What is a Contract Recruiter?

A contract recruiter is someone who fills short-term roles at a business. The recruiter and their client have a contract or exclusive recruiting agreement. They source, screen, and engage with applicants on behalf of the company. They work only for the customer for the duration of the contract.

The contract ends after they have completed the contract's criteria. For example, if a business hires a contract recruiter to fill ten vacancies, the contract will end after those positions are filled.

When the contract expires, the recruiter can move on to the next customer. They can bring their contact information and candidate lists with them. The recruiter, not the customer, owns those lists. They should employ a recruitment system to maintain applicant information and transfer it from client to client.

The customer typically pays the contract recruiter a part of the recruiting charge upfront as a retainer. The customer may pay another percentage later in the recruiting process and another portion once a candidate has been placed. Of course, the recruiter and the company will negotiate the specific payment conditions.

A business may use a contract recruiter for a variety of reasons. It may engage a contract recruiter when it cannot afford to hire a full-time recruiter. When there is a rapid rise in hiring, it may choose to employ a contract recruiter rather than a permanent, in-house recruiter. A business may engage a contract recruiter when there are several difficult-to-fill positions.

The Benefits of Hiring a Contract Recruiter

Even well-established firms' HR and Talent Acquisition departments may require external providers' assistance with their recruitment and hiring needs.

  • Contract recruiters enable HR and Talent Acquisition departments to assure compliance with legal, policy, and corporate standards.

  • Contract recruitment enables HR and Talent Acquisition professionals to manage and supervise a temporary recruiter's performance using quantitative data (activity metrics).

  • This recruiting technique gives a flexible, temporary alternative to an acute demand. It should also handle hiring difficulties and objectives as soon as possible.

  • Furthermore, while working with an experienced recruiter, there is no need for training and growth.

  • The ease and simplicity with which contracts can be initiated or terminated. Contracts may be quickly accepted and cancelled in response to market demand.

  • Offers a simple solution for filling a productivity gap caused by a leave of absence, unforeseen attrition, increased recruiting volume, special initiatives, or erratic hiring swings.

  • Finally, eliminating the requirement for costly agency fees is a cost-effective choice for managing recruitment costs.

The Drawbacks of Hiring a Contract Recruiter

  • Rates have steadily risen throughout the years. While it might be an effective way to meet a short-term requirement, high hourly fees frequently exceed full-time salary and benefits.

  • An increased likelihood of contract recruiter churn due to full-time employment offers or more attractive contracts.

  • The indirect expenses of using contract recruiters. IT, legal contracts, and management monitoring are frequently required throughout the onboarding process.

  • The screening procedure for contract recruiters is typically less rigorous than for full-time employees, which might result in selecting someone who requires more control.

  • Even if contract employees are not full-time, the employer is liable for workers' compensation, co-employment, harassment, discrimination, poor performance, fraud, security, and workplace dispute.