February 22, 2023

Contingency Recruitment: Delegate Your Hiring Hassle

Zoha Siddiqui
Product Designer | Frontend Developer
Contingency Recruitment

What is Contingency Recruitment?

Contingency recruitment is a recruiting service in which a firm hires a recruiting agency or head-hunter to find candidates for open positions. The firm pays the agency only when the selected candidate meets all the expectations and is successfully placed in the open position.

contingency recruitment to find best candidate

How does Contingency Recruiting Work?

It works in an ordered manner:

Working of Contingency Recruiting

5 Times When Contingency Recruiting is Appropriate:

These are the times when contingency recruiting is required, such as:

For Which Level of Positions can Contingency Recruiting be Used?

Mostly it is done for entry-level and mid-level positions, where there is high demand for talent and a limited pool of qualified candidates.

Who does Contingent Recruitment?

The client company contacts contingency recruiting agencies where it is the responsibility of the contingency recruiter to provide contingent recruitment services. They are experienced at sourcing, screening, and recruiting talent and have a profound knowledge of their client's requirements. Their responsibility is to find suitable candidates for the open positions using various means such as referrals, social media, etc. They then screen and present these candidates to the client company for consideration.

contingent recruitment

How do They Work?

Contingency recruiters get paid if their presented candidate gets hired for the respective position, which means they work on a commission basis. The fee is typically a percentage of the candidate's first-year salary, which the client company pays after a certain time.

What Is the Difference Between Contingency Recruiters and Retained Recruiters?

They are both types of external recruitment agencies that companies hire to help them find and hire suitable candidates for open positions. But these two are different in some aspects, for example:

Both contingency and retained recruiters can be helpful for organizations searching for the best fit for their open positions. The choice entirely depends on the needs and requirements of the hiring company.

Pros of Contingent Recruiting

There are many advantages of contingent recruiting:

Pros of Contingent Recruitment

Cons of Contingent Recruiting

Contingent recruiting does come up with some disadvantages:

Cons of Contingent Recruitment

Some concerning questions about contingency recruiting and recruiters (FAQs)

Q1. How do I know if this is the right contingency agency?

Ans. The choice of contingency agency depends on the agency's experience in your industry, research, and success in presenting the best fit for the respective positions. What approach do they use? What methods do they follow?

Q2. What cost do contingency recruiters demand?

Ans. After their presented candidate is successfully hired by the client company, they charge a percentage of the hired employee's annual salary. This percentage can vary from 10% to 30% depending on various factors.

Percentage of Salary

Q3. What do contingency recruiting do after they find the best candidate for the open role?

Ans. After matching the best fit according to the job requirements presented by the client company, contingency recruiters refer these candidates to the client company. If they get successfully hired for the role, the agency gets paid after the discussed time period.

Q4. Can a client company hire multiple contingency agencies to find the best fit?

Ans. Yes, a client company can hire multiple contingency agencies to find the best candidates for the open position as it will help gather a great talent pool and provide more potential candidates for the role.

Q5. What is the quality of the candidates presented by contingency agencies?

Ans. The quality of the candidates can vary, depending upon which company you choose to hire for your open positions, how they work, their success rate, and the turnover rate of employees hired through them. Sometimes in order to speed up and fill the open positions quickly, contingency agencies compromise quality, ultimately leading to a large pool of candidates with potentially low talent. But with the right contingency agency and process, great candidates can be found through contingency recruitment.          

Contingency Agency

Finally

It completely depends on your requirements and needs, whether you want to hire contingency agencies to find top talent or not. They assist a lot in hiring and finding the right fit, reducing cost, time, and effort, but only if the appropriate agency gets chosen. Otherwise, it will have some major drawbacks, as mentioned above.

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Hirecinch is one of the best applicant tracking system I have used ever, literally my my job easier

Hirecinch is one of the best applicant tracking system I have used ever, literally my my job easier

Hirecinch is one of the best applicant tracking system I have used ever, literally my my job easier

Hirecinch is one of the best applicant tracking system I have used ever, literally my my job easier

Hirecinch is one of the best applicant tracking system I have used ever, literally my my job easier

Hirecinch is one of the best applicant tracking system I have used ever, literally my my job easier

Hirecinch is one of the best applicant tracking system I have used ever, literally my my job easier