Contingency Recruiting as a Business Model

We charge by the results not by the efforts, a concept I never understood. We aren’t salesmen, we source, interview, negotiate, and put a lot effort before we reach a result, even salesmen have the advantage of exclusivity which we don’t have. I don’t like the idea that our destiny is in the hands of our candidates and clients, and all we can do is to pray. I know that some of you will say that the harder you work the more hired candidates you will get. This is not totally true, because I can’t control my clients decisions, sometimes what I think is suitable is not necessarily the same to them. We as contingency recruiters should enhance our business model so we can control our destinies and cash flows.
Last time, I suggested that recruiters should exchange their candidates information for a certain fee, but I was faced with the questions about confidentiality and ethics, I respect this point view but what other solutions do you suggest?

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Permalink Reply by Kyle Smith on June 13, 2008 at 11:16am

Rami,

What you are suggesting is the reason people join larger recruiting firms. There you have a large database of candidates and team members to share candidates and clients with. Obviously the fee paid by a client in the end doesn't all come back to you, but that is the trade off.

If you want to be paid for your efforts (rather than results) but want to remain independent, find a contract recruiting position. The reason recruiters get paid so well for contingency recruiting is because of the risk. It takes tenacity, intelligence, rhythm and luck. The only position I can think of that is similar is being a day trader.

If you want to be paid for information, maybe you should consider becomig a full-time sourcer.