Fractional vs Contingency vs Retained Recruiting: Which Model Fits
Each recruiting model fits a different hiring situation. This guide compares how you pay, best fit, speed, involvement and role level, then shows where The Kas Group fits for sales hiring.
The short answer
- Several sales seats this quarter: a fractional retainer. At The Kas Group that is Kas Seat.
- One clear seat: contingency, or a per role search such as Kas Milestone Search through Sales Manager.
- One leadership seat: retained search. At The Kas Group, roles above manager run as Kas Directed Pursuit, priced on request.
Fractional vs contingency vs retained: comparison table
| Model | How you pay | Best fit | Speed | Involvement | Role level |
|---|---|---|---|---|---|
| Fractional | Monthly retainer for dedicated time | Several open seats in a quarter, or hiring in bursts | At The Kas Group, a free market scan in 48 to 72 hours for SDR through Sales Manager | Partner works inside your tools and joins your debriefs | SDR through Sales Manager, across several seats |
| Contingency | Paid only on a hire, usually 20% to 25% of first year cash compensation (SHRM) | One well defined role you want filled | Starts right away; several recruiters can work the role in parallel (SHRM) | You review candidates as they are introduced | Roles up to senior manager (SHRM) |
| Retained | About 33% of salary, bonus and signing bonus, paid whether or not the role is filled (SHRM) | One high impact leadership seat | Exclusive, focused search for one person | Close partnership with one firm on one search | Executive and leadership seats (SHRM) |
Fee ranges and role levels for contingency and retained search come from SHRM. Always confirm in the contract what the fee is calculated on.
Fractional vs contingency recruiting
Contingency recruiting is paid only when a hire is made. SHRM puts the usual fee at 20% to 25% of the role's first year cash compensation: salary, bonus and signing bonus. It works well for one well defined role.
Fractional recruiting is a monthly retainer. A recruiting partner works inside your process on all your open seats, from scorecard to offer. It works well when you have several sales seats to fill. Model primer: what is fractional recruiting.
Retained vs contingency recruiting
SHRM describes retained search as usually exclusive and focused on executive seats, with the firm paid whether or not it finds the hire, at a typical fee of about 33% of salary, bonus and signing bonus. Contingency recruiting covers a wide range of roles up to senior manager and is paid only on a hire.
Retained search fits a seat where one leadership hire shapes the company. Contingency fits a defined role where you want candidates introduced as they are found.
Where The Kas Group fits
- Kas Seat (fractional): $5k/mo for up to two open sales roles, $8k/mo for three to five. Up to $10k/mo for senior AE and above. Zero success fees. Month to month.
- Kas Milestone Search (one seat): example fees SDR/BDR $5,000, AE $7,500, Senior AE or Sales Manager $10,000. Three payments tied to milestones.
- Kas Directed Pursuit (above manager): Director, VP and CRO searches. Pricing on request.
- AI, ML and data roles: quote only. Never monthly.
Commitments on SDR through Sales Manager searches
- Free market scan in 48 to 72 hours
- 3 or more qualified candidates in 3 weeks, or we keep hunting at no charge
- 60 day re hunt on placement, not a refund
Full price list: fractional sales recruiting cost and Programs.
Worked examples
These use example packages and the SHRM contingency range of 20% to 25% of first year cash compensation. The math is ours.
Example A: one AE, $150,000 first year cash
| Model | Math | You pay |
|---|---|---|
| Contingency at 20% | 0.20 x $150,000 | $30,000 |
| Contingency at 25% | 0.25 x $150,000 | $37,500 |
| Kas Milestone Search, AE | Example fee | $7,500 |
| Kas Seat, one open role, 2 months | $5,000 x 2 | $10,000 |
Example B: five sales seats over 4 months
Three AEs at $150,000 and two SDRs at $80,000 first year cash.
| Model | Math | You pay |
|---|---|---|
| Contingency at 20% | 0.20 x $610,000 | $122,000 |
| Contingency at 25% | 0.25 x $610,000 | $152,500 |
| Kas Milestone Search | $7,500 x 3 + $5,000 x 2 | $32,500 |
| Kas Seat, five open roles | $8,000 x 4 | $32,000 |
Example C: VP of Sales
SHRM puts retained search at about 33% of salary, bonus and signing bonus. At The Kas Group, VP and other roles above manager run as Kas Directed Pursuit. We scope the search in a conversation and quote it, so there is no list price.
FAQ: fractional vs contingency vs retained recruiting
What is the difference between fractional vs contingency recruiting?
Contingency recruiting is paid only when a hire is made. SHRM puts the usual fee at 20% to 25% of the role's first year cash compensation. Fractional recruiting is a monthly retainer for a partner who works inside your process across your open seats. At The Kas Group, Kas Seat is $5k/mo for up to two open sales roles and $8k/mo for three to five.
What is the difference between retained vs contingency recruiting?
Retained search is an exclusive search, usually for an executive seat, paid whether or not the role is filled. SHRM cites a typical fee of about 33% of salary, bonus and signing bonus. Contingency recruiting is paid only on a hire, usually 20% to 25% of first year cash compensation, and is often used for roles up to senior manager.
Which recruiting model fits my situation?
Several sales seats this quarter fit a fractional retainer such as Kas Seat. One clear sales seat through Sales Manager fits a per role search such as Kas Milestone Search. A leadership seat above manager fits an exclusive search, which The Kas Group runs as Kas Directed Pursuit, priced on request.
How much does The Kas Group charge?
Kas Seat is $5k/mo for up to two open sales roles and $8k/mo for three to five, up to $10k/mo for senior AE and above, with zero success fees. Kas Milestone Search example fees are $5,000 for SDR/BDR, $7,500 for AE and $10,000 for Senior AE or Sales Manager. Kas Directed Pursuit is priced on request. AI, ML and data searches are quote only.
Can I pause a fractional sales recruiting retainer?
Yes. Kas Seat is month to month. Pause when hiring stops. Resume when the next sales seat opens.
What does The Kas Group commit to on sales searches?
For SDR through Sales Manager seats only: a free market scan in 48 to 72 hours, and 3 or more qualified candidates in 3 weeks or we keep hunting at no charge. Placements carry a 60 day re hunt, not a refund.
Sources
- How to Work Effectively with an Executive Search Firm, SHRM, July 2016. Contingency and retained fee ranges and how each model works. https://www.shrm.org/topics-tools/news/talent-acquisition/how-to-work-effectively-executive-search-firm
Related guides
Not sure which model fits?
Email Chris with your open seats and target pay. You get a straight answer: Kas Seat, Kas Milestone Search or Kas Directed Pursuit.
About The Kas Group
The Kas Group is a B2B SaaS sales recruiting firm founded in 2014. We place sales talent from SDR through VP Sales and CRO for high growth technology companies.