The Definition of Retained Executive Search
Retained executive search is a model for sourcing and placing VP and C-suite leaders in which the client company pays the search firm a fee upfront, before the search begins, and the firm works exclusively on the assignment until it is filled. The fee is structured in thirds: one-third at engagement, one-third at candidate submission, and one-third at placement. The firm is retained — not contingent on placement — which changes the incentive structure and the depth of service provided.
This model is distinct from contingency recruiting, in which the firm is paid only if a candidate is placed. The contingency model incentivises speed; the retained model incentivises quality. Both serve the market, but for different roles and different outcomes.
How Retained Search Works
Search assessment and intake
The engagement begins with a structured assessment of the role requirements, company context, compensation architecture, and success definition. This intake is typically 90 minutes to 2 hours — substantially deeper than a contingency briefing — and produces the candidate profile that drives all subsequent sourcing.
Sourcing and candidate development
The firm sources candidates against the defined profile — with a primary focus on passive candidates who are not actively seeking roles. This requires direct outreach, relationship networks, and market intelligence. Active job seekers are a secondary source.
Assessment and evidence development
Qualified candidates undergo structured assessment — competency evaluation, culture-fit profiling, and reference checking — before being presented to the client. The presentation includes an evidence dossier with performance proof points and risk flags, not a résumé with a covering note.
Client interviews and selection
The client interviews a shortlist — typically 3–5 candidates — who have been pre-assessed and pre-qualified. The retained firm manages the process, facilitates debrief conversations, and advises on selection and offer strategy.
Offer and close
The retained firm manages offer negotiation and closing — including counter-offer management and the candidate's transition plan. A replacement guarantee covering the first 90 days is standard at quality retained firms.
Retained Search: Key Parameters
"The retained search fee is not a premium for service delivery. It is the structural commitment that aligns the firm's incentives with the quality of the outcome. A firm that is paid regardless of placement quality has a different operating mandate than one that is paid in tranches tied to search milestones."
When Retained Search Is the Right Choice
Retained search is appropriate for VP and C-suite roles where the talent pool is constrained, the assessment is complex, the cost of a mis-hire is significant, and the company wants exclusive, high-quality attention from the search firm. It is typically not the right model for roles below the VP level, where the talent pool is larger and the assessment process is simpler.
Majhi Group operates exclusively on a retained model for VP and C-suite searches. The 90-day replacement guarantee, weekly status reports, and passive-first sourcing strategy are all products of the retained structure — and are not available in a contingency engagement.