Updated May 2026 | Originally published March 2015
We’re often asked by new potential clients: “How does this work?” And honestly, after more than twenty years in the business, we’re still surprised by how many companies including well-funded, sophisticated ones make the same costly mistakes when it comes to choosing the right executive search model for their most critical leadership needs.
For those unfamiliar with Executive Level Search, here’s our updated primer on the most effective methods for finding top leadership talent. The core models haven’t changed dramatically since we first wrote this post over a decade ago but the context around them has shifted considerably. AI-assisted sourcing has reshaped how passive talent is identified and engaged. The post-pandemic talent landscape has tightened the market for proven C-suite executives. And the stakes of getting a senior leadership hire wrong in time, culture, momentum, and capital have never been higher.
The fundamentals, however, remain constant: the difference between search models is primarily in the level of service required and the seniority of the talent you’re seeking. Search consultant compensation is typically based on a percentage of the new hire’s total compensation generally 30–35% depending on the model and the complexity of the role.
Retained Search
As the name implies, this model involves an upfront retainer fee paid for services rendered. Payment terms typically follow a thirds structure: one-third due upon engagement, one-third due at an agreed milestone (often 30–45 days in, or upon delivery of a defined candidate slate), and the final third due when the candidate accepts the offer.
In Retained Search, your Executive Search Partner functions as a true strategic partner not merely a sourcer of résumés. Services typically include:
- Strategic advisory to identify the real business challenge and define what success looks like before sourcing begins
- Consulting with leadership to refine the role profile and build internal consensus on priorities
- Creation of a targeted recruitment strategy and ideal talent profile, including Employer Value Proposition development
- Comprehensive mapping of the competitive talent landscape
- AI-assisted identification of strategically aligned passive talent, executives whose experience, trajectory, and strengths are specifically matched to the mission and demands of the role
- Human-led, partner-level outreach that engages those candidates with the genuine understanding and respect their accomplishments deserve
- Conducting in-depth candidate interviews and presenting a vetted shortlist
- Managing interview scheduling and candidate experience throughout
- Gathering and synthesizing feedback from all parties
- Regular progress reporting and competitive market intelligence
This model is most effective for the most consequential roles- CEO, COO, Chief Revenue Officer, Chief Growth Officer, Chief Marketing Officer, and Board-level positions -where a specific and exceptional combination of skills, vision, and cultural fit is required. As HBR’s research on CEO selection in volatile times argues, boards that play it “safe” by defaulting to conventional hiring approaches expose their companies to competitive risk- rigid playbooks, cultural calcification, and shorter tenures among the consequences.
A critical note on passive talent in 2026: The executives best suited for your most critical roles are not browsing job boards. Conventional sourcing methods fail to reach them, and templated outreach- regardless of the channel- is largely ignored. What works is a combination of precision and genuine human respect.
AI plays an important role in the identification and mapping stage: finding the right targets whose background and trajectory are specifically aligned with the strategic asks of the role. But the moment of outreach is entirely human. A senior executive being approached should feel that their career and accomplishments have been genuinely understood – not processed by an algorithm. They are not applicants. They are accomplished leaders being invited into a conversation, and that first contact must honor that reality. This is not a step where automation serves anyone well. It is where the relationship begins, and relationships require human judgment, credibility, and care. C-suite executives respond to C-suite executives who can clearly articulate why this specific person is the right fit for this specific opportunity and who treat them accordingly from the very first exchange.
There is also a signal embedded in the approach itself that sophisticated executives read clearly. When a leadership team chooses to conduct a retained search rather than post a job, they are communicating something important before a single word is exchanged: that they understand the human impact this person will have on the organization, that they take that seriously, and that they are committed enough to invest in finding the right leader rather than waiting for one to find them. Posting a C-suite role on a job board sends the opposite message- that the organization views this as a transaction rather than a consequential leadership decision. The most accomplished passive candidates notice that distinction, and it shapes their willingness to engage from the very beginning.
When confidentiality matters – and when your brand needs an advocate: Retained Search is also the only responsible model for two situations companies often underestimate.
The first is confidential search. When a company needs to replace a sitting executive, navigate a leadership transition before it’s ready to be public, or conduct a board search without telegraphing strategic changes to competitors or internal teams, a retained engagement provides the discretion that contingent or self-directed approaches cannot. A retained consultant approaches candidates with full confidentiality – no job posting, no public signal, no premature exposure. As HBR research on CEO succession pitfalls makes clear, superficial assessment of external talent and mismanaged transitions are among the most common and costly board-level failures – precisely the risks a retained partner is designed to mitigate.
The second is employer brand challenges. Not every company arrives at a search with an unblemished market reputation. Whether it’s a period of public turbulence, a high-profile departure that made the rounds, a culture narrative that has circulated in the talent community, or simply a brand not yet well known to the leaders you need to reach – these realities don’t disappear when you begin a search. They become the first obstacle a passive candidate encounter. A retained search partner who is deeply embedded in your market can serve as a credible, informed advocate: contextualizing the opportunity honestly, addressing concerns with nuance, and articulating why this moment- with this team, at this company is genuinely compelling. That kind of advocacy requires trust, knowledge, and a human voice. It cannot be automated, and it cannot be delegated to someone with no real stake in your success.
A Retained Executive Search Partner’s loyalty is unambigvously with the client. This means presenting a candid and complete assessment of each candidate – including developmental considerations – and sharing competitive intelligence gathered during the search. That market intelligence is one of the most underappreciated deliverables of a retained engagement and often directly informs strategic decisions well beyond the search itself.
Retained Search is a genuine partnership. Done well, it consistently produces the best and most precisely matched leadership talent and actively strengthens your employer brand in the process.
Hybrid Search
Hybrid Search – what was once commonly called “Engaged” or “Container” search is a variation on the Retained model that offers more flexibility in structure and investment while maintaining the depth of research and passive candidate sourcing characteristic of a fully retained engagement.
In a Hybrid Search, an initial fee is paid upon engagement (either a flat fee or a percentage of total compensation), with the balance due upon successful placement. The level of strategic advisory, candidate research, and passive outreach mirrors the Retained model, with differences in scope, timeline, and the depth of the ongoing consulting relationship.
This model is particularly well-suited for early-stage companies that need the rigor and reach of a retained search but require greater flexibility in how the investment is structured as they scale. It is also an excellent fit for organizations building toward a fully retained partnership, or for situations where a specific leadership need calls for a more tailored commercial arrangement.
Contingent Search
In the Contingent model, there is no upfront fee. The recruiter is compensated only upon successfully placing a candidate- a commission based on the hired talent’s salary. This model is most effective for entry-level to junior management roles, or for large organizations looking to fill multiple positions with greater volume than precision.
It’s worth being direct about what contingent search is and isn’t. Posting a job is not the same as conducting a search. Many contingent recruiters repost an employer’s job description across job boards and wait for inbound applications, with limited proactive outreach to targeted talent. For junior and mid-level roles with sufficient active candidate supply, this can work. For C-suite and board-level search, it is almost always the wrong tool – and the gap between what companies expect and what this model delivers is one of the most common and costly mistakes we see. Not to mention that any great Executive Search Partner does not need to post a job to fill it.
The structural limitations of contingent search for senior roles are real:
- Misaligned incentives. A contingent recruiter managing multiple clients and openings simultaneously faces financial pressure to close placements quickly. Thorough candidate qualification and candid assessment are often the casualties.
- Divided loyalty. A contingent recruiter is not working exclusively for you. The same candidate may be presented to multiple employers. You are not receiving a curated, exclusive partnership – you are receiving a broadcast and may have to outbid to win.
- Brand exposure. For CEO, C-suite, and board searches, the recruiter is often the first representative of your company that a prospective executive encounters. An inexperienced or incentive-misaligned first impression can permanently damage your employer brand in a market where word travels quickly among senior leaders. Or lose the candidate entirely due to inexperience.
Contingent search can be an effective tool for supplementing internal talent acquisition efforts at junior to mid-levels. But if you are searching for a CEO, COO, CRO, CGO, CMO, or a board director, the contingent model carries significant risks and the cost of a failed executive hire at those levels dwarfs any fee savings.
Contract Recruiter
Many companies without a full-time internal recruiter work with contract recruiters on an hourly or project basis – a flexible and cost-conscious solution, particularly for organizations managing costs carefully while scaling.
Contract recruiters vary widely in experience and approach. Some focus primarily on screening inbound applicants from postings; others take a more proactive sourcing posture. The right contract recruiter, well-deployed, can be a valuable part of your extended talent acquisition team for junior to mid-level roles.
The key consideration: match the recruiter’s experience and market knowledge to the complexity of the role. A skilled contract recruiter may excel at building pipelines for marketing managers or operations leads while being genuinely unequipped to identify, engage, and assess a Chief Executive Officer or Chief Revenue Officer. If you’re asking a contract recruiter to handle C-level assignments, validate carefully that their experience is commensurate with that level and consider what it means for your employer brand or your ability to attract the c level talent if the poorly aligned recruiter is the first voice a senior executive hears representing your company.
For organizations that want the flexibility of a contract model at the C-suite and board level, Hager offers Advisory – a fundamentally different engagement than traditional contract recruiting. Where a typical contract recruiter operates at a generalist level, Advisory brings the same market depth, strategic nuance, and executive-to-executive approach that defines Hager’s retained work, structured for clients who want expert guidance and access without fully retained engagement. It is contract recruiting reimagined for the sophistication and stakes that C-level and board search demand.
Choosing the Right Model: An Honest Framework
No matter which model you choose, your expectations need to align with what model you are choosing.
Retained or Hybrid Search is the right choice when:
- The role is C-suite or board level- CEO, COO, CRO, CGO, CMO, or equivalent
- The required talent profile is specific, rare, or highly competitive
- You need proactive, credible outreach to executives who aren’t looking and won’t be found through conventional channels
- Organizational stability, momentum, and competitive positioning depend on getting the right person
- The cost of a wrong hire measured in time, culture, and capital is significant
- You want a true consulting partner, not a résumé pipeline
Contingent Search or a Contract Recruiter may be appropriate when:
- You’re filling multiple junior to mid-level positions
- Volume is more important than precision of fit for a given role
- You have a strong internal team to evaluate and manage candidates
- Budget constraints make upfront fees genuinely impractical for the level of search
The mistake we see most consistently- and it hasn’t changed in ten years – is companies applying a contingent or low-touch model to a high-stakes C-suite or board search in order to avoid upfront costs, then absorbing a far greater cost when the search stalls, the wrong hire is made, or the executive departs within eighteen months. The fee savings on the front end rarely survive the real cost of a failed leadership placement at the top of the house.
Prolonged C-suite vacancies aren’t just inconvenient- research puts the cost at $500K to $1M in missed opportunities, reduced retention, and strategic paralysis. The right search partner, working with the right model, significantly compresses that timeline and risk.
Executive Search at its best is a genuine partnership. The right partner knows your business, your culture, your competitive landscape, and the people in the market who could change your trajectory. They can identify executives you would never find on your own and position your opportunity in a way that compels those executives to listen. Know what level of service you’re seeking, be honest about the stakes, and choose accordingly.
We are happy to advise on which model makes the most sense for your specific situation. Hager works exclusively through three models- Retained, Hybrid, and Advisory- each designed to meet the distinct needs of C-suite and board-level search with the rigor and partnership those decisions deserve. Reach out at connect@hagerexecutivesearch.com or visit hagerexecutivesearch.com.
Hager Executive Search was founded in San Francisco in 2005 by partners Rebecca Hager and Greg Lamboy. For over twenty years, Hager has combined Management Consulting and Executive Search to place Leaders and Visionaries (CEO, COO), Revenue Drivers (CRO, Chief Commercial Officer), Storytellers and Innovators (CMO, Chief Strategy Officer), and Value Communicators across Fortune 500, small to mid-size growth companies, non-profits and their boards.