When a family office decides to use an outside firm for a senior hire, one of the first questions is how that firm is paid. Search firms generally work on one of two models, contingent or retained, and the choice affects far more than the invoice. It shapes how much attention the search receives, how candidates are approached, and how well the family's privacy is protected.
How contingent search works
A contingent recruiter is paid only if a candidate they introduce is hired. Families often brief several firms at once, and the first to present the successful candidate earns the fee. The model works well for roles with many qualified, actively looking candidates, where speed and volume matter most.
The trade‑off is focus. Because a contingent firm may never be paid, its incentive is to present available candidates quickly, often people already on the market, rather than to spend weeks mapping and approaching people who aren't looking. When several firms are working the same role, the same candidates may hear about it more than once, and word of the opening can spread.
How retained search works
A retained firm is engaged exclusively for a defined search and is paid in stages as the work progresses. At LaSalle Digital, the fee is paid in three installments, each tied to a milestone: the start of the engagement, delivery of the shortlist, and the final placement.
Exclusivity changes the work. The firm can define the role properly with the principal, map the full market, and approach the strongest candidates, most of whom are not looking, directly and quietly. The family deals with one firm, hears progress at each milestone, and controls how and when its name is shared.
Why senior family‑office searches are usually retained
For a CIO, a portfolio manager, or the leader who runs the office, the best candidates are rarely on the market, and a search can take months. These hires also involve information a family does not want circulating: that a role is open, that a leader may be leaving, or what the family can pay. A retained search keeps one accountable firm responsible for the whole process and keeps the conversation contained.
Questions to ask any search firm
Whichever model you choose, a few questions reveal how a search will really be run:
Who will do the work? Will the person you meet run the search, or hand it to a junior team?
How will candidates be approached? Directly and confidentially, or through postings and databases?
How are candidates assessed before you see them?
How will our name be protected, and when will it be shared with candidates?
What happens if the search stalls? How will you know, and what changes?
Which firms will you not recruit from while working for us?
Clear, specific answers are a good sign. Vague ones are worth noticing before the search begins, not after.
Planning a leadership hire, even one that's months away? Start a confidential conversation.