The Downfall of Contingency Recruiting in The USA & Canada (2025)

THE TRUWIN STAFFING GROUP

Why Hospitality and Restaurant Chains Are Embracing Monthly Retained Searches Over Contingency Recruiters

The hospitality and restaurant industries are evolving rapidly, and so are their recruitment strategies. In recent years, a significant shift has occurred—management chains are favoring monthly retained search models over traditional contingency recruiting. This change reflects a deeper understanding of the cost, efficiency, and value retention inherent in retained recruiting. Here’s a detailed look at why this transition is happening and how TruWin Staffing Group is leading the way in revolutionizing talent acquisition.


The Downfall of Contingency Recruiting

Historically, contingency recruiters have dominated the hiring landscape. Under this model, agencies only receive payment after successfully placing a candidate, typically earning 15-30% of the hire’s first-year salary. While this “pay-for-success” model may seem risk-free for employers, it comes with significant drawbacks:

  1. Lack of Focus and Prioritization: Contingency recruiters often juggle multiple clients, focusing their efforts on roles that are easiest to fill or most lucrative, leaving challenging positions unaddressed.

  2. Volume Over Quality: To maximize placements, agencies may prioritize quantity over quality, leading to less optimal hires and increased turnover rates.

  3. Limited Partnership: Contingency recruiters operate on a transactional basis, offering little insight into long-term workforce strategies or cultural fit.

  4. Higher Long-Term Costs: Poor hires and repeated turnovers drive up overall recruitment expenses, negating the apparent upfront savings.


Why Monthly Retained Searches Are the Future

Monthly retained searches offer a more strategic and value-driven approach to talent acquisition. Here are the key reasons why hospitality and restaurant chains are embracing this model:

  1. Exclusive Partnership: Retained recruiters work exclusively with clients, dedicating time and resources to deeply understand their business, culture, and talent needs. This leads to higher-quality hires that align with organizational goals.

  2. Predictable Costs: With a fixed monthly fee, businesses avoid the unpredictable and often exorbitant fees associated with contingency models. This predictability aids in better financial planning.

  3. Tailored Strategies: Retained recruiters focus on proactive talent acquisition strategies, including building talent pipelines and implementing employer branding campaigns, ensuring long-term success.

  4. Reduced Turnover: By prioritizing cultural fit and role alignment, retained searches minimize turnover, saving businesses the significant costs of rehiring and retraining.

  5. Scalability and Flexibility: Whether hiring for one role or expanding across multiple locations, the retained model adapts to the client’s needs, ensuring consistent results.

Why it’s no longer cost effective to hire in house Recruiters in 2025. 

Opting for a monthly retained recruitment model over hiring an internal recruiter can save both significant time and money. Internal recruiters cost companies upwards of $100,000 + annually when factoring in salaries, benefits, and training expenses. In contrast, a retained model offers predictable, lower monthly fees, often a fraction of this cost. Moreover, retained recruiters specialize in streamlining hiring processes, reducing time-to-hire by leveraging pre-vetted talent pools and industry expertise. This approach not only delivers higher-quality candidates faster but also eliminates the overhead and operational challenges associated with maintaining an in-house recruitment team. Its been proven that by hiring inexperienced Jr Recruiters as a tactic to save on a reduced yearly salary is far more costly in the long run. When you hire cheap, you get what you pay for. 


How TruWin Staffing Group Delivers Results

TruWin Staffing Group has redefined recruitment for hospitality and restaurant management chains by offering monthly retained search services. Here’s how we’re helping businesses save thousands and stay competitive:

1. Eliminating Internal Recruiting Costs

Maintaining an in-house recruitment team involves significant expenses, including salaries, benefits, tools, and training. For example:

  • An internal recruiter’s annual salary can range from $60,000 to $90,000.
  • Adding benefits and operational costs raises this to $100,000+ annually per recruiter.

By outsourcing recruitment to TruWin Staffing Group, businesses eliminate these overheads, paying only a fraction of the cost through a monthly retainer.

2. Faster, More Reliable Hires

Our specialized focus on hospitality and restaurant management ensures:

  • Access to a vast network of pre-vetted candidates.
  • Streamlined processes that reduce time-to-hire by up to 50% compared to internal teams.

3. Customized Recruitment Strategies

TruWin Staffing Group doesn’t just fill positions; we build lasting talent strategies. From employer branding to workforce planning, we help clients stay ahead in a competitive market.

4. Retention and Guarantees

Our commitment doesn’t end with placement. We offer:

  • Retention guarantees with free replacements if hires leave within a specified period.
  • Ongoing support to ensure new hires integrate seamlessly and succeed.
  • Recruitment Before and After 2024: A Paradigm Shift

Before 2024, many hospitality and restaurant chains relied on outdated recruitment practices—internal HR teams struggling with limited resources or contingency agencies offering transactional, short-term solutions. These methods were costly, inefficient, and misaligned with the fast-paced demands of the industry.

Now, companies like TruWin Staffing Group are leading a paradigm shift. Monthly retained searches provide a forward-thinking alternative, combining cost-effectiveness with superior results. As the industry’s demands grow, businesses must embrace this modern recruitment model to stay competitive.


In Conclusion

The recruitment landscape is changing, and hospitality and restaurant management chains can no longer afford to rely on traditional methods. Monthly retained searches, as offered by TruWin Staffing Group, provide a scalable, cost-effective, and quality-driven solution. By eliminating internal recruiting costs and moving beyond the limitations of contingency recruiters, businesses can focus on what they do best—delivering exceptional dining and guest experiences.

To learn more about how TruWin Staffing Group can transform your recruitment strategy, visit truwingroup.com or contact us for a consultation today. 

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