HR Glossary

Contingency recruiting

What is contingency recruitment?

Contingency recruitment is a type of hiring arrangement where an organization only pays a recruitment firm when it successfully places a candidate. In this situation, the firm and the organization share the same amount of risk to hire the right candidate.

How does contingency recruitment work?

The organization provides job requirements and expectations to one or multiple recruitment firms. Each agency then sources, screens, and submits candidates who fit the criteria. The organization interviews these candidates and selects the best match. Only the agency responsible for the hired candidate receives payment (usually a percentage of the new hire’s annual salary).

Why does an organization use contingency recruitment instead of having the HR team look for candidates?

• Access to a larger talent pool

  Contingency recruiters often have wide networks, active candidate databases, and insider access to passive talent.

• Specialized hiring expertise

  Some roles (especially technical, senior, or niche positions) need very specific skill sets. Contingency agencies often specialize in certain industries or job types, giving them better insight.

• Time-saving for internal HR

  Internal HR teams juggle tons of responsibilities, including payroll, training, employee relations, and compliance, so contingency hiring takes a big task off their plate.

• Bulk hiring needs

  When there’s sudden expansion or high turnover, contingency recruiters help fill multiple roles quickly without overwhelming the HR department.

What are the advantages of contingency recruitment? 

• Performance-based payment: 

  Organizations only pay when the position is filled, making it cost-effective and low-risk.

• Access to multiple recruiters: 

  Engaging several agencies increases the talent reach and improves the odds of finding a strong fit.

• Faster turnaround: 

  Competitive urgency between agencies often leads to quick candidate submissions and faster hiring cycles.

• Flexibility: 

  Ideal for roles that don’t require executive-level search or confidentiality.

What are the disadvantages of contingency recruitment?

• Reduced commitment: 

  Since agencies aren’t guaranteed payment, they may prioritize faster wins over deep cultural fit or long-term retention.

• Candidate overlap: 

  Multiple recruiters working on the same role can lead to duplicate submissions or confusion in tracking applicants.

• Quality vs. speed trade-off: 

  The race to fill positions quickly might result in a less thorough vetting process.

• Limited relationship-building: 

  Contingency recruiters may not invest as much in understanding company culture compared to retained partners.

What should you look for in a contingency recruitment firm?

• Industry specialization: 

  Look for firms that understand your sector and the specific skill sets required.

• Recruitment tools and network: 

  A firm’s database, sourcing methods, and tech-driven tools (like ATS or LinkedIn Recruiter) should be strong.

• Screening process: 

  Ensure they assess technical ability, behavioral traits, and cultural fit, not just résumé keywords.

• Reputation and ethics: 

  Check client reviews, success ratios, and transparency in candidate handling to ensure credibility.

How do you choose a contingent recruiter?

• Evaluate experience and metrics: 

  Review their years in business, average fill times, and client retention rates.

• Check communication style:

  A good recruiter maintains regular updates, feedback loops, and candidate follow-up.

• Assess cultural fit: 

  Choose recruiters who understand your company’s values, not just the job description.

• Ask about candidate support: 

  Agencies that help candidates through onboarding often deliver smoother placements.

What is the difference between retained recruitment and contingency recruitment? 

Retained recruitment is when a company pays a recruitment agency an upfront fee to exclusively handle the hiring for a specific role, usually for senior or specialized positions. Contingency recruitment, on the other hand, is when multiple recruiters can work on the same vacancy, and the company only pays the recruiter who successfully places a candidate.