April 1, 2019
Recruiting Contracts Designed For Insurance Organizations
by Mary Newgard
We don’t recommend the ‘one size fits all’ practice. Recruiting agreements should be designed specifically around your hiring needs which can change at least every year and sometimes far more frequently. You should expect to have more than one type of recruiting agreement on file with a search firm to address distinct categories:
- Executive and Management
- Sales and Business Development
- Client Management/Technical Roles
- Contract/Contingency/Remote Workers
TYPES OF INSURANCE RECRUITING CONTRACTS
Direct Hire Solutions assist insurance organizations with an extensive candidate search and selection process to fill critical permanent hiring needs. Direct hire contracts are constructed in three different formats:
The ‘window shopping’ or ‘buy the drink as you go’ approach, it’s great for general or mid-level insurance positions (client service, claims and underwriting) or for companies with infrequent hiring activity.
Under a contingency search the firm only earns a fee if it identifies and presents a candidate hired by you. Exclusivity is only considered on a case-by-case basis. Specifications tend to be less structured – more fluid – allowing for a greater breadth of candidates who could potentially “fit”. More effort though is expended by the client in assessing a candidate’s match with the job. The firm’s fee is a percentage of the candidate’s first year compensation.
A great option for a ‘defined’ search; there is a sense the search is set apart from all other openings. Characteristics of the search also include a sense of urgency, a specific candidate profile and longer recruiting cycles. Designed for high-level, senior roles and producer recruiting.
A hybrid arrangement that borrows elements of contingency and retained contracts, you contract the recruiting firm as the exclusive recruiting partner for a specific project (s) or for bevy of positions chosen for a set period of time. A fully customized agreement, you select terms that make sense based on hiring volume, budgets and internal recruiting resources. An engagement fee initiates the partnership; the remainder of the recruiter’s fee is realized once a hire is completed.
Executive level recruiting at it’s finest.
Under a retained search you hire a firm to conduct a search with detailed definition on the services provided, outcomes and responsibilities for both parties. Usually this is designed for a specific search with such unique characteristics that it warrants a level of engagement far beyond the customary recruiting activity of either party. An initial portion of the fee, known as the retainer, is due at the time of acceptance of the assignment. The remaining fee is broken into installments through the life of the retained agreement which concludes either at the end of a specified project or when a candidate is hired.
Contract Employee Solutions
Insurance professionals when you need them.
Fill your “NOW” needs with experienced insurance professionals nationwide without risk to your business. It’s a cost effective solution for project-specific labor services, alleviating logistical challenges or fulfilling interim positions.
Recruiting Process Outsourcing (RPO)
Rather than your internal staff (Human Resources and division leaders) construct and execute recruiting, a third-party recruiter becomes your in-house talent acquisition group.
Recruitment Process Outsourcing (RPO) is a model clients leverage based on factors like scalability, process improvement, capability and cost. Hiring demands fluctuate based on volume, seasonal factors, retention and budgets. Turning to a RPO solution offers you the ability to relinquish part or all of the recruiting function to an outside vendor with more ability to leverage internal resources. The contract is fully customizable and typically written on a twelve-month basis. It’s a cost effective strategy that reduces expenses and has flexible payment options.