30 Jun Retained vs Contingency Search: What’s Right for C-Suite Hiring?
Posted at 12:03h
in Executive Search
When the stakes are high, so should be the hiring strategy.
Hiring a CXO isn’t just about filling a vacancy; it’s about safeguarding the future of your company. For CHROs and CEOs navigating critical leadership transitions, choosing between retained executive search and contingency recruitment is more than a budgetary decision—it’s a strategic one.
In India’s current talent landscape, where top-tier leaders are in short supply and high demand, making the right call is crucial.
Key Takeaways
- C-suite hiring is a strategic decision, not a transactional one.
- Retained search provides deeper evaluation, discretion, and access to top-tier passive talent.
- Contingency search is better suited for mid-level or non-critical roles.
- Retained models reduce the risk of costly mis-hires through better cultural and leadership fit.
- Though perceived as slower, retained search often leads to faster, better-aligned outcomes in the long run.
The Current Scenario: India’s CXO Talent Race
India continues to grow as a global hub for leadership talent. According to Aon’s 2024 report, CXO compensation in India rose by an average of 9.1%, reflecting increasing demand for experienced, transformation-capable executives. With more MNCs setting up global capability centres (GCCs) and Indian conglomerates entering global markets, the war for senior talent is intensifying.
Yet, not all search models are built to compete at this level.
What’s the Difference Between Retained and Contingency Search?
| Feature | Retained Executive Search | Contingency Search |
|---|---|---|
Engagement Model | Exclusive, long-term partnership | Non-exclusive, transactional |
Fee Structure | Upfront + milestone-based | Payment upon successful hire |
Focus | Strategic, customized leadership hiring | Speed-driven recruitment |
Candidate Pool | Passive and high-impact leaders | Active job seekers |
Evaluation Depth | Extensive assessments, cultural fit, references | Basic screening, resume-driven |
Confidentiality | High (ideal for replacements, sensitive hires) | Moderate |
Choosing the Right Search Model Is a Strategic Decision
Whether you’re expanding into new markets, navigating a leadership succession, or driving digital transformation, your CXO hiring strategy must align with your long-term business goals. The right search model is not just a matter of speed—it’s about fit, foresight, and failure prevention.
Is Retained Search Right for Your Role?
If you’re answering “Yes” to most of the following, retained executive search is likely the best path forward:
- Is the role mission-critical to your business strategy?
- Will the hire report directly to the CEO or board?
- Is the position confidential or politically sensitive?
- Are you struggling to find the right candidate internally?
- Do you require diversity, transformation experience, or global exposure?
- Is alignment with culture and values essential for success?
If so, a retained partnership ensures you get the strategic depth and confidentiality such mandates require.
Why Retained Search Works Best for CXO Hiring
1. Access to Passive, Proven Leaders
Top CXOs aren’t scanning job portals; they’re leading businesses. Retained executive search firms in India unlock this talent through trust-based, confidential outreach.
2. Hiring with Strategic Context, Not Just Credentials
A CFO for a global tech firm looks different from one at a family-led conglomerate. Retained search tailors leadership profiles to your business goals, succession plans, and leadership culture.
3. Alignment with Board Expectations
Retained partners support alignment between CEOs, CHROs, and board stakeholders, especially during CEO/CFO transitions, helping manage sensitivities and expectations at the highest levels.
4. Brand Representation & Confidentiality
When you need to replace a sitting leader or build a new function, discretion matters. Retained firms protect your brand while attracting high-quality talent.
5. Risk Mitigation through Rigorous Evaluation
Through behavioral assessments, multi-source referencing, and cultural fit analysis, retained search significantly reduces the risk of a costly mis-hire—something that can cost up to 15x a CXO’s salary, as per research.
Debunking the Myth: “Is Retained Search Slower?”
One common misconception is that retained search takes too long. In reality, retained firms invest more time upfront to deeply understand your needs, culture, and strategy.
This accelerates the back end of the hiring process by reducing false starts, poor fits, and repeated rounds. The total time to a successful, lasting placement is often shorter.
When Contingency Search May Be Suitable
Contingency firms perform well for mid-level and volume roles, especially when:
- Time-to-fill is more important than strategic alignment
- Roles are clearly defined and transactional
- Talent is widely available and interchangeable
But when the role demands vision, alignment, and transformation, contingency simply doesn’t go deep enough.
Build Your Leadership Team with CORNERSTONE India
At CORNERSTONE India, the best executive search consultant, we’ve helped global organizations and Indian enterprises build high-performance leadership teams through retained executive search for over two decades.
We partner with CHROs, CEOs, and boards to:
- Define future-ready leadership needs
- Access passive, proven leaders
- Ensure alignment beyond the resume
- Protect your reputation in the market
Let’s discuss how we can support your next leadership mandate