If you’ve ever set your status to “looking for new opportunities”' or applied to more than 10 jobs in one sitting, you’ve probably encountered some sort of contract recruiter whether it be by email, LinkedIn message, or phone call. However, many different versions of “recruiters” exist and this form of recruiting is SO different than what we focus on here at ApplicantOne that we wanted to address this topic in today’s blog. Enjoy!

What is Contract Recruiting?

If you’ve ever worked with us before, you know we recruit differently than most and have our own team of in-house recruiters working with all of our clients and candidates. Before we talk about the pros and cons, let’s first define who or what a contract recruiter is so that we’re all on the same page. Check out these definitions:

A contract recruiter is someone who fills positions at a company on a short-term basis. There is a contract, or exclusive recruiting agreement, between the recruiter and their client. During the length of the contract, you work exclusively for the client. You will source, screen, and communicate with candidates on the client’s behalf. After you complete the requirements of the contract, the contract is over. For example, if a client contracts you to fill 10 positions, the contract will be over after you fill those jobs. If you are a contract recruiter, your client will likely pay you a percentage of the recruitment fee upfront as a retainer. Then, the client might pay another percentage at a certain point in the recruitment process, and another percentage after a candidate is placed. Of course, the exact payment details will depend on the contract terms you and your client negotiate. A company might hire a contract recruiter for many reasons. It might hire a contract recruiter when it can’t afford to take on a staff recruiter. Or, it might choose to hire a contract recruiter when there is a sudden increase in hiring, but it doesn’t want to hire a permanent, in-house recruiter. A company might also bring on a contract recruiter when there are many, difficult-to-fill positions to hire for. (TopEchelon)

Contract recruiters, often called contingency recruiters or headhunters, are recruitment professionals who work on a contract basis. Usually this takes the form of an hourly wage or fixed bid project for a set amount of time during an uptick in hiring demand. This type of recruiter can be seen as a recruiting consultant who works with a company on a short term basis to get their hiring needs met. When all job openings have been filled and the company is satisfied with their new employees, then the contract is over and the recruiter can move on to the next job. Contingency recruiters generally keep their contacts, talent pool and qualified candidates with them as they move from company to company. They are the “hired guns” of the recruiting world. (Recruiter.com)

Okay, so the gist of the term is, a contract recruiter is a recruiter who works on a contract basis from company to company, completing one to multiple placements at a time. Contract recruiters go where the job takes them and they are hardly ever in one office for very long. Typically, most contract jobs last 3-6 months, sometimes a year, for reference, however contract recruiters’ contracts tend to last a bit longer, especially if there are multiple positions to fill.

The Pros

No Commitment- Obviously, the plus to contract recruiting is there’s very little commitment. Once you join a team as a consultant or contractor, you typically know about when it’s going to end as well as all of your expectations. TopEchelon says, “contract recruiting is good for recruiters who want longer-term contracts but still want to move between companies. You have the stability of one client keeping you on for a while. And, you have the freedom to move on.” It’s so true! When you work a normal, full-time job you never really have any definites. As a contract recruiter though, you know when you start, you know when you finish, and you know what’s expected of you. Plain and simple. Plus, if you absolutely hate where you’re placed, you get to move again in just a few months and it won’t look like job hopping!

Consistently Builds a Resume- Much like any other contracted employee, you’re doing different jobs for different companies and you start to require a list full of clients, jobs, successes, etc. That looks great on your resume as a contract recruiter to have a solid list of previous jobs. This will only bode well for you! “Contract recruiting is a unique way to build your expertise. By being with one client for a period, you have time to settle in and refine your skills. As you grow your skills, you can move on to bigger contracts (with even bigger payouts)” (TopEchelon). Basically, the more you work, the more you learn, and the better you look to potential clients down the road! Makes sense right?

Network Expansion- Much like building a resume, when you’re a contract recruiter, you’re also building a network! The more you meet, the larger your network becomes until you’re connected with all of the big names, your reputation is awesome, and you’re busier than a bee! “When you spend time with a client’s company, you have more time to network. You can get to know employees there and tap into their networks. This can help you find candidates for that client and future clients” (TopEchelon). Like we said before, the more you work, the more you learn, and the better you look later on down the road!

The Ability to Help More People Find Jobs- If you’re a passionate recruiter, then you love nothing more than to help clients fill positions or help find candidates their dream job. Well, if you’re good at what you do and you move from company to company, you’re (hopefully) placing a ton of people and fulfilling your passions! And, of you’re working on multiple contracts a year, you’re placing multiple people a year. It’s such a great feeling to find that perfect fit for both the client and the candidate.

The Cons

Lacks Consistency- This is an obvious but real reality anyone working on a contract basis must face...There’s little to no consistency. This is because you’re at the mercy of whichever company needs a contract recruiter...if any. There’s also the possibility than a client could let you go - just because there’s a “contract” doesn’t mean they won’t cut the cord to save a buck. It’s also worth noting that once you get that contract, you really can’t relax. You have to be thinking ahead to the next potential client, next potential placement, etc. Nothing is guaranteed in this business, that’s for sure! So to make this type of position work, you have to be on your toes.

Client….or Employee?- This is where things get tricky….are you a client or an employee? Technically, you’re a consultant. However, sometimes the person you’re working for starts to blur that fine line a bit. You have to be weary of companies trying to dictate what you do, how you do it, and where you do it. You are not an employee. You are a consultant hired on to complete a task… So technically they have no say on the matter. However, it doesn’t mean this won’t happen and things won’t get awkward. Be prepared to receive some sort of kick-back from companies, it’s going to happen.

Lacks Benefits- Unless your client or company is massive and has a large consultant team, you’re probably not receiving any sort of company benefit, ever. That means no PTO, no insurance, no 401K, retirement, etc. You’re flying solo here. For the successful, that’s no problem. But, if you’re just starting out...You may want to reconsider this type of job until you’re on your feet and ready to struggle or go a month or two without any income.

Never Part of One Team/Office- Some people love never being a part of one team for long periods of time. That’s totally fine. If you’re a social butterfly and love going from company to company, meeting new people, then you’re golden! However, if company culture is something that you’re after and you want those workplace friendships, you may want to rethink this type of career. Contract Recruiters work from place to place, meeting new team after new team. There’s never a home base, no consistent team that always has your back and is always there to talk about your kid’s graduation or your engagement or any other major life events. Nope. You’re flying solo, remember?

ApplicantOne Recruit

At ApplicantOne, contract recruiting is not our main focus. However, if you’re looking to fill an open position(s) and don’t want to deal with a large agency, consider ApplicantOne Recruit! Recruit is our third service and is one many might not have heard of! This offering is full-service and offers all of the benefits of our original product, SOURCE. That includes a personal dossier, video interviews, assessments, collaboration, and more! We target Recruit to those companies looking to hire high level, difficult positions looking for highly specific candidates. Sound like something you’re interested in? Read more here and request a demo with a member of our team to learn more!