Contingency Recruiting

What is Contingency Recruiting?


‘Contingency Recruiting’ refers to the practice of hiring a recruiting agency and paying them only if the candidate they provide is placed in the company. In this case, the recruiter becomes a ‘Contingency Recruiter’.


Typically, the payment ranges between 12.5% to 20% of the candidate’s annual basic salary. It is very cost-effective for the company since they will be getting a quality employee within their predetermined time frame with a fraction of the time and cost required for in-house recruiting.


However, it is good only when the position being filled is a junior-level position or if it doesn’t require specific technical skills. There is also a possibility of the recruiting agency sending a lot of traffic in the hopes that someone might get selected, which might prove counterproductive.


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