We are living in a candidate’s job market. How do you know? Because it only takes ten days for employers to snap up the best job candidates.

Candidate pools are so qualified that employers are going out of their way to impress candidates. Salesforce now sends ‘thank you’ notes to candidates who interview because it knows that candidates who have a positive hiring experience are more likely to take the job with their company.

Employers no longer have the luxury of making hiring decisions as they please. If they do, they’ll miss out on their favorite candidates.

Recruiters make a massive difference in the hiring process. They get the work done faster, build relationships with potential candidates, and simplify the process.

Did you know there are two types of recruiters? They are contingency and retained recruitment. The difference may look like it exists only in fee structures, but they work very differently.

Keep reading to learn more about what it means to work with recruiter services during the job hunt process.

What is Contingency Recruitment?

Contingency recruitment is also known as No Win, No Fee – if the recruiter doesn’t put forward a candidate the client accepts, then they don’t get paid.wrk

Recruiters who work on a contingency basis may work as part of agencies or on their own. They may also be contacted by client HR teams or submit applicants independently. Contingency recruiters often compete with the internal hiring team as well as other external recruiters.

As a result, contingency recruiters submit clients at a faster pace in an attempt to beat out other recruiters or the team. They may also send multiple potential candidates to increase their chances of landing the job and winning the fee.

What is Retained Recruitment?

Retained recruiters fund their work by charging clients (employers) an upfront fee to hunt for candidates. The pair work exclusively, which means that the employer only allows the contracted recruitment agency to complete the task.

The relationship differs from contingency recruitment because retained operatives tend to work closely with the client’s HR or onboarding team. They agree upon a methodology before beginning, and they don’t rush through the process.

Retained recruitment is effective and gives the client far more control over the process, but it will cost you. You can expect to pay up to 50 percent of the first annual salary of the hire as a fee.

Often, retained recruiters are specialists in a niche or in recruiting for senior positions. Their specialty combined with the focused methodology explains the cost.

How Do the Two Compare for Employers?

Recruitment is an arduous task, but it’s almost always less expensive than leaving positions unfilled.

The difference between the two is not only in the fee structures. Here are some of the ways they work – or don’t – for employers on the hunt.

Advantages and Disadvantages of Contingency

When you work with a contingency recruitment service, you save money up front because you only pay the fee to the agency you hire from – or not at all if you hire internally.

The benefit of contingency recruitment is competition. Recruiters cast wide nets, but they are also always ready to put their best profiles forward. After all, they have to compete for the fee. 

At the same time, if you receive a contingency prospect and you already know you don’t want them, you don’t have to interview them. Best of all, you don’t have to pay for the privilege of not interviewing them.

Employers save a lot of time on hiring when they only get the best candidates the first time around.

Contingency recruiters can happily fill general and specialist positions. But if you have a precise profile in mind, then you might find that they can’t anticipate the candidate you need.

Why Choose Retained Recruitment

If you are looking for a very specific candidate, you do better to limit the number recruiters or better yet, move to a retained recruitment agency.

Retained recruitment gives you far more control over the process. It also allows you to share more sensitive details with the recruiter or get to know the recruiter so that they can best choose candidates that you want to interview.

One of the biggest benefits of working with retained recruiters is that they already have a Rolodex of candidates.

While your in-house team is limited to job postings (and some outreach), a boutique recruiter likely already has a candidate mind. This is vital when only a small percentage of the workforce you target is actively looking for a job, and the best candidates get snapped up in no time at all.

If you value due diligence and extreme consideration, then you’ll want the boutique-style approach retained recruiters offer.

This comparison breaks down the two services in detail.

What’s the Difference for Candidates?

For employers, the difference is immediately obvious. Companies work closely with retained recruiters and give them access to all the job details, and contingency recruiters work from the outside.

You’ll also see differences as a job seeker or candidate.

When you receive interest from a retained recruiter, you’re more likely to:

• Get a full briefing on the role
• Go through multiple interviews and know who will interview you
• Receive information on potential salary and benefits

Candidates approached by contingency recruiters will get some information, but they may feel their intel is limited. However, contingency recruiters are hungry for the sale, and they tend to have better sales skills, which may help you land the job.

Hiring the Right Recruiter

Hiring the right recruiter makes a massive difference in your search for the perfect candidate. Whether you benefit most from contingency or retained recruitment depends on the position you want to fill, the industry, and the state of the job market in your area.

Are you ready to move on to a new job? Check out 5 Signs It’s Time to Quit Your Day Job and Pursue Your Dreams.