Most companies choose a search firm before they choose a search model. That is backwards. The model shapes the incentives, the level of effort you get and how senior candidates perceive your role. Here is how the three main options work and when each one makes sense.
Contingency search
How it works: you pay a fee only when you hire a candidate the firm presented. There is no upfront cost.
Best for: roles where the talent pool is reasonably visible, several hires at once, or a first engagement with a new search partner.
Watch for: on a non-exclusive basis, several firms may approach the same people, and recruiters naturally put their time into the searches they are most likely to close. Senior candidates notice when they hear about the same role from three different firms, and it rarely makes the opportunity look stronger.
Exclusive search
How it works: one firm holds the mandate for a defined period, and the fee is still paid only on a successful hire.
Best for: senior or confidential roles where you want one consistent message to the market without committing a retainer. Exclusivity gives the firm reason to invest fully in the search, and the contingent fee keeps its incentives tied to results. The PE-backed distributor in our case study, 19 placements over 28 months, has been run on exactly this basis.
Watch for: agree the exclusivity period and the reporting cadence up front, so both sides know what progress should look like and when.
Retained search
How it works: the fee is paid in instalments, usually with a portion at the start, and the firm commits to completing the search.
Best for: C-suite and board-level roles, confidential replacement of a sitting executive, very small candidate pools that need extensive market mapping, or situations where the board wants a formal, documented process.
Watch for: paying upfront does not guarantee speed or attention. Ask how many searches the lead consultant is carrying and who will actually do the work.
Five questions to ask any search firm
Who will personally run the search, from intake to offer?
How will you reach leaders who are not on the market, and how will you protect confidentiality on both sides?
What happens if the hire leaves in the first year?
Exactly how is the fee calculated, and on what compensation?
Which organizations are off-limits to you for recruiting, and are any of them our competitors for talent?
How we work
Hunter Sheppard offers contingency, exclusive and retained search for PE-backed and growth companies across the US and Canada. Every search is run personally by our founder, from intake to offer, and our fee is calculated on base salary plus projected bonus only. The right model depends on the role, the timeline and how confidential the search needs to be, and we will tell you which one we would recommend and why.
To talk through an upcoming search, contact Alexander Giannone at alexander.giannone@huntersheppard.com or (416) 920-8765.
