Use a contingency agency when you have a few roles to fill and want to pay only on success. Use retained search for CXO and confidential leadership hires that need dedicated effort. Hire an in-house recruiter once you have a steady pipeline of about 10 or more hires a year.
The three models compared
Each model trades cost against control and risk.
| Contingency agency | Retained search | In-house recruiter | |
|---|---|---|---|
| How you pay | Fee on joining only | Part upfront, rest at milestones | Monthly salary |
| Typical cost | 8.33–20% of CTC per hire | 20–33% of CTC, part non-refundable | ₹8–25 lakh a year plus tools |
| Your risk if no hire | None | Upfront fee is spent | Salary is spent |
| Best for | Engineering, product, business roles | CXO, confidential and niche leadership | Steady, repeating hiring |
| Speed | Fast: existing networks and databases | Thorough, typically 6–12 weeks | Depends on the recruiter |
When a contingency agency makes sense
Most startups and product companies hire this way: you share the brief, the agency shortlists, and you pay only when someone joins. It works best when the agency has a strong candidate database and evaluates profiles properly, so you are not screening dozens of CVs yourself.
When to choose retained search
Retained search fits CEO, CXO and board-level hires, confidential replacements, and roles where the candidate pool is very small. The upfront payment funds a dedicated team, market mapping and exclusivity.
When to hire an in-house recruiter
A good in-house recruiter in India costs ₹8–25 lakh a year before tools such as LinkedIn Recruiter and job boards. It usually pays off once you hire 10 or more people a year in similar roles. Many companies combine both: in-house for volume, an agency for senior or hard-to-fill roles.
HyrEzy's model
HyrEzy works on contingency for every level, including leadership: no retainer, fee on fixed CTC only, a shortlist within 5 working days and a 90-day replacement guarantee. For exclusive mandates we add AI video interviews and skills tests on the candidates you choose.
Frequently asked questions
What is the difference between contingency and retained recruitment?
Contingency agencies are paid only when the candidate joins. Retained firms take part of the fee upfront in return for dedicated, exclusive search effort.
Is an in-house recruiter cheaper than an agency?
Only at volume. Below about 10 hires a year, agency fees paid on success usually cost less than a full-time recruiter's salary and tools.
Can I use contingency search for leadership roles?
Yes. Some agencies, including HyrEzy, run senior and CXO searches on a success-fee basis with no retainer.
Hiring for this role?
Get 5–8 candidates scored against your JD, validated by a recruiter and backed by evidence. Zero retainer; you pay only on a successful hire.