Contingency vs. Retained Search: What's the Difference for Retail & Commerce Hiring?
Both models get you a candidate. They get there very differently, and the difference matters more for some roles than others.
Both models get you a candidate. They get there very differently, and the difference matters more for some roles than others.
When you engage a recruiting firm, you're choosing a payment and exclusivity model as much as you're choosing a firm. The two dominant models are contingency and retained search, and they solve different problems.
Under contingency, you pay only when a candidate we source is hired. There's no upfront fee, no retainer, and typically no exclusivity requirement. This is the model Commerce Staffing operates under: a 20% placement fee based on the new hire's first-year salary, invoiced on their start date, backed by a 90-day replacement guarantee.
Contingency works well when the role has a reasonably active talent pool, the hiring company can move at a normal pace, and there's value in having a recruiting partner motivated to move quickly because they're not paid until placement.
Retained search involves an upfront fee, typically paid in installments, in exchange for a dedicated, often exclusive search. Retained firms usually run a more structured process: market mapping, passive candidate outreach at the executive level, and detailed competitive intelligence on comparable roles.
Retained search tends to make more sense for confidential C-suite searches, roles where the talent pool is extremely narrow, or searches where a company needs a single firm fully dedicated to the role rather than competing with other recruiters.
| Contingency | Retained | |
|---|---|---|
| Upfront cost | None | Yes, typically in installments |
| Exclusivity | Usually not required | Usually required |
| Best fit for | VP, Director, Manager-level roles with an active talent pool | C-suite or highly confidential searches |
| Speed incentive | Recruiter paid only on placement | Recruiter paid regardless of outcome timing |
Most of the roles we place, from Category Manager to VP of eCommerce, have a large enough qualified candidate pool that a contingency model works well for both sides. You're not locked into an exclusive engagement, and we're motivated to move fast because that's when we get paid.
We operate on a contingency basis across all 12 of our practice areas. If your search has retained-style requirements, such as full confidentiality or an unusually narrow candidate pool, get in touch and we can talk through what's realistic.
Not inherently. The thoroughness of a search depends on the recruiter's process and network, not the payment model. Our contingency searches still include candidate screening, initial interviews, and fit evaluation before you ever see a resume.
20% of the new hire's first-year annual salary, invoiced on their start date with 30-day payment terms, backed by a 90-day replacement guarantee.