If you have been looking for someone to help you find employees to fill roles in your company, you may have heard of contingency or contingent recruiting. Although this may sound like a highly technical term, it is a relatively simple concept.
In this article, we’ll take a closer look at contingency recruiting and how it works. We’ll also look at some of the pros and cons of hiring a contingency recruiter.
Understanding Contingency Recruiting
Contingency recruitment involves outsourcing the recruitment process to a third party. However, in this kind of arrangement, the recruitment agency is only paid for their work once they have filled the role. In other words, a contingency recruiting agency is only paid once they produce the desired result. No successful prospects equals no pay.
Now that you understand what it is, how does contingency recruiting work?
How Does a Contingent Recruitment Agency Work?

As we have just learned, contingent recruiting companies offer their services as contractors for businesses with the understanding that they won’t be paid until an applicant accepts the position being offered.
Although not all contingency recruiting firms work the same way, they will almost certainly follow the following five steps:
- A job description for an available position is sent to the recruiting firm by the client (your business).
- Both parties will negotiate a fee for finding a suitable candidate to fill the position.
- Next, the hiring company begins looking for the ideal applicant.
- Once suitable prospects have been found, the agency notifies the client.
- The client will pay the agreed fee once the qualified candidate accepts the position.
Now that you understand what contingency recruiting is and how it works, let’s look at some pros and cons to help you decide whether it is the best option for your business.
The Advantages of Hiring Contingency Recruiters to Find Candidates
There’s no doubt that working with a contingency recruiter can be beneficial, but what advantages can you expect?
A Contingency Recruiter Will Have Vast Knowledge
Contingency recruiters establish their credibility and vocation by making fast hires that meet stringent criteria. They not only understand how to find candidates but understand the vetting process well and can ensure that your company gets the best talent.
Contingency Recruiters Tend to Have Extensive Networks
The truth is that contingency recruiters are known for their extensive networks. Building these vast networks is what allows them to secure candidates quickly and grow their businesses.
This makes them desirable options for companies hoping to secure suitable talent in a short time frame.
Resources That Go Beyond What Your Company May Have
A contingency recruiter usually has access to tools and resources that may be beyond the financial capabilities of your company.
Examining the internal resources your team has access to for recruitment purposes will help you determine whether it will be useful for your company to work with a contingency recruiter. You should consider contingency recruitment if your team does not already have access to the tools and resources required to find the talent you seek.
Disadvantages of Contingency Recruiting
Although contingency recruiting offers a plethora of benefits, there are certain drawbacks that you should be aware of.
You May Not Get the One-on-one Attention You Need
Although contingency job recruiters bring a vast amount of knowledge to the table, along with a commendable track record, and an extensive network of contacts, there is no guarantee that their contributions will be successful for your company.
Moreover, unlike retained recruiters, a contingency contract recruiter won’t work as closely with you to find the best talent for your business.
Poor Understanding of Your Business
Unfortunately, because these firms work on multiple projects at once, they may not be familiar with the special qualities and attributes that set your company apart from its competitors. The talent that will complement or add to the current culture may be better understood by internal recruiters.
Possible Delays in Finding Suitable Candidates
Contingency recruitment agencies earn money by effectively and swiftly integrating new recruits into companies. Many hiring companies and contingency recruiters are working on numerous campaigns within various organizations to maximize their profit margins.
As a result, you might not be at the top of the recruiter’s list. This can result in delays in filling a position and not finding the right candidate.
Contingency Vs. Retained Recruiters: Which One Should You Choose?
Unlike a contingency recruiting agency, a retained recruiter will charge you a fee upfront before any work is done to find suitable candidates. These companies insist on working on an exclusive basis, which means that a retained search will be the only way to fill the role.
These hiring companies take their time, working closely with their clients. They follow a predetermined process to identify the best candidate for the position.
Contingency recruiters, on the other hand, do not request payment until they have found someone to fill the role. This recruitment method is often faster than retained recruitment, which is a great option if you’re looking to find a candidate as quickly as possible.
The choice is ultimately yours to make and will depend on your needs and preferences. Do you need a recruiting agency that will take their time to find you the cream of the crop to take on an esteemed role in your business, or are you looking for quick turnaround time and a recruiter that will likely have excellent sales skills?
These are questions you must ask when choosing between these two options.
The Bottom Line

Now that you have a good understanding of what contingent recruiting is, you’re ready to put contingency recruiting to work for your business.
As with all things in life, this method of outsourcing recruitment comes with its pros and cons. It’s important to weigh them in light of your business needs before deciding whether contingency recruitment is the best option.
For a free consultation on your hiring strategy, contact us at info@questorg.com or 212-971-0033.
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