Subscription recruiting vs contingency fees
Contingency prices the outcome. Subscription prices the capacity. The right choice depends on volume, repeatability and who keeps the pipeline.
Written for: Finance and talent leaders choosing a commercial model
The structural difference
| Contingency agency | Subscription | |
|---|---|---|
| What you pay for | A completed placement | Search capacity over a period |
| Cost shape | % of salary, per hire | Fixed monthly or per-package |
| Cost per extra hire | Repeats in full | Marginal within your tier |
| Who keeps the pipeline | Usually the agency | You do |
| Incentive | Close the placeable candidate | Keep capacity productive across roles |
Where each model wins
- Contingency wins for a one-off, senior, hard-to-access search where you want zero risk until offer
- Subscription wins when you have multiple roles open, repeating role families, or a need to forecast spend
- Neither wins if the requirements are undefined — that cost lands on you either way
The incentive question nobody asks
A percentage fee rewards the highest-salary placement that will close. A subscription rewards keeping every role moving. Read your model's incentive before you read its price.
Test it in the conversation
Ask what happens if the best candidate is cheaper than budget. The answer tells you which incentive you are buying.
How to compare honestly
- 1
Count hires, not roles
Model 12 months of expected hires, including backfills.
- 2
Price both at that volume
Contingency scales linearly; subscription does not.
- 3
Add the cost of waiting
Days open have a cost — put a number on it before you compare.
- 4
Price the asset
A pipeline you keep has value at month 13. A finished placement does not.
Frequently asked questions
- Is subscription always cheaper?
- No. For a single low-volume hire, a one-off package or contingency search can cost less. Subscription economics improve with concurrent and repeat hiring.
- What about guarantees?
- Contingency typically offers a replacement window tied to the fee. In a subscription, the equivalent protection is continued search capacity within your term.
- Can we run both?
- Yes, and many teams do — subscription for volume and repeatable families, retained or contingency search for rare senior roles.
- How do we avoid paying twice?
- Agree candidate-source attribution in writing before either engagement starts, and keep one system of record for who was sourced where.
How TaaSFlow implements this
- Fixed subscription tiers banded by concurrent active roles
- One-off packages for teams that only need a single search
- No percentage-of-salary fee at offer stage
- Your candidates, evidence and history stay in your workspace
Related guides
Where to go next