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Contingent vs retained calculator.Which pays more for your time?
Compare what contingent and retained work really earn once you allow for the jobs that don’t fill. See the expected fee per job and per hour, and the work it takes to hit your billing target.
The work
Contingent
Of the contingent jobs you work
Retained
The rest is paid on completion
$700 an hour on retained searches against $333 on contingent jobs, once you allow for the work that doesn’t fill.
| Expected | Contingent | Retained |
|---|---|---|
| Fee if the role is filled | $40,000 | $60,000 |
| Expected fee per job | $10,000 | $55,995 |
| Expected fee per hour | $333 | $700 |
| Paid before you deliver | $0 | $19,980 |
| Jobs to hit your target | 45 | 8 |
| Hours to hit your target | 1,350 | 643 |
How the comparison is worked out.
Contingent. The fee is salary × fee percentage, but you only earn it on the jobs you fill, so the expected fee per job is fee × fill rate.
Retained. The engagement payment is earned on every search. The shortlist payment is earned on searches that reach shortlist. The rest is earned on searches you complete. The expected fee per search adds the three together.
Per hour divides the expected fee by the hours a job or search takes. Jobs to hit your target divides your annual billing target by the expected fee per job, and hours multiplies that by the hours per job.
What’s the difference between contingent and retained recruitment?
Contingent recruiters are only paid if they fill the role, often competing with other agencies. Retained recruiters are engaged exclusively and paid in stages, typically a third on engagement, a third on shortlist and a third on completion, so part of the fee is earned whether or not the role is filled.
Why compare per hour instead of per fee?
A contingent fee looks attractive until you count the jobs you work and don’t fill. Expected fee per job allows for that, and dividing by the hours each job takes shows which model pays better for your time.
What fill rates are typical?
Contingent fill rates vary widely with exclusivity and how many agencies are working the role; a quarter to a third of jobs worked is common. Retained searches complete far more often, frequently 80% or more, because the client has committed to the search. Use your own numbers from the last year.
How do I move clients to retained terms?
Start with roles that are senior, confidential or hard to fill, where the client gains most from exclusivity and a structured search. Show them the process and what they get at each stage, such as a market map, a longlist and a shortlist, so each payment is tied to something delivered.
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