Target companies and sectors, plus the people in relevant roles, with notes on who was approached. |
| Longlist | Candidates who have been approached, with their level of interest and an initial view on fit. |
| Shortlist reports | A written assessment of each shortlisted candidate: experience, motivation, compensation and notice period. |
| Progress updates | Regular reports on activity and market feedback, including any issues with budget or specification. |
| Referencing | Structured references on the preferred candidate, taken with their consent. |
| Offer and joining support | Help with compensation discussions, notice periods, counter-offers and the first weeks in the role. |
If a firm cannot describe these outputs clearly, treat that as a warning sign. The market map and progress updates matter most. They show you the search is real, even before the shortlist arrives.
Retained vs contingency: side by side
| Factor | Contingency search | Retained search |
|---|---|---|
| When you pay | Only when a candidate joins | In stages, starting at appointment |
| Exclusivity | Often several agencies in parallel | One dedicated search firm |
| Best for | Specialist and mid-senior roles | Leadership and confidential roles |
| Approach | Active and accessible candidates, plus outreach | Full market map and direct approach |
| Confidentiality | Harder to control | Built into the process |
| Reporting | Profiles as they are found | Structured progress and market reports |
| Client commitment | Low upfront | Higher upfront, deeper partnership |
Not sure which model fits your next hire? We will recommend one in the first conversation.
Start a Hiring ConversationWhich model should you choose?
Choose contingency search when
- You need specialist talent such as FP&A managers, analysts, data engineers or controllers.
- The role is open and not confidential.
- You want to keep upfront costs low and pay only for results.
Choose retained search when
- The role is senior: CFO, finance head, GCC site leader or another leadership position.
- The search is confidential, for example replacing an incumbent.
- The talent pool is small and the best candidates are not actively looking.
- You need market insight, such as pay benchmarks and talent availability, to make the decision.
Consider a hybrid or dedicated model when
Building a new team, such as a GCC finance function, often mixes both: a retained search for the leader and contingency or dedicated hiring for the team below. Our How We Work page explains the engagement models Stellaspire offers.
When an exclusive contingency or hybrid arrangement makes sense
The choice is not always strictly retained or contingency. Two middle options are common.
Exclusive contingency
You give one agency the role for an agreed period. You still pay only when a hire joins. Because the agency is not competing with others, it can put more time into the search. This tends to suit:
- Senior specialist roles that are hard to fill but not leadership hires.
- Searches where you want fewer, better profiles rather than a high volume of CVs.
- Roles where you want one consistent voice representing your organisation in the market.
Agree the exclusivity period, the reporting you expect and what happens at the end of it, all in writing.
Hybrid arrangements
A hybrid combines models across a hiring plan. A common pattern is a retained search for the leader and contingency hiring for the team who will report to them. Hiring the leader first lets them shape the team and join the later interviews.
Some firms also offer a small upfront commitment on a contingency search, in return for priority and more detailed reporting. Terms vary, so compare what each option buys rather than the headline fee.
Questions to ask any search firm
- Who will actually work on my search, and how many other searches are they running?
- Will you share a market map and regular progress updates?
- How do you assess candidates beyond the CV?
- How do you build diverse shortlists?
- What are your fee stages and replacement terms, in writing?
For a detailed look at fees, read our guide to how much a recruitment agency charges in India.
Which model fits this role? A quick self-check
Tick each statement that is true for the role you are hiring. If most apply, retained search is likely the better fit. If only one or two apply, contingency search may serve you well.
Frequently asked questions
Is retained search more expensive than contingency search?
Not necessarily. Fee percentages vary by firm, role and seniority. The main difference is when you pay and what the fee buys: retained search commits dedicated research time and exclusivity, while contingency is paid only on success.
Can I use more than one firm on a retained search?
Retained searches are exclusive by design. Running several firms on the same senior role usually leads to duplicated approaches, which can damage your reputation with the candidates you most want.
What happens if a retained search does not result in a hire?
Terms differ between firms, so agree in writing what happens if the role changes, is put on hold or is not filled. A good partner will be transparent about these terms before the search begins.
What is exclusive contingency search?
It is a contingency arrangement where one agency works on the role for an agreed period. You still pay only when a hire joins. The agency can commit more time because it is not competing with other agencies.
Which model suits building a new GCC finance team?
Often a mix of both. A retained search for the leader, then contingency or dedicated hiring for the team below. Hiring the leader first lets them shape the team.
Does Stellaspire offer both models?
Yes. We run contingency searches for specialist finance, analytics and data roles, and retained searches for CFO and leadership mandates. See our CFO & executive search service.
