Contingency Recruiting

Meaning & Definition

Contingency Recruiting refers to hiring someone through a recruiting agency where the agency gets paid only upon the successful filling of a position. They work on open positions without requiring any payment until the candidate has started working for the organization. This method is widely used for both medium and volume hiring.

Important features of Contingency Recruiting 

• It helps reduce recruitment costs by reducing initial expenditures made by employers.
• Provides recruiters with multiple ways to recruit candidates at an expedited pace.
• Ideal for times when you need to hire employees quickly and in high volume.
• Recruiters are motivated to close candidates quickly because they want to increase their commission rate.
• Flexibility is provided because you will not be tied to long-term contracts.

Legal Considerations

While there are currently no laws regulating contingency recruiting in India, recruitment companies are still required to adhere to the terms of their contracts; comply with applicable country-specific labour laws; pay Goods and Services Tax (GST); protect candidate privacy; and conduct themselves in accordance with data protection laws.