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.