Learn more about the four most common talent recruitment business models, how they differ and the pros and cons each offers.

1. RECRUITING
CHOICES
MAKE SMART
HOW TO

2. You have recruiting options...
Different levels of
RISKSAND COSTS

3. Recruitment models
4TYPES OF

4. 43
21Contingency Contract
Recruitment
Process
Outsourcing
(RPO)
On-demand
RPO

5. PROSAND CONS
Recruitment models

6. Contingency Recruiters
Hiring company
pays a placement fee
for employees,
based on some
percentage of the
annual salary.

7. PROS
Contingency recruiters
• Fees are paid only when
positions are filled
• Do not task your
in-house resources
• No long-term contracts

8. CONS
Contingency recruiters
• Quantity of candidates
tends to supersede quality
• Fees are generally very
high, typically 20% of base
salary
• Success is not guaranteed
• Won’t perform strategic
tasks

9. 2
Contract recruiters
Hiring company
contracts recruiter
to work on a
temporary basis for
a set period of time
and payment rate.

10. PROS
Contract recruiters
• Avoids the overhead
inherent in having full-
time recruiters on staN
• Add manpower to an
internal recruitment staN
and can be easily managed
• Easier to on-board than
full-time recruiters

11. CONS
Contract recruiters
• Costs include supplying
tools and resources
• Struggle with some
requisitions
• Availability may be
limited
• Difficult to scale to meet
needs

12. 3
Hiring company
outsources the
entire recruiting
function to
specialists.
RPOs: Recruitment Process Outsourcers

13. PROS
RPOs
• Act as an extension of your
staN
• Can be highly cost-eNective
• Service level agreements
(SLAs) can help ensure
deliverables are met

14. CONS
RPOs
• Implementation is costly
and requires months of
groundwork
• Requires handing over
total control of process

15. On-demand RPO
4
Hiring company
outsources
recruiting function
to supplement HR
staK and pays on an
hourly basis.

16. PROS
• Easy to start and stop
• Services can be temporarily
suspended when hiring needs
decline
• No placement fees
• Potential to reduce cost/hire
• No upfront investment in
resources
On-demand RPO

17. PROS
• No infrastructure expenses or
overhead
• Team has access to array of
technology tools and resources
• Draw on a large database of
potential hires
• Easily engaged for candidate
pipelining, competitive research
and salary surveys
• Highly scalable
On-demand RPO
CONTINUED

18. CONS
• Operate oNsite
• Hourly rate fees begin
upon initiation of project
• Performance may suNer if
vendor outsources work
oNshore or to third parties
On-demand RPO

19. TO ASK...
Good questions

20. How much recruitment experience do you
have?
How large is your candidate supply pool?
Do you have experience with volume hires?
Can you scale to meet our needs?
Will you use your resources or require ours?
How up-to-date are your tools, processes
and technologies?

21. Meet
The Recruiting
Division
• On-demand RPO
• Zero upfront costs
• Easy to start and stop
• Scalable
• High performance
• Cost-eNective

22. CHOICE
RECRUITING
MAKE A SMART

23. more info free ebook
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Thank you. Happy hiring.