Retained or contingency search | Which suits your senior hire?

If you are looking to hire a Quantum Manager, Director, a head of cost management or a senior delay analyst, the way you brief recruiters will shape who you meet and ultimately employ.

This post is for employers in construction and consultancy weighing up retained search against contingency recruitment. It covers how each works, how you pay, how long each takes and when each makes sense.

How contingency recruitment works

Contingency recruitment is the most common model in construction recruitment. You brief one or more agencies. You pay a fee only if you hire a candidate they introduce, and usually only once that person starts.

The fee is usually a percentage of the first year's salary, agreed with each client.  There is no cost if nobody is hired that is the main appeal.

How retained search works

In a retained search, you appoint one firm to fill the role on an exclusive basis. You pay part of the fee up front and the rest at agreed stages. A common split is thirds: at the start, at shortlist and at offer or start date.

Terms are agreed case by case. That can include the fee, the number of payments, the shortlist deadline and the rebate period.

In return, the firm commits time to your role ahead of others. It maps the market, approaches people who are not looking and presents a short, assessed shortlist. Three to five candidates is typical.

Retained vs contingency: how you pay

The main difference is risk. With contingency, the agency carries it. With retained search, you share it.

Timelines

Contingency can be quick when good candidates are already freely available on the market. If an agency has the right person registered, you may be able to interview candidates within days.

Retained search runs to a plan. Producing a shortlist often takes four to eight weeks. Benchmarks for director-level roles put the full search at around six to twelve weeks to an accepted offer. Then add the notice period. Senior people in construction often have one to three months to serve. Plan for that whichever model you use.

When contingency recruitment suits

• The role is senior but the candidate pool is reasonable, for example an experienced senior quantity surveyor in a large city.
• You can describe the role clearly and the salary is in line with the market.
• You are happy to see candidates from more than one source.
• You want no cost unless someone starts.

When retained search suits

• The skill set is scarce, such as forensic delay analysis, quantum expertor complex or high value quantity surveying work.
• The search must stay confidential, for example when replacing someone still in post.
• You have tried advertising and contingency agencies and the right people have not come forward.
• You are a smaller firm competing with well-known names for the same people.

The trade-offs

Retained search is not a guarantee. You can pay the first instalment and still not hire, if the brief changes or your process stalls. It also ties you to one firm, so choose one that knows your sector.

Contingency has its own costs. Agencies working several roles at once will put their time where a fee looks most likely. If you brief several firms, the same candidates can reach you from different sources, and the best ones may be shown to your competitors too.

Neither model makes up for a slow process. Senior candidates drop out when feedback takes weeks.

Summary

•          Contingency recruitment costs nothing unless you hire.
•          Retained search is paid in stages, in return for exclusive and dedicated work.
•          Contingency can be faster when candidates are on the market. Retained search takes longer but reaches people who are not.
•          Choose retained search for scarce, confidential or board-level roles. Choose contingency when the pool is healthy and the brief is clear.

Hiring a senior commercial or claims professional?

Maxim recruits quantity surveyors, cost managers, project managers and claims and disputes specialists across the UK and overseas. We work on both contingency and retained terms, and we will tell you plainly which we think your role needs.

To talk through a senior hire in confidence, call 0800 689 48 41 or submit your vacancy and one of our consultants will be in touch.

Steve Thomas
Construction Recruitment Director, UK & Canada
Maxim Recruitment
LinkedIn

Steve is responsible for Maxim Recruitment in the UK and Canada. He is based in the Maxim head office in Leicester, UK and the Toronto office in Canada. He regularly travels to meet employers and job seekers and attend construction industry networking events in the UK, Canada and worldwide. Steve has over 25 years of experience in construction and property recruitment and enjoys working with many repeat clients. He manages dedicated search and headhunting assignments for a range of premium UK, Canadian and international clients.