Contingency recruiting involves using a recruiting agency or contract recruiter to find candidates for an open role. The recruitment agency or contractor only gets paid if a candidate they find gets hired by the company. Recruiting fees vary but are usually around 20 percent of the position’s salary.
Outsourcing recruitment means you won’t need a team of in-house recruiters. Also, you can save money on advertising job vacancies, and screening potential candidates as many recruitment agencies will do this for you. Often, they have large databases of potential candidates, so recruiting agencies can act quickly.
However, there are some downsides. There’s no guarantee the continency recruiter will find your dream candidate. And because they work on a no hire, no fee basis, their focus is often on sourcing large numbers of candidates rather than the quality of those individuals.