Retained Search vs Contingent Recruiting: Which One Actually Delivers Better Hires?

The Hidden Cost of a Bad Leadership Hire

For Series A to C founders, every leadership hire carries outsized weight. You’re not just filling a seat—you’re bringing in someone who will shape culture, scale teams, and drive investor confidence. When that hire goes wrong, the damage is staggering.

The cost of a failed executive is more than the salary you paid. It shows up in lost months, poor team morale, and missed revenue. Research suggests the real price of a bad executive hire can reach 3–5x their annual pay. For startups, that can mean millions of dollars burned.

So the question isn’t just how do we hire fast? It’s which recruiting model actually delivers the right leaders?

Why Contingent Recruiting Falls Short

Contingency firms often look attractive because you don’t pay until a hire is made. But this model has a hidden tradeoff: lack of commitment.

Since recruiters only get paid if they “win” the race, they chase volume over quality. Your search becomes one of dozens, and candidates are usually active job seekers rather than the proven leaders you really want. This results in rushed placements and a higher risk of turnover.

For a founder trying to build a lasting leadership team, that’s a gamble you can’t afford.

The Limits of Big Retained Firms

On the other side are the large retained search firms. They deliver prestige, brand recognition, and access to wide networks. But they come with two big drawbacks:

1. Fees tied to salary – usually 25–30% of first-year compensation. For a $250k role, that’s $75k or more in recruiter fees.

2. Divided attention – unless you’re a Fortune 500 client, your startup’s search may not get top priority.

That leaves many founders feeling like they’re paying a premium without receiving the personalized focus they need.

Why Retained Search Works Better for Startups

Retained search is fundamentally different because it’s built on partnership, not transactions. A retained recruiter commits to your search exclusively, taking the time to understand your goals, culture, and growth stage.

Instead of pushing resumes, they directly headhunt the executives who aren’t actively looking—leaders who are already proving themselves at competitors. The result is stronger alignment and higher retention.

The High Altitude Advantage

At High Altitude Recruiting, we’ve taken the retained model and made it startup-friendly. We offer retained executive search for a flat $10k per search.

Flat. Fixed. Never a surprise or hidden fee.

You get the dedication, alignment, and depth of retained search without the unpredictable, percentage-based costs. Our 97% fill rate and 99% one-year retention prove the model works.

We’ve helped startups place over 75 C-Suite executives, 150 Directors and VPs, and more than 1,000 senior leaders and managers—building teams that last.

Final Word

Contingent recruiting promises speed but sacrifices quality. Large retained firms offer reach but drain your budget. For startups, the best path forward is a retained partnership that delivers focus, accountability, and cost predictability.

👉 See how the $10k Advantage works and why it’s the smarter way to build your leadership team.