3 Reasons Why On-Demand Recruiting Trumps Contingency

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Contingency’s no hire, no pay promise comes at its own cost. Here’s why on-demand recruiting might offer you better value over the long term. Tweet it

Thermostat-style control for on-demand recruiting

Ah yes, good ol’ contingency recruiting. The devil you know.

No hire, no pay. No risk!

Not really. Managing the contingency agencies who are working on your roles is time consuming: resumes get thrown at you in quantity, not always quality. Sure, those candidates match the role’s qualifications, but how often are they a good team and culture fit?

But don’t blame that contingent recruiter. She works hard for her money. Sometimes she really gets burned: the client company stops returning calls, doesn’t meet with candidates or changes the req last minute. Sometimes they even compete against her, sourcing on the side. ’Cause there’s no guarantee there’ll be a hire, right?

So putting food on the table comes first. Worrying about the quality of your hires – the likelihood they’ll work out for you – comes a distant second.

Well there’s another type of recruitment service worth considering.

One that lowers the cost of hiring. And decreases that barrage of resumes your contingency agencies are apt to throw at you, while improving the quality of candidates you do interview. Meet the on-demand alternative:

What is on-demand recruiting?

On-demand means recruiting support on an hourly basis. It really is ‘on demand’: maybe you use it to fill one role, or maybe it’s a few roles. Maybe it’s just a little help during a hiring spike, or maybe it’s steady help all year long. However much help you need, on-demand scales to match.

But it doesn’t mean you‘re hiring a temp recruiter or contractor. This is a service provided by a vendor. You’re gaining their specialized expertise, pipeline of talent, knowledge of the local market, suite of systems and tools. Importantly, you’re also gaining their outside perspective.

The benefits are tangible:

1. You spend less

Really? Yes. This is best illustrated with an arbitrarily-priced example:

Contingency placement at 20% on $100,000 salary = You spend $20,000

On-demand project of 100 hours at $100 an hour to fill that same role = You spend $10,000

2. You get better candidates

How? Because you have a recruiter dedicating time to finding them, with behind-the-scenes support from an entire team. It’s no longer about throwing resumes at you and hoping something quickly sticks. It’s about building a pipeline of candidates and filling your role with the right person.

That might mean, if you so choose, having the on-demand recruitment provider place your dedicated recruiter on site. In your office. Even once or twice a week can make a difference: they learn about your culture, they become familiar to hiring managers, and they grow to understand who will be the right type of person to fill your role or roles.

3. You gain a partnership

This one’s a benefit, but it’s also your main risk with on-demand recruiting:

There’s no guarantee. Whether you hire or not, you’re committed to paying for the service. You have to trust your vendor. You have to believe they’re capable of finding you great people. And you need to define clear expectations and deliverables at the onset: a documented service-level agreement and a commitment to regular reporting.

The burden might be on you to pay, but the burden is on your recruitment company to prove they can make it happen. And that’s okay. Shouldn’t your vendor want to be your partner? To earn your trust?

The way forward

Contingency contracts are the norm. Heck, we do them too. But there’s something unsettling about the way they typically work: old-school business, in a not so warm-and-fuzzy way. You’re making a big bet. The risk runs high on both sides. The relationship (if you can call it that) is always on edge. You can never really trust each other.

It’s probably why corporate HR and recruiting find agency recruiters so unsavoury, right?

Well, on-demand is about partnership. It really is about win-win. And that, in this friendly little recruitment company’s opinion, is the right way forward for recruiting.

Curiosity peaked? Learn about Recruiting Social’s on-demand recruiting services.

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