Trading firms that use an external recruiter for quant roles usually choose between three models: contingency (a success fee), retained search, or an ongoing partnership. Each one changes how the recruiter spends their time on your role, so the choice affects the result, not only the invoice.
We offer all three, so this is not a pitch for one of them. It is how we advise clients to choose.
Contingency: pay only when someone starts
With a contingency search the firm pays nothing until a candidate is hired. The fee is a percentage of the first year's base salary.
When it works well: roles where the candidate pool is reasonably large and the spec is clear. A quant developer with a common stack, or an experienced trader for a well-defined desk, are good examples.
The catch: on contingency, a firm often briefs several agencies at once. Each recruiter is then racing the others, which rewards speed over depth. For a narrow role, the best candidates may never be approached properly, because nobody has the incentive to map the whole market.
How to get the most out of it: brief fewer agencies, ideally one or two, and give them real access to the hiring manager. A recruiter who knows they will not be undercut by four others will do the slower, better work.
Retained: commit up front for a search that must succeed
In a retained search the firm pays part of the fee at the start, for an exclusive and structured search. The recruiter maps the market, approaches the people who fit, and reports on everyone they spoke to, including those who said no.
When it is worth it: senior or confidential roles. A head of quant research, a first hire for a new office, or a replacement for someone who has not yet been told they are leaving. Also roles where the candidate pool is so small that every approach counts.
What you should expect for the money: a written market map, a clear timeline, regular updates with names, and candid feedback on whether the spec and the package are realistic. If a retained recruiter cannot tell you who they approached and why it did not work, you are paying for a contingency search with a deposit.
Partnership: one recruiter for a larger hiring plan
Firms that hire several people over a year, such as a new office or a growing desk, sometimes prefer a monthly retainer. The recruiter works as an extension of the internal team, with a predictable cost and priority on every role.
When it fits: a hiring plan of several roles, an internal team that is stretched, or a firm entering a new market that needs local knowledge every week, not once.
What to watch: agree what is included and how you will measure it, for example roles filled, time to shortlist and candidate quality, and review it every quarter.
A simple way to decide
Ask three questions about the role:
- How many people could do this job well? Many: contingency. Few: retained.
- How costly is a wrong or slow hire? If an empty seat costs real money every week, or the hire is senior, the structure of a retained search pays for itself.
- Is this one hire or the start of a plan? Several hires in a year point towards a partnership.
Whatever model you choose, the biggest factor is still the brief. A precise spec, a hiring manager who makes time, and quick feedback will improve any search more than the fee structure does.
Want to talk through a specific role? Get in touch, or see our recruitment services.
