Employment Agency, Advertised Selection, Contingency Search and Retained Search
An employment agency works on behalf of the applicant. It looks for jobs for people. Those seeking employment come to the agency to see what positions companies may have open, so the pool of applicants for an opening is limited to those seeking new employment. The agency receives a fee from a company only when that company selects a candidate sent by the agency.

With advertised selection, a company advertises in publications announcing a specific job opening and the necessary qualifications. Those interested respond by sending or faxing a resume. Again, the pool of applicants is limited to those seeking new employment. The value of advertising is that it identifies a broad range of candidates from both within and without a client's business sector and is an effective data-gathering technique.

A contingency search firm's fee is paid only when the client actually hires a candidate presented by the firm. Contingency firms are used primarily and most effectively at the middle and lower management levels. The most obvious advantage is that a client does not pay for services unless it hires a suitable candidate presented by the search firm. While most law firms adopt the contingency format, increasingly, law firms and corporations with specific high-priority needs are turning to retained arrangements.

In retained search, the consultant works on behalf of the client law firm or company. For example, the search firm may conduct a search on behalf of a client seeking a specific attorney to chair a department or diversify the firm's client base. Typically, these candidates are not actively seeking new positions and may be relatively happy at the firm they work at. It is the retained search firm's role to identify and interview candidates who may fit the culture and needs of that firm, and to present a "short" list of candidates to the client. The retained search consultant serves as a management consultant — providing objective insight and advice.