top of page
  • laurenjelliot

Exploring Different Types of Recruitment Models for Corporation Hiring

Updated: Jan 3

Recruitment is a fundamental function for businesses of all sizes and industries. Finding and hiring the right talent is crucial for an organisation's success, and the approach you take can significantly impact your ability to attract and retain the best candidates. In this blog, we'll delve into various recruitment models to help you choose the one that best suits your business needs. An effective recruitment business model will:

- Provide more accurate forecasting

- Making planning for future growth more effective

- Improve your company's cost efficiency

- Increase quality talent acquisition

1. Contingency Model:

In this model, recruitment agencies are paid only when they successfully place a candidate. There are no upfront costs; payment is contingent on a successful hire. While the contingency model may appear to carry substantial risks, it also offers the potential for substantial rewards. If you excel in your industry and possess the capacity to adapt swiftly, you can achieve significant financial gains in a short period. Nonetheless, contingent recruitment places significant reliance on the skills and responsiveness of top-tier recruiters. When aiming to expand your business, locating individuals with these attributes may prove to be a challenging endeavour.


- Cost-effective with no financial risk.

- Wide candidate pool due to competition among recruiters.

- Ideal for quick hires and open positions.


- Potential emphasis on quantity over quality.

- Limited commitment to client's long-term needs.

2. Retained or Executive Search:

How it Works: Companies engage a retained search firm to find top-tier executives and leadership talent. This model is high-touch and includes a comprehensive search process. Typically, this model involves three payments. The client initiates the search with an initial payment, makes another upon receiving the candidate shortlist, and a final payment when an offer is accepted, adjusted to match the candidate's final basic salary. Winning retained work isn't as challenging as some recruiters believe. By asking the right questions and demonstrating your value, process, methodology, and credibility, you can effectively showcase your ability to meet your client's needs.


- Exclusive focus on your search.

- Deep industry knowledge and network.

- Customised solutions for executive roles.


- Higher upfront costs.

- May not be suitable for mid-level or entry-level positions.

3. PSL (Preferred Supplier List) or Volume Recruitment:

How it Works: This model is commonly favoured by sizable corporations or organisations with steady, high-volume hiring demands. Here, companies establish a roster of preferred recruitment agencies. This arrangement enhances the likelihood of agencies successfully filling positions while fostering a healthy level of competition. To secure a spot on a Preferred Supplier List (PSL), agencies must typically participate in a tendering process, demonstrating their value to the business. This entails showcasing a proven track record and expertise in the field. Agencies often agree to reduced fees in exchange for a high volume of roles from the client.


- Efficient and streamlined process.

- Expertise in volume recruitment.

- Maintains quality while scaling up.


- Potential for supplier conflicts.

- Limited adaptability for niche positions.

4. Exclusive Search:

How it Works: Organisations exclusively partner with a single recruitment agency for their hiring needs. This is a dedicated and customised approach, often for specialised positions. If the recruiter can’t fill the role by their agreed timeline, the client has the right to talk to other recruiters who can look at filling this position.


- High level of commitment and focus.

- Tailored solutions for specific roles.

- Strong cultural alignment.


- Higher upfront costs.

- May lack the breadth of candidates available in the open market

5. RPO (Recruitment Process Outsourcing):

RPO occurs when a client delegates the entirety of their talent acquisition function to an external recruitment firm. In an RPO arrangement, the external team typically embeds recruiters within the client's organisation, assuming responsibility for all talent acquisition activities. RPO represents a more integrated approach to managing recruitment operations. This dynamic shifts the role from traditional recruitment to more of a consultancy, fostering a strategic, programmatic partnership that transcends transactional interactions.


- Scalable and cost-effective.

- Expertise in recruitment.

- Access to advanced technology.

- Reduced administrative burden.


- Limited control over the process.

- Potential misalignment with company culture during early integration.

Finding the Right Fit for Your Business:

Selecting the ideal recruitment model is a critical decision. Your choice should align with your business's unique needs, budget, and long-term hiring goals. Often, a combination of these models may be the best approach to adapt to different hiring scenarios.

Remember that the right recruitment model can significantly impact your ability to attract,

acquire, and retain top talent. It's a crucial component of your overall talent acquisition strategy, so it's essential to make an informed decision that best suits your organization's culture and objectives.

By understanding these diverse recruitment models, you can make a more informed choice and find the perfect fit to build a talented, committed workforce that drives your company's success.

21 views0 comments

Recent Posts

See All


bottom of page