Search Firms/External Recruiters
Search firms are hired by organizations to find employees for them. They earn income either on a retainer or when they place a candidate. Search firms split into two main types of agencies: Contingency and Retained Recruiters.
Some companies, work as both contingency and retained recruiters, depending upon the needs of the company they are doing the search for.
1) Contingency Recruiter
When a job candidate gets hired, the recruiter gets paid. That’s how it works for contingency recruiters. Their fee is ‘contingent’ upon one of their candidates being successfully hired. So if a contingency recruiter gets you a job, he or she is paid either a flat fee or a percentage of your first year’s salary by the company that hired you.
Remember, recruiters are NOT working for you — they work for the client with the job opening. However, if you’re a strong candidate and the right fit for the position, then they’ll work hard to get you in the door.
2) Retained Recruiter
A retained recruiter has an exclusive relationship with an employer. They are hired for a specific period of time to find a candidate for a job, generally for senior-level positions in a company or for positions that are difficult to fill. They are paid expenses, plus a percentage of the employee’s salary, regardless of whether the candidate is hired. As a jobseeker, you don’t have to pay a fee. Retained recruiters work very closely with the client to find the best person for the job with exactly the right skill set and experience.
3) Corporate Recruiters
Corporate Recruiters work in-house for a company’s HR department and are paid a salary and benefits just like any other employee. They often have titles such as HR Manager or Hiring Manager. Their job is to find new employees for the company they work for — usually large companies with a lot of hiring needs.
4) Temporary / Contract Staffing Agency
Temporary (temp) agencies find employees to fill temporary jobs for their clients. Temps are often hired when companies have rush, short-term projects, for seasonal increases in business, or to cover vacations or illnesses. When a temp agency places you in a position, they pay all your wages, taxes, insurance and benefits and charge the employer an hourly rate for your time. Many temp agencies are set up so that if an employer wants to hire a candidate full-time who’s worked for them as a temp, the agency can handle that as well.
5) Outplacement Agency
If you lose your job because you were downsized by your company, you may be referred to an outplacement agency. Many times the employer will hire an outplacement company to help their recently downsized workforce find jobs. Outplacement agencies provide career counselling, along with assistance on resume writing, interviewing skills, and job hunting. Once again, there is no fee to you as a jobseeker.