Retained Recruitment vs Contingent: Why the Market is Shifting

From Interrupting Friday Nights to Retained Search: Why the Market is Shifting

Back in the early days of my recruitment career, I learned very quickly that speed was everything.

I can still picture myself sitting in a restaurant on a Friday night, phone buzzing on the table, knowing full well that if I didn’t move, someone else would. I’d excuse myself, apologise to whoever I was with, and drive straight back to the office. Not because of some emergency, but because I had to beat the competition to a fax machine.

Yes, a fax machine. That was the weapon of choice for recruiters in those days. The priority wasn’t building relationships, nor was it about deeply understanding the client brief, it was about getting CVs in first. Many Friday evenings ended with me queueing in the office corridor, nervously eyeing up the fax tray, hoping that my candidate profile went through before the line jammed. 

The worst words you could hear?

“Sorry, we’ve already had that CV from another agency.”

That was contingent recruitment at its rawest. A race against time. Duplication everywhere. A game of who could hit the button the fastest.

Fast forward to today, and the picture could not be more different. The world has changed and so has recruitment.

A Market Under Pressure

According to the latest KPMG & REC, UK Report on Jobs, we’ve now had more than 20 consecutive months of declining permanent placements. Temporary hiring is also down, though at a slightly slower rate. Employers are cautious, costs are rising, from National Insurance and pension contributions through to increases in the minimum wage. Economic uncertainty lingers.

Budgets are tighter, hiring decisions are delayed, and the old tactic of “volume CV-slinging” simply isn’t working the way it once did. Where contingent recruitment thrived on speed and saturation, today’s climate demands something far more deliberate.

And that is where retained recruitment or retained search is quietly proving more resilient.

Why Retained Recruitment Is Bucking the Trend

Retained Search isn’t new. But in a market like this, its strengths are becoming impossible to ignore. More businesses are realising that when the stakes are high, you don’t want a race to the bottom; you want a partner who will slow down, dig deeper, and get it right.

Here’s why retained recruitment is holding its ground.

1. Quality Matters More Than Ever

When businesses are under pressure, mistakes cost more. For senior, specialist, or confidential hires, “good enough” isn’t good enough.

A retained search digs deeper. It doesn’t just match skills and qualifications to a job description. It looks at leadership style, cultural fit, long-term potential, and the nuances that separate an adequate hire from a transformative one.

In other words, it’s about precision, not speed. And when every hire has to count, precision is priceless.

2. Shared Risk Creates Shared Commitment

One of the criticisms often levelled at contingent recruitment is that there’s very little shared risk. Agencies do the legwork, often for nothing, and clients hedge their bets by briefing multiple firms at once. The result is predictable: CVs flying in from all directions, with little accountability for quality or process.

Retained search flips that model. An upfront fee signals buy-in from both sides. The client is committing to filling the role with this partner, and the agency is committing senior time, research, and mapping to make sure it happens. Both have skin in the game, which makes the relationship more consultative, more strategic, and ultimately more effective.

3. Access to the Hidden Market

In a candidate-rich environment, active job seekers are easy to find. But when every recruiter has access to the same online databases, sending another list of active candidates isn’t adding much value.

The real prize lies in the hidden market: the leaders, specialists, and high performers who aren’t actively looking. Retained search has the time, tools, and mandate to go after these individuals. It’s about discreet conversations, headhunting, and targeted mapping; not just advertising.

That’s where retained really shines: surfacing talent that competitors simply don’t reach.

4. A Better Candidate Experience

Another overlooked benefit of retained search is the candidate journey.

In contingent recruitment, candidates often feel like part of a numbers game;  another CV on a long list, rarely hearing back unless they’re shortlisted. Retained search changes that dynamic. The process is more high-touch, more consultative, and more respectful.

Candidates are guided carefully, kept informed, and treated as valuable stakeholders in the process. At a time when employer brand matters more than ever, that candidate experience becomes a competitive differentiator. 

5. Strategic, Not Reactive

Even in downturns, some roles simply cannot be left unfilled. Transformation programmes, leadership positions, and mission-critical specialist hires still go ahead, even if wider recruitment is frozen.

Retained search is built for those scenarios. It’s not about chasing short-term wins. It’s about aligning talent strategy to long-term business needs, ensuring organisations can continue to evolve, transform, and compete; even in lean times.

6. Risk Mitigation

Hiring is always a risk, but retained search reduces it. Guarantees, replacement clauses, and rigorous vetting give businesses confidence that they’re investing wisely, not gambling on speed.

When margins are thin and every decision is scrutinised, that peace of mind is invaluable.

But Let’s Be Honest: Retained Isn’t Perfect

It would be easy to stop here and paint retained recruitment as a flawless solution. But in reality, it has its challenges.

For one, the upfront costs can be a sticking point. Paying a significant chunk of the fee before a candidate has even accepted the job requires confidence and cash flow. For some businesses, particularly smaller firms, that’s simply not feasible.

Then there’s the issue of time. Retained searches are thorough, but they are not instant. If a business needs someone in post tomorrow, a retained model may feel too slow.

And finally, it requires deeper involvement. Clients can’t just hand over a job spec and wait for results. Retained search works best when there is partnership, collaboration, and an investment of time from hiring managers.

New Models for a Changing Market

This is why we’re seeing innovation within retained itself. Hybrid models, such as PartnerPlus; are emerging, offering many of the benefits of retained search but with more flexible, affordable terms.

These models spread the cost more evenly, lower the upfront barrier, and blend the thoroughness of retained with the accessibility of contingent. For many businesses, it feels like the best of both worlds.

Why the Market Is Shifting

So why is the market moving this way?

Because the old contingent race simply doesn’t work in today’s climate. Employers don’t want a Friday night dash to the fax machine. They want confidence, depth, and quality. They want to know that when they invest in recruitment, they’re investing wisely.

Retained search delivers that. It reduces noise, creates accountability, and builds genuine partnership. In a market defined by caution, uncertainty, and scrutiny, those qualities matter more than ever.

And for recruiters, it’s a reminder that the profession has come a long way. What once was a frantic sprint has become a considered craft.

The future

Recruitment has always reflected the world around it. In boom times, speed and volume win the day. In tougher markets, precision and partnership rise to the surface.

The shift towards retained isn’t just a trend; it’s part of a broader realignment. Employers are re-evaluating how they hire, candidates are demanding better experiences, and agencies are finding new ways to add value beyond CVs.

The next chapter of recruitment will likely be defined not by who is fastest, but by who is most trusted. Retained search, with its emphasis on commitment, quality, and strategy, is positioned perfectly for that future.

And perhaps best of all? Recruiters can finally enjoy their Friday nights again.

Every business faces unique hiring challenges. Whether you need a senior leader, a specialist, or a strategic workforce plan, Orion Group can guide you through the retained and hybrid search process. Let’s explore how we can help you build for the long term.

Click here to learn more about PartnerPlus and our hybrid retained search model.

Or, contact Martin Bate (Group Technical Permanent Hire Director) on Martin.Bate@orioneng.com