Choosing the right recruitment approach can have a significant impact on the quality, efficiency and outcome of your search. For businesses recruiting within Legal and Corporate Operations, two of the most common models are retained and contingency recruitment.

Both can be effective, but they serve different hiring requirements. Understanding how each model works can help you decide which approach is best suited to your vacancy, timescale and the type of talent you need to reach.

The CIPD's guidance on recruitment and resourcing also emphasises that effective recruitment is about more than filling an immediate vacancy; organisations need to consider the skills and capabilities required to support longer-term business performance

What Is Contingency Recruitment?

Contingency recruitment typically operates on a success-based model. The recruitment fee becomes payable when a candidate introduced by the recruiter is successfully hired.

This approach can work particularly well when an organisation has a clearly defined vacancy and there is a reasonably accessible pool of relevant candidates within the market.

It can also offer flexibility for businesses that want to begin a search without making an upfront financial commitment.

However, contingency recruitment can sometimes create a more competitive process, particularly when several agencies are working on the same vacancy. The emphasis may naturally be placed on identifying and presenting suitable candidates quickly.

For straightforward or time-sensitive appointments, this can be an effective solution.

What Is Retained Recruitment?

Retained recruitment is a more exclusive and research-led partnership between the organisation and recruiter.

Rather than paying the entire recruitment fee following a successful appointment, the fee is typically structured across agreed stages of the search. In return, the recruiter commits dedicated time and resources to understanding the requirement and conducting a comprehensive search of the relevant market.

This can include detailed market mapping, competitor research, targeted headhunting and direct approaches to professionals who may not be actively looking for a new role.

Retained search is often associated with senior or executive appointments, but it can also be valuable for particularly specialist, confidential or business-critical positions.

For organisations recruiting senior legal professionals, understanding the requirements of the position is especially important. The Solicitors Regulation Authority's guidance for employers of in-house solicitors explains the professional and regulatory responsibilities in-house solicitors must fulfil, including independence, integrity, competence and an understanding of the organisation they advise.

You may also be interested in How to Attract Senior Legal Talent in a Competitive Market.

When Does Contingency Recruitment Work Best?

Contingency recruitment may be the right option when you need to recruit for a role with a relatively established candidate market.

For example, your organisation may already understand the type of professional it needs, the salary is competitive and there is a reasonable number of candidates actively considering new opportunities.

It can also be suitable when speed is particularly important and you want to access an existing recruiter network quickly.

The key is working with a recruiter who still takes the time to understand your organisation rather than simply matching keywords on a CV.

A strong selection process should ultimately focus on whether candidates can perform the role, contribute to the organisation and demonstrate potential for development. The CIPD's guidance on candidate selection recommends clear, objective and structured recruitment processes to support fairer and more effective hiring decisions.

When Should You Consider a Retained Search?

A retained approach can be particularly valuable when the person you need is unlikely to be actively applying for vacancies.

Senior Legal, Compliance, Finance, HR, Procurement and Transformation professionals are often established in their current organisations. Reaching them requires proactive research and a compelling, carefully managed approach.

Retained recruitment may therefore be appropriate when:

• The position is senior, specialist or difficult to fill.

• The available talent pool is limited.

• Confidentiality is important.

• You need to understand the wider market before making an appointment.

• The strongest candidates are likely to be passive rather than actively job searching.

• The cost of making the wrong hire is particularly significant.

In these circumstances, investing more heavily in the search process can provide a clearer view of the market and help ensure that strong potential candidates are not overlooked.

Consider the Complexity of the Role

The seniority of a vacancy should not be the only factor determining which recruitment model you choose.

Some mid-level positions can be extremely difficult to recruit because they require an unusual combination of technical expertise, industry knowledge or stakeholder management skills. Equally, some senior appointments may have a relatively clear and accessible candidate market.

Before deciding on an approach, consider how difficult the relevant talent is likely to be to identify and engage.

A detailed conversation with your recruiter at the beginning of the process can help establish the likely size of the candidate pool and the level of search required.

This is also why businesses should avoid defining the ideal candidate too narrowly. In Why the Best Candidate Isn't Always the Most Obvious One, I explore how transferable skills, potential and different professional backgrounds can sometimes reveal stronger candidates than simply looking for the closest CV match.

Think About the Level of Partnership You Need

The relationship between recruiter and client can also differ depending on the model.

A retained search usually involves a particularly close partnership. The recruiter becomes an extension of your organisation in the market, representing the opportunity directly to prospective candidates and providing insight throughout the search.

This makes communication especially important. Your recruiter needs to understand not only the job description, but also your organisation's culture, leadership, ambitions and the reasons someone should consider joining.

Contingency recruitment can still provide a highly consultative experience, particularly when there is a strong relationship between the recruiter and hiring business. The difference is primarily in the structure and depth of the search commitment. The relationship between recruiter and client can also differ depending on the model.

A retained search usually involves a particularly close partnership. The recruiter becomes an extension of your organisation in the market, representing the opportunity directly to prospective candidates and providing insight throughout the search.

This makes communication especially important. Your recruiter needs to understand not only the job description, but also your organisation's culture, leadership, ambitions and the reasons someone should consider joining.

The candidate experience matters here too. The CIPD notes that employers should explain what candidates can expect from the selection process and avoid making recruitment unnecessarily lengthy. It also highlights how a poor interview experience can negatively affect perceptions of an employer.

Contingency recruitment can still provide a highly consultative experience, particularly when there is a strong relationship between the recruiter and hiring business. The difference is primarily in the structure and depth of the search commitment.

Which Recruitment Model Is Better?

Neither model is inherently better. The right choice depends on what you are trying to achieve.

If you have a relatively straightforward vacancy and want access to suitable candidates without committing to an exclusive search, contingency recruitment may provide the flexibility you need.

If the appointment is business-critical, highly specialist or requires a comprehensive search of the market, retained recruitment may provide greater depth and focus.

In some cases, the decision becomes clearer only after assessing the market. Understanding how many relevant candidates exist, where they currently work and how likely they are to consider moving can help determine how extensive the search needs to be.

The working arrangements attached to the role can also affect the available candidate pool. For example, UK Government guidance on advertising flexible working arrangements notes that communicating flexibility can help employers attract a wider and more diverse range of applicants

Finding the Right Approach for Your Business

Successful recruitment should not begin with a predetermined formula. It should begin with understanding the role, the organisation and the market.

At Leto Search, I work on both contingency and retained assignments across Legal and Corporate Operations. This flexibility allows me to tailor the search according to the individual requirement, whether that means accessing an established network or undertaking detailed market mapping and targeted headhunting.

If you are planning your next hire and are unsure which approach would be most effective, get in touch with Leto Search to discuss your recruitment requirements and the right search strategy for your business.