What Is Retained Executive Search?

Retained executive search is a model for finding senior leaders — typically at VP, C-suite, or board level — in which the search firm is engaged exclusively, is paid in stages beginning before any candidates are presented, and takes full accountability for running the search process from brief to close.

It is different from contingency recruiting, from internal recruiting, and from the various hybrid models that describe themselves as retained but operate differently in practice. Understanding what retained executive search actually involves is the starting point for deciding whether it's the right model for a given search.

The core structure

A retained search engagement has three defining characteristics.

Exclusivity. One firm runs the search. This matters for the candidate experience: a VP of Engineering who is approached by three different recruiters about the same role in the same week knows, correctly, that the company is running an uncoordinated process. The best candidates use this as a signal about how the company is managed. Exclusivity produces a single, consistent approach to the market that protects the company's reputation and the candidate experience.

Staged payment. The fee — typically 20 to 25 percent of first-year total compensation — is paid in three stages: one-third at signing, one-third at shortlist delivery, one-third at placement. The upfront payment changes the search firm's incentive: they have revenue before any candidate is placed, which means they can afford to run a thorough process rather than a fast one. The firm that is paid only on placement has a financial incentive to move quickly; the retained firm has a financial incentive to move correctly.

Full process accountability. The retained firm is responsible for the search from brief to close. This includes the brief development, the market mapping, the candidate outreach, the initial qualification conversations, the shortlist presentation, the evaluation process support, the reference checking, and the offer process. The company remains responsible for the hiring decision. Everything else is the search firm's accountability.

What retained search is not

It is not a guarantee. A retained search guarantees a thorough process and typically includes a replacement guarantee if the placed candidate leaves within a defined period. It does not guarantee a specific timeline, a specific number of candidates, or a successful close in all cases. No honest search firm can guarantee an outcome that depends on the quality of the candidate market and the judgment of the hiring team.

It is not hands-off for the client. The company's involvement is essential. The brief process requires significant time from the hiring manager and all relevant stakeholders. The evaluation process requires the hiring team to be available, to move quickly, and to give honest feedback. The offer process requires a prepared compensation structure and a commitment to move within 48 hours of the decision. Retained search firms that promise to "take the search off your plate" are understating the engagement required.

It is not expensive relative to the alternatives. The retained search fee is a number that appears on an invoice. The cost of a wrong hire, a six-month search, or a replacement search does not — but it is larger. The fee is the cost of a process that is designed to avoid the most expensive outcomes.

When retained search is the right model

Retained executive search is the right model when: the role is VP-level or above; the candidate pool is small enough that a non-exclusive approach would result in the same candidates being contacted by multiple firms; the brief is specific enough to require genuine market expertise to execute; the cost of a wrong hire or a prolonged search would be significant; and the company has the internal capacity to engage seriously with the process.

It is not the right model for mid-level roles where the candidate pool is large, for roles where speed is the primary value and quality is less sensitive, or for companies that cannot engage with the process at the level a retained search requires.

What a retained search engagement looks like with Majhi Group

The engagement begins with a brief conversation — typically two to three hours with the CEO, the hiring manager, and any other key stakeholders. This produces a written brief that defines what the company needs, what the incoming leader will inherit, what success looks like at 6 and 18 months, and what the evaluation criteria are.

Market mapping begins within 48 hours of brief approval. Outreach to the first candidates begins within five to seven days. Shortlist presentation typically happens within three to four weeks of engagement. Close at 30 to 45 days.

The replacement guarantee is 90 days. Fee structure: one-third at signing, one-third at shortlist, one-third at placement. 20 to 25 percent of first-year total compensation.

Request an assessment to discuss whether retained search is the right model for a current or upcoming leadership hire.