You want to fill open position with your company, but you still cannot find the right person? You are considering using a contingency recruitment agency? What is contingency recruitment? Let’s find your answers in this article.
What is contingency recruitment?
Contingency recruitment is a type of recruitment in which the recruitment firm will get paid by the client only when one of the candidates they present is selected for the open job.
In contingency recruitment, the recruitment process is performed in a contingent basis – or also known as project-by-project basis. The firms work to find out as many qualified candidates available as possible very quickly.
They are motivated to market the largest number of potential individuals to multiple hiring companies at once.
How a contingency recruitment agency works?
A contingency recruitment agency does not have an exclusive assignment (that is why it is sometimes called non-exclusive recruitment). You can work with multiple contingency recruiters at the same time. And a contingency recruiter can work with multiple clients concurrently.
Contingency recruiters work the front-end part of the process as rapidly as possible. They use their networks, advertise the job on multiple job boards and use online databases to seek a pool of resumes (CVs) of candidates who are more likely to be suitable for the job.
Contingency recruiters tend to work in specific industry and fill more skill-specialized positions.
Contingency recruiters may spend time and effort to understand their clients’ working style to increase the chances of hiring individuals who fit the culture.
When to use contingency recruitment?
Contingency recruitment is usually used when the hiring practice wants to find suitable candidates. You should consider using a contingency recruitment agency in these situations:
– When the open position needs to be filled relatively quickly
– When you wish to have a wide net cast to find active and passive candidates
Advantages of contingency recruitment
First, let’s take a look at the advantages that contingency recruitment can bring to their clients.
The fee is lower
You do not have to pay anything until you get the right match. This means that contingency recruiters search for free and get paid for the results.
The fee is usually set as parcentage of first-year salary offered for position. There is no money to be paid up front. There is also no other out-of-pocket expense (travel cost, for example). If the practice does not choose any candidate they present, the contingency recruitment firm receives nothing. Thus, the general fees are lower.
If the candidate leaves the position in the first one to two months, a replacement candidate is recruited free of charge.
If you work with retained recruiters, the fee is higher, there are other expenses and you may have to pay them an annual fee for retaining their service.
You do not have to wait for too long
Contingency recruitment firms will try to find you qualified candidates as quickly as possible because they are not the only ones. They may have to compete with other contingency recruiters who are also working with you. Any recruiter who presents the most suitable candidate in the shortest time is charged.
They have a strong sales orientation. They can find out and work with many clients and candidates at the same time. Thus, they can find you many potential candidates through their networks.
No long-term contracts are required
Contingency recruiters work with you in a project-by-project basis. They do not require or expect any long-term contract or guarantee of work from you.
They will take on all the risk of the recruitment process. If they fail to find you the right individual, you do not have to pay anything. You do not have to pay for their search. If you work with retained recruiters, long-term contracts are required and you can only work with one firm at a certain time.