How to make smart recruiting choices

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Learn more about the four most common talent recruitment business models, how they differ and the pros and cons each offers.

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RECRUITING CHOICES

MAKE SMARTHOW TO

You have recruiting options...

Different levels of

RISKS AND COSTS

Recruitment models4TYPES OF

4321Contingency Contract

RecruitmentProcessOutsourcing(RPO)

On-demandRPO

PROS AND CONSRecruitment models

1Contingency Recruiters

Hiring company pays a placement fee for employees, based on some percentage of the annual salary.

PROSContingency recruiters

• Fees are paid only when positions are filled

• Do not task your in-house resources

• No long-term contracts

CONS

Contingency recruiters

• Quantity of candidates tends to supersede quality

• Fees are generally very high, typically 20% of base salary

• Success is not guaranteed• Won’t perform strategic

tasks

2Contract recruiters

Hiring company contracts recruiter to work on a temporary basis for a set period of time and payment rate.

PROSContract recruiters

• Avoids the overhead inherent in having full-time recruiters on staN

• Add manpower to an internal recruitment staN and can be easily managed

• Easier to on-board than full-time recruiters

CONS

Contract recruiters

• Costs include supplying tools and resources

• Struggle with some requisitions

• Availability may be limited

• Difficult to scale to meet needs

3 Hiring company outsources the entire recruiting function to specialists.

RPOs: Recruitment Process Outsourcers

PROSRPOs

• Act as an extension of your staN

• Can be highly cost-eNective• Service level agreements

(SLAs) can help ensure deliverables are met

CONS

RPOs

• Implementation is costly and requires months of groundwork

• Requires handing over total control of process

On-demand RPO

4Hiring company outsources recruiting function to supplement HR staK and pays on an hourly basis.

PROS• Easy to start and stop• Services can be temporarily

suspended when hiring needs decline

• No placement fees• Potential to reduce cost/hire• No upfront investment in

resources

On-demand RPO

PROS• No infrastructure expenses or

overhead• Team has access to array of

technology tools and resources• Draw on a large database of

potential hires• Easily engaged for candidate

pipelining, competitive research and salary surveys

• Highly scalable

On-demand RPO

CONTINUED

CONS• Operate oNsite• Hourly rate fees begin

upon initiation of project • Performance may suNer if

vendor outsources work oNshore or to third parties

On-demand RPO

TO ASK... Good questions

How much recruitment experience do you have?

How large is your candidate supply pool?

Do you have experience with volume hires?

Can you scale to meet our needs?

Will you use your resources or require ours?

How up-to-date are your tools, processes and technologies?

Meet The Recruiting Division• On-demand RPO• Zero upfront costs• Easy to start and stop• Scalable• High performance• Cost-eNective

CHOICE

RECRUITING

MAKE A SMART

more info free ebookclick

Thank you. Happy hiring.

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