Contingency or Exclusivity - Which Recruitment Model is Right For You?

Contingency Recruitment

Contingency recruitment is the prevailing model of recruitment in the industry, but as with anything, being the most popular is not the same as being the best. In the contingency model, employers work with multiple recruiters to find their next hire. Only once the employment contract is signed with the successful candidate does the agency that placed them get paid.

The contingency model can work well in low-skilled job markets. As in other contingency-based businesses (such as estate agents), some recruitment companies that focus on this model create a marketplace, with lots of candidates and lots of jobs. They then play mix and match to place a candidate in a role that suits them.

However, in power electronics, SMPS, UPS and power semiconductors recruitment, a contingency-based model is not always the best approach. When you need someone with a very specific skill set, it can be best to give recruiters the time and space they need to find the right fit.

Benefits of the contingency model

  • You only pay when a candidate is placed, so you’re guaranteed a result.
  • For low-skill markets, the competition between agencies can help you find new hires quickly.
  • You receive broad coverage with each agency using its own search process.

Downsides of the contingency model

  • When speed is of the essence, the bar for a suitable candidate is often lowered.
  • Recruiters often assign fewer resources to the search in the knowledge that they may not get paid.
  • CVs are sent to employers by recruiters immediately to ‘lodge the candidate’ before another agency can. This inbox deluge means CVs can often be lost and inefficiencies are created for the employer.
  • Candidates can often be contacted by more than one agency. That can create a negative impression for the candidate and leave the employer with multiple CVs from the same individual.

Exclusivity Recruitment

The exclusivity recruitment model is where one firm recruits for the role exclusively and is paid when a candidate is hired. If the recruiter cannot fill the vacancy within an agreed ‘period of exclusivity’, the employer can then open up the opportunity to other recruiters.

This model of recruitment tends to be more effective for searching for highly skilled candidates, particularly in niche sectors such as electronics. That’s because it gives the recruiter more time to fine-tune their processes and methodology and actively search for new candidates rather than just tapping into their existing candidate database.

Benefits of the exclusivity model

  • Recruiters give more challenging searches the time and effort they deserve rather than simply moving on to other vacancies that can provide an easy win.
  • The recruiter’s fee is often less as they may be willing to discount their fee to get exclusive work.
  • Candidate CVs are sent over in batches (every Friday in our case) to make the process more efficient for employers.
  • Recruiters can commit their resources to finding the most suitable candidate for a role and focus on quality rather than quantity.
  • Candidates are only contacted by one recruiter and receive more of their time and attention. That improves their overall experience and perception of your brand.

Downsides of the exclusivity model

  • Narrower coverage could be a potential disadvantage in broader markets, but, as we operate in niche markets, we always provide total coverage.
  • The contingency model can sometimes be quicker. However, our operations in Asia and Europe mean the team at PER work 16 hours a day. With a team in the US soon to be operational, we’ll be able to offer ‘24-hour recruitment’.

Electronics Recruitment Your Way With PER Specialist Recruitment

Whether you want to find your next hire using the contingency or exclusivity model, we’re ready to work with you. We systematically search databases of companies with SMPS and power engineers and contact every relevant candidate. We also provide feedback on how many candidates we’ve messaged, how many have replied and why candidates have said no to help you respond to the market.

Find out more about the client journey or get in touch to discuss your vacancy with our team.