Sometimes, outsourcing your recruitment needs can be a better option than handling the entire process. It is proven to be more cost-effective especially for companies that are just starting to operate. Besides, there are a lot of recruitment marketing platforms such as Talenteria that offer services such as employee assessment, functional analysis, and contingency recruiting. You can visit their website at www.talenteria.com for more information.
In the meantime, let’s focus more into understanding what contingency recruiting is and why it is better to outsource this process to agencies to recruitment marketing platforms.
An Overview of What Contingency Recruiting Means
In contingency recruitment, recruitment agencies will only be paid once they were able to place a successful candidate that was hired by the company who paid for their services. Usually, the name of the new hire is connected to the agency and the payment for the agency will depend on the salary offer that the selected applicant is going to receive.
Why work with contingency recruiters?
There are probably a lot of reasons why companies choose to employ contingent recruiters rather than handling the recruitment process internally.
Firstly, there is a low risk when it comes to handling fees and that makes this option cost-effective. Since the recruiters will only get paid when an applicant has been successfully hired by the company, there is no potential loss in this kind of setup.
Also, due to the pay-per-hire model of contingency recruitment, contingency recruiters are motivated to find the right candidates for a position in order to get paid. This yields a high success ratio as compared to other recruitment processes available.
How Does a Contingency Recruiter Operate?
As mentioned earlier, contingency recruitment agencies only get paid once a successful applicant has been hired by the company who hired their services. When they start working with a new client, the contingency recruiter is taking on a risk, knowing that they might end up working for free.
As you can see, even if the contingent recruiter is confident with her skills, there are a lot of other reasons why this setup can actually work against them. For example, if a client suddenly backs out of the deal and decides that they no longer need to fill in the vacant position while the recruiter is in the process of recruiting applicants, they won’t be able to do anything about that circumstance.
But to provide a general idea how a Contingency recruiter operates, here are some of the tasks that a recruitment agency will take over for the company when they are hired on a contingency recruitment set up.
- They will be in charge of the analysis of the job requirements for a vacant position in the company.
- They are the ones who are going to search for qualified applicants using various job application platforms.
- They are expected to reach out to the applicants that they find to be fit for the job opening. Sometimes, they also conduct initial job interviews to ensure that the applicant they are sending to the company meets the qualifications of the job offer.
- Once they have made contact with the potential new hire, they will collect the basic documents such as resume and identification documents and submit them to the company.
- If the company approves the applicants and is invited for an interview, the recruitment agency is also tasked to schedule the initial interview and to negotiate an offer with the applicants in lieu of what they have agreed with the hiring company.
The Perks and Falls of Hiring Contingency Recruiting Agencies
Perks
There is a low risk when it comes to handling fees and that makes this option cost-effective. Since the recruiters will only get paid when an applicant has been successfully hired by the company, there is no potential loss in this kind of setup.
Due to the pay-per-hire model of contingency recruitment, contingency recruiters are motivated to find the right candidates for a position in order to get paid. This yields a high success ratio as compared to other recruitment processes available.
There are no expectations for long-term contracts and contingency recruiters are generally independent agents who don’t use your internal resources. Companies have the option to pull out should the recruiter fail to meet the company’s demands.
PitFalls
Working against its advantages, the pay-per-hire model of contingency recruitment can somehow prioritize the quantity of applicants over the quality of the employees. They would want to generate more income, so they would target a high success rate over the quality of the successful applicants.
Since there is a high risk of companies pulling out of the deal in the middle of an agreement, a higher fee and percentage of yearly compensation is more likely.
There is also an issue of accountability since the recruitment agency acts individually and has no obligations towards the company.
To sum up, there are always advantages and disadvantages in choosing any recruitment strategy. But the important thing is to look for the one that best suits your company’s needs. You should ask yourself about the immediate need of your company to hire new employees, the availability of your time to handle the recruitment process and the cost that you are willing to spend in case you decide to outsource the task. Based on these findings, you should be able to decide if you want to keep your hiring process internal or external.
