What is it?
Contingency recruiting is a type of recruitment model where external recruiters or agencies are hired to find and place candidates for open positions, but they are only paid if they successfully fill the role. Unlike retained search firms, which receive payment upfront, contingency recruiters work on a no-placement, no-fee basis. This makes it a low-risk option for employers who want to cast a wide net without paying for unsuccessful candidate searches.
Why is it important?
- Low Risk for Employers: Since payment is only made when a candidate is successfully placed, employers don’t have to invest upfront, making it a cost-effective approach to recruiting.
- Access to a Larger Talent Pool: Contingency recruiters often work with multiple clients and maintain large candidate databases, giving employers access to a broader pool of potential candidates.
- Speed in Filling Roles: Contingency recruiters are often highly motivated to fill roles quickly since their payment depends on successful placements. This can expedite the hiring process, especially for urgent or hard-to-fill positions.
- Market Insights: Recruiters specialising in contingency search often have deep knowledge of market trends, salary benchmarks, and talent availability, which can be beneficial for employers seeking to remain competitive in attracting talent.
- Flexibility: Employers can work with multiple contingency recruiters simultaneously, increasing the chances of filling the position faster while comparing the quality of candidates from various sources.
