If you’ve been thinking about using the services of a contingency recruiter to find qualified candidates to fill your open positions, you’ve probably come across many myths.
Fortunately, this article will debunk the common misconceptions about the contingency recruitment model. If you’re an employer or hiring manager, you’ll find valuable information here. Read on!
Common Myths and Misconceptions
How does contingency recruiting work? Can a hiring company really save money with this model? Is the contingency fee approach effective at the executive level?
If you’ve considered using a contingency recruiting firm, you may have these questions in mind. However, when searching for the answers, you’ll likely find the following misconceptions:
- You’ll attract more candidates if you work with several contingency recruiting firms.
- You’ll find high-quality employees because you’ll attract more candidates.
- You won’t spend any money until you decide to hire a qualified candidate.
- You won’t find high-quality candidates if you choose a contingency firm instead of a retained recruiter.
- You should always work with retained recruiters if the candidate pool is small.
- Contingency recruitment is a short-term solution.
Here’s more information to debunk each myth and learn the truth behind contingency recruitment.
1) You’ll Attract More Candidates If You Work With Several Contingency Recruiting Firms
Since they don’t have to pay for contingency recruitment services until they hire a candidate, many employers engage more than one staffing firm. As a result, hiring companies believe they’ll attract many more prospects, but that isn’t always the case.
The prospect flow will gradually dwindle, especially if you don’t hire one of your first-round candidates.
Also, many contingency recruiters don’t invest additional time and energy to conduct a second round of searches. Their enthusiasm often fades as they move on to the next phase.
If you want to make sure you attract more candidates or have access to a wider talent pool, working with only one reputable and committed contingency recruiting firm can help you get excellent results as well.
2) You’ll Find High-Quality Employees Because You’ll Attract More Candidates
When you work with professional contingency recruiting firms, you get access to multiple prospects. In addition, recruiters work hard to define your needs and find a suitable candidate.
However, both things are unrelated. A wider candidate pool increases your chances of finding the right candidate, but it doesn’t mean there will always be high-quality prospects. Sometimes, you won’t even find the ideal one.
This depends on multiple factors. If contingency recruiters truly understand your organization, vision, mission, and values, they may be able to find a suitable candidate even if the number of prospects is limited.
3) You Won’t Spend Any Money Until You Decide to Hire a Qualified Candidate
Contingency recruitment services aren’t free. After the recruiter finds a qualified candidate to fill your open position, you’ll have to pay a fee.
In addition, vacant seats can affect your profits since they hurt customer satisfaction, morale, productivity, and other key factors. If the position you have to fill is critical, you may even lose good opportunities.
4) You Won’t Find High-quality Candidates If You Choose a Contingency Firm Instead of a Retained Recruiter
Most reputable companies work with retained recruiters to fill executive positions. The retained search method is typically used in these cases.
However, that doesn’t mean you can’t use the retained recruiting method to fill any other critical position in your organization. If this role is key to your company’s success, this approach can help you get better results.
When your recruiter knows you’re committed to success and aligns their efforts with your goals, needs, and values, finding the ideal candidate gets easier.
5) You Should Always Work with Retained Recruiters If the Candidate Pool is Small
The main difference between retained and contingency search lies in how the payment model works.
While the retained recruiting approach guarantees exclusivity and is often used for high-end roles, both models can help you find top-class prospects, whether the talent pool is big or small.
Actually, companies that use the contingency model often generate more prospects and get more in-person interviews than recruiters who take an exclusive approach.
However, you should consider your needs and goals to make the right choice.
6) Contingency Recruitment Is a Short-term Solution
Many employers think that contingency recruitment is a short-term solution. However, this model can also help companies meet their long-term staffing needs.
If you work with contingency recruiting firms, you can bring in potential employees whenever and wherever you need to fill positions.
Benefits of Choosing the Right Contingency Firm
Choosing the right contingency recruiter can help you find the ideal talent for your organization’s open positions. However, this isn’t the only benefit you’ll enjoy.
Here are the reasons why implementing this search model is a great idea:
Access to a Wider Pool of Candidates
This search model targets prospects that are active in the job market. As a result, when you work with contingency recruiting firms, you get access to a wider pool of candidates.
Improved Diversity and Inclusion
A contingency recruiter can help you improve diversity and inclusion in your organization by eliminating unconscious bias when looking for talent. However, a professional firm will always try to find a candidate whose values align with your company’s mission and vision.
Increased Affordability Compared to Retained Recruiting
The contingency recruiting model is much more affordable than the retained approach.
A retained recruiter will charge up to 50% of the candidate’s salary, while contingency recruiters’ fees range from 15% to 30% of that sum.
More Control Through the Recruiting Process
The recruitment process is simple if you take a contingency approach. If you don’t like a candidate, you don’t hire them. Also, you’re free to assess a prospect’s skills, experience, and organizational alignment.
Quick Access to Multiple Prospects
Contingency recruiters work hard to find prospects within your timeframe. Therefore, this model may benefit your company if you need to fill a position quickly.
Final Thoughts
If you’re looking for information about the disadvantages of contingency recruiting, you’ll find many myths and misconceptions.
Many employers believe that adopting this approach means they’ll find more high-quality candidates in less time, won’t spend money until they hire the ideal one, or will just meet a short-term need.
However, the truth is that the contingency recruiting model works in various scenarios and offers many benefits. Although you have to pay for these services, fees are lower compared to other approaches. Also, this strategy can help you find qualified candidates even if the talent pool is small.
Feel free to contact us for a free consultation on your recruitment strategy at info@questorg.com or 212-971-0033.
Leave a Reply