Contingency Recruitment

Contingency recruitment is a model where an organisation hires a recruitment agency or contract recruiter to find candidates for open positions. The agency or recruiter is paid only if a candidate they find is hired by the organization. The fee, typically around 15 - 20% of the position's salary depending on the role and location, is contingent on a successful placement.

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In contingency recruitment, the agency operates differently, but there are common steps they follow:

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1. The client sends a job description to the agency.

2. The agency negotiates the fee for successful placement.

3. The agency begins searching for suitable candidates.

4. Once potential candidates are found, their information is sent to the client.

5. If any of these candidates are hired, the agency receives the agreed-upon compensation.

 

Contingency recruitment agencies compete with a company's in-house recruiters and direct applicants. Hiring multiple contingency recruiters can increase the chances of finding a candidate quickly, but it may involve competition between agencies.

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Contingency recruitment offers advantages such as reduced fees, quick turnaround, and no long-term commitment. However, there is no guarantee of finding a suitable candidate, and the quantity of candidates sourced doesn't ensure quality. Organizations are still responsible for reviewing resumes, conducting interviews, and making hiring decisions.