The Wrong Way to Decide

Many companies choose based on:

• “We don’t want risk.”

• “We only pay for results.”

• “Retainer sounds expensive.”

• “Success-based sounds less binding.”

But recruiting is not just a transaction, it’s a strategic process.

Instead of asking:

“Which model is cheaper?”

You should ask:

“Which model aligns with our hiring reality?”

Let’s break that down.

Practical Decision Questions for the right hiring model

1️⃣ How Many Positions Do We Need to Fill?

If you are hiring:

• 1 position → success-based may be sufficient.

• 5–10 positions → retainer often becomes more cost-efficient.

• Ongoing hiring → retainer usually creates better long-term structure.

Why?

Because retainers:

• Allow strategic pipeline building.

• Reduce competition between agencies.

• Improve quality over speed pressure.

If you only have one role and are testing the market, a success-based model can make sense.

2️⃣ How Specialized Is the Role?

Ask yourself:

• Is this a standard profile?

• Or does it require active sourcing?

• Is the talent pool small?

• Do candidates need persuasion to switch?

Highly specialized roles (e.g., senior engineers, niche B2B sales, country managers entering Germany) often require:

• Proactive headhunting

• Long qualification calls

• Market mapping

• Strategic positioning of your company

That level of work is more aligned with a retainer model.

If the role is easier to fill and receives strong inbound applications, success-based may be sufficient.

3️⃣ How Urgent Is the Hire?

Urgency changes everything.

If:

• The role is business-critical

• Revenue depends on it

• Expansion plans rely on it

You want:

• Dedicated focus

• Weekly alignment

• Structured search strategy

Retainer models often ensure this level of commitment. If urgency is moderate and timelines are flexible, success-based can work.

4️⃣ How Involved Do We Want to Be?

Retainer searches typically include:

• Detailed briefing workshops

• Salary positioning discussions

• Employer branding alignment

• Regular reporting

• Candidate feedback loops

Success-based models are often:

• Faster

• More transactional

• Less embedded in your internal processes

Ask yourself:

Do we want:
A) Candidate delivery
or
B) A recruiting partner?

There is no wrong answer, only different levels of involvement.

5️⃣ Are We Comparing Agencies, or Building a Partnership?

In success-based setups, companies often:

• Brief multiple agencies

• Let them compete

• Choose from submitted CVs

This creates:

• Speed

• Volume

• Less exclusivity

In retainer setups:

• There is usually exclusivity

• The agency represents you strategically

• Employer branding matters more

If you want your company positioned professionally in the talent market (especially in competitive industries), retainer often supports that better.

6️⃣ What Is Our Budget Reality?

This is where many companies miscalculate.

Success-based feels cheaper because:

• No upfront payment

• Payment only after hire

But:

• Fees are usually higher

• Multiple agencies may duplicate work

• Time-to-hire can increase due to unclear ownership

Retainer:

• Requires upfront commitment

• Often reduces success percentage

• Creates predictability

It’s not about “cheap vs expensive.” It’s about structure vs flexibility.