For a first CFO, retained is the model I recommend. Contingent recruitment rarely gets past candidates who are already job hunting, and the right first finance leader for an Australian startup is usually not looking.
The real difference is where the recruiter's hours go
Beyond the invoice, retained and contingent recruitment differ in where the recruiter's hours go. Under contingency, every agency on the role is racing the others, so the incentive is to send whoever is available this week. Under a retained brief, one recruiter owns the outcome and can afford to spend weeks on people who are not looking. For the two hires I work on, the first CFO and the first finance hire, searching for people who are not looking is most of the job.
Retained vs contingent search, side by side
The two models differ on five things a founder should care about: how the fee is paid, who else is working the role, how deep the sourcing goes, what you see along the way, and what happens if the hire does not work out.
| Contingent search | Retained search | |
|---|---|---|
| How the fee is paid | Only on a successful hire. Nothing is paid if nobody starts. | 18% of total remuneration, staged in thirds (see below). |
| Who else works the role | Often several agencies racing each other on the same brief. | One recruiter. You can still run your own ads and internal process. |
| How deep the sourcing goes | Mostly the active market: whoever is looking this month. | Mapping and approaching passive candidates who are employed and not looking. |
| What you see along the way | CVs as they arrive, often unscreened. | An executive brief, a calibrated shortlist and the full longlist. |
| If the hire does not work out | Depends on each agency's terms. | On my retained searches, a six-month replacement guarantee. |
How a retained fee is staged
At Story Recruitment the retained fee is 18% of total remuneration, paid in thirds across the search. Paying in stages means neither side can quietly drift off the timeline.
What a retained search buys a founder
Across my own placements, 85% are still in the seat two years later. That is why I hold this line. Exclusivity is what changes the work: choosing one recruiter and partnering on an exclusive or retained basis is what gets an agency to commit internally to the role. In practice that commitment shows up four ways: more time on resourcing, sometimes more than one consultant on the search, far more sourcing from the passive market, and fewer hours lost on your side briefing extra agencies and sitting through interviews that should never have been booked.
On my searches the retained package includes an executive brief document for you to review and a Story post, which is a post to my finance network announcing the role, published before I contact anyone directly. By the time I call, the market has already heard about the role. You also get detailed candidate reporting covering both the shortlist and the full longlist, and a first right of refusal on the candidates I bring you. I am your only external recruitment partner, but you can still run your own ads or internal process alongside the search. Every retained search also carries a six-month replacement guarantee. If you want the step-by-step version of that work, I set out how a retained finance executive search runs.
A retained brief still needs a timeline your board will believe. I set out the realistic range in how long a CFO search takes in Australia.
Pros and cons of each model
Contingent search costs nothing unless someone is hired but rarely reaches passive candidates. Retained search costs money up front but buys one recruiter's full effort and a mapped market.
Contingent search
The case for it. No money changes hands until someone starts, and you can brief as many agencies as you like. If the role is common and the right candidate is likely to be actively job hunting, that can be enough.
The risk. The first senior finance hire at a startup is not that role. With several agencies racing on the same brief, the work tends to stop at the active market. It also tends to produce narrow shortlists. A brief that says "startup experience only" reads as a safe filter, but it removes many of the most capable finance people in the market before the search begins, and a contingent recruiter has no reason to push back on it.
Retained search
The case for it. One recruiter, one brief, a reason to map the whole market. On deep tech CFO searches, I find the best candidates often come from heavy or food manufacturing, defence or mining, not only from deep tech itself. You only find them when someone has the time to look outside the obvious pool.
The risk. You commit money before you see a candidate, so the recruiter you choose matters more. Ask who will actually run the search. On mine, I personally handle the brief, shortlist calibration, interview preparation and closing. Before you sign, it is also worth knowing the CFO salary range in Australia, because the fee is a percentage of the package.
When to choose retained, and when contingent is fine
Choose retained when the seat is the first of its kind in the business, the right person is probably employed and not looking, and the hire will shape how your board and investors see the finance function. That describes almost every first-CFO search I am asked to run, and most first finance hires at a VC-backed company too. If you are still deciding whether the seat is a CFO at all, start with how to hire a CFO or the finance team structure guide.
Contingent is fine further down the team, for roles where the market is active and the brief is standard. If you will not pay a retainer, I will sometimes work a role exclusively without one, but only for a set period and only when the search is strategically important. Retained is my default proposal for the two seats I place, and I say so in the first conversation.
Whichever model you pick, the last mile is the same: closing a finance hire against a counter-offer. The rest of my finance recruitment guides cover each stage in more detail.
Common questions
What is the difference between retained and contingent recruitment?
A retained recruiter works the role exclusively and is paid in stages during the search. A contingent recruiter is paid only if their candidate is hired, and the role is usually briefed to several agencies at once.
How much does a retained CFO search cost in Australia?
Fees vary by firm. At Story Recruitment the retained fee is 18% of total remuneration, paid in thirds across the search, with a six-month replacement guarantee.
Should a startup use retained or contingent search for its first CFO?
For a first CFO or first finance hire at a VC-backed Australian startup, retained is usually the better fit, because the right candidate is normally employed and not looking.
Can I still advertise the role myself during a retained search?
On Story Recruitment's retained searches, yes. Story is the sole external recruitment partner, but you can still run your own ads or internal process alongside the search.
These guides set out how we see it, drawn from the searches we run and the finance leaders we work with. They are general information about the market, not financial, accounting or legal advice, and they are no substitute for advice on your own circumstances.