Have you ever worked on retainer?
"Every role that I currently take on is on a contingency fee, to be paid 90 days after my candidates begin their job. I am aware that some recruitment firms take retainers; however, I have not done so in my career. Do you take retainers here at ABC Agency? I would love to learn more about the practice of taking a retainer, and when it's appropriate."
When an executive recruiter takes payment from a client upfront, that is called a retainer. Many retainer agreements ask for 25% to 50% of the placement fee upfront, which can be very costly to clients. Other types of retainer agreements can contain partial payment for work due, or payment released in milestones but held in trust or escrow. This practice occurs in very high-end recruitment where many expenses first go out, in a robust candidate attraction strategy. The interviewer is trying to gain an idea of the level of clients with which you have worked. If you have never worked on retainer, show that you understand what it requires.
"I estimate that 1/4 of my clients are on retainer. We take a retainer fee when the position is not exclusive to us, as a way to recoup expenses incurred when trying to attract the right talent for our clients. I work fast and effectively, quickly filling roles so for the most part, it does not make a difference to me whether or not a client is on retainer."
