Moneyzine
Contents
/Careers Guides/Contingency Search Firm

Contingency Search Firm

Moneyzine Editor
Author: 
Moneyzine Editor
2 mins
September 26th, 2023
Advertiser Disclosure

Definition

The term contingency search firm refers to an organization that is paid by their client when a successful candidate is presented and hired. Contingency search firms are frequently used when a company is looking to fill low to mid-level manager and individual contributor job openings.

Explanation

Contingency search firms do not get paid unless they successfully present a candidate to an employer (their client), and that same candidate is eventually hired by the employer. While their client is usually an employer, they can also work directly with an individual looking to change jobs. Companies will work with contingency agencies when they have a need to fill low to mid-level job openings.

Contingency firms often compete directly with their client's human resources organization and other firms providing similar services. Recruiters are usually paid on a commission-only basis; therefore, they may be working to fill a relatively large number of job openings (20+) at the same time. For this reason, contingency firms cannot afford to conduct extensive research into a particular opening, and may never speak with the hiring manager about their job specifications. Typical fees for a successful placement are 20% to 35% of the candidate's first-year base salary.

Clients are usually presented with a large number of potential candidates (10+) one to two weeks after a recruiter starts their assignment. Providing a relatively large slate of candidates increases the odds of a successful placement. Since the recruiters working for a contingency firm cannot afford to closely examine each candidate and job specification, hiring managers or the company's human resources representatives will need to conduct a second round of screening of potential interviewees.

Related Terms

Related Content

  • Is It Worth Pursuing a Master's Degree?
    In an era where education is synonymous with opportunity, many consider pursuing a Master's degree a surefire way to advance their careers. However, is it really the golden ticket to success we've been led to believe?
    March 21st, 2024
  • The gender pay gap, the persistent disparity in average earnings between men and women throughout their careers, serves as a critical measure of wage inequality. This gap underscores the ongoing issue of income disparity, despite the ideal of equal pay for equal work.
    March 14th, 2024
  • 7 Essential Financial Moves After Losing Your Job
    Navigating the stormy seas of job loss? You're not alone.
    February 23rd, 2024
  • The Most In-Demand Skills to Get Hired in 2024
    Every job requires a combination of vital skills, but what skillset is valued most in 2024? As the job market evolves, staying ahead means it’s key to understand and acquire the skills that employers value most.
    April 12th, 2024
  • Key Productivity in the Workplace Statistics for 2024
    In 2023, global employee engagement saw a slight uptick, with 23% of employees engaged, up by two percentage points. However, a sizable 59% are categorized as disengaged, while actively disengaged employees, known as "loud quitting," declined to 18%. These figures highlight the persistent challenge for organizations to cultivate happiness and productivity in the workplace.
    January 31st, 2024

Contributors

Moneyzine 2024. All Rights Reserved.