Resources/Glossary/Staffing and agencies
Retained search is a recruiting model where a client pays a search firm part of the fee up front to run an exclusive search for a role, with further payments at set milestones. It is most common for executive and senior specialist roles.
In one line
Recruiting where the client pays part of the fee up front to engage a firm exclusively, common for executive roles.
In contingency recruiting, the agency is paid only if its candidate is hired, and the client may use several agencies at once. In retained search, the client commits to one firm and pays in stages, often a retainer at the start, another at a milestone such as presenting a shortlist and the rest at hire. The total fee is commonly a percentage of first year compensation, agreed in the contract.
Because payment is committed, the firm can invest in a deep, structured search: market mapping, approaching passive leaders, detailed assessment, referencing and managing the offer. Clients get a dedicated team, regular progress reports and usually a replacement guarantee if the hire leaves early.
A middle option, sometimes called container or engaged search, takes a smaller up front fee and pays the rest on success.
For agency owners, retained search brings predictable revenue and deeper client relationships, but only if you can deliver a rigorous process. For in house TA leaders, knowing when retained search is worth paying for helps them spend budget well on critical senior hires where a wrong choice is expensive.
A fast growing software company needs a VP of Engineering and cannot advertise the search, because the current leader has not been told yet. It signs a retained agreement and pays the first installment on signing. The firm researches 90 engineering leaders at comparable companies, approaches them discreetly and presents a shortlist of four after seven weeks. It then runs references and helps negotiate the offer, and the final installment is paid when the new VP starts.
Usually yes, but the contract decides what you owe. Installments already paid are often non refundable, because they cover research and candidate work the firm has already done. Before signing, read the cancellation, guarantee and off limits terms, and agree what happens if the role changes or goes on hold. This is not legal advice.
Fees are usually split into installments, such as one at signing, one at shortlist and one at hire. The total is commonly a percentage of the hire's first year compensation, set in the contract.
It suits senior, confidential or very hard to fill roles where a thorough, exclusive search is worth the commitment, such as C suite, board or niche leadership positions.
Written by recruiters at Work Insiders. Part of the recruiting and HR tech glossary. Updated October 2026.