A technical recruiting firm charges in one of five ways: contingency (paid only when someone joins), retained search (paid in stages), embedded or RPO (a monthly rate), a recruiter marketplace, or software you run yourself. For a Seed to Series C startup hiring engineers, contingency is usually the lowest-risk model. Recruiting from Scratch works this way, with no retainer.
Last updated November 2, 2026 · Written by the Recruiting from Scratch engineering recruiting team.
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Recruiting from Scratch publishes this guide and works on contingency, so read it knowing that. We compared each model on five questions a founder should ask before signing:
We don't publish fee percentages here, ours or anyone else's: they vary by role and contract, and each firm sets its own. Ask for the terms in writing.
| Model | When you pay | If the search fails | If the hire leaves early | Best fit |
|---|---|---|---|---|
| Contingency | Only when a hire starts | You pay nothing | Check the contract | Seed–Series C engineering hires |
| Retained search | Typically in stages, from signing to hire | Ask whether early payments are refundable | Check the contract | CTO, VP and other executive searches |
| Embedded / RPO | Monthly, for recruiter time | You still paid for the time | Not usually covered | Teams hiring many roles for a set period |
| Recruiter marketplace | Set by the platform's terms | Check the platform's terms | Check the platform's terms | Posting one role to many recruiters |
| Recruiting software | A subscription | You keep the tool | Not applicable | Founders who source and close themselves |
The fee is a percentage of the hire's first-year base salary, and you pay it only after the person starts. If the search fails, you owe nothing. Ask what the contract says if a hire leaves early.
Watch for: firms that take contingency roles but don't prioritise them. Ask how many open searches the recruiter is carrying and how fast you'll see a first shortlist.
Example: Mercor hired backend and machine-learning engineers through Recruiting from Scratch on contingency, and Cinder hired forward-deployed engineers the same way.
Retained search, the model global executive firms such as Korn Ferry, Spencer Stuart and Heidrick & Struggles use for C-suite and board roles, is typically paid in stages from signing to hire. You're buying a dedicated, exclusive search, so ask whether early payments come back if no one is hired.
Retained search makes sense for a CTO or VP of Engineering, where the candidate pool is small and confidentiality matters. For a senior engineer it is usually more process than you need. Our contingency vs retained comparison goes deeper.
An embedded recruiter or RPO (recruitment process outsourcing) team works inside your company for a monthly rate, usually for a set number of months. You pay for the time whether or not hires close. That suits a funded team with ten or more roles open at once. It rarely suits a seed startup hiring its first few engineers. See embedded recruiter vs recruiting firm.
Paraform is a marketplace that posts your role to a network of independent recruiters. Dover sells recruiting software with optional services. Wellfound and Y Combinator's Work at a Startup are job marketplaces. With each of these, your team does more of the screening, scheduling and closing. Check each one's terms on its own site.
Ask these questions before you sign with any of the recruiting agencies you're considering:
For how firms handle early departures, read recruiting firm guarantees compared.
Most contingency firms charge a percentage of the hire's first-year base salary, paid only when the hire starts. Retained firms charge in stages, and embedded recruiters charge monthly. Ask every firm for its terms in writing.
Contingency is lower-risk, because a failed search costs nothing. Retained search can be worth it for an executive hire, where you want an exclusive, dedicated search.
Contingency firms usually don't. Retained firms do, at signing. Recruiting from Scratch charges no retainer and no upfront fee.
That depends on the contract. Many firms cover an early departure in some way, and the terms vary, so read them before you sign.
Yes, once your network runs dry and an empty engineering seat is slowing the product down. Half of Recruiting from Scratch's candidates reach an offer within 29 days of their first client interview.
Related: Best Recruiting Firms for Seed-Stage Startups · How Many Recruiting Firms Should a Startup Use? · How to Choose a Recruiting Firm: A Founder's Checklist
Recruiting from Scratch recruits only engineers for Seed to Series C startups. We work on contingency with no retainer and send a shortlist of 3–5 qualified candidates. We've made 300+ placements. Half of our candidates reach an offer within 29 days of their first client interview.
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