Retained recruiter: what is it?
A retained recruiter is paid a fee to run a search, usually in stages, whether or not the client hires through them. It is common for senior roles. The fee is paid for the work of running the search, so the client commits to the recruiter before any candidate is presented.
How a retained search works
- Scoping. The client and recruiter agree the role, the profile and the timeline, and sign an agreement.
- First payment. The client pays the opening instalment to start the search.
- Research and outreach. The recruiter maps the market and approaches people, including those who are not looking.
- Shortlist. A short list of vetted candidates goes to the client, often with a written assessment of each.
- Close. The recruiter supports interviews and the offer. Further instalments usually fall due at agreed milestones, such as the shortlist or the hire.
Retained or contingent
| Retained | Contingent | |
|---|---|---|
| When the recruiter is paid | In stages during the search | Only when the client hires |
| Exclusivity | Usually one recruiter per search | Often several recruiters on one role |
| Typical roles | Senior and hard-to-fill | Wide range |
| Client commitment | High, before any candidate | Low |
What it means for candidates
A retained recruiter often approaches you first. The role is usually confidential and the client is not named until you show interest. You are not charged. Fees are between the recruiter and the client, and anyone asking a candidate for money is a warning sign.
Example
A company pays a first instalment to start a search for a director. Six weeks later it receives a shortlist of three candidates, and a further instalment is due under the agreement even before an offer is made.