Recruiterflow categorizes jobs into four main types:
Contingent
Retained
Contract
RPO.
Each type has unique characteristics and implications for your agency.
Let's explore what each job type means and how understanding these can benefit your business.
1. Contingent Jobs
Contingent jobs are placements where the recruitment agency gets paid only when a candidate is successfully placed. There's no upfront fee; the payment is contingent on the hire.
Example: Imagine you are recruiting for a software developer position at a tech company. You will only receive payment once the candidate starts working at the company.
Benefits:
Low-risk for clients: Clients only pay for successful placements, making it an attractive option.
High competition: Multiple agencies may work on the same job, increasing competition and urgency.
2. Retained Jobs
In retained jobs, the fee is usually distributed across different milestones set up in the job. It may involve an upfront fee paid to the recruitment agency to conduct a specific search. But then it follows a phased payment structure, where payments are made at different tranches of the recruitment process.
Example: A law firm hires you to find a senior partner. They pay an initial fee to start the search and additional fees as you reach milestones, such as when a job is opened, presenting a shortlist of candidates, after a candidate gets hired or starts their new role, etc.
Benefits:
Guaranteed payment: Provides a steady revenue stream regardless of the outcome.
Exclusive commitment: Typically, agencies have exclusivity on the job, reducing competition.
3. Contract Jobs
Contract jobs are temporary placements where candidates are hired for a specific period or project. The recruitment agency may handle payroll and other employment details. The candidate may be hired on different payroll units, such as hourly, daily, weekly, or monthly.
Example: A manufacturing company needs a project manager for a six-month project. You place a candidate who works on your agency’s payroll, and you bill the client regularly on a weekly basis.
Benefits:
Recurring revenue: Generates ongoing income through regular billing cycles.
Flexibility: Helps clients fill short-term needs without long-term commitments.
4. RPO (Recruitment Process Outsourcing)
RPO involves outsourcing all or part of the recruitment process to an external agency. The agency acts as an extension of the client's HR department. Like contract jobs, you can hire candidates on different payroll units.
Example: A multinational corporation outsources its entire recruitment process to your agency, from job postings to onboarding new hires.
Benefits:
Deep integration: Provides a comprehensive and consistent recruitment process.
Scalability: Allows clients to scale their recruitment efforts up or down based on their needs.
5. Project
Project-based jobs are a hybrid engagement model designed for agencies handling high-volume or fast-growth hiring. It blends elements of contingent and retained search to offer better risk sharing, cash flow predictability, and stronger client commitment.
How it works:
The agency collects an upfront project fee from the client at the start of the engagement.
A success fee (percentage of the placed candidate's salary) is also charged when a hire is made.
The upfront project fee is deducted from the success fee before final payment -- so the client isn't paying both in full.
Example: You're hired to fill two software engineering roles. The client pays a $20,000 upfront project fee. When the first candidate is placed at $110,000 (30% success fee = $33,000), your adjusted revenue is $13,000 after deducting the project fee. The second hire earns the full success fee with no further deduction.
Benefits:
Guaranteed early revenue: The upfront fee de-risks the engagement for your agency, unlike pure contingent where you only get paid on placement.
Medium-to-high client commitment: An upfront payment signals buy-in -- clients who pay to start a search don't walk away easily.
Aligned incentives: The success fee component keeps your agency focused on quality placements, not just starting searches.
Best for: High-volume hiring projects, startup scaling mandates, and clients who want contingent pricing but are willing to show some commitment upfront.
To set up Project billing on a job, go to the job's Billing section and select Project from the engagement type dropdown. You'll be prompted to enter the upfront project fee, billing date, due date, and attribution. Recruiterflow will auto-calculate adjusted revenue as placements are made.