Arizona’s job market is still running hot, which makes decisions about retained vs contingency search more important than ever. Recent data from the U.S. Bureau of Labor Statistics shows the state had about 149,000 job openings in June 2025 and a job openings rate of 4.4 percent. Bureau of Labor Statistics At the same time, the Arizona Commerce Authority highlights that Arizona ranks among the top states in the nation for job growth, production occupation job growth, and skilled jobs growth, based on Lightcast analysis.
For HR leaders and hiring managers, that reality shows up as long search cycles, stretched teams, and candidates who often juggle multiple offers. In this environment, the choice between retained vs contingency search is not just a procurement decision. It is a strategic move that affects speed to fill, quality of hire, and ultimately project delivery.
This article breaks down retained vs contingency search for Arizona employers, especially in engineering, advanced manufacturing, and civil infrastructure.
Why Arizona Technical Hiring Is Still Hard In 2025
Labor market headlines sometimes suggest that hiring is getting easier, but most employers would disagree. New research from SHRM shows that 77 percent of HR professionals have struggled to recruit candidates due to talent scarcity and skills gaps.
In Arizona, the challenge is amplified by growth in advanced industries. The Greater Phoenix Economic Council notes that the region’s semiconductor and advanced manufacturing ecosystem supports tens of thousands of jobs in related occupations, based on Lightcast Q1 2025 data. GPEC The Arizona Commerce Authority likewise points to top tier rankings for workforce strength and skilled jobs growth.
On top of that, specialized Lightcast data for Arizona technical roles shows patterns such as hundreds of open engineering and technician postings competing for a relatively small pool of employed professionals, often with local supply sitting below national averages.
The result is a labor market where:
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Critical roles stay open longer than planned
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Technical teams are stretched to cover vacancies
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Candidates can move quickly if they feel undervalued or poorly supported
In this context, the way you structure your search work matters.
If you want a deeper breakdown of how this tight market looks in Phoenix specifically, you can also read TTG’s article on the 4 to 1 technical job ratio in Phoenix
What Is Contingency Search
Contingency search is the most familiar model for many employers. In a contingency partnership, the recruiter is only paid if a candidate they present is hired. There is usually no upfront fee, and companies may work with multiple firms at the same time.
Common characteristics of contingency search:
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No upfront retainer or project fee
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Recruiter is paid only after a successful hire
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Often used with multiple agencies working the same requisition
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Emphasis on speed and candidate volume
Where contingency search can work well:
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High volume roles with a broad candidate pool
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Non confidential searches where multiple vendors are acceptable
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Positions where the risk of a near miss is low and can be corrected quickly
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Early stage tests of a new role where you are still refining the profile
For Arizona employers that need to staff several mid level technicians or operators with similar profiles, contingency can be a practical solution. However, in a tight and specialized market, it has real limitations.
What Is Retained Search
Retained search shifts the relationship into a true partnership. The employer pays an upfront or scheduled fee to secure the search firm’s time, attention, and resources. In return, the recruiter commits to a deeper and more strategic process, usually with exclusivity.
Common characteristics of retained search:
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Upfront or staged fee that secures dedicated resources
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Often exclusive, with one firm responsible for the search
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Structured project plan, milestones, and regular reporting
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Heavy emphasis on candidate quality, alignment, and long term fit
What retained search often includes in a technical market:
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Market mapping to identify passive and semi passive candidates
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Thorough intake sessions with hiring leaders and HR
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Careful messaging that reflects employer brand and project context
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Active outreach into competitors, adjacent markets, and national talent pools
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Support through offer, negotiation, and resignation phases
For Arizona employers hiring for plant leadership, specialized controls engineers, senior project managers, chief engineers, or other hard to replace roles, the retained model can significantly improve results.
If you are thinking about retention and ramp up for these hires, you can connect with our team on your onboarding strategy. TTG can cover that in more detail.
Retained vs Contingency Search: Key Differences That Matter In Arizona
In a market where job openings outnumber available workers and the job openings rate remains elevated, employers cannot afford repeated misfires on critical roles. Recent BLS data for Arizona shows that job openings remain high compared with national trends in multiple months.
Here are the differences between retained vs contingency search that matter most for technical hiring.
Priority and focus
In contingency work, recruiters juggle many open roles, and they are more likely to prioritize positions that are easiest to fill or most likely to close. If your engineering requisition is complex or slow moving, it may not get the attention it needs.
In retained search, the recruiter’s time is already funded. Your project becomes a priority, not a nice to have. That allows the team to go deeper into niche talent pools and stay engaged until the right candidate is secured.
Candidate quality and engagement
Contingency search tends to favor speed. Recruiters may rely more on active applicants, database pulls, and surface level screening. In a market where many of the best engineers and technicians are currently employed, this approach can miss strong passive candidates.
Retained search enables:
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Targeted outreach to passive technical talent
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Longer conversations about project scope, culture, and career path
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Careful vetting of skills, certifications, and site experience
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A more consistent candidate experience that reflects your brand
That matters when candidates receive multiple offers and pay close attention to how they are treated during the process.
Alignment with business risk
Leaving a key role unfilled in a semiconductor plant, water facility, or aerospace manufacturer has real cost. It can delay project schedules, increase overtime, or put compliance and safety at risk. In these situations, a retained model aligns the recruiter’s work with the business risk you are trying to manage.
Contingency can still play a role, but it is better suited to lower risk or more generalist positions.
When To Use Retained vs Contingency Search For Technical Roles
Contingency search is not the villain. It simply fits certain hiring scenarios better than others. In Arizona’s technical landscape, contingency search can be effective when:
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You are hiring several similar roles, for example multiple line operators or entry level technicians, with a reasonable active candidate pool.
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The position is important, but not mission critical for safety, compliance, or multimillion dollar project delivery.
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You want to test the market for a new title or slightly revised profile and you are still learning which skills matter most.
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Your internal recruitment team is strong and you mainly need help adding more candidates into the funnel.
In these cases, it can make sense to use one or two specialized contingency partners and give them clear feedback and expectations.
A retained model makes more sense when the cost of a vacant or mis hired role is high. Consider using retained search when:
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The role is senior, strategic, or revenue critical, such as an engineering manager, plant leader, or senior project manager on a capital program.
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The position requires rare technical skills in areas like controls, automation, semiconductor manufacturing, water infrastructure, or aerospace systems.
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Confidentiality is important, for example replacing an underperforming leader or entering a new market.
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You need a trusted advisor who can help you refine the role, compensation, and reporting structure as you go.
Here in Arizona, many advanced manufacturing and civil infrastructure employers are navigating exactly this mix. Choosing retained vs contingency search carefully gives them a structured way to secure the right leadership and specialist talent in a competitive environment.
Using Data To Choose Your Search Strategy
Labor market data is a useful tool in deciding which model fits a given role. For example, Lightcast based analyses of semiconductor and manufacturing ecosystems in Greater Phoenix show a large and complex mix of technical occupations, with demand concentrated in key engineering and production roles.
Combine that with statewide metrics such as:
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Elevated Arizona job openings rates in several recent months relative to national averages, as reported by the Bureau of Labor Statistics.
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Strong rankings for skilled jobs growth and workforce strength in the Lightcast Talent Attraction Scorecard and Top Talent summary.
From there, you can sort your requisitions into two buckets:
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Retained candidates for scarce, high impact roles where the risk of a vacancy is high and the talent pool is thin.
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Contingency partners for repeatable or lower risk roles where you mainly need reach and speed.
This avoids the common scenario where every requisition is treated the same and critical positions sit open for months. For more ideas on using data to strengthen retention and ramp up, you can connect with TTG for onboarding strategies.
How Technical Talent Group Works With Arizona Employers
At Technical Talent Group, we work with engineering, manufacturing, and infrastructure employers across Arizona who feel this pressure every day. Some roles make sense on a well structured contingency basis. Others demand a retained partnership that combines:
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Labor market data from sources such as Lightcast and state level reports
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Deep understanding of Arizona’s project pipeline and industry clusters
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Direct access to passive and semi passive technical talent
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A consultative process that gives hiring leaders clear options and honest feedback
Whether you are deciding how to staff a new manufacturing facility, expand a civil infrastructure team, or replace a critical technical leader, the right retained vs contingency search model is part of your risk management plan.
If you would like to review which of your open roles fit a retained vs contingency approach, our team is ready to help you map that out.
