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How Contract Recruitment Works, Everything You Need To Know

Moustafa Ahmed July 26, 2023 3 min
Contract Recruitment​

What is Contract Recruitment?

Contract recruitment is searching, sourcing, and filling short-term jobs within a specified timeframe. Contract jobs can be part-time or full-time jobs, they can be on-site or remote jobs as well.

Why Contract recruitment?

The main thing that defines a contract job is the timeframe. It could be 3 months up to 2 years. Contract Recruitment has fewer obligations from both parties and usually are done to complete a specific project that is needed in parallel with your organization’s permanent jobs.

Hiring candidates for temporary jobs can help you achieve short-term goals more quickly. Contract recruitment always involves finding experienced candidates to carry out the required tasks at an hourly rate.

Your organization should determine the right rate according to the job and its skills. Once you decide to pursue a candidate for a contract job, you need to consider seeking help from a contract staffing agency.

What are the 3 Benefits of Working With a Contract Recruiter?

1. Time Efficient

Contract recruiters can provide great value for your projects that need temporary candidates as early as possible. Contract jobs usually demand a quick start to finish the required tasks in a timely manner.

Partnering with a recruiting agency will cut short the process for you as they have their network and predefined procedures to follow.

2. Market Knowledge

They can also help define the average rate required for each job. After all, they have massive data and know well what works better and how to convince candidates to join you.

3. Future Projects

Once you collaborate with an agency, they understand your needs. Next time you need to fill in contract candidates in a new project, you will not spend time explaining and defining your job requirements. The staffing agency has managed already to provide you with the right team and they can help you each time you need to get your job done.

What is Contract Recruitment Commission?

Same to paying an hourly rate as per the temporary job duration, contract recruiters can receive a commission for hiring candidates for you. Commission-based recruitment is cost-efficient and can guarantee a great return on investment for the commission they will receive.

Instead of hiring a permanent recruiter to join your team on a full-time basis, partnering with a contract recruiter can be beneficial as you only pay for the recruiter when needed only.

Your organization can set up key performance indicators for the recruiter to assess their performance and success.

Contract recruiters’ KPIs can include:

  • Staffing a certain number of candidates for screening.
  • Finding a certain number of qualified calibres.
  • Timeframe expected for the hiring process to be complete.
  • Interview-to-job ratio.

Commission Strategies to follow with your contract recruiter

1.Contingency

This type of commission is agreed to be paid after completing the task, that is recruiting the candidate. It can take many forms such as fixed commission or a percentage of the salary of the employee. The contingency commission increases the motivation for the recruiter to fill in the position with the right candidate to receive the agreed commission.

2. Retainer

On the other hand, this type of commission is provided beforehand. Paying the commission upfront for your recruiter can encourage them to finish their recruiting process as early as possible to help you and start on a new talent hunt.

3. Container

It is a combination of the two methods. Container commission will be split into two parts, the recruiter will receive the first half before starting the hiring process. Once the candidate is hired, they will receive the new half. This ensures the urge of completing the hiring process and the efficiency of the screened calibers to choose from them.

The Difference Between Permanent Recruitment and Contract Recruitment

Permanent recruitment is when your organization needs a full-time candidate on a longer contract that can be renewed. As opposed to contract recruitment which is bound to project duration only. Each type can be suitable according to your needs:

Long-Term and Short-Term Jobs

If the position your organization wants to fill requires long-term commitment and has a certain plan, then choosing to find a candidate with a permanent contract should be your decision. Contract recruitment is suitable for short-term jobs that need immediate hiring.

Employment Benefits

Hiring a permanent caliber comes with a lot of benefits that suit the job’s nature. On the other side, candidates who look for freelancing and contract-based jobs usually combine more than one job or find it more convenient to go from one job to another frequently.

They will not need huge benefits, vacation time, paid sick leave, or taxes. It can be a great factor in the ROI of the company.

Training and Experience

The temporary candidate will not require training as well because you are searching for a candidate with a certain experience to fill in the positions as early as possible. The job itself will not dictate many responsibilities. In that way, you guarantee productivity from day one.

While permanent recruitment can also guarantee experience and excellent work as well, it usually needs the training to ensure the job is done right. Permanent jobs have more responsibilities and tasks to be carried out. Permanent candidates can’t be productive early on their joining date.

Daily Working Hours

Contract recruited talents can work a full day from 9 to 5 or part-time. They can be part of your time remotely or on a freelance basis. On the contrary, permanent jobs usually start from 9 to 5. They can be carried out remotely but not on a freelance basis.

In Conclusion:

Whether you need to hire for permanent jobs or contract jobs, you can depend on a recruitment agency through which they can help you find a suitable candidate. They have the expertise and network of qualified candidates that can help you finish your projects.


Why Contract recruitment?

Hiring candidates for temporary jobs can help you achieve short-term goals more quickly, Choose Your Way.


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