Retained search vs contingency: How to choose for your next SVP hire

What’s more expensive for your company: making the wrong hire, or taking a little longer to find the right one? When you are looking to fill an SVP seat, this is not a theoretical question. Every bad decision can cost your organisation dearly in lost momentum, wasted salary, and the ripple effects of poor leadership. That’s why your choice between retained search and contingency recruitment is not just a matter of process, it’s a question of how much you value precision, speed, and commitment.

If you have ever found yourself torn between these two strategies, you are not alone. Many companies get stuck, weighing upfront investments against potential risks, or exclusivity against speed. The debate is real: retained search promises unwavering dedication and a methodical approach, while contingency firms lure you with less risk and quick results. But do the promises match what actually happens?

Here’s what you can expect from this piece:

• A clear breakdown of what retained search and contingency recruitment promise
• Honest comparisons between expectation and reality for both models
• Visual, side-by-side analysis of cost, quality, speed, and partnership
• Actionable guidance on how to choose for your next SVP hire

Let’s take a closer look at what each strategy really brings to your hiring table.

Retained search: What’s promised vs what you get

The pitch: dedicated, customised, and committed

Retained executive search is the corporate equivalent of booking a private chef for your biggest dinner party. You pay upfront for exclusivity, top-tier attention, and a deep dive into your exact needs. On paper, the process starts with a significant upfront fee, typically 25% to 35% of your SVP’s first-year salary, paid in three instalments (see Warner Scott). In exchange, you get a firm that works only for you, mapping out your company’s needs and culture before even glancing at resumes.

Promises include:

• A consultative approach, with in-depth market analysis and benchmarking
• Personal attention from seasoned recruiters, not junior staffers
• Thorough candidate assessments, including leadership and cultural fit
• A shortlist of candidates who are not just available, but outstanding

The reality: results that match the investment?

For SVP roles, especially in technology and entertainment, top retained firms have a real track record of placing leaders who stick. According to AESC, retention rates for candidates placed through retained search can exceed 85% after two years. You are not just paying for resumes; you are buying expertise, discretion, and an extended warranty on your leadership pipeline.

However, there are trade-offs. The process is thorough, so it’s rarely fast. Three to six months from engagement to offer is common, especially when the market is competitive or you need a unicorn, a rare blend of skills and vision. But for companies like Netflix or Microsoft, this is often the price of admission to the best leadership talent.

Real world example: One media conglomerate paid for a retained search and spent five months searching for a new SVP of strategy. The initial investment stung, but three years later, that hire was credited with launching an award-winning streaming division. The upfront cost was dwarfed by the long-term payoff.

Contingency recruitment: Promises vs what you get

The pitch: quick, low-risk, and cost-effective

Contingency recruitment is more like speed dating with multiple matchmakers. You work with several agencies at once and only pay when someone is successfully placed. There is no upfront fee, so your immediate financial risk is low. This model is supposed to be fast, flexible, and less expensive, especially if you need to see a lot of candidates quickly.

Promises include:

• Access to a wide pool of candidates in minimal time
• No payment unless a hire is made
• Multiple agencies “competing” to fill your role, so you get more options

The reality: speed at what cost?

Contingency search is often faster, especially if you just need to fill a seat. Some roles can be filled in a matter of weeks. But because agencies are working in competition and not on an exclusive basis, there is often less incentive to dig deep. The focus is on quantity over quality, and candidate screening can get superficial. According to Strategic Talent Partners, this approach works best for mid-level or urgent hires, not for SVPs with complex mandates.

It is common for multiple agencies to send over the same resumes, and in the rush, genuine fit can be overlooked. Candidates may even get “shopped around” to other companies, reducing your negotiating power.

Real world example: A tech company filled their SVP of sales role in under a month using three contingency firms. But the candidate left within ten months, citing poor cultural fit. The company had to start over, this time choosing a retained search.

Side-by-side: Cost, quality, speed, and partnership

Cost: Upfront commitment vs pay-for-results

Retained search: You commit financially upfront. This can feel risky, but it means your search partner is all in. The average total fee is often 30% of annual salary, paid in instalments.

Contingency: You pay nothing unless a candidate is hired. This reduces short-term financial risk, but may attract agencies more interested in quick wins than lasting placements.

Quality: Deep dive vs resume shuffle

Retained search: Expect a curated shortlist of vetted candidates, often with reference checks, psychometric testing, and detailed cultural assessments. The process is slow but thorough.

Contingency: Agencies are incentivised by speed, so you are more likely to see a large volume of candidates, but with much less vetting. Candidate quality can be uneven.

Speed: Methodical approach vs fast turnaround

Retained search: Typically takes three to six months, but often delivers leaders who stay and perform.

Contingency: Can take weeks, but be ready for a possible mismatch and higher turnover.

Partnership: Exclusive focus vs divided attention

Retained search: Your firm is your partner, learning your organisation and representing your brand in the market.

Contingency: You work with multiple agencies, none of whom are truly invested in understanding your unique needs.

Which model delivers on its promises for SVP hires?

When choosing a recruitment strategy for an SVP, the stakes are high. You want someone who can shape culture, drive results, and stick around. Retained search delivers closest to its promises for these senior roles, you get a partner, not just a vendor. While it costs more upfront and takes longer, the likelihood of a lasting, impactful hire is far greater.

Contingency recruitment is best when speed trumps everything else, or when you are simply filling a less strategic seat. But for SVP roles where every decision echoes across the organisation, the quick fix can quickly turn into a costly mistake.

Key takeaways

• For SVP hires, retained search offers dedication, depth, and higher long-term success rates.
• Contingency recruitment prioritises speed and low upfront costs but may result in higher turnover and weaker fit.
• Upfront investment in retained search can pay off through better retention and business impact.
• Consider your organisational needs, urgency, and the complexity of the role before choosing your path.

As you weigh your options, ask yourself: Is immediate cost savings worth the risk of a failed hire? Can your company afford a leadership vacancy for an extra few months if it means a stronger fit? And, most importantly, will your chosen recruitment partner be as invested in your success as you are?

FAQ: Retained Search vs. Contingency Recruitment for SVP Hires

Q: What is the main difference between retained executive search and contingency recruitment?
A: Retained executive search involves hiring a recruitment firm on an exclusive basis with an upfront fee to conduct a thorough, tailored search for senior roles like SVP. Contingency recruitment, by contrast, is non-exclusive, involves no upfront payment, and only pays a fee upon successful placement, often with multiple firms competing to fill the role.

Q: When should I use a retained search for an SVP position?
A: Retained search is best for high-impact roles where finding the right fit is critical, such as SVP positions. If you require a comprehensive, in-depth approach with a focus on cultural and strategic alignment, retained search is the recommended model.

Q: Is contingency recruitment suitable for senior-level hires like SVP?
A: While contingency recruitment is faster and less costly upfront, it may not provide the same depth of assessment and cultural fit needed for senior-level positions. It is typically more suitable for entry to mid-level roles or when time is of the essence.

Q: What are the cost implications of each model?
A: Retained search requires a significant upfront investment, usually 25%-35% of the candidate’s first-year salary, paid in instalments. Contingency recruitment involves no upfront fees but may compromise on quality due to the lack of exclusivity and depth.

Q: How does the recruitment process differ between the two models?
A: Retained search is more methodical, involving market analysis, competitor insights, and detailed candidate vetting. Contingency recruitment is faster, focusing on speed and immediate candidate availability, often at the expense of thoroughness.

Q: How should I decide which recruitment model to choose for my SVP hire?
A: Consider factors such as the urgency of the hire, your organisation’s size and complexity, budget constraints, and the strategic importance of the role. For transformative senior positions, a retained search generally offers greater value through its dedicated and comprehensive approach.

About

Warner Scott is a premier global executive recruitment specialist based in London and Dubai, focusing on Banking & Investments, Accounting & Finance, and Digital & Fintech. With over 18 years of experience, they have built strong relationships with top-tier banks, financial institutions, and accountancies. Their unique value lies in these long-standing relationships with hiring managers and internal recruiters, a vast network of candidates, and continuous engagement. This combination places them uniquely in the market, trusted by both talent and hiring managers. Their evolved perspective allows them to precisely understand recruitment needs and pinpoint senior C-suite, EVP, SVP, and MD-level hidden, ready-to-move talent that other recruiters cannot access.

Warner Scott delivers tailor-made recruitment solutions for international and regional clients, functioning as true business partners. Their comprehensive services cover retained, exclusive, and contingency searches, as well as permanent, contract, and interim staffing.

In Banking and Investments, they partner with international and regional banks and investment houses in London and the Middle East, including conventional and Islamic banks. They cover areas such as Private Equity, Asset Management, Investment Banking, Treasury & Global Markets, Wholesale Banking, Digital & Technology, Risk Management & Compliance, and C-Suite Appointments.

In Accounting and Finance, Warner Scott works alongside The Big 4 and Top 50 accounting firms, along with globally recognised consultancies. They specialise in Audit, Risk & Compliance, Tax (Private Client, Expatriate, and Corporate Tax), Corporate Finance, Transaction Advisory, Restructuring, Turnaround, Insolvency, Forensic Accounting, Disputes & Investigations, Forensic Technology, eDiscovery, Cyber Security, and Management Consultancy.

In Digital & Fintech, they assist large banks, digital startups, and innovative Fintechs in areas such as FinTech (AI, Blockchain, Cloud Computing, Big Data), InfoSec/Cybersecurity (Application, Infrastructure, Network, Cloud, IoT securities), Digital Leadership, Digital Transformation, Software Development, IT Project/Program management, Data Science & Analytics, Data Privacy, and Data Architecture.

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