What is Contingency Recruiting?

Contingency recruitment is a sort of outsourced recruiting service in which the recruiter is compensated only for successful recruits for the organisation.

The customer pays the recruitment business only when the proposed applicant is hired. The customer and the contingency recruitment business have a "no placement, no fee" agreement.

The hiring process in contingency recruiting is done on a project-by-project basis, with the recruiter working to discover as many available qualified applicants as possible in a short time and presenting them to the client for recruitment. Contingency recruiting businesses are not tied to a single hiring client. They work with numerous hiring clients at once.

When companies hire a contingent recruitment firm?

It isn't easy to find qualified individuals. It takes time and money to recruit suitable personnel in the first place, and once they are identified, schedules must be set up and monitored. Human Resources can handle a lot of this, but there are instances when you need to fill a job immediately.

Dealing with a recruitment firm means working with someone who is only compensated for outcomes, which means they are only rewarded for successful hiring. A considerable deterrent exists for the recruiter to squander a client's time in interviews unlikely to result in a hire. Recruiters also have a candidate pipeline and can respond rapidly to changes in your organisation, such as changes in the number of positions or essential credentials.

How contingency recruitment firms operate

The customer makes the ultimate candidate selection. Primary search techniques, resume analysis and selection, interviews, and other steps are part of the contingent recruiting service. If we examine the procedures in further depth, we can divide them into the following steps:

  • Examine the position that the client wishes to fill

  • Examining the existing pool of possible candidates as well as searching for fresh resumes to discover those who meet the client's requirements

  • Contacting candidates for the proposed post and determining their availability or interest

  • If interests coincide, the CVs of such applicants are provided to the customer

  • If the client expresses an interest in the CVs provided, the agency will schedule interviews with the chosen applicants

  • During the interview, the agency or contingency recruiter offers and negotiates an offer

The benefits and drawbacks of hiring through contingency recruiting firms

While contingency recruiting may be a terrific solution for businesses, there are certain benefits and drawbacks.


  • The client only pays for the outcome. It implies not only savings but also the possibility to do independent searches at the same time. If the employer discovers a qualified applicant, they might notify the company. The search is terminated in this situation, and no extra costs are necessary.

  • Because a firm or recruiter is only paid for the outcome, they attempt to deal with several resumes and complete the task as soon as possible.


  • The pace with which recruiters work might become excessive, lowering the quality of the service. The organisation might pick a résumé superficially and without looking into credentials to save time.

  • However, this possible disadvantage falls under the purview of the agency or recruiter and impacts their reputation. As a result, quality decline happens only infrequently.