Popular Recruitment Types and Why it’s Important to Know the Difference

To maintain a growing business’ success, you’ll need a strong team alongside you. Employees come in all shapes in sizes. Not only physically, but this also applies to the type of employee that they will be. Some may be highly adept in their field and demand specific requirements, some may accept a role solely for the paycheck, while others may be using your organization to build their professional development goals. In other words, finding and attracting the right talent for your needs can be a complex and drawn-out task.

The long process of finding the ‘perfect hire’ can take away time from those binding obligations which require your ongoing attention. This is why many growing (and established) organizations turn to a recruitment agency for support. Not only do they spare hiring managers the agony of sifting through resumes, but they also handle the screening and scheduling of all viable candidates.

When exploring a partnership with a recruitment agency, it’s important to note that not all recruiters are the same. First, you’ll want to be sure to select the right type of recruitment approach based on your most urgent needs. This leads to the delivery of well-fitted candidates and a potential long-term partner for your future hiring objectives.

While many recruitment types may overlap in their capabilities and processes, there are still significant distinctions worth noting. Rather than going through site after site, we’ve done the work for you, (saving you more of that precious time) by compiling a list of the 3 primary types of recruitment, and why they’re important.

1. Retained Search

Retained search clients typically choose one agency that will lead their talent search efforts. This is considered an exclusive partnership since an upfront fee is required to get started by the firm. The first payment serves as a commitment to one another in regard to the delivery of qualified candidates for the vacant role. The retained firm will work side-by-side with in-house hiring staff (human resources department, executive management, etc.) to cohesively reach a shared goal.

A clearly defined profile including the required experience, characteristics, and qualifications of the client’s ideal hire is then established. The inner workings of the company, its strategic objectives, how a company is structured, and where the person(s) will fit inside the organization are all taken into account before beginning the search. The personalized service provided by the firm results in an intimate and quality-focused experience for the client. Clients are presented with candidates who aren’t only incredibly talented but also meet the cultural guidelines as well. This practice continues until a placement has been made due to the retainer fee and standard guarantee offered by retained search agencies.

Just as the client has made a commitment to the firm, the firm’s time and resources are also deeply invested in understanding a client’s business. While this practice certainly leads to repeated success, it also limits the number of clients served at once.

2. Direct Hire

Direct Hire is another recruitment type to consider for those employers looking to fill long-term, payroll positions. The positions are full-time and will usually include benefits such as PTO, health insurance, retirement plans, etc. Direct Hire candidates are either recruited by an agency or directly by a company. When using an agency to fill a position, it’s known as direct placement hiring. The agency will carry out all recruitment tasks until hired by an employer.

Direct hire agencies will apply their wide pool of applicants from various networks to source and screen those candidates that are looking for a permanent role. Once deemed a good fit, the recruitment staff will coordinate the scheduling of interviews with your team, thus, eliminating a majority of the tedious tasks associated with hiring. In contrast to Retained Search, there are no upfront fees with Direct Hire. Instead, there is only a 1-time fee which is a percentage of the hire’s salary. This fee is paid to the firm after the candidate has been placed. As a result, this releases the client from any commitment to the direct hire agency. They are free to have multiple recruiters working simultaneously to fill a role since the starting cost is $0.

3. Staffing

When considering a partnership with a staffing agency, it’s important to evaluate the scope of their work in the recruitment world. Staffing is most useful to those companies looking to fill short-term roles. This includes those niche workers intended to support your team by providing a particular service during a time of need. The company requesting service will determine the length of employment necessary for the vacancy.

Staffing agencies use their pool of active candidates to find clients’ qualified employees who can carry out short-term roles. If the agency doesn’t have a readily available and suitable candidate on hand, it will advertise the position on job boards such as Indeed, LinkedIn, etc. The staffing agency will then fully screen the candidate. This process includes resume reviews, background checks, and necessary preparation for the role. The agency also manages contracts, taxes, payroll, and benefits. Because of the conveniences a staffing agency provides, the associated costs are higher. These agencies can charge anywhere from 25% to 100% of the hired employees’ wages.

Selecting the Best Recruitment Type for Your Hiring Needs

The similarities and contrasts between recruitment types help demonstrate the importance each approach plays in streamlining the hiring process. Convinced a recruitment partner is the next step for your growing organization? Be sure to evaluate your long-term hiring goals, requirements, and resources when choosing a recruitment process. To avoid disappointment or lack of results, we suggest taking time to research firms in your recruitment field. By selecting just any partner, your expectations around the level of service or timeline may be unmet.

Glades Talent makes it our mission to go above and beyond traditional recruitment. Specializing in both Direct Hire and Retained Search (serving a variety of industries), we exceed the standards our clients set. Understanding that the requirements our clients set vary drastically is a great starting point. This allows our recruitment team to deliver a custom-fit solution to your urgent hiring initiatives. Request a personalized solution for your team by connecting with our team of experts today!