When a key role needs to be filled, the pressure to move quickly can lead to one of the most consequential decisions being made on autopilot: which recruitment model to use. Jobs & Skills Australia puts recruitment difficulty for professional roles at 45%—in this kind of market, relying purely on active candidates can significantly narrow your options.
At Godfrey Group, we’ve partnered with Australian financial services firms of all sizes, from boutique advisory practices through to national institutions. What we’ve consistently seen is that the right approach depends on the specifics of the hire: seniority, risk exposure, talent visibility and confidentiality.
What is Contingent Recruitment?
Contingent recruitment (sometimes referred to as contingency basis recruitment) means you pay a fee only if a candidate is successfully placed. Multiple contingency recruiting firms can work on the same role at the same time, competing to place a candidate first.
It’s a model that works well in the right context. Because contingency executive recruiters are only compensated on placement, they move quickly and tend to draw on their existing networks to identify active candidates. The trade-off is depth: the focus is on delivery rather than a full-scale search of the wider market.
Contingency hiring tends to perform well when:
- The role is mid-level or specialist, but not business-critical
- The talent pool is active and reasonably visible
- Speed is the primary priority
- You’re comfortable with multiple agencies working in the same space
For roles like paraplanners, compliance analysts or relationship managers in larger financial services hubs like Sydney and Melbourne, contingent recruitment can deliver strong shortlists quickly. These are roles with a defined and accessible talent pool, and experienced contingency executive recruiters know exactly where to find them.
What is Retained Recruitment?
Retained recruitment operates differently. An upfront fee is paid to engage one firm exclusively, and in return, that firm commits its full capacity to the search. Retained search firms conduct comprehensive market mapping, target passive candidates who aren’t actively looking, manage employer positioning, and oversee a structured assessment process from start to finish.
The relationship shifts from transactional to genuinely strategic. Because the search is funded from the outset, retained executive search firms can invest the time needed to properly understand your business, your culture, and what the right appointment actually looks like beyond the job description.
The retained recruitment model is particularly well-suited when:
- You’re hiring at a director, executive or C-suite level
- The appointment carries regulatory, revenue or cultural weight
- Confidentiality is non-negotiable
- You’re entering a new market or building a new capability
In financial services, senior advice leadership, Responsible Manager appointments and C-suite roles almost always benefit from a retained approach, as the strongest candidates for these positions aren’t browsing job boards. They need to be identified thoughtfully and engaged in a considered conversation—and that takes time, trust and a partner who is invested in the outcome.
Contingent vs Retained Recruitment: Cost vs Value
Cost is usually the first thing that comes up when comparing contingent vs retained recruitment, and on the surface, contingent recruitment can appear lower risk because there’s no upfront commitment. But that framing doesn’t hold when you look at the full picture of the current talent landscape. Industry benchmarks show contingent recruitment often has a fill rate of just 25% for complex senior roles. In contrast, retained recruitment boasts a 90%+ success rate, ensuring you aren’t left with an open vacancy—and the associated “vacancy cost“—months down the line.
With retained executive search firms, the upfront investment enables a broader and more proactive search. The focus shifts to identifying the best person in the market, not just the best person currently looking. For a Head of Advice or Chief Risk Officer appointment, that distinction directly affects revenue continuity and leadership stability.
Choosing Between Contingent Recruitment and Retained Recruitment
The contingent vs retained recruitment decision is rarely about which model is superior in theory. It’s about which is right for this particular hire, at this point in time, in your business.
A few questions worth considering:
- How critical is this role to revenue and compliance?
- How active and visible is the talent pool?
- How much does confidentiality matter?
- What is the realistic cost of getting this wrong?
Across the financial services firms we’ve worked with, the pattern is fairly consistent: the more senior and strategically significant the role, the stronger the case for a retained search. For volume or mid-level hiring, contingent recruitment can deliver excellent results.
Get the Recruitment Model Right for Your Next Hire
If you’re weighing up contingent or retained recruitment and you’re not sure which path fits your situation, that’s exactly the kind of conversation we’re here for. Our team at Godfrey Group understands the difference between a hire that can move quickly and one that needs to be done with care. Connect with us on 02 8004 9350 or enquire online today!
