Search Models

At Hamilton Recruiting, our searches are typically conducted using retained, retingency or contingency search models. It is important to understand each of these models to determine which level of service is ideal for a particular project or position.

A retained search is preferable in cases where a company has a pressing need that requires a candidate who will hold key leadership responsibilities and whose services are integral to overall corporate success.  There is often an urgent requirement and confidentiality issues in this type of search.  Retained searches are given priority status in terms of the level of consulting talent assigned to conduct the search and the time and resources that are dedicated to the project.

Retained Search Fee

The fees for a retained search are typically higher than in contingency assignments, roughly 30% – 33% of the candidate’s first year’s total annual compensation, given the level of time and resources invested in sourcing quality candidates.  These fees are usually paid out over three set time periods (at commencement, at 45 days, and the final payment at 90 days).

A retingency or container search offers several benefits to both the client company and the search firm. Many of the strengths of the retained search model can be captured, while at the same time reducing the financial risks for both parties.

Retingency Search Fee

In a retingency search, the fee is typically divided into two parts:

‣  The first part is paid at the beginning of the search and is typically one third of the anticipated search fee.

‣  The last part (remaining two thirds of the search fee) is paid when the search has been successfully completed upon standard fees. While a client company will not get all the benefits of a retained search using this model, the results are usually more satisfactory than a straight contingency search.

A contingency search by definition means that the search firm will only collect a fee, which is also based on a percentage of annual expected income,  if they find and place a suitable candidate for the position in question, and it is entirely performance based.  Therefore, regardless of the number of qualified candidates presented, if none are ultimately hired, the search firm in question earns nothing. Therefore, this search process requires the agency to have an in depth understanding of the client in order to find a precise candidate ‘fit’.