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Recruitment Glossary

Contingency recruitment

Contingency recruitment is an agency arrangement in which the client generally owes a recruitment fee only when an introduced candidate is hired or another fee-triggering event in the agreed terms occurs. The agency usually carries the delivery risk without an upfront search fee.

Recruiter Focus

Recruiters must understand the signed terms, vacancy authority, fee basis, candidate introduction rule, ownership period, replacement or rebate conditions, exclusivity, duplicate process, and which party may represent the candidate. Payment structure never removes the need for accurate qualification and candidate consent.

Why Contingency recruitment Matters

The model lets a client access external recruitment without committing the full fee before a result. It can also encourage several agencies to race towards submission, creating duplicate CVs, shallow briefing, candidate pressure, and disputes about introductions. Clear terms and disciplined quality controls protect all parties.

Terms Recruiters Commonly Compare

Retained recruitment

Contingency fees are commonly tied to a successful hire. Retained recruitment includes committed staged payments for an agreed search process and usually a more exclusive or dedicated mandate.

Temporary staffing

Contingency permanent recruitment introduces a person who is then employed by the client. In temporary staffing, the agency or another supplier may engage and pay the worker while supplying their services to the hirer.

Recruitment Example

A manufacturer briefs three approved agencies on a plant manager vacancy. Each receives the same role, range, location, timeline, evidence criteria, and submission format. One agency introduces a candidate with documented permission and the client hires them. The fee is calculated from the agreed remuneration definition, while an earlier speculative CV with no vacancy consent is handled under the duplicate clause.

Implementation Playbook

  • Agree written commercial terms and the specific vacancy authority before beginning work.
  • Run a full intake despite the absence of an upfront fee, including role evidence, pay, process, feedback commitment, and candidate proposition.
  • Obtain candidate consent for the named opportunity and record what information was shared.
  • Define valid introduction, duplicates, prior applicants, ownership duration, fee calculation, start date, rebate, replacement, and transfer circumstances.
  • Measure relevance, interview conversion, candidate experience, starts, and fee outcomes rather than rewarding submission speed alone.

Common Mistakes

  • Sending a CV to establish ownership before confirming the candidate’s interest and representation consent.
  • Starting work from an informal vacancy message while contractual terms remain unresolved.
  • Assuming contingency means non-exclusive, unlimited agencies, or no client obligations.
  • Calculating the fee from a different compensation definition than the one written in the agreement.
  • Promising a rebate or free replacement without checking its eligibility conditions and time period.

Metrics to Track

Consented submissions Submission-to-interview ratio Duplicate submission rate Placements started Rebate or replacement incidence

Questions Recruiters Ask

Does contingency recruitment mean no fee is ever due unless the candidate starts?

Not always. The signed terms define the fee trigger and may address engagement through another route, cancellation, transfer, or related employment. Both parties should review the actual agreement.

Can several agencies work on the same contingency vacancy?

Yes, if the client’s agreements permit it, but it is not a defining requirement. A client can use an exclusive contingency arrangement or limit work to an approved supplier group.

Who owns a contingency candidate?

People are not owned. Commercial terms may grant an agency a time-limited fee claim for a valid introduction, while the candidate retains the right to understand and consent to representation.

Sources and Review

ATZ CRM Recruitment Editorial Review · Reviewed 2026-08-05

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