There are two basic types of executive recruiters: firms that work on a contingency fee basis and those that work on retainer.

Contingency fees are paid if and when an agent fills a position, while retained firms are paid regardless of the outcome of a particular search. At first glance, the contingency arrangement may seem more attractive, but it´s important to understand the difference in the services you´ll receive when you choose one type over the other.

A contingency firm acts like a clearinghouse, working quickly and gathering a large number of resumes. It´s generally appropriate for entry-level or mid-level management positions with clearly defined requirements. Hires are often local and speed often takes precedence over finding the ideal candidate.

A retained firm functions more like a senior adviser to the executive client, handling higher-level searches with selective criteria. These firms are highly skilled at managing challenging searches and will usually bring you a carefully screened short list of well-qualified candidates. The retained firm is generally the choice of technology companies for top-level general
management and board of director recruiting, as well as for management consulting and venture capital hires.