They both help you hire. The similarity ends there. Here is what separates retained executive search from a staffing agency.
Staffing agencies and retained executive search firms are often grouped together as "recruiting services." This grouping obscures a fundamental difference in what each model is built to do. A staffing agency is optimised for volume placement: filling roles quickly from a database of available candidates, typically at director-level and below, on a contingency basis. A retained executive search firm is optimised for quality placement: accessing passive, employed candidates at the VP and C-suite level through deep networks and structured assessment.
Asking a staffing agency to fill a VP of Sales role is like asking a GP to perform surgery. The skill set, network, incentive structure, and methodology are simply not designed for the task.
| Factor | Staffing Agency | Retained Executive Search |
|---|---|---|
| Target role level | IC through Director | VP and C-suite exclusively |
| Candidate type | Primarily active (available now) | Primarily passive (employed, not looking) |
| Fee model | Contingency — paid on placement | Retained — structured payments across search |
| Exclusivity | None — multiple agencies may work same role | Exclusive — dedicated to your search |
| Intake process | 30–45 min job requirements review | 90–120 min structured Founder-VP brief |
| Assessment depth | Resume screen + basic interview | Structured competency + fit assessment |
| Network depth (VP+) | Shallow — focused on active talent pools | Deep — referral networks built around VP/C-suite |
| Search failure rate (VP+) | ~40–50% at VP level | <15% retained; Majhi Group <5% |
| Replacement guarantee | Rarely meaningful | 90-day replacement, no charge |
| CEO relationship | Transactional | Consultative — directly with CEO/Founder |
When a VP or C-suite search is run through a staffing agency, the failure mode is predictable: the agency submits active candidates — people who are between roles or urgently looking — because that is who is in their database. These candidates are available for a reason. The passive, employed, top-performing VP of Sales at a direct competitor — who is not on anyone's database, is not responding to InMails, and requires a warm referral introduction — is not accessible through a staffing agency model. The search produces candidates. Not necessarily the right ones.
The Majhi Group proof case: a $275K VP search that two staffing firms failed to fill in 60+ days combined. The failure was not recruiter effort — it was model mismatch. The role required passive candidate access, deep intake, and Founder-VP fit assessment. Closed in 41 days with the right methodology. That is the difference a model makes.
Running a VP search through a staffing agency costs the same as running it through a retained firm — in fee terms. But the total cost of the staffing agency approach for VP roles includes a significantly higher probability of a failed search (meaning the role is never filled, or is filled with the wrong candidate), a longer timeline even when successful, and lower 18-month retention. The retained fee is not the expensive choice. The wrong model for the role type is.
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