Hiring is hard. Hiring right is even more challenging. And when you are faced with hiring for a role that your network can’t help you with, and job boards don’t support, then what happens for many companies is turning to a contingency search agency.

What is a contingency search agency? Contingency means that the recruitment agency is paid only upon successfully hiring for the role. At which time, the agency is paid a percentage of the candidate’s year one salary. Usually, 20-30% depending on how specialized the search is.

On the surface, it seems like incentives are aligned with this structure because a fee is paid only upon a candidate’s hiring.

But…let’s examine this further.

What are you really getting out of contingency?

Many times you are only paying for an introduction. And this introduction is made to whoever is active at that moment in time in the contingency agencies network. This means you are paying an agency for a job where the candidate is the customer. The hiring process is in your hands, and it is not guaranteed to fill the position.

By nature, the right firm with this type of business model will cultivate an active set of candidates within a defined field of work. So to do this well, they need to build relationships.

Additionally, many contingency recruiters will say they have an active network of quality candidates. Instead, you will be met with an unqualified candidate after unqualified candidates (because fundamentally, they do not understand the job), leading to the churning/hiring of multiple agencies and a neverending search process.

And in many cases, you will find a reputable agency that, while not having a highly qualified active candidate, is willing to make a concerted effort at finding one. Though for these recruiters, speed is more important than quality. Because they are paid on the commission, they are incented to find the quickest candidate that meets the minimum specs of the role (not the ideal or perfect candidate, but the lowest acceptable version).

In short, contingency search agents are designed to be highly specialized. But this business model in today’s world of democratized data and fast-moving change is a model that doesn’t lead to long-term sustainable business. So while you may find this said or marketed, many times, this will be smoke and mirrors.

The business model of contingency search has evolved to finding a candidate the fastest, not seeing the best candidate. And given the contingency search firms payment model, this leads them not to afford the best breed technology, innovative recruitment marketing programs, or other things designed to find top talent.

JCSI is a supplemental recruitment firm that provides its clients with guaranteed candidates that 100% meet the spec, and we do so at 30-80% less than traditional recruitment alternatives such as agencies.