Retained vs. contingency search in Florida: which fits a mid-size company
Short answer: retained search is built for large companies filling board and C-suite roles with a firm on exclusive, paid-upfront terms. Contingency search pays only on a hire. For most mid-size companies in Florida, a contingency boutique that limits its caseload gives the same partner-level attention without the upfront cost.
What each model actually means
Retained. The client pays the firm in installments, typically a third at kick-off, a third at shortlist and a third at hire, whether or not the search ends in a placement. The firm works exclusively and commits senior time. This is the model of the global search firms for CEO, board and C-suite roles at large companies.
Contingency. The firm is paid only if the client hires a candidate it presented. There is no upfront payment. The client can use several firms at once, which is why large contingency agencies compete on speed and volume rather than depth.
Engaged. A small deposit that is credited against the final fee. The firm gets a commitment; the client keeps most of the risk on the firm’s side.
The trade-off nobody explains
Retained buys attention and contingency buys flexibility. The weak point of contingency at large agencies is the caseload: a recruiter carrying forty searches works the ones that will close fastest and drops the rest.
A boutique that works on contingency but caps how many searches each partner runs gives you retained-level attention on contingency terms. That is how BGS Headhunters works.
Which one fits a mid-size company
| Situation | Better fit |
|---|---|
| CEO or board seat at a company with more than 500 employees | Retained, with a global firm |
| VP, director or key manager at a company with 50 to 500 employees | Contingency with a partner-led boutique |
| Confidential replacement of a current executive | Either, as long as the firm works exclusively on it |
| A role you have already tried to fill through postings and your own network | Contingency boutique with proactive sourcing |
| Many mid-level hires per year | Neither: an RPO or an in-house recruiter |
What BGS Headhunters offers in Florida
| Term | BGS Headhunters |
|---|---|
| Model | Contingency. No retainer, no deposit |
| Minimum fee | $10,000 per search |
| Invoice | 100% on the candidate’s start date |
| Guarantee | 3 months, free replacement search |
| Shortlist | 5 to 10 days, two weeks at most |
| Who works your search | A partner, from the first call to the offer |
The fee is a percentage of first-year base salary, set in the proposal before we start. Our Miami partner has filled positions in renewable energy, real estate and construction in South Florida.
Frequently asked questions
- What is the difference between retained and contingency search?
- Retained search is paid in installments regardless of outcome and usually exclusive. Contingency search is paid only when the client hires a candidate the firm presented.
- Is retained search better than contingency?
- Not on its own. Retained guarantees the firm’s attention; contingency guarantees you only pay for results. A boutique that limits its caseload can offer both.
- What does executive search cost in Florida?
- A percentage of the hired candidate’s first-year base salary, varying by role and firm. BGS Headhunters works on contingency with a $10,000 minimum fee and a 3-month guarantee.
- Can I use more than one search firm at the same time?
- On contingency, yes. It rarely helps: firms then compete on speed and candidates receive duplicate approaches. Pick one firm and give it a clear brief.