When And How To Choose A Contract Recruiter?

Gone are the days of back-office, hidden Human Resources (HR) departments in companies. When all HR officers had to do was keep track of sick days, handle the paperwork, and see if salaries were disbursed. Today, in this fast-paced, technologically advanced digital world, everything from the way businesses operate and market function has changed, and so has HR, turning into a strategic function.

However, people - be it talent on the lookout for jobs or recruiters hunting for the right employees - remain at the center of it all.

With the ever-changing industry dynamics, business requirements, and talent trends, companies are turning to contract recruiters to cater to their recruitment needs effectively.

What Is A Contract Recruiter? 

A contract recruiter is a specialist HR or talent acquisition professional hired temporarily to source, screen, communicate, and recruit candidates on behalf of the company.

Depending on the contract terms, the contract recruiter’s role at the company will end after they’ve fulfilled the obligations in a certain agreed-upon time period.

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How Does Contract Recruitment Work?

Contract recruiters operate either on an agreement basis in the form of hourly wages or fixed projects for the duration of the contract.

Consequently, the terms and conditions of their final contract will include the manner, timing, and amount of payments.

Typically, a retainer, a percentage of the recruitment price, is given to contract recruiters up front. However, another amount is paid during the hiring process as well as when candidates have been chosen and hired.

Although some contract recruiters work as independent contractors, most are employed by recruiting agencies. They are available for hire through employment agencies, online networks, or freelance websites.

Role Of A Contract Recruiter

Although we’ve broadly mentioned the role of a contract recruiter, the position’s responsibilities differ according to industry and firm. Most businesses, however, engage contract recruiters to:

• To develop candidate pipelines using applicant tracking systems (ATS) and other recruiting technologies, i.e analytics, and artificial intelligence (AI).
• Maintain and develop favorable links with professional groups that can provide applicants.
• Source eligible candidates through networking, databases, job boards, internet communities, and technology centers.
• Create an ideal hiring strategy in collaboration with in-house HR personnel and stakeholders.
• Conducting and supervising candidate interviews
• Follow up with candidates following interviews to inform them of their selection for the role.
• Assist in the onboarding of new employees
• Salary and benefits negotiation with candidates who have been offered positions.
• Prepare hiring progress reports and other quantitative data.

Regular Recruiter Vs. Contract Recruiter 

All right, you’ve seen the major roles of a contract recruiter. But how are they any different from those of a permanent recruiter?

Well, the easiest way to learn the distinction between the two is to compare them directly.

Contract recruiting is often regarded as a more flexible strategy because it is less burdensome for the employer and allows workers to pursue the most lucrative possibilities and transition between firms.

On the other hand, permanent employees are entitled to perks such as termination pay that are not available to contract recruiters. Permanent employment is ideal when there is a need to develop a strong team identity or manage sensitive material.

That begs the question, when should you hire a contract recruiter?

READ MORE: How to Become a Freelance Recruiter in 2023

When Should You Opt For A Contract Recruiter

Here are some situations when you should start looking for a contract recruiter:

1.Cost Savings 

To begin with, contract recruiters are less expensive to hire.

Unlike in-house employees, you only have to pay them for the duration of their contract, which can be as short as you desire.

There will also not be the need to invest in employee perks such as gym memberships or learning opportunities because they will only benefit your company for a limited time.

So, if you’re looking for a way to cut recruitment costs without pausing your hiring, employing a contract recruiter is your way to go.

2.Faster Hiring

Spending long hours every week on sourcing can take away time from other activities and obligations for a recruiter, resulting in delays.

However, engaging a contract recruiter might result in speedier and more efficient results because, unlike a "normal" recruiter, this person's sole purpose is to recruit for your company.

They can focus their full time and energy on recruiting, hence speeding up the hiring process. So if you need to hire people quickly, you might want to look into a contract recruiter.

3.Cater To Increased Hiring Needs

It is normal for a lot of tech companies (or any rapidly growing company, for that matter) to receive new investments and expand rapidly.

However, that’s not the only reason for increased hiring needs. It could also result from seasonal fluctuations - or key employees going on extended leave - requiring the organization to hire replacements urgently.

Contract recruiters are ideal for firms that need to swiftly increase their workforce as many recruiters who are available for short-term engagements have the experience, network and niche expertise needed to tackle the hiring needs. Moreover, if your in-house team lacks the time, skills, or resources to successfully and efficiently hire during peak season, contract recruiters can help.

4.Special Projects 

If there’s a rare or unique position for which obtaining qualified candidates is difficult, a company can approach a contract recruiter.

This is because some contract recruiters have the skills and knowledge to identify the right candidate exactly in line with the requirements, whatever they may be.

5.Fresh Perspectives

Last but not least, if you are looking for fresh perspectives, contract recruiters might help you identify issues with your hiring approach and company processes.

They can use their specialized knowledge to recommend fresh approaches to attract and retain talent.

For instance, a contract recruiter that you separately hire might be an expert in using ATS and analytics-based tools, which a lot of internal personnel aren't familiar with.

How To Choose A Contract Recruiter

Now that you know when to hire a contract recruiter, it's time to learn how to choose one.

Here are some broad tips that you should keep in mind:

1.Select The Type Of Contract Recruiter

When deciding which category of contract recruiter best meets your needs, take into account the following:

Budget

Using a recruitment agency typically results in higher charges. A freelance recruiter is generally the best option if you have straightforward positions to fill and a limited budget.

Intricacy Of Candidate Positions 

If you need to fill a lot of senior and strategic roles, consider employing recruitment professionals through recruitment firms.

Agencies can also divide the hiring process into stages and send the best recruiter to each stage. Recruitment agency consultants are also frequently of higher quality because they have been pre-screened for technical and soft abilities.

In contrast, freelance sites do not vet their recruiters, so you won't know what they're capable of unless you carefully test them.

Role 

Ask yourself why you require a contract recruiter.

A freelance contract recruiter can handle the work if you merely need someone to source and interview prospects.

However, if you require the recruiter to manage prospect pipelines and develop new hiring methods, you should consider using an agency.

2.Evaluate The Characteristics

One of the key advantages of hiring a contract recruiter is that they can free up time for HR to focus on their core responsibilities.

However, if HR were drawn into the hiring process that you had outsourced for a good cause, it would defeat the purpose of choosing a contract recruiter.

To avoid this, ensure that the contract has solid foundations:

Market Understanding

When evaluating a suitable fit, consider the recruiter's understanding of your sector. A recruiter who specializes in the domain will already know where and how to find the prospects you seek.

They are also updated on industry trends and can provide new perspectives on your hiring procedure.

Knowledge Of Key Metrics

A contract recruiter passionate about analytics is someone you would ideally want to hire.

It goes beyond just how many candidates the recruiter finds. Equally important are other factors, including how long the new employee stays, how well they integrate into the company, and their level of job happiness.

You can rely on a recruiter who speaks numbers to bring in qualified individuals.

Experience

A qualified contract recruiter should have experience in your industry that can be verified.

Look for firms that the recruiter has experience with that are comparable to yours. What was the rate of success? What do former clients think of the recruiter?

There is a good possibility that the contract recruiter will fulfill your hiring needs if they have a successful track record.

3.Time To Interview Contract Recruiter

Once you’re done shortlisting the potential contract recruiters, it’s time to talk to them face-to-face.

You can start by asking the potential contract recruiter about their success rate in placing people; this one metric might reveal a lot about their competency.

You should also inquire about the prospects' success rate, especially in the circumstances similar to yours. For instance, you might be hiring due to an unanticipated growth period. Ask the recruiter if they have ever encountered a situation like this, and if so, how they tackled it.

Other questions that you can ask include:

• What experience do you have recruiting for this industry?
• What is your most noteworthy professional accomplishment?
• How will you protect the organization's private data?
• Have conflicts of interest ever been a problem for you? How were they resolved?
• How does this contract work?
• What are your rates?

Once you’re done conducting the interviews for prospective contract recruiters, you should compare their profiles to that of the ideal contract recruiter you were looking for. Hire the one that most closely fits your organization’s goals and financial constraints.

LEARN MORE: Recruiting a recruiter

RESOURCES: Interview Questions to Hire Recruiters

Takeaway

Contract recruiters are low-cost professionals that can help you fill job openings quickly.

If you need to be flexible to fulfill market demand, acquire candidates for unique roles quickly, or gain fresh perspectives, a contract recruiter might be what you’re missing.

If you want to hire contract recruiters for your firm efficiently, try for free Manatal.com, the leading AI recruitment software, today!