The Pro’s and Con’s of Contract Recruiting 

What is contract recruiting?

Contract recruiting is a flexible recruitment solution for corporate HR and Talent Acquisition teams. This recruiting method is oftentimes the best solution for those looking to augment their corporate recruiting initiatives.

Why do companies hire contract recruiters?

Contract recruiters add flexible recruiting bandwidth for a defined period to meet corporate hiring goals. Typically, the need for contract recruiting results from one (or more) of the following areas:

• Increased hiring demands (ex. new funding, growth)
• Hiring fluctuations (ex. seasonal fluctuations, unpredictable hiring)
• Temporary back-fill (ex. maternity leave, medical leave, sabbatical)
• Special projects (ex. software implementation)
• Corporate consolidation (ex. corporate relocation, mergers & acquisitions)

What are the advantages of hiring a contract recruiter?

Occasionally, even well-established companies, HR and Talent Acquisition teams need to enlist the help of external resources to assist with their recruiting and hiring needs. That being said, take a look at the list below to determine if contract recruiting may be the remedy you seek.

1. Contract recruiters allow HR and Talent Acquisition teams to ensure legal, policy, and SLA compliance with company standards.
2. Contract recruiting allows HR and Talent Acquisition leaders to govern and oversee the performance of a temporary recruiter based on quantitative data (activity metrics).
3. This recruitment approach provides a flexible, interim solution to an immediate need. It should also quickly resolve hiring challenges & objectives.
4. In addition, there is little need for training and development when partnering with an experienced recruiter.
5. Ease and simplicity of contract initiation or termination. Contracts can be easily approved and terminated based on demand.
6. Provides a convenient approach to addressing a productivity gap resulting from a leave of absence, unexpected attrition, increased hiring volume, special projects or volatile hiring swings.
7. Lastly, this approach is a cost-effective option for managing recruiting spend by limiting the need for expensive agency fees and FTEs.

What are the disadvantages of hiring a contract recruiter?

1. Rates have increased steadily over the years. While it can be an effective approach to managing a temporary need, high hourly rates often exceed full-time salaries and benefits.
2. Increased chance of contract recruiter turnover due to full-time job offers, or more lucrative contracts.
3. The soft costs associated with hiring contract recruiters. The onboarding process often requires the involvement of IT, legal contracts, and managerial oversight.
4. The screening process for contract recruiters is frequently less scrutinizing than hiring a full-time employee, which can lead to hiring someone requiring more oversight.
5. While contract employees are not FTEs, the employer’s risk for workers compensation, co-employment, harassment, discrimination, poor performance, fraud, security, and workplace conflict remains.

Are there other recruiting solutions to help me address hiring challenges?

YES! Recruitment Process Outsourcing and candidate sourcing projects can be effective alternatives to hiring contract recruiters. This approach can be provided affordably and on a fractional or full-time basis. Check out our blog for more information about recruitment process outsourcing (RPO).

At Reputable Recruiting, we provide a suite of talent delivery models. Our solutions are custom tailored to meet a variety of recruiting and hiring challenges. We do this by deploying a world-class recruiting tech stack that allows our recruiters to get more done in less time. See what others are saying about Reputable Recruiting on Google. If you’re ready to take your recruiting process to the next level, get in touch today!