Types of Recruiters - Contingency, Retained, Contract, In-House

In my experience, most candidates, even those that have been hiring managers, are only vaguely familiar with the different types of contractual relationships between recruiters and employers that are out there.

These relationships have a significant bearing on how recruiters operate, and to some extent perhaps, how experienced or competent they might be.

Retained

This service is usually reserved for management to executive level positions, or high value individual contributors. Fees are paid 1/3 up front, 1/3 upon candidate slate presentation, 1/3 on completion.

Contingency

This service can be used for any level of position, but is most common on staff, manager and some director level positions. Fees are due upon placement. The client and other recruiters may also be working on the search assignment.

Exclusive

This is similar to contingency, except that the recruiter has exclusive responsibility for filling the position. Fees are due upon placement.

Contract

Terms can vary, but this could include hourly, part-time, or a combination of retainer and commission, with specified recruiting objectives.

In-House

Refers to company HR type recruiters who work for a single firm. To some extent, contractors may operate a bit more like In-House recruiters, but for this discussion, we'll assume these are permanent in-house employees.