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Contingent vs Retained Search

Matt Gold · Founder, Re:Sourced|5 min read|

The recruitment engagement model you choose shapes how a search runs: how the recruiter is paid, how much of their effort your role commands, and how confidential the process is. The two main models are contingent and retained. Most engineering hires use contingent; some senior and sensitive ones are better retained. Here is how they differ and when each fits.

Contingent search

In a contingent model, the recruiter is paid only when they place a candidate. No placement, no fee. It is the default for most permanent engineering roles. The upside for you is obvious: zero financial risk to start, and you can run more than one recruiter on the same role. The trade-off is that the recruiter is balancing your role against every other contingent role they are working, so the most urgent and most fillable roles get the attention.

Retained search

In a retained model, you pay a portion of the fee up front to engage the recruiter exclusively, with the balance on milestones or completion. It signals commitment in both directions: the recruiter commits dedicated effort and a structured timeline, and you commit to a single partner. It suits senior, confidential or genuinely hard searches where you need guaranteed focus and a mapped market rather than whoever responds first.

Side by side

FactorContingentRetained
When you payOn placement onlyPart up front, balance on milestones
ExclusivityOften non-exclusiveExclusive partner
Recruiter focusShared across active rolesDedicated to your search
Market coverageFast, surface of the marketSystematic, full market map
ConfidentialityHarder to controlStrong; anonymised approaches
Best forMost permanent IC rolesExecutive, confidential, hard searches

Which to use

Use contingent for the bulk of your engineering hiring: senior and mid-level individual contributors where the market is reachable and you want speed without up-front cost. Use retained when the role is an engineering leadership or executive appointment, when the search is confidential (for example, replacing someone still in seat), or when the profile is so scarce that you need a recruiter to systematically map and approach the entire market rather than skim the responsive top.

Contingent buys you reach and speed at no up-front risk. Retained buys you guaranteed focus and a fully mapped market. Match the model to the difficulty of the hire.

A practical middle path

Many searches do not need a binary choice. An engaged or exclusive contingent arrangement, where you commit to a single recruiter without a full up-front retainer, captures most of the focus benefit of retained while keeping the risk profile of contingent. At Re:Sourced we run permanent searches on contingent terms by default and move to retained or exclusive only where the brief genuinely calls for it. See our engagement models or submit a brief to talk it through.

FAQ

Is retained search worth the up-front cost?

For genuinely hard or confidential senior roles, yes: the dedicated focus and systematic market coverage materially improve the odds and speed of a successful hire. For standard IC roles, contingent is usually the better value.

Can I run multiple recruiters on a contingent role?

You can, but it often backfires: recruiters deprioritise roles they might not get paid for, and candidates approached by several agencies for the same job lose confidence. One strong contingent partner usually outperforms three competing ones.

What is engaged or exclusive contingent search?

A hybrid where you commit to one recruiter on contingent terms, sometimes with a small commitment fee, in exchange for dedicated focus. It captures much of the retained benefit at lower risk.

Does the fee differ between models?

Total fees are broadly comparable; the difference is timing and risk. Retained spreads payment across the search; contingent concentrates it at placement. Specific terms are agreed at engagement.

Sources

  1. Glassdoor AU -- Software Engineer Salaries, Australia link
  2. Levels.fyi -- Software Engineer Compensation, Australia link
  3. whatisthesalary.com -- Software Engineer Salary Australia link
  4. SmartRecruiters -- 2025 Hiring Benchmarks, Australia link

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