Hiring executive talent is one of the most critical and influential decisions your company will make. The competition for quality candidates is getting more aggressive every day. Developing the right recruitment strategy is crucial; you not only want to find talented candidates, you need candidates that align with your vision and company culture. After all, research shows that as many as 70 percent of executives fail within just 18 months of being hired.1
If you’re hiring for a leadership role, you’ve probably come across executive search firms offering “contingent search” as part of their model. At first glance, it might sound appealing—after all, paying only when a hire is made seems like a low-risk, high-reward scenario. But when you dig a little deeper, you’ll see that the pricing structure is just one piece of the puzzle. If you’re serious about finding a transformative leader, you need to look at what you’re really getting from the process.
A contingent search firm operates on a success-based model. You only pay once the candidate is hired, which can seem like a smart, cost-conscious decision. But if you’ve ever gone through the ups and downs of an executive hire that didn’t work out—or worse, had to restart the process after wasting months—you understand that the cost of a misaligned leader is far higher than a search fee.
Let’s walk through the key questions you should ask before signing on with a contingent search firm and other strategies for finding the correct hire for your company. This isn’t just about saving money—it’s about protecting your culture, your time, and the future of your business.
What Is Contingent Executive Search?
When you work with a contingent search firm, you’re essentially entering a race. Multiple recruiters may be vying to fill the role, often as quickly as possible, and they only get paid if you hire one of their candidates. The incentive structure rewards speed over strategy, and that has real implications for the quality of the search.
You might receive a flood of resumes, but very few of those candidates have been thoroughly vetted beyond surface-level qualifications. The process typically doesn’t include deep cultural analysis, stakeholder alignment, or structured evaluation frameworks—all of which are crucial when hiring for an executive position.
Imagine hiring a COO who looks perfect on paper but ends up clashing with your existing leadership team within six months. You’re back at square one, you’ve wasted time and money, and the disruption can set your entire organization back. A contingent search firm might fill the seat quickly, but they rarely focus on the long-term success of the hire.
Why Contingent Search Might Appeal to You
If you’re working with a limited budget or under pressure to fill a vacant leadership role fast, a contingent model can feel like a safe bet. You don’t commit financially until there’s a result, which removes some upfront risk. You might also appreciate having access to several firms at once, increasing the volume of candidates coming through the pipeline.
For certain non-leadership roles—or even mid-level positions where cultural fit may not be as critical—this model might make sense. But for executive roles, especially ones that impact strategy, company culture, and team dynamics, a more thoughtful approach is usually necessary.
The problem is that many companies underestimate what’s at stake when making an executive hire. If your decision is based on urgency or cost savings alone, you could end up with someone who disrupts more than they lead.
What’s Missing from the Contingency Model?
You need more than a resume match when it comes to executive hiring. You need someone who aligns with your mission, understands your market, and thrives in your unique culture. That level of alignment takes time and strategy to uncover—and contingency-based firms often don’t have the luxury to provide it.
In a contingent model, the recruiter is working against the clock. They may not invest in deep candidate discovery or stakeholder interviews because there’s no guarantee of a return. They’re incentivized to send you as many qualified candidates as quickly as possible rather than the right candidate after a thorough vetting process.
Here’s what you might miss out on:
- Structured leadership assessments tailored to your team’s dynamics
- Culture-fit analysis that ensures the candidate shares your company’s core values
- Stakeholder alignment sessions to clarify what success looks like for the role
Without these elements, you’re essentially gambling with your leadership team’s future.
Retained Search vs. Contingency-based Search
There are other options when looking to fill an executive position. A retained executive search firm specializes in connecting your company with leaders who align with your culture and long-term goals. These firms typically start with an in-depth discovery process, learning about your business, your goals, and your team before creating a roadmap for the search.
Instead of seeing your hiring need as a transaction, they treat it as a transformation. They help you define what kind of leader you truly need—not just in terms of skills, but in terms of values, communication style, and growth mindset. That’s the level of insight you need to avoid costly hiring mistakes.
You’ll also gain peace of mind knowing that your search partner is committed to the outcome—not just the placement. The time and money you invest in a thoughtful search process pay dividends in stronger leadership, greater stability, and more cohesive teams.
Think of It Like Buying vs. Investing
Consider this: Would you rather buy a product that solves a short-term problem or invest in a long-term solution that transforms your business? That’s the core difference between contingent and retained executive search models.
In a contingent relationship, you’re buying resumes and speed. In a retained search model, you’re investing in a strategic partnership. Retained firms typically limit the number of searches they work on at once, allowing them to go deeper into your needs and build a process that aligns with your long-term goals.
You’re not just hiring for a role—you’re shaping the future of your leadership team. When you view the process through that lens, investing in a firm that prioritizes precision over volume becomes a more obvious choice.
Ask Yourself These Key Questions
Before deciding whether to work with a contingent search firm or a retained executive search firm, ask yourself:
- Do I need a transformative leader?
If you’re looking for a mid to lower-level employee, you may be well-suited by a contingency-based firm, but if you are looking for a C-suite leader, you need to look at more than just resumes. You want to make sure a potential hire aligns with your company culture and goals and can help your company reach its full potential. A retained search firm won’t just bring you clones of your existing leadership group. They’ll take a deep dive into your current leadership to find out what other skills, backgrounds, and leadership styles would augment your team and accelerate your company’s success in new ways. - Do I want someone beyond the standard pool of resumes?
While the contingency model focuses on circulating resumes of active job seekers, a good retained search firm will broaden the search to include passive candidates who already have jobs but would take a better one if offered. - How important is culture fit in this role?
If your company prioritizes authenticity and you get an empty suit in the C-suite, you’ll regret it. If your company is built on environmental consciousness and you get a qualified candidate who doesn’t care about sustainability, they’re going to steer your company in the wrong direction. Executive search will go beyond just skill sets to look for full alignment. - Am I willing to risk multiple restarts if the first hire fails?
Contingent firms rarely offer guarantees that extend beyond the hiring date. Retained search firms often back their services with a guarantee. - Is my team prepared to help screen dozens of candidates?
A contingency-based search firm will feed you plenty of resumes, but you’ll likely need to sift through them yourself–especially if you want to read between the lines and make sure they align with your company values. A retained search firm will do the vetting for you, presenting you with the best fits for skills, leadership style, and values. - Do you need to keep your search a secret?
Sometimes, you need to fill a role before announcing it to the public. While contingency-based firms can spread the word well, retained search firms specialize in finding the right people without leaking sensitive information. They will make sure that your search remains confidential.
The Advantage of a Retained Search Firm
You might feel like you are saving your company money when you use a contingent search firm, but did you know that a bad hire can cost your company $1 million? Getting a hire right the first time saves you cash in the long run.
A retained search firm takes care of every aspect of the hiring process for you. You don’t have to sift through resumes or figure out the right benefits package. The retained search firm will interview all of your company stakeholders to get consensus and clarity on your company values and goals. They will then seek out and interview candidates, working diligently to find leaders who are not only experienced and skilled but are also compatible with your company culture. They will guide you on what to pay and what benefits to offer so you can land the best candidates.
Y Scouts was founded to solve the very problem contingent search models often perpetuate—misalignment. Our process ensures you don’t just fill a role, you elevate your entire leadership team. If you’d like help hiring your next leader, contact us here.
1https://www.forbes.com/councils/forbescoachescouncil/2020/03/13/why-most-new-executives-fail-and-four-things-companies-can-do-about-it/
