April 23, 2020

Recruiting Contracts: Customized Terms to Fit Your Staffing Needs

by Chris Winterboer

Capstone’s article Recruiting Contracts: Your Guide For Pricing, Terms, & Conditions breaks down terminology and outlines the ABCs of a recruiting contract to help you select a recruiting partner. Even with that understanding, its important before you sign an agreement with a search firm that you explore ways to customize the terms. Each hiring project is unique, so we recommend that you tailor terms and conditions to fit each search. Looking at contracts on a case-by-case basis ensures a good use of your money and time as well as increases your success partnering with a search firm.

Does exclusivity increase hiring success?

Not all searches require working with just one partner, but it sure can come in handy in many cases. You can accomplish this through more than one avenue as well.

  • You can place a time frame on a contingency contract where you will only work with one firm. It can range from 45-90 days depending upon the project.
  • You can also work through a contained or engaged arrangement that provides some flexibility with the pricing while still providing the consistent message up front to candidates that you are only working with one firm.

Is price my top priority?

While I understand that money is a huge piece of the hiring puzzle, its up to you if the recruiter’s placement percentage is your first priority or a secondary concern to other contract factors. Like any other business transaction, there is an element of, “You get what you pay for.”  Work these questions into a discussion with the recruiter aiming to find a fair compromise between both parties on price.

  • Why is the position open in the first place?
  • What work have you done up to this point to recruit on your own?
  • How many people are involved with the search process?
  • How quickly do I want to complete this project?

What are non-traditional solutions?

Contingency or retained contracts are a foundation that help you build in non-traditional recruiting solutions which include:

  • Training and development
  • Marketing/advertising resources
  • Pipeline building
  • Data and compensation analysis
  • RPO (Recruiter Process Outsourcing)

To create a structure that works for all parties you want a separate agreement to outline costs of these products and services. This is less about taking something “off the shelf” and instead having multiple conversations to help client accomplish their goals.

The bottom line is that a lot of recruiters want to slam a truncated contract down your throat taking advantage of you in a time of need. It could be a replacement, a key executive hire, a perpetuation plan for a retirement, or many more categories. No matter the circumstances, when that time comes, it is good to be educated on what’s available in a contract so that you can choose not only the right agreement for your search(es) but also the right long term partner in a search firm.

To learn more about our approach to negotiating contracts, please reach out directly or explore our website!


You may also like