Every organization faces the challenges of recruitment. Whether it is a fully-fledged internal HR department, a partnership with a recruitment agency or a fully outsourced HR department. Organizations need to have a clearly defined way to manage to hire personnel. Although every organization is different, with their own unique needs, understanding what they are is the first step to determine the kind of service provider that best matches their unique needs.
There are multiple types of recruitment services available in the market, below are a few examples:
The contingency recruiter will only receive a fee once a candidate that has been brought by the recruitment firm into the recruitment process has been hired by the organization. Their percentage fee may vary from 10% to 35% dependent on factors such as position, specialization, recruiter-to-company relations and more. Organizations under contingency will oftentimes play the numbers game by working with high volumes of job searchers and multiple employers consecutively.
Retained recruiters, oftentimes known as an executive recruiter or high-valued target recruitment are known for their work supporting the hiring process of executives, senior management, the board of directors and highly remunerated positions.
Their job is to serve as a middle–man assessing top candidates’ qualifications, job interest, and presenting a portfolio of the candidate(s) to the employer.
Further, they may be involved in recruitment negotiations. Retained recruiters are expected to receive an upfront payment for part of their services and further payments for the delivery of milestones throughout the process.
Recruitment Process Outsourcing (RPO) is defined by the RPOAssociation as the contracting-out of all or some of the recruitment process to a third party.
A commonly used strategy in large IT corporations that has been propagating elsewhere. It aims to bring in outside work temporarily to support business or technical objectives. Many organizations specialize in providing staff augmentation as a professional service. Staff Augmentation companies model works by either:
Government Subsidized Recruitment Program– There are a few government-subsidized recruiting organizations in some countries that help job searchers connect with employees. Some will provide training, resume review and other resources to augment the opportunity for both employer and prospect employee to connect.
There are a few government-subsidized recruiting organizations in some countries that help job searchers connect with employees. Some will provide training, resume review and other resources to augment the opportunity for both employer and prospect employee to connect.
The quality and price of service can vary widely due to the quality of the prospect pool, recruiter, recruitment company and the client’s overall capabilities. Each recruitment type tends to cover a different part of the market with some convergence. Understanding one’s needs, strengths and weaknesses are essential to determine which market to be or work in.
To ensure a project or position is filled with the best potential candidate, many organizations are willing to shed a little more in recruitment services. This gives rise to specialized recruitment companies.
For example, an executive recruiter may only work to fill CFO and CRO positions. One contingency recruitment company may find that their return on investment on accounting personnel is higher, therefore, they may become more specialized in that area. A staff augmentation company may prefer to stay within a niche of the technology world such as the ‘Microsoft’ stack.
The major differences in recruitment types boils down to: