KEY TAKEAWAYS:
Contingent Fees are performance-based, with no upfront cost and payment only upon successful placement.
Retained Fees requires upfront payment and are sometimes preferred by hiring firms and legal departments over a contingent fee because retained fees may guarantee a higher level of dedication by the legal search firm.
The standard placement guarantee in the legal industry is three months from the start date of the placed attorney or legal professional. Noscitur doubles the standard by backing each of our placements with a six-month guarantee.
Understanding the difference between contingent fees and retained fees is important when engaging a legal recruiter. Both payment structures offer unique benefits and are tailored to meet different client needs, and understanding their nuances will help you make the right choice for your firm or legal department.
Contingent Fees: A Performance-Based Approach
Contingent fee arrangements hinge on the successful placement of a candidate. This no-upfront-cost model aligns the recruiter's incentives with the client's objectives, fostering a motivated search process. Particularly appealing for smaller firms or those with variable hiring needs, it ensures payment is due only upon the successful hiring of a candidate, offering a risk-free solution to talent acquisition. The standard contingent fee in the legal recruiting industry is 25% of the placed candidates annual base salary, though this can vary depending on the circumstances.
Retained Fees: Commitment and Exclusivity
In contrast, retained fees involve an upfront payment to secure the recruiter's services, with the balance payable upon the completion of certain milestones. This model is indicative of a deeper, consultative partnership, granting clients a dedicated level of service. Suitable for specialized roles or strategic hires, it reflects a commitment to a comprehensive search and selection process. In the legal industry, retained search fees are often structure as one-third of the fee paid upfront, one-third paid upon completion of a preset milestone (such as providing a “short list” of qualified candidates), and the final third paid upon successful hiring of the candidate.
Placement Guarantees in the Legal Industry
Both contingent placements and retained placements are typically backed by a guarantee that the candidate placement will be successful for a minimum of three months. For all of our full-time position placements, Noscitur doubles the industry standard by guaranteeing our placements for six months from the actual start date.
Choosing the Right Model for Your Needs
The choice between contingent and retained fee arrangements should consider factors such as the urgency of the hire, the specificity of the role, and the desired level of service from the legal recruiter. While contingent fees offer flexibility and lower initial costs, retained fees provide a dedicated search effort and a commitment to filling a position with the ideal candidate.
Navigating Your Legal Recruitment Needs with Noscitur
At Noscitur, we understand that the needs of each firm and legal department are unique. Our expertise in legal recruitment allows us to tailor our approach, whether through contingent or retained fee structures, ensuring we align with our clients' strategic objectives. Our commitment to excellence and a deep understanding of the legal landscape positions us as your ideal partner in legal recruitment.
Interested in working with Noscitur for your legal recruitment needs? Email us at hello@noscitur.com and let us know how we can help.