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The Rise of Contingency Recruiting

Updated: Apr 11, 2022

Contingency recruiting in it's simplest form an outsourced recruiting service where the recruiter or agency only receives a fee on the successful hires they do for a client. Think of it as a " no hire, no fee" arrangement between the client and the recruiter.

Contingency recruiters have no implied exclusive arrangement with the hiring company. Therefore , a client can engage the services of multiple contingency recruiting firms.

The Pros:

  • Client pays for results only

  • $0 upfront costs

  • Single fee

  • Reduced HR needs

  • Results-orientated

  • Interviews, negotiations, and feedback provided by recruiters

  • Traditionally a 90-day placement guarantee

The Cons:

  • It can produce a number of candidates

  • One time fee ranging from 15% - 35% of first year compensation

  • No exclusivity of candidates, presented to multiple clients

Organizations like Insight BPO offer a blended Contingency approach by offering 15 day exclusivity, flat fee and a personal guarantee that clients will only be presented the Top 3 candidates ( unless there is a request for more )

Often Contingency Recruiting firms have large databases of candidates all of which are industry respected leaders. You very rarely see a posting from a Contingency Recruiter asking for resumes, this is because most have extensive databases of industry respected leaders.

Contacting a contingency recruiter begins when you have an anticipated need. These range from a potential exit from the organization to planned additions to the team.

The most important thing a business leader does is hire the best people for the role. Do it right and use all the tools that are available to you and your business and you will be successful.

Scott Sullivan is a veteran of the Call Center industry and founder of Insight BPO with a career spanning 20+ years leading and supporting global brands across multiple geographies.

Insight BPO advises call center organizations on outsourcing strategies, strategic recruiting and elevating CX performance.

Interested in Insight BPO's call center leadership recruiting solutions? Please contact us or 251-363-2011

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