Retained search is worth considering when the cost of missing the right person is high and the people you need are unlikely to apply. The case depends on the difficulty and consequences of the hire. A niche specialist can justify a retained search just as readily as a senior executive.

What are you paying for?

With contingency recruitment, the agency is generally paid if its introduction results in a hire. In a retained search, the client commits to a fee at the outset, often paid in agreed stages, for a defined piece of work. That usually includes identifying relevant employers and people, approaching them directly and reporting what the search uncovers. Confirm the deliverables and payment terms before you start, including what happens if the brief changes or the search stops.

The market feedback is part of the value. If strong people keep declining for the same reason, you need to know whether it is the package, the remit or something else. That gives you a decision to make while you can still change the outcome.

When the extra work earns its keep

Imagine an Irish asset manager needs someone to take ownership of private markets investment operations. The person has to understand the work in detail, deal confidently with providers and be happy doing some of the work themselves. A job advert might yield candidates from all three backgrounds, with very few who combine them. A mapped search can test where those skills overlap and whether the people who have them would actually move.

I would consider retaining a firm when:

You can describe a small pool of plausible candidates, but few are likely to be looking.
A vacancy or weak hire would leave an important gap in oversight, delivery or leadership.
You need discretion, or you need evidence about the market before deciding whether to adjust the role or package.

If your internal team already knows the relevant market, has time to approach it and can attract credible candidates, start there. A well briefed contingency recruiter can also be a sensible choice for a role with a broader talent pool. A retainer will not rescue a vague brief, a package the market will not accept or a hiring team that cannot make time to interview.

Make the work visible before you commit

Ask the firm to show what you will receive at each stage. For example, agree when you will review the target market, what the first progress update will cover, and what evidence will accompany the shortlist. Agree who can make decisions if the market tells you the brief needs to change.

My test is simple: what would a retained search uncover that your current approach hasn’t? Think of the hardest role on your hiring list. Is the challenge finding the right people, giving them a reason to move, or working out what the role really needs?