The recruiting industry is a fast growing one, and with the world of recruiting becoming an international scene, in the past five years or so we have witnessed a growth in both numbers of recruiters and in the variety of solutions.

 Yet, when you get down to it, in the matter of deal-types, there are still only two - Contingency and Retainer. Two models, both offer unique advantages for the trade.

 Contingency -

 Known as the “No Win, No Fee” system, it doesn’t get simpler than that: The recruiting company will only get paid if you are to hire one or more of the candidates they directed your way, and their fee will usually be anywhere between 10-30 percent of the newly recruited employee’s annual pay, rising according to the challenge in finding the right candidate.

 Working under these terms will usually mean you will see a wide range of candidates, as the recruiting company aims at high numbers for tipping the statistics in their favor, in hope you will choose to hire one of the candidates it represents. Yet with this type of deal, there is no promise of success, and thus for a safety net it is standard procedure for companies offering contingency recruiting deals to have an obligation to keep the search for an agreed period of time.

 Contingency, being the more popular in the world, makes it possible for companies in their early stages to meet and interview many candidates, without risking a fortune, making somewhat of a pool of their own.

 A recruiting company choosing to work under the terms of contingency will have the benefit of having more clientele, yet at the same time the pressure of finding the best candidates as they will only collect a fee if their candidate was hired.

Retainer -

 Recruiting for a retainer fee means you will pay the company per project and upfront, regardless of the success, when success means you have hired one or more candidates the recruiting company sent your way.

 The retainer is determined by different variables such as the time-frame or number of candidates the company finds, and the fee is usually on the high side.

Retainer recruiting projects are usually exclusive; meaning the job they are hunting for will be manned only by a candidate the company sent, after the term and conditions defining “the perfect candidates” were discussed thoroughly.

 This type of recruiting agreement is usually the appropriate manner for filling up high-status positions in the company, where you would simply take no one but the most suitable person. That is why retainer based deals are exclusive, as the recruiter dives deep into the company’s ways, understanding the working environment, demands of the job, and so on, as to find the perfect match for the job.

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